| | | Canada Quietly Leads the Global Economy | | There was a lot of news this week on important topics such as Brexit, China, impeachment and Facebook. But we also saw an important election take place just over our northern border: Canadian Prime Minister Justin Trudeau emerged with a fairly stable government, although he will be governing in a minority parliament that will require him to seek support from other parties to pass legislation. The election was reported in the U.S. media but given everything else going on, it didn't make many waves. | | The same is true for the Canadian economic story. While the looming "global slowdown" tends to capture the zeitgeist when it comes to economists, markets and policy makers, the Canadian economy doesn't neatly fit within that trend. | | In fact, a recent RBC research piece noted that Canada's employment report added an average of 40,000 jobs a month for the last six months, which would be the equivalent of an additional 400,000 jobs added to the U.S. non-farm payroll reports each month. In the U.S., the gain has actually averaged around 154,000 added jobs per month. Another interesting market indicator is the 2-year government bond yield, which of course tracks fairly closely to central bank rate expectations. In late April, Canada's 2-year yields were 80 basis points lower than the U.S. equivalent. Now, Canada's 2-year bond is around a dozen basis points higher than in the U.S. | | Watch the video | | If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133. | | Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos! | | | | | | | Follow City National Bank on social media: | | | | | | Non-deposit investment products: | | • | Are not FDIC insured, | | • | Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and | | • | Are subject to investment risks, including possible loss of the principal invested. | | | | | This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting. | | | | | | |
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