December 2013 Economic Update

Market Commentary

Disappointing job numbers from both Canada and the U.S. today.

The Canadian economy lost nearly 46,000 jobs in December.  The surprising decline pushed the unemployment rate to 7.2%, up from 6.9% in November.  Most of the losses were full time jobs.  Expectations were for a 14,000 increase.

In the U.S. job creation came in well below expectations with just 74,000 new positions added in December.  Forecasts had called for 200,000 new jobs.  It's a sharp reversal in the positive economic news that led the U.S. Fed to announce a pull-back in its bond buying program.

The unemployment rate in the U.S. dropped to 6.7%, down from 7% in November.  Most of that decline will likely be pegged to a drop in the participation rate which slipped 0.2%.

North American markets opened higher, despite the employment let down.

Bond yields are down 7 - 8 bps. This should help to keep Mortgage interest rated down for the short term.

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Roy Singh

Roy Singh

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CENTURY 21 Heritage House Ltd., Brokerage*
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