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iShares MSCI Canada ETF (EWC)

  • Mar. 3, 2014, 9:37 AM
    • “I’ve been talking with clients and writing about how the housing market is overvalued,” says Pimco's Ed Devlin, who oversees Canadian investments for the firm. “The change this year would be that I actually think it starts this year.”
    • Bill Gross' $237B Total Return Fund (ETF version: BOND) had about 2% of its portfolio in Canadian debt at last report vs. 4% a year earlier.
    • Not the first to point to a bubbly Canadian housing market, Devlin is looking for a gradual decline over the next 2-5 years, not a sudden collapse, and sees "buy the dip" opportunities in the loonie (FXC) which has already fallen sharply vs. the greenback over the last 18 months.
    | 1 Comment
  • Feb. 28, 2014, 11:11 AM
    • The loonie (FXC +0.5%) is having a big session after upward revisions to Q2 and Q3 GDP growth and a strong early Q4 print. On the downside - while October and November looked strong - December shows a contraction of 0.5%. Statistics Canada blames the weak December number on the harsh winter's effect on retail sales which fell 2.1%. Canada? Harsh winter? Seriously?
    • Overall, Q4 GDP growth at an annualized pace of 2.9% follows 2.7% in Q3, 2.2% in Q2, and 2.9% in Q1. For the year, GDP grew 2% vs. expectations of 1.7%.
    • "While today’s GDP report is a bit of a mixed bag, the bigger picture is that the Canadian economy looks to have had better momentum than widely appreciated through much of 2013,” says BMO's Doug Porter.
    • Related ETFs: EWC, CNDA, FCAN, EWCS
    | Comment!
  • Feb. 7, 2014, 10:49 AM
    • The loonie's (FXC +0.5%) having a good session after Canada added 29.4K jobs in January, surpassing expectations for 20K. The unemployment rate slipped to 7% from 7.2%.
    • "Today's solid comeback represents a nice recovery from the ugliness in last month's Canadian employment report," says BMO's Doug Porter. He reminds the 7% unemployment rate is unchanged from a year ago - job growth is only keeping up with labor force growth.
    • The TSX is flat on the session.
    • Related ETFs: EWC, CNDA, FCAN, EWCS
    | Comment!
  • Jan. 31, 2014, 8:51 AM
    • Canadian GDP rose an inline 0.2% in November - the 5th consecutive month of growth and up 2.6% Y/Y - but it's not halting the slide in the loonie (FXC) which is now down 0.5% and buying just $0.8916, the lowest amount since the summer of 2009.
    • The Canadian unit has been in a bear market since the start of 2013, with the move accelerating in the past few months amid a string of weak economic data and plenty of government types saying they're welcoming of the move. A general move out of emerging currencies spreading to commodity currencies is further speeding the decline in 2014.
    • Canada ETFs: EWC, CNDA, FCAN, EWCS
    | Comment!
  • Jan. 22, 2014, 10:07 AM
    • "Inflation is expected to remain well below target for some time, and therefore the downside risks to inflation have grown in importance," says the bank, maintaining its benchmark overnight lending rate at 1%, but clearly considering easier policy down the road.
    • The loonie (FXC -0.3%) takes out another multi-year low, now buying $0.9062, and at its weakest vs. the greenback in about four years.
    • Related ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
  • Jan. 14, 2014, 10:42 AM
    • The loonie (FXC -0.7%) slips to new multi-year lows with dovish comments from junior finance minister Kevin Sorenson as good of an excuse as any to sell a few more.
    • "The manufacturing sector (is) quite pleased that we have a [Canadian] dollar that the value is down from what it was a number of months ago ... there is remarkable opportunity. We’re an exporting country and as you know by far the majority of everything we manufacture here and everything we grow here we export and so there’s opportunity.”
    • The loonie was briefly boosted yesterday after the Bank of Canada's business outlook saw positive signs for the economy, but those gains and more have been erased in today's session.
    • Last Friday: Ugly December jobs report for Canada
    • Related ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
  • Jan. 10, 2014, 10:58 AM
    • Canada unexpectedly reported a loss of 45.9K jobs this morning and a big jump in the unemployment rate to 7.2%. Today's action means the country has essentially created zero net new jobs in the last six months, writes Paul Vieira.
    • What if headline Canadian unemployment were calculated the way it is in the U.S.? The country's UE rate would be 5.8%, says Vieira. Cue the rate hike chatter!
    • Canada ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
  • Jan. 10, 2014, 9:09 AM
    • The loonie quickly dives to new multi-year lows vs. the greenback after Canada reports a loss of 45.9K jobs in December and a 0.3 point rise in the unemployment rate to 7.2%. Consensus had called for a gain of 14K jobs.
    • FXC -0.6% premarket and the loonie is buying just $0.9146 - the least since mid-2009.
    • Canada ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
  • Dec. 23, 2013, 10:52 AM
    • Canada posts October GDP growth of 0.3%, the 4th monthly increase in a row and better than 0.2% expected.
    • The loonie (FXC +0.6%) gains, now buying $0.9446.
    • The iShares MSCI Canada Index (EWC +0.7%)
    • Related ETFs: CAD, CNDA, FCAN, EWCS
    | Comment!
  • Dec. 6, 2013, 9:35 AM
    • Canada added 21.6K jobs in November, well ahead of expectations for 12K and against a 13.2K gain in October. The unemployment rate held steady at 6.9%. The average monthly job growth over the last six months is11K vs. 23.3K seen in the previous six-month window (May's 95K gain fell off the measure).
    • The loonie - which dropped sharply after the big U.S. jobs number - has returned to where it was prior to 8:30 ET, flat on the session around a multi-year low of $0.9390.
    • Canada ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
    | Comment!
  • Dec. 4, 2013, 11:41 AM
    • The loonie (FXC -0.4%) slips to a multi-year low after the Bank of Canada - as expected - leaves its overnight rate at 1%, but sounds a dovish note, noting inflation has moved further beneath the 2% target, "held down by significant excess supply and by the effects of heightened competition in the retail sector, which look to be more persistent than anticipated."
    • "The downside risks to inflation appear to be greater."
    • The TSX is off 0.3%.
    • Canada ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
    | Comment!
  • Dec. 2, 2013, 9:58 AM
    • Canada's November PMI slips a hair from October, but is still a speedy 55.3 - about the highest level in more than two years. "Recent reports suggest that the fourth-quarter hit to U.S. growth will be limited following a solid gain in the third quarter," says RBC's Craig Wood. "A slow and steady increase in U.S. growth will play a big role in setting the stage for a continuation in the recent momentum we have seen in Canadian manufacturing activity over the past few months.” 
      • Most interesting about the quick pace of activity in Canada is that it comes with the loonie (FXC) at about a 2-year low, now buying just $0.9406.
    | Comment!
  • Nov. 29, 2013, 8:39 AM
    • Growth rebounded in Canada in Q3, with GDP growing 2.7% on an annualized basis, near the top end of the 2.3%-2.8% expected range. Q2's growth was revised to 1.6% from 1.7%. Exports were a weak spot however, falling 0.5% in Q3.
    • The loonie (FXC) strengthens a few pips, now buying $0.9468.
    • Canada ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
    | Comment!
  • Nov. 27, 2013, 7:27 AM
    • "Significant external imbalances have built up in the Canadian economy," says Goldman, recommending a short of the loonie (vs. the greenback) as its 2014 trade idea #3 (earlier ideas are here). The current account - in surplus prior to the financial crisis - has consistently been in deficit since by about 3% since, thanks to a big decline in manufacturing exports.
    • Energy has been unable to pick up the slack as boosted crude production from the tar sands of Alberta has been offset by the decline in value of natural gas exports.
    • Previously easy funding of the current account deficit changed for the worse in 2013, says Goldman, noting capital inflows have slowed rapidly over the past few quarters. One key reason: Emerging market central banks are no longer diversifying their forex holdings as quickly as before.
    • Canadian ETFs: EWC, CAD, CNDA, FCAN, EWCS
    • The loonie: FXC
    | 1 Comment
  • Nov. 8, 2013, 8:48 AM
    | Comment!
  • Oct. 23, 2013, 10:18 AM
    • The loonie (FXC -0.8%) slips about 45 pips after the Bank of Canada leaves its benchmark rate unchanged at 1%, but is decidedly dovish in its accompanying statement (though this was somewhat expected).
    • The global economy's "near-term dynamic has changed and the composition of growth is now slightly less favorable for Canada ... Uncertain global and domestic economic conditions are delaying the pick-up in exports and business investment, leaving the level of economic activity lower than the Bank had been expecting."
    • "The fact that inflation has been persistently below target means that downside risks to inflation assume increasing importance."
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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.
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Country: Canada
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