Market commentary

The Bank of Canada raised its key interest rate from a record low 0.25% to 0.50%, the first Group of Seven country to do so since last year’s global recession, and said further moves will be “weighed carefully” against future growth in Canada and elsewhere. In the U.S., the Institute for supply Management released its May index, which fell slightly to 59.7 from 60.4 in April. Keep in mind, an index reading above 50 indicates expansion in the manufacturing sector, and this is the 10th month this index has been above 50.
This week is full of important economic data culminating with the U.S. jobs report on Friday. Job growth is estimated to be 500,000 in April, with private employers contributing 170,000.
Again this week, Europe and its sovereign debt issues will be front and center, and it is clear this is now a long term problem. Expect volatility in stock and bond markets to continue as we get the push-pull of positive economic data from the US and the specter of sovereign debt defaults in Europe.