WINNIPEG – The following is a glance at the news moving markets in Canada and globally.
– Canada Mortgage and Housing Corp. (CMHC) reported today that the annual pace of housing starts, including apartments, condominiums and multiple-unit housing projects, rose 3.2 per cent in May compared to April. The annual pace of urban starts was up 1.8 per cent in May and the rate of multiple-unit starts climbed 10.9 per cent. Meanwhile, the annual rate of single-detached urban starts fell by 18 per cent. Some economists are warning of a “housing market bubble” in Canada similar to the one in the United States which preceded the Great Recession of 2008.
– The U.S. Commerce Department reported today that the total value of retail purchases declined 1.3 per cent in May after two months of gains. Much of consumer spending over the past year was propped up by fiscal stimulus as the total value of retail sales was US$620 billion in May, above the US$526 billion in February 2020 before the pandemic. The data may make an impact on the Federal Reserve’s decision-making process as it begins its two-day policy meeting today.
– Canada and the European Union have started a new partnership to secure supply chains for minerals and to reduce dependence on China in order to increase jobs and mitigate climate change. “With EU partners, we talked about what we can do to build a cleaner economy for years to come,” Canadian Prime Minister Justin Trudeau told reporters earlier today after meeting with EU leaders in Brussels. “In order to continue creating good, green jobs for the middle class, we must secure supply chains for critical minerals and metals that are essential for things like electric car batteries.” Earlier today, 28 Chinese air force aircraft entered Taiwanese air space, which China claims as its own.