Analysts at TD Securities explained that market sentiment was mixed on Tuesday amid a quiet session for data, leaving investors to take stock of the recently announced US/Mexico trade deal.
Key Quotes:
“Canadian equity markets curbed some enthusiasm with a 0.5% decline, underperforming an unchanged S&P 500. Meanwhile, Treasuries bear-steepened on a 4bp selloff in the long-end while Canadian rates outperformed by 1-2bps across the curve.”
“The USD saw a mixed performance against G10 currencies, with CAD (+0.3%) leading the complex as a Canadian delegation heads to DC for trade talks while GBP (-0.2%) and AUD (-0.2%) traded on their back foot against the dollar. SEK (-0.5%) was the weakest G10 currency on an unexpected drop in retail sales.”
“US Consumer confidence rose to 133.4 in August to beat the market consensus (126.6) and register a new 18-year high. Details showed improvement across both the present situation and expectations components while the labor differential also reached a new cycle high. Advance goods trade for July was not nearly as upbeat with the deficit widening to $72.2bn (market: -$69.0bn) on a combination of weaker exports and stronger imports.”
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