“Don’t Accept Your Dog’s Admiration As Conclusive Evidence That You Are Wonderful” -Ann Landers
Signals of Strengthening Economies
The outlook for the global economy may be brightening, with the latest composite leading indicators signaling a possible change in momentum to the upside, according to the Organization for Economic Co-operation and Development. The OECD says its composite leading indicators, which are designed to anticipate turning points in economic activity relative to trend, point to a positive change in momentum for the OECD as a whole, driven primarily by the U.S. and Japan. Below trend growth is still indicated for Canada, and the rest of the G7 countries. But, along with the U.S. and Japan, similar signs of a positive turn are also beginning to emerge in a number of other economies, the OECD reports. It notes that the composite leading indicators for India and Russia also show signs of an upward change in growth momentum.
The composite leading indicators for all other major OECD economies, the Euro area and Brazil continue to point to below trend growth. Yet the OECD notes that tentative signs are emerging that the recent deterioration in CLIs is moderating, and the CLIs for seven of the fifteen countries in the Euro area are now pointing towards a positive change in momentum, it says. However, the composite leading indicators for China points more strongly to a slowdown this month than in last month’s assessment.
The TSX closed at 12458, up 69 points or 0.56% over the past week. YTD the TSX is up 4.21%.
The DOW closed at 12950, up 149 points or 1.16% over the past week.YTD the DOW is up 5.99%.
The S&P closed at 1361, up 18 points or 1.34% over the past week.YTD the S&P is up 8.19%.
The Nasdaq closed at 2952, up 48 points or 1.65% over the past week.YTD the Nasdaq is up 13.32%.
Gold closed at 1724, up 7.00 points or 0.41% over the past week.YTD gold is up 10.16%.
Oil closed at 103.57, up 4.58 points or 4.63% over the past week.YTD oil is up 4.72%.
The CAD/USD closed at 1.0038, up 0.0063 points or 0.63% over the past week.YTD the CAD/USD is up 2.45%.
Sources: Bloomberg, Investment Executive, OECD