WINNIPEG – The following is a glance at the news moving markets in Canada and globally.
– The United States Federal Reserve will announce its latest key lending rate decision later on Wednesday, with many observers expecting the central bank to increase its rate by at least 0.75 of a point. A rate hike of that size has not happened since 1994. Speculation over the Fed’s interest rate has caused volatility on the markets as the S&P 500 approaches “bear market” territory and Bitcoin lost one-third of its value to US$21,000 in a matter of days. The European Central Bank will hold an emergency meeting before the Fed’s decision is announced.
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– In its monthly report, the International Energy Agency (IEA) said in its 2023 forecast that oil supply will not be sufficient to meet demand. The report cited China’s economic recovery and tighter sanctions in Russia for the supply crunch. Meanwhile, U.S. President Joe Biden wrote in a letter to seven oil refiners, asking them to produce more gasoline and diesel and saying their profits have tripled during a time of crisis. Biden has also directed Energy Secretary Jennifer Granholm to convene an emergency meeting and consult with the National Petroleum Council, as well as asking each oil refinery to explain any drop in refining capacity since the start of the COVID-19 pandemic.
– The Canadian Real Estate Association (CREA) said on Wednesday the average price of a Canadian home fell C$100,000 over the past three months to C$711,000 in May. It added that the volume of homes sold during the month of May dropped 20 per cent compared to last year. The House Price Index (HPI), which adjusts for volume and types of housing, declined 0.8 per cent month-to-month in May, which is 19 per cent higher than last year.
