Canada's Economy May Slow With New Limits on Temporary Migrants: Everything You Need to Know on Monday

Good morning mooers! Here are things you need to know about today's market:

●S&P/TSX 60 Index Standard Futures are trading at 1,327.70 ,down 0.17%.

●Canada's economy may slow with new limits on temporary migrants

●RBC predicts gradual reemergence of buyers and listings in housing market

●Crude oil prices rise amid escalating conflict between Russia, Ukraine

●Sector to watch: Cannabis stocks

Today, the Canadian dollar is trading at 73.61 cents US, a slight increase from Friday. The S&P/TSX 60 Index Standard Futures (SXF) are currently trading at 1,327.70, which is down 0.17% from the previous close.

Canada's planned reduction in temporary residents is set to add downward pressure to inflation and economic growth in the coming months, and the policy will likely halve its population growth rate when it takes full effect next year, economists say.

Prime Minister Justin Trudeau's government plans to reduce the number of temporary immigrants by 20 per cent over the next three years, bringing the level down to 5 per cent of the population from 6.2 per cent currently. Starting in May, the government will make it harder for firms to rely on temporary foreign workers.

With one of the world's fastest rates of population growth, the country has benefited from quickly expanding its labour force. But the rapid increase, driven primarily by foreign workers and students, has led to growing anxiety about housing shortages and the cost of living, prompting the Trudeau government to scale back its open immigration policies.

"This policy would have a material impact on the economy moving forward," Royce Mendes, head of macro strategy at Desjardins, said in a report to investors. "The combination of a highly interest-rate sensitive economy and the likelihood of slower population growth are the main reasons we have been more bearish on the medium-term outlook for the Canadian economy."

RBC economist suggests that a surge of homebuyers reentering the housing market this spring is improbable; instead, their reintroduction is expected to be more "gradual" throughout the latter half of the year.

While some experts predict a bustling spring period, driven by hopeful buyers anticipating interest rate reductions by the Bank of Canada, Robert Hogue, the deputy chief economist at Royal Bank of Canada, maintains that a number of rate cuts may be necessary before a substantial number of potential buyers commit to purchasing.

Crude oil prices climbed early Monday amid escalating conflict in the Middle East and between Russia and Ukraine.

Brent crude rose 0.6% to US$85.91 per barrel and West Texas Intermediate crude gained 0.6% to US$81.08/b at last look early Monday. This comes after emergency power outages were implemented in Ukraine's port of Odesa after a Russian air attack damanged one of the facilities in the area, Reuters reported Monday.

"Escalating geopolitical tension, coupled with a rise in attacks on energy facilities in Russia and Ukraine, alongside receding ceasefire hopes in the Middle East, raised concern over global oil supply," Reuters quoted Hiroyuki Kikukawa, president of Nissan Securities unit NS Trading, as saying.

Starting in, Germany will become Europe's third country to regulate cannabis for adults. Cannabis clubs with up to 500 members will be able to grow and purchase marijuana while public cannabis use will be allowed away from children and sports facilities, and banned in pedestrian zones during the day.

The landmark reclassification of cannabis, enhancing accessibility, and reducing regulatory complexities for medical cannabis, catalyze a market poised for growth.

Source: BNN Bloomberg, Financial Post