From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
In a positive turn of events, US stock futures remained steady after the release of the February jobs report. The report revealed that the US economy added 275,000 jobs, surpassing Wall Street expectations once again. However, there was a slight increase in the unemployment rate, ticking up to 3.9%, marking its first rise in four months.
Key Takeaways:
- Job Growth: The economy demonstrated robust job growth, reflecting resilience despite recent challenges.
- Federal Reserve Implications: The slowdown in job additions could prompt the Federal Reserve to consider interest rate cuts as a preventive measure against rising unemployment.
- Investor Sentiment: Investors are closely monitoring the data, anticipating the Fed’s response and its impact on the markets.
Market Outlook:
- S&P 500 and Nasdaq 100: Futures for these indices edged up shortly after 5 a.m. ET, signaling a positive start to the trading day.
- Dow Jones Industrial Average: Despite some initial weakness, the Dow was poised to shed about 40 points.
- London’s FTSE 100: The blue-chip index experienced a 0.4% decline in morning trading.
- Chipmakers: AI darling Nvidia continued its winning streak, rising 3% in premarket trading in New York.
Investors will closely watch the non-farm payrolls report, which tracks the number of jobs added last month. Economists predict a slowdown from 353,000 to 200,000 jobs, potentially influencing the Fed’s decision on interest rates2. Fed Chair Jerome Powell emphasized the need for more data and a sustained cooling of inflation before any rate adjustments.
As the markets open, all eyes are on the employment data, shaping the trajectory of financial decisions in the coming days. Stay tuned for further updates!
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