The latest GDP numbers from the UK showed positive economic growth although just barely at 0.3% growth. This was enough to strengthen the pound by over 1% against the US dollar. Jobless numbers in Spain are now over 27%. However, there is renewed hope that the European Central Bank will cut interest rates next week to provide more stimulus to the region's economies.
Improving employment numbers in the US have reversed the slightly negative trend of the past two months. This good news was tempered by a contracting manufacturing sector. The US economy continues to grow but at a slightly slower pace than has been seen over the past year. This may be due to reduced government spending to meet budget targets but this will become more clear over the coming months.
Chinese manufacturing numbers were slightly disappointing but there is expected to be some trouble in this sector as exports decrease. China’s manufacturers will begin to look towards the growing middle class there to increase consumption as their traditional overseas markets continue to reduce spending.
The Canadian dollar increased over half a cent today due to recent gains in commodity prices, particularly gold, copper and oil. The increase in commodity prices appears to be mainly due to anticipation of an interest rate cut in Europe and projections of a stronger second half of the year for China’s economy.
Canadian mortgage rate remain very low and, at this time, there is no indication of significant changes for the remainder of the year.
Please remember that 80% financing is available for qualified US residents at great rates!
Jason McLean BSc, AMP
The Mortgage Centre: Garibaldi Mortgage