Expect housing warning from BoC

The TSX ended last week flat as it was a mixed week for global markets, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly commentary.

Gains across the market were offset by “acute losses in consumer discretionary and tech names,” he adds, and industrials and gold were also weak. Further, he says, “Investors retreated to safe sectors,” with consumer staples, utilities, telco and REITS performing well.

Read: Gold managers advise caution

More highlights

• The energy sector is now +27% year-to-date, second only to materials. But, the TSX retreated back to its 50-day average last week and found some technical support at just below the 14,500 level.
• This week’s highlight will be the Bank of Canada announcement on Wednesday. No change is expected in benchmark interest rates, but we’ll likely see another warning on housing market conditions, given the CMHC has issued its first red warning. Read: CMHC raises red flag over national housing concerns
• At the tail end of this month, we will also have manufacturing, CPI and retail data, and you can look to this data to see if GDP’s July bounce continues through into August. Friday will also see some of the TSX indices rebalance.
• Recent Statscan data has shown that international investors continue to buy steady amounts of Canadian debt. International investors have also been net purchasers of Canadian equities for 12 consecutive months.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.