Husky Midstream LP is considering a sale of at least C$400 million ($284 million) in Canadian dollar bonds this week. The bonds are expected to mature in five to seven years, with pricing discussions indicating a potential yield of 1.10 percentage points above government debt for five-year bonds and 1.3 percentage points for seven-year offerings.
Donald Trump has announced that upon his return to the White House, he will impose a 25% tariff on goods from Canada and Mexico, along with an additional 10% tariff on Chinese imports. This move is set to influence financial markets as he seeks to assert America's economic power.
Commodity Trading Advisors (CTAs) are adopting a risk-on approach while using Gold and the US Dollar as hedges. They maintain long positions in US equities, favoring them over European and Latin American stocks, despite limited room for further US Dollar buying. In commodities, CTAs are shifting focus from metals to energy and agricultural products, with a bullish outlook on stocks and the US Dollar, while holding bearish views on bonds and certain currencies.
Commodity Trading Advisors (CTAs) are leveraging gold and the U.S. dollar as risk hedges while maintaining long positions in U.S. equities amid low volatility. Despite a recent surge in U.S. dollar purchases, profit-taking is anticipated in several currencies, with a bullish outlook on the dollar. In commodities, CTAs are shifting focus from metals to energy and agricultural products, maintaining a bearish stance on bonds and select equity markets.
A Bank of Canada official emphasized the importance of maintaining inflation near the 2% target, rejecting the notion of pursuing deflation. Deputy Governor Rhys Mendes indicated that while further interest rate cuts may be anticipated, their timing and pace will depend on forthcoming economic data.
The potential for significant currency market volatility looms as President-elect Trump threatens to impose tariffs on Mexico, Canada, and China, with strategists warning that these moves may serve more as negotiation tactics than actual policy. Analysts predict that such tariffs could lead to a stronger U.S. dollar and increased pressure on foreign currencies, particularly the Mexican peso, which could see dramatic shifts in response to tariff announcements. The market anticipates a prolonged negotiation process, with the possibility of retaliatory measures complicating the landscape further.
Quebec's GDP growth is now projected at 1.2% for 2024, leading to an $11 billion deficit for the current year, partly due to a $2.5 billion increase in portfolio spending. The government plans to finance new spending through an increased capital gains tax inclusion rate, expected to generate $2.5 billion over five years. Despite criticisms of austerity, Finance Minister Eric Girard asserts that spending has risen by 6.5% from 2023-2024 to 2024-2025.
U.S. stocks rallied to record highs following President-elect Donald Trump’s Treasury secretary pick, Scott Bessent, who is viewed favorably by Wall Street. The S&P 500 rose 0.3%, with small-cap stocks outperforming, while bond yields fell. Trump announced plans for increased tariffs on imports from China, Mexico, and Canada, which could impact trade relations.
Asian markets are bracing for pressure as President-elect Donald Trump plans to impose trade tariffs on Mexico, Canada, and increase levies on China. Analysts predict that Asian currencies, particularly the Korean won and Thai baht, will underperform, while stocks in China, Mexico, and Canada, especially those reliant on US exports, are expected to decline.
U.S. markets experienced optimism on November 25 as President-elect Trump’s tariff plans led to a dollar rally. He announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on China, citing illegal immigration and drug trade concerns. Additionally, Federal Reserve President Neel Kashkari hinted at a potential rate cut, while discussions for a ceasefire between Hezbollah and Israel progressed, impacting global markets.
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