Markets Surge, Real Estate Wobbles, and Lutnick Takes Commerce Helm

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3910-1.4100

Euro                 1.4640-1.4840

Sterling            1.7600-1.7800

WTI Oil (opening level) $69.68

Howard Lutnick, former president of Cantor Fitzgerald, has been appointed as the new U.S. Secretary of Commerce. With this role, Lutnick is expected to oversee U.S. business interests, promote job growth, and manage significant agencies such as the Bureau of Economic Analysis and the Census Bureau. His appointment fills a crucial position in the administration, leaving the Secretary of Treasury as the most important cabinet role still awaiting nomination.

In global monetary policy, the People's Bank of China maintained its key lending rates in November, meeting market expectations. The 1-year loan rate remains at 3.1%, while the 5-year mortgage rate stays at 3.6%. Both rates are at record lows following previous cuts, signaling the central bank's continued focus on economic stabilization.

Markets have seen dynamic movements recently. U.S. equities rose, with Nvidia driving gains in the tech sector. Geopolitical tensions between Ukraine and Russia fueled an uptick in market volatility, while fluctuating momentum in the U.S. dollar reflected broader uncertainty. Commodities like gold and copper rebounded as investor attention turned toward developments in Russia and China. Meanwhile, rising political tensions contributed to a rally in bond markets, as investors sought safer assets.

In the Canadian real estate market, signs of a turning point are beginning to emerge. Although high interest rates over the past two years have made mortgage renewals increasingly challenging, property prices—which have remained elevated—are now starting to decline. A recent transaction illustrates this shift: a buyer purchased a property at over $100,000 less than what the previous owner, a speculator, had paid to the developer. This suggests that the real estate market may have peaked, with further price reductions likely as foreign investment slows and domestic consumers struggle to sustain current market levels.

The outlook for the Canadian housing market remains uncertain, and caution is advised. The combination of waning foreign investment and increased economic pressures on domestic buyers could lead to further downward adjustments. Staying vigilant and informed will be crucial for navigating the changes ahead.