It is not surprising that Americans and Canadians are anxiously observing the turbulence that the commercial policies of US President Donald Trump are inflicting the stock markets.
They have a lot riding in them.
According to a recent report by the National Bank of Canada, corporate actions, both directly and indirectly, now represent almost 44 percent of total financial assets for US households, a record.
“Apparently taking the example of their American cousins, Canadian households now also have unprecedented capital exhibition,” said National Bank economists.
The market value of the actions of the Equity and Investment Fund reached $ 5.16 billion at the end of 2024, representing 47 percent of total domestic financial assets in Canada.
“Clearly, then, a loss of serious/sustained traction in the actions could harm a Canadian domestic sector more and more concerned about labor perspectives and still contend with pressures of cost of living,” they said.
After Trump announced tariffs on countries around the world on April 2, the S&P 500 threw 15 percent in the year, but then began to meet days later when the president granted a 90 -day delay in many of the tasks.
Even so, the market continues to balance each contraction in the commercial front, rivaling the turbulence in the depths of the pandemic. Yesterday, the S&P 500 closed 2.2 percent, but futures are up this morning.
A saving grace for values ​​losses could have been that Canadians tend to put more than their wealth in real estate than Americans, but now thanks to the commercial war, that has also been grated.
Concerns about the possible economic blow of American tariffs have “clearly unstable buyers” this year, which makes many search for a home in pause, said Robert Hogue, an assistant chief economist of Royal Bank of Canada.
Housing sales have dropped 12 percent since the beginning of the year, falling 4.8 percent between February and March. The MLS Housing Price Index of the National Compound MLS fell for the third consecutive time in March, and has now dropped 2.1 percent compared to the previous year.
The most affected provinces, Ontario and Columbia Britanic, are also those that non -financial assets, mostly real estate, represent most of domestic wealth.
“Weakening labor markets and tariffs that threaten to attack the economy of southern Hardly has significantly graph the feeling of the market,” Hogue said.
Housing sales have collapsed 21 percent in Ontario in the last two months and 17 percent in British Columbia. The most acute fall is in Toronto, where sales decreased by 27 percent.
Prices are also reduced in almost all markets in the two provinces, with accelerated decreases in March.
“For provinces more dependent on housing such as Ontario and Columbia Britanic, the recent cooling in housing activity is disconcerting,” said National Bank Warren Lovely and Dare King.
If the labor market is softened in these regions, which National says that it is likely that strongly indebted homes are in a fight.
“For Canadian homes, it seems that there are currently few places to hide,” said Lovely and King.
“It is not surprising that consumers are anxious and governments feel obliged to intensify support for vulnerable regional economies.”
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The Bank of Canada broke its streak of seven consecutive cuts on Wednesday when it maintained its interest rate at 2.75 percent.
The Central Bank said it decided to proceed cautiously as the events in Donald Trump’s trade war continue to develop.
Governor Tiff Macklem said during a press conference after the decision that the Governing Council considered to be reduced by a percentage room, but finally reached a clear consensus for retention.
“The United States trade policy is still highly unpredictable,” Macklem said. “There is also considerable uncertainty about the impacts of a commercial war on our economy.”
- Today’s data: Transactions of international values ​​of Canada, beginning of housing in the United States and construction permits
- Earnings: Netflix Inc., American Express Co., Blackstone Inc., Charles Schwab Corp., Marsh & Mclennan Cos Inc.
- More Canadians are ‘under water’ in their vehicles and may have no idea what they are
- Trump’s tariff war could trigger the flood of red ink in Canada, regardless of who wins the federal elections.
- This is what happened when a taxpayer claimed a pool as a medical expense
One of the most popular tax credits for Canadians is the credit of medical expenses, which offers fiscal deduction for medical or disabled expenses superior to the average.
However, not all expenses qualify, even if they recommend a doctor. Tax expert Jamie Golombek shows how with a recent case of an Ontario taxpayer who tried to claim the cost of a pool as medical expenditure.
Mclister in mortgages
Do you want to learn more about mortgages? The Financial Postial Column of the Mortgage Strata Robert Mclister can help navigate the complex sector, from the last trends to financing opportunities that will not want to get lost. In addition, verify its mortgage rate for the lowest national mortgage rates in Canada, updated daily.
Financial Publication on YouTube
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Today’s position was written by Pamela Heaven with additional reports of Financial Post, Canadian Press and Bloomberg.
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