Economic Data Shows Decrease in Canadian GDP; US Personal Income Data Meets Expectations
Published March 29, 2018
Economic data on Canadian GDP showed that the economy shrank by -0.1 percent last month. USD/CAD remains in the low 1.2900’s as the market continues to react to this mixed data.
The RMPI Index, a measure of the change in price of raw materials purchased by Canadian manufacturers, also showed a decline of -0.3 percent. The IPPI Index, a measure of the change in the prices of goods sold by Canadian manufacturers, came in positive at 0.1 percent.
Month-on-month growth for US personal income met growth expectations of 0.2 percent. US personal spending posted the same result, as the did the Core PCE Price Index, which is the Federal Reserve’s preferred measure for inflation.
FAANG stocks (Facebook, Apple, Amazon, Netflix & Google) led the declines in US equity indices, as the group experienced their worst day ever for losses yesterday. Facebook stocks improved on news of more thorough privacy measures, however, Amazon stocks declined near 7.4 percent on reports that US President Donald Trump was seeking to reign in the online retailer.
Oil prices remain mixed this morning as rising oil inventories in the US continue to dampen demand for the commodity; analysts are also taking note of this week’s launch of the “petro-yuan”, a Shanghai based crude oil futures contract, which is speculated to establish itself as a third global oil price benchmark behind WTI and Brent Crude.