Global markets: Canada’s housing market a weak-link in economy

By Commodity News Service Canada

WINNIPEG, December 2 – The following is a glance at the news moving markets globally.

CANADA’S HOUSING SECTOR COULD DRAG ON ECONOMY
An oversupply of homes combined with high household debt will likely weigh on Canada’s economic growth, according to a recent poll.

In previous years Canada’s housing sector has helped the country’s economy, but now analysts believe housing has one of the biggest downside risks in Canada’s markets.

FEWER US BUSINESSES BORROWED IN OCTOBER

The US saw reduced borrowing from small businesses throughout October.

The Thomson Reuters/PayNet Small Business Lending Index moved to 131.7 in October compared with 137.9 in September.

The news fuelled market-talk that the US is ready for an interest rate hike, and the Fed Reserve will introduce an increase by the end of the year.

EUROZONE INFLATION HOLDS STEADY
Eurozone inflation stayed steady in November, which may indicate the European Central Bank needs to ease monetary policy further, reports say.

Consumer prices in euro-linked countries increased by 0.1 per cent this month, which is steady with October, according to a European statistics office.

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