Markets appear buoyed by expectations of more stimulus from the U.S. Federal Reserve. The FOMC meets on Wednesday and is expected to announce another round of asset purchases to replace Operation Twist. Bond yields are up 1.2 bps.
Canada’s international merchandise trade deficit narrowed in October on declining imports and increasing exports. Imports were down 1.2% while exports, led by agricultural products, climbed 1.0%. The deficit shrank from $1 billion in September to $169 million in October.
Canada’s imports from the United States rose 1.6% and exports edged down 0.2%, lowering our October trade surplus with the U.S. by about $400 million.
In the States, the international trade deficit widened by nearly $2 billion in October over September.