Canada and the US trade figures in focus - BBH

In North America, the equity markets are the key focus, while both Canada and the US report December trade figures, points out the research team at BBH. 

Key Quotes

“We know from the initial release of Q4 17 US GDP that net exports were a significant drag.  The December trade balance is expected to have widened to $52.1 bln from $50.5 in November.  While a widening of the trade deficit is likely to irk some US Administration officials, we argue that the narrowing of the energy balance means that the non-oil balance is deteriorating faster than appreciated.  The average shortfall in 2017 through November was $46.7 bln.”

“Canada's trade's trade deficit is expected to be little changed from November C$2.5 bln deficit.  The average deficit in the first 11 months was C$1.9 bln.”  

“Separately, Canada reports the IVEY PMI for January, and it will be compared to December's 60.4 reading.  The Fed's Bullard speaks on the US economy and monetary policy today, while another seven Fed officials speak before the end of the week.”