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iShares MSCI Canada ETF (EWC)

  • Tue, Mar. 31, 8:38 AM
    | Tue, Mar. 31, 8:38 AM | 1 Comment
  • Mon, Mar. 30, 8:59 AM
    • “In theory lower oil prices mean [putting] more money in consumers pockets, but . . . if an oil company cancels [an investment] project, laying off a worker, that guy will not have the money to buy a new pick-up truck. That spreads pretty quickly,” says Bank of Canada Governor Stephen Poloz in an FT interview. “The first quarter of 2015 will look atrocious, because the oil shock is a big deal for us."
    • Poloz has already unexpectedly cut interest rates thanks to oil's crash, and he says the bank has many options left, including so-called forward guidance (a pledge to hold rates low for a long time), as well as asset purchases.
    • The good news, says Poloz, is the sharp decline in the loonie, and he notes U.S. investment is "starting to fire on all cylinders," and manufacturing is rebounding. "We were losing a lot of the auto parts manufacturing to Mexico. That calculus has shifted."
    | Mon, Mar. 30, 8:59 AM | Comment!
  • Thu, Mar. 26, 3:33 PM
    • The fallout in the energy sector thanks to oil's steep decline is no secret, but beyond reduced headcounts and spending in the oil patch, says Nomura, are hits to related industries like construction and engineering.
    • While banks have low direct exposure to the oil sector, there's indirect exposure through things like mortgage-lending in Alberta.
    • Then there's the impact of the oil shock on the investment portfolios of Canadian households, says Nomura, estimating 25% of household wealth is linked to domestic stocks, and 25% of that is energy-related. Canada's stocks have already been underperformers this year and should things worsen further, it could squeeze consumer spending.
    | Thu, Mar. 26, 3:33 PM | 1 Comment
  • Tue, Mar. 17, 7:56 AM
    • It wasn't long ago when Canadian finance minister Jim Flaherty warned of overheating the housing market when lenders dropped benchmark mortgage rates below 3%. What his successor Joe Oliver might say or do is unknown, but Bank of Montreal (NYSE:BMO) today cuts its 5-year, fixed-rate mortgage by 20 basis points to 2.79% - it would be the lowest posted rate of the country's Big Five banks.
    • BMO's move comes as it and others in the industry battle slower consumer loan growth, not to mention drags in other operations thanks to the crash in oil prices, and the bank last month missed FQ1 estimates.
    | Tue, Mar. 17, 7:56 AM | 1 Comment
  • Wed, Mar. 4, 10:05 AM
    • Following a surprise rate cut at its last meeting, the Bank of Canada today maintains its overnight rate target at 0.75%, and suggests it's satisfied for now that the one rate cut was enough.
    • "Financial conditions in Canada have eased materially since January, in response to the Bank’s recent monetary policy action and to global financial developments ... These conditions will mitigate the negative effects of the oil price shock, further boosting growth through stronger non-energy exports and investment."
    • The loonie (NYSEARCA:FXC) has strengthened somewhat, now higher by 0.1% at $0.8012.
    | Wed, Mar. 4, 10:05 AM | Comment!
  • Tue, Mar. 3, 8:44 AM
    • There's fast action in the loonie (NYSEARCA:FXC) after Canada reports Q4 GDP growth of 2.4% vs. consensus estimates of 2%.
    • Everyone from the Bank of Canada on down is worried about an economic slowdown up north thanks to the crash in oil prices. The Canadian dollar has dropped from near par to just $0.80 over the past several months. WIth so many traders leaning to one side, the better-than-expected print has led to a wave of covering, and the loonie quickly adds 80 pips, now up 0.65% on the session.
    | Tue, Mar. 3, 8:44 AM | Comment!
  • Tue, Feb. 24, 3:05 PM
    • "What we are trying to do is to manage the risks we face, not eliminate them," says Bank of Canada Governor Stephen Poloz in the bank's last public comments before its March 4 policy meeting.
    • He calls January's surprise cut an insurance policy against too-low inflation and the financial instability posed by high household debt. 'The sudden drop in global oil prices has increased both risks," he adds.
    • What Poloz didn't do at this speech was signal another rate cut is in the cards, and markets - pricing in a 75% chance of another cut - are scrambling.
    • The loonie (NYSEARCA:FXC) pops more than 100 pips higher, now up 0.5% on the session at $0.7997. The TSX Composite gives up its gains on the session, now lower by 0.25%.
    • Full speech
    | Tue, Feb. 24, 3:05 PM | Comment!
  • Fri, Feb. 6, 8:58 AM
    | Fri, Feb. 6, 8:58 AM | 1 Comment
  • Fri, Jan. 30, 8:42 AM
    • As backward-looking a report as you'll get, but nevertheless moving markets, Canadian GDP declined 0.2% in November vs. expectations for a flat read, and October's 0.3% gain.
    • The loonie (NYSEARCA:FXC) is taking the news hard, down nearly 1% vs. the greenback to $0.7846.
    | Fri, Jan. 30, 8:42 AM | 1 Comment
  • Thu, Jan. 29, 11:39 AM
    • The Canadian dollar (NYSEARCA:FXC) is seen sliding to $0.77 from its current $0.79, says CIBC, expecting another rate cut from the Bank of Canada. Markets have already priced this in, says Chief Economist Avery Shenfeld, but it's the chance of a third one which will keep them guessing.
    • Adding to pressure on the loonie, he says, will be an earlier-than-expected Fed rate hike in June. "Evidence from prior tightening episodes suggests that policymakers don't wait for wages to flash red before pulling the trigger on hikes."
    • "This is more than a rate-spread story," he adds, noting other commodities have also softened, and Canada's current account balance is going to take a far sharper dive into negative territory than previously expected.
    | Thu, Jan. 29, 11:39 AM | Comment!
  • Wed, Jan. 28, 9:04 AM
    | Wed, Jan. 28, 9:04 AM | Comment!
  • Mon, Jan. 26, 3:46 PM
    • Citing the knock-on effects from the drop in oil prices, TD Bank cuts its 2015 GDP growth forecast for Canada to 2% from a 2.3% prediction made last month. Alongside that estimate, TD expects the Bank of Canada to cut its benchmark rate another 25 basis points in March to 0.50%.
    • Previously: Unexpected rate cut for Canada (Jan. 21)
    • The bank says oil will average just $47 this year and $65 in 2016, down from $68 and $80 in the previous forecast.
    • Lower corporate profits will likely lead to a contraction in business investment and weaker employment growth relative to our December forecast,” says TD.
    | Mon, Jan. 26, 3:46 PM | 1 Comment
  • Fri, Jan. 23, 3:29 PM
    • TD Bank (TD +1.4%) has no plans to cut its prime rate in line with the central bank's 25 basis point rate cut this week, and Royal Bank of Canada (RY +1.2%) is also holding off, at least for now.
    • "Like the others," says RBC CEO David McKay, "[we] were completely caught off guard ... I need to catch up with my team and digest what’s going on in the market and figure out what we’re going to do from here.”
    • Bank of Montreal (BMO +0.6%) and CIBC (CM -0.1%) are keeping mum about their plans at the moment, and Scotiabank (BNS +0.3%) says there will be an announcement if there's any change to report.
    • The purpose of the BOC rate cut, says Canaccord's Gabriel Dechaine, was to ease the affordability of Canadians' very high debt loads. He believes there will be "regulatory pressure" for the country's big banks to follow suit.
    • Previously: Unexpected rate cut for Canada (Jan. 21)
    | Fri, Jan. 23, 3:29 PM | 5 Comments
  • Wed, Jan. 21, 10:21 AM
    • The loonie (NYSEARCA:FXCplunges 1.3% to just $0.8150 after the Bank of Canada shocks markets by cutting its benchmark overnight rate by 25 basis points to 0.75%. It's the first move by the bank since September 2010, and it wasn't long ago markets were pricing in rate hikes.
    • The cut, of course, comes after the crash in the price oil, which the bank believes will be negative for both growth and underlying inflation.
    • BoC Governor Stephen Poloz has a press conference set for 11:15 ET.
    • The S&P/TSX Index is higher by 1.1%.
    | Wed, Jan. 21, 10:21 AM | 15 Comments
  • Wed, Jan. 14, 12:47 PM
    • "However things play out, we have the tools to respond," said Bank of Canada Deputy Governor TImothy Lane, wrapping up a speech yesterday. The speech dealt with the effect of the collapse in oil prices on Canada (pretty unequivocally negative if you ask the BoC), and that final line has analysts suggesting a rate cut could be on the agenda.
    • Forward markets are now pricing in a 4% chance of a rate cut sometime over the next year vs. an 8% chance of a hike just two days earlier.
    • Signs: December's jobs report was well weaker than expected with 4.3K jobs lost on top of November's 10.7K lost. And real estate sales in Calgary - one of the country's hottest housing markets - are down 34% Y/Y in January, while listings are up 22%.
    • Previously: Bank of Canada's Lane: Falling oil prices bad for Canada (Jan. 13)
    | Wed, Jan. 14, 12:47 PM | Comment!
  • Tue, Jan. 13, 3:06 PM
    • We see important risks to Canada’s economic outlook stemming from the recent decline in the price of oil and other commodities,” says Bank of Canada Deputy Governor Tim Lane. Not too concerned with cheap oil's effect on inflation, Lane says the bank is more interested in what oil's crash will mean for the country's growth, and hinted the BoC may have more to say on this matter after its Jan. 21 policy meeting.
    • The central bank's dour view is particularly interesting given that's it's more bearish than some private sector outlooks. RBC, for example, says the boost to consumer spending and exports can more than offset the drop in investment.
    • The loonie (NYSEARCA:FXC) is flat on the session, hovering near crisis-era lows vs. the greenback. The S&P/TSX Index is down 0.9%.
    | Tue, Jan. 13, 3:06 PM | 1 Comment
EWC vs. ETF Alternatives
EWC Description
The iShares MSCI Canada Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Canadian market, as measured by the MSCI Canada Index.
See more details on sponsor's website
Country: Canada
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