RBC Financial Markets Monthly

US outperforms but no sunshine for Canada

The March 2024 edition of Financial Markets Monthly from RBC Economics includes a forward-looking analysis of Canadian, US and international financial market trends.

A resilient US economy continued to buoy investor confidence in February, driving equities higher and narrowing credit spreads. Conditions appeared to have bottomed in the euro area and UK, but things are less upbeat in Canada.

Highlights

Topic in focus

Surging business insolvencies in Canada during early 2024 are a reminder that downside economic growth risks remain.

  • Global central banks reiterate that more progress is needed on inflation before committing to interest rate cuts
  • The Fed, BoC and ECB are expected to make their first rate reductions in June, followed by a more hawkish BoE in August
  • Resurfacing US inflationary pressures in early 2024 mean a more cautious Fed after the start of rate cuts
  • Canada’s economy remains the worst of the bunch, while the euro area and UK are seeing early signs of a pickup in activity and the US continues to show resilience
Read more

You may also like

Sources

RBC Economics, Financial Markets Monthly, March 2024