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Stronger than Expected Canadian Housing Starts Data; Irma Downgraded to Tropical Storm
Published September 11, 2017
Canadian Housing Starts numbers came in higher than forecasted this morning for the third month in a row. Other key Canadian economic data this week includes New House Price Index tomorrow and New Vehicle Sales on Friday
In the U.S. we get PPI data on Wednesday and August CPI data on Thursday. Friday is the busiest day of the week for data and includes August Retail Sales, Industrial Production, Capacity Utilization, Business Inventories, and University of Michigan Consumer Sentiment
The U.N. Security Council is set to vote today on a watered-down U.S. drafted resolution to impose new sanctions on North Korea over its latest nuclear test. It is unclear at this stage whether China and Russia will support it. North Korea was condemned globally for conducting its sixth nuclear test on September 3rd, which it said was of an advanced hydrogen bomb. NATO calls North Korea’s behavior “reckless” and that it requires a global response. Tensions have weighed on global markets, but there was relief amongst investors today that North Korea celebrated its founding anniversary on the weekend rather than conducting a further missile test
Hurricane Irma was downgraded to category 2 as it hit Florida on Sunday and has since weakened to a tropical storm. More than 3 million homes were without power and millions of others could be affected in the coming days. As such, President Trump has declared a state of emergency in Florida. With Federal Reserve speakers now in a blackout period ahead of next week’s Fed policy meeting, we expect the market to re-focus its attention on geopolitical risks and determining the impact of recent hurricanes on U.S. growth prospects