Canadian market to benefit from Greece deal: Nasdaq analyst

The Greek debt deal is great news for the Canadian market, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly market commentary.

What to watch for:

• With Europe finally having coming to a resolution on Greece, we expect there to be a big move upwards in the Canadian market today. Investors will now be focusing squarely on earnings. Any stronger-than-expected earnings results may give investors an opportunity to take profits.

Read: Greece reaches deal, avoids euro exit

• The headline for Canada this week is the Bank of Canada rate announcement on Wednesday. Opinion continues to be mixed on whether Poloz will hold (at 0.75%) or cut by another 0.25% following some strength in full-time hiring numbers last week. But weakness in recent GDP and trade data will likely also weigh heavily in the decision. A rate cut would boost telcos, REITs, utilities stocks (and other interest rate sensitive names).

• The TSX was on course for a correction if a Greek deal didn’t materialize. It should now get some breathing room and see 14,400 as a support level in the near term.

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Staff

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