Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength 
Oil Prices Slip as U.S.-Iran Talks Ease Middle East Tensions 
Yen Slides as Japan Election Boosts Fiscal Stimulus Expectations 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Australian Household Spending Dips in December as RBA Tightens Policy 
U.S. Stock Futures Rise as Markets Brace for Jobs and Inflation Data 
Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
The Canadian economy started this year on a strong note as a sharp increase in residential investment and exports resulted in the economy to grow at an annualized rate of 2.4 percent in the first quarter. However, fleeting momentum during the end of first quarter and recent wildfires in the Alberta region are expected to result in a drop in economic activity in the second quarter of this year.
Last month, production capacity was reduced considerably, which pulled down output for both the month and quarter as a whole. As production resumes in the third quarter, activity is likely to rebound; however it will not be enough to avert a significant downgrade to the 2016 growth forecast to a weak 1.3 percent, said TD Economics in a research report.
However, looking through this, the underlying scenario is of modest growth. The economy continues to be in the middle of a large scale, commodity price precipitated economic rotation, according to TD Economics.
The real GDP growth is likely to rebound to two percent in 2017 as the adjustment shifts towards a more growth-friendly phase next year and as the fiscal stimulus boosts into higher gear, added TD Economics.
However, the economy is expected to operate with additional slack even with this rebound. Also, the Bank of Canada is unlikely to lower rates in the 2016-2017 period, noted TD Economics.
