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...
S&P 500 Futures Retreat from 6,000 Milestone as Post-Election Rally Eases
Premarket Update: The S&P 500 futures have dipped below the 6,000-point mark, cooling off after a significant rally driven by Donald Trump’s presidential election victory and a recent interest rate cut by the Federal Reserve.
On Thursday, the S&P 500 futures surpassed the 6,000 milestone for the first time, buoyed by expectations of a more business-friendly regulatory environment under Trump’s administration and the Fed’s 25 basis point rate cut. However, the momentum has slowed as traders digest the implications of Trump’s proposed fiscal policies, which include expansive spending plans and potential tariff hikes.
Despite the slight pullback, the overall market sentiment remains positive. The Dow and S&P 500 are on track for their best week in nearly a year, while the Nasdaq is set for its best performance in two months. Investors are also keeping an eye on upcoming economic data, including the University of Michigan’s preliminary consumer sentiment survey for November and a speech by Federal Reserve Board Governor Michelle Bowman.
Michael Brown, a senior research strategist at Pepperstone, noted that strong earnings and economic growth, coupled with the Fed’s supportive stance, are expected to continue driving the market higher in the medium term. However, the path forward may be complicated by inflationary pressures stemming from Trump’s fiscal policies.
As the market adjusts to the new political landscape, traders have trimmed expectations for further rate cuts next year, leading to a rise in bond yields. The immediate impact on Wall Street has been relatively muted, with all three major indexes closing around record highs on Thursday.
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