Your January 2020 Market Summary

January 2020

Market Summary

Top Themes

Consumer debt in Canada and US:
– 50% of Canadians $200 away from financial insolvency
– average Canadian owes $1.72 for every dollar earned
– Canadians owe $2.16 Trillion – highest debt load of G7
– 5.54% of consumers were 90 or more days past due on at least one non-mortgage credit product in the third quarter, compared with 5.25 per cent in the same period in 2018

• Interest rates:

– Canada: – 50% chance of a Bank of Canada interest rate cut by July because of weakening employment (up to 5.9% in December from 5.5% in November)
– USA: – no changes expected in 2020

– Europe – last rate cut in September 2019 to -0.50%

• Cdn. dollar – expected to stay between 75 – 77 cents USD
– at 75.7 cents USD on Jan. 31st

What We’re Watching

• International – On-going global trade war between US and China
– Upcoming US election

• Consumer debt in Canada and US:
– 50% of Canadians $200 away from financial insolvency
– average Canadian owes $1.72 for every dollar earned
– Canadians owe $2.16 Trillion – highest debt load of G7
– 5.54% of consumers were 90 or more days past due on at least one non-mortgage credit product in the third quarter, compared with 5.25 per cent in the same period in 2018

• Interest rates:

– Canada: – 50% chance of a Bank of Canada interest rate cut by July because of weakening employment (up to 5.9% in December from 5.5% in November)
– USA: – no changes expected in 2020

– Europe – last rate cut in September 2019 to -0.50%

• Cdn. dollar – expected to stay between 75 – 77 cents USD
– at 75.7 cents USD on Jan. 31st