US Housing Market Data Response Mortgage Applications (Jun.) Home purchase mortgage applications fell back again in June, leaving them down 23% compared to the 11-year high seen in January. Tight inventory and stretched affordability are largely responsible for... 7th July 2021 · 2 mins read
Commodities Update OPEC impasse: what next? The failure of OPEC+ to agree to new production quotas has created considerable uncertainty about the group’s oil production going forward. In this Update, we lay out three possible scenarios for OPEC... 6th July 2021 · 3 mins read
Canada Economics Focus Residential investment now the key downside risk The sheer scale of the surge in residential investment since the pandemic means it now presents a key downside risk to the outlook. At best, the widely held assumption that residential investment will... 6th July 2021 · 14 mins read
US Economics Weekly Stronger payrolls intensify focus on tapering We aren’t convinced that it will mark the start of a sustained acceleration, but the stronger gain in June payrolls will embolden those Fed officials calling for an earlier end to the Fed’s asset... 2nd July 2021 · 6 mins read
Canada Economics Weekly GDP to surpass pre-pandemic level in July The upward revision in March and smaller-than-expected fall in April mean that GDP is now on track to surpass its pre-pandemic level in July, a couple of months earlier than we previously thought... 2nd July 2021 · 5 mins read
Canada Data Response International Trade (May) Exports were weaker than expected in May, but that was largely due to the ongoing global semiconductor shortage rather than weakening external demand. And with the rise in imports boding well for... 2nd July 2021 · 2 mins read
US Data Response Employment Report (Jun.) The stronger 850,000 rise in non-farm payrolls in June may be a sign that some of the temporary labour shortages holding back the employment recovery are starting to ease. But with the labour force... 2nd July 2021 · 2 mins read
Asset Allocation Update Would US equities beat Treasuries if inflation surged? The received wisdom is that inflation is worse for government bonds than for equities. Yet the S&P 500 has fared worse than 10-year Treasuries in a couple of periods of high inflation in the US since... 1st July 2021 · 3 mins read
US Commercial Property Data Response US Metro Employment (May.) Employment growth in May was positive in all metros, largely driven by gains in the leisure & hospitality sector. This benefited Orlando, Los Angeles and Las Vegas the most, but still left employment... 30th June 2021 · 2 mins read
Canada Economics Labour shortages set to intensify Canadian firms are not currently suffering from labour shortages to the same extent as those in the US but, with immigration still muted, the issue is likely to get worse as the economy continues to... 30th June 2021 · 2 mins read
Canada Data Response GDP by Industry (Apr.) The 0.3% m/m decline in GDP in April was smaller than Stats Can initially suggested and implies that, despite the third coronavirus wave, the economy held up relatively well. We now expect second... 30th June 2021 · 2 mins read
US Housing Major Apartment Markets Outlook (Q2 2021) With cities reopening apartment demand will see a substantial rise this year, boosted by the arrival of households who delayed a move last year. Vacancy rates will fall back in all six major cities... 29th June 2021 · 8 mins read
US Economics Focus Labour shortages will last well into 2022 The widespread labour shortages evident in the survey data and job opening & quit rates are only partly due to transitory factors, including enhanced unemployment benefits, childcare constraints, and... 29th June 2021 · 17 mins read
Energy Update Rising production to take the sizzle out of Henry Hub Strong industrial demand and constrained domestic supply will support US natural gas prices throughout the remainder of this year. However, we expect that the average price will fall in 2022 in large... 28th June 2021 · 2 mins read
FX Markets Weekly Wrap US ISM and payrolls could add fuel to the dollar rally The US dollar seems set to end the week slightly weaker, but has held much of its gains following last Wednesday’s FOMC announcement. With increasing focus on the prospects for monetary tightening... 25th June 2021 · 9 mins read
US Commercial Property Update Student accommodation not set to see a rapid rebound The student accommodation sector faces high levels of uncertainty for the fall 2021 academic year. In our view, demand for student housing will rebound from last year, but fall short of its pre... 25th June 2021 · 3 mins read
