Invesco Canada blog

Insights, commentary and investing expertise

Market review: The global forces of disruption


Global Market Strategist, Invesco Ltd.
July 18, 2017

Subject | Institutional | Invesco | Macro views

One of the key themes I’ve identified for 2017 and beyond is global disruption. Disruption can take many forms and be either a positive or negative force. The economist Joseph Schumpeter argued that disruption could be a positive force for economies – hence the term, “creative destruction.” Disruption – both positive and negative, both geopolitical and monetary – is abundant across the globe right now.

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Mid-year market outlook: Canadian & world markets in 3D


Global Market Strategist, Invesco Ltd.
July 14, 2017

Subject | Institutional | Macro views

Global stocks turned in a strong performance in the front half of 2017 despite geopolitical and monetary policy risks. The question, of course, is whether this performance trend can continue in the second half. I believe these two risks will cast an even longer shadow over markets going forward – making concepts such as diversification and risk management even more important for investors’ portfolios.

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Up, up and away: BoC hikes rate


Senior Portfolio Manager, Head of North America Rates, Invesco Fixed Income†
July 12, 2017

Subject | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

Following recent upbeat comments, the Bank of Canada (BoC) announced today that it would hike the overnight target rate to 0.75% from 0.50%. This is the first rate hike since 2010, as the BoC has become confident that the current “above potential growth” will continue, leading it to take back one of two emergency rate cuts enacted in 2015.

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Interest-rate outlook: Expect rising rates in Canada


Senior Portfolio Manager, Head of North America Rates, Invesco Fixed Income†
July 4, 2017

Subject | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

In June, Canadian 10-year government bond yields bounced off their lowest levels of the year, to 1.63%, as first quarter growth came in above expectations and central banks express confidence that monetary policy has accomplished it’s goal.1 The Bank of Canada (BoC), in particular, is less worried about uncertain U.S. trade policy and another substantial drop in oil prices, and becoming worried that excess capacity is beginning to dwindle. Their optimism may prove to be premature as inflation remains very low, so we are watching its stance closely. We expect interest rates in Canada to rise from current levels.

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Currency outlook: Strong global growth mixed for U.S. dollar


Senior Portfolio Manager, Head of Macro Research and Global Multi-Sector Portfolio Management, Invesco Fixed Income
June 29, 2017

Subject | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

The Canadian dollar has been in a slow decline over the last year, but has shown strength recently. As growth rebounded in the first quarter, the Bank of Canada (BoC) appears to be becoming concerned that excess capacity may be declining faster than they would like. While oil prices appear to have peaked for the year due to U.S. oil production, there has been little effect on the currency. We remain underweight the Canadian dollar due to the overleveraged Canadian consumer, but we are monitoring the recent hawkish BoC rhetoric closely.

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