RE:RE:RE:FTN UNIT NAV to April 15 = approx: $17.79FatTraderDude01 wrote: Let me try this one... FTN has financial stock
exposure. If that sector falls more rapidly as it has since the end March, distributions could be effected.
I thinkCanadian rates "could" drop in June so that should help Canadian financials. If the US dollar drops dollar could rise, further elevating Canadian financials... JMHO.
The Financial Post reports in its Tuesday edition that economists believe that Canadian inflation likely increased again in March, but not by a enough to impact the Bank of Canada's plans. The Post's Denise Paglinawan writes that inflation rose to 3 per cent last month, after a surprise drop to 2.8 per cent year-over-year in February. Last week, the United States reported that inflation also increased in March. Royal Bank of Canada economists wrote, "The Bank of Canada will be focused on the March Canadian consumer price index report next Tuesday after another upward surprise in U.S. price growth created doubt about the U.S. Federal Reserve's rate-cutting plans this year." RBC's Nathan Janzen and Abbey Xu expect year-over-year price growth to hit 3 per cent, largely due to higher gasoline prices pushing energy costs further above year-ago levels. While slower price growth in recent months would have made BOC policy-makers confident that inflation will continue to slow, the bank wants to see more evidence before shifting to interest rate cuts, the economists said. CIBC economist Andrew Grantham says, "After decelerating by more than expected so far this year, inflation likely picked up again slightly in March."
The Financial Post reports in its Tuesday edition that the Canadian dollar could be in for a rough ride if the Bank of Canada cuts interest rates sooner and deeper than the Federal Reserve, a scenario that economists suggest is becoming increasingly likely as the U.S. economy continues to outperform. The Post's Gig Suhanic writes that in a sign of what could come, the loonie fell more than a half per cent against the U.S. dollar in the wake of the Bank of Canada's interest rate announcement last Wednesday, during which governor Tiff Macklem said a cut at the June rate meeting was now "within the realm of possibilities." That put the weakened loonie in the crosshairs of a stronger American currency and the Bank of Canada possibly at the mercy of a Federal Reserve that appears in no rush to start cutting. "Pushing out Fed rate cuts makes it more difficult for the Bank of Canada to ease without causing CAD to crater," Derek Holt, head of capital markets economics at Bank of Nova Scotia, said in note to investors. "If there is one thing one needs to understand about Canada ... it is very much the fact that it is not fully independent of the United States. Nor is the Bank of Canada fully independent of the Fed."