Capital Markets Mid-Year Report 2016

Overview

Uncertainty lingered at the outset of 2016 in Canada from a slowdown in activity that began in the previous year: Q4 2015's total offerings raised an aggregate of approximately C$71 billion in gross proceeds, roughly C$6 billion below the average of the previous three quarters of 2015 combined. But as the first quarter of 2016 hit its stride, moderate gains in the dollar and promising activity—including much-welcomed upticks in the mining and oil and gas sectors—sparked optimism. However, these earlier gains have been stemmed by setbacks both macroeconomic and in the form of devastating wildfires suffered by the Fort McMurray community and surrounding areas. While the Bank of Canada has suggested that, among other factors, a return to production and repair efforts in Alberta and Saskatchewan may help spur growth in the last half of the year, Canada's economic outlook today looks a lot like it did at the start of 2016: low interest rates, low commodities