07:56 AM EST, 11/11/2024 (MT Newswires) -- Financial markets have mostly settled down after last week's ride, noted Bank of Montreal (BMO).

Canadian stocks were pulled higher by the tide of rising United States equities, up 2.1% to near a record high, but they underperformed on the week, said the bank. That might be indicative of what's coming on the growth front.

While a lot of ink has spilled on the concern about tariffs, pro-growth policy changes would surely help if actions in the US drive stronger activity there, stated BMO. As a bonus, should a change of government in Canada take place at some point in 2025, any tit-for-tat pro-growth policy response would also support the outlook.

Most sectors finished the week with gains, led by technology, energy and financials. Telecom lagged, but let's just say there are some unique issues in that sector right now, pointed out the bank.

Yields and the Canadian dollar (CAD or loonie) finished the week remarkably quiet given all the chatter that a Donald Trump victory/Republican sweep would be inflationary and bearish for the Canadian currency, added BMO. Canadian 10-year yields sit slightly below election-day levels, and the loonie managed to post a modest gain last week.

The currency starts the week at $1.393/USD (71.8 US cents).

Building permits on Tuesday, were likely down 1% month over month in September, according to the bank. Manufacturing and wholesale trade data for September are out on Friday and will help shape the monthly real gross domestic product call.

BMO looks for a mixed bag of results there. Finally, the full suite of housing market data for October ON Friday will show a market that is stirring again after Bank of Canada rate cuts have helped pull mortgage rates down toward 4%. Sales were likely up a strong 33% from a year ago -- last fall was admittedly a very weak period -- while the national benchmark price was likely still down 2.5% year over year.

Some markets -- for example, Toronto condos -- are still struggling, while some other segments -- for example, single detached -- and regions -- Vancouver and Montreal -- are looking much more balanced. The bank recalls that easier mortgage rules also kick in next month, which could give an additional lift, especially in the C$1 million-to-C$1.5 million range of the market.