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Global Markets Calm After French Election; Canadian Building Permits Disappoint
Published May 9, 2017
Global stocks continue to improve this morning as Emmanuel Macron’s win in the French presidential election quells worries of a breakup of the euro-zone; solid corporate earnings and a better outlook on the global economy have moved the markets towards risk-on sentiment
Investors now have a calmer footing as the CBOE Volatility Index, often considered the de facto barometer for “investor fear”, has reached its lowest level in 23 years; the VIX now stands at 9.77 which comparatively has a historical average of 20
Oil prices remain volatile after OPEC and oil industry sources mentioned that OPEC and non-member oil producers are considering extending their cut for nine months or more
Market sentiment on oil prices initially shifted upwards on this news, however, oil prices are lower again this morning as analysts seek firmer confirmation from OPEC members
Canadian month-on-month building permits fell by a large margin coming in at -5.8% versus an expected growth rate of 5.5%; the decrease is attributed to lower construction efforts of multi-family dwellings in British Colombia and Ontario