Yesterday the U.S. Federal Reserve announced that the U.S. economy was getting stronger however, the Fed was still committed to keeping interest rates low until 2023. Equity markets initially rallied on this news but have subsequently stalled or dropped slightly depending on which index you are looking at. The Dow continues to move higher, but the tech indexes such as the NASDAQ are down.
Both the U.S. and Canadian bond markets have interest rates higher this morning, mortgage rates have jumped. Long term bond yields have been rising in reaction to global economies reemerging and expectations that corporations will now start going back to the funding markets in search of new capital.
Oil prices feel 4% this morning, as inventories are rising , the International Energy Agency said on Wednesday that the Paris-based energy watchdog does not expect oil prices to enter a supercycle, or an extended period where prices rise well above their long-run trend. Ironically the USDCAD is not that weak based on this news, usually we would have seen a significant move showing a weaker CAD but this is not the case. However, that being said the day is not over and we shall have to wait and see.
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