Monthly Market Insights: November 2016

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Every month, Cambrian shares the Monthly Economic Commentary provided by our partners at Credential Financial Inc.. If you're looking for advice or have questions about the Monthly Economic Commentary, advisors are here to answer your questions.

Key takeaways from November 2016

Relief for Crude

Following months of political jockeying and speculation of whether an agreement could be reached or not by OPEC members, markets sent the commodity higher as a late month meeting resulted in a collaborative effort to lower global output and supply. This agreement calls for a lowering of daily output by members by 1.2M barrels; however, this is contingent upon non-OPEC members also agreeing to lower their collective production by 600,000 barrels per day. The meeting between the two groups is set for December 9 and may result in bullish sentiment, possibly adding to the 32.6% gains, already seen in the commodity year-to-date.

Will it be a Happy Holiday?

The latest data on Canada’s GDP points to an improved third quarter, relative to Q2, and a decent fourth quarter as the holiday season approaches and the delayed effects from the Alberta’s post-wildfire rebuild are felt. Signs of higher economic activity are evident, as reported retail sales climbed in September and increased consumer demand at home and abroad drove manufacturing sales up. Along with rising inflation and a stable labour market, the Bank of Canada appears to be content with the growth of economy and does not see an immediate need for any rate cuts. With optimism from all corners, the economy will appear have a rosy end to 2016 as compared to the beginning of the year, with positive momentum leading into 2017.

Read the full November Monthly Market Insights.