CIBC Private Wealth
July 22, 2024
Money Education Financial literacy Economy News Weekly updateMorning Market Brief
Several key economic releases will occur in North America this week, but one of the most closely followed decisions will be the mid-week interest-rate announcement from the Bank of Canada (BoC). Recent inflation and retail sales data have helped to provide an economic overview of the market environment.
- US existing home sales will be released by the National Association of Realtors. Home sales fell by 0.7% in May on a monthly basis.
- The BoC will make its interest-rate announcement on Wednesday. At its last meeting, the BoC reduced its overnight lending rate by 25 basis points to 4.75%.
- The BoC’s rate decision will be accompanied by a monetary policy report and press conference on Wednesday. Investors will get insights into some of the BoC’s reasoning behind its decision.
- US economic activity in the second quarter through gross domestic product growth will be released on Thursday. The US economy expanded by 1.4% in the first quarter of 2024.
- US inflation expectations for the next 12 months will be released by the University of Michigan on Friday. Preliminary forecasts showed that inflation expectations fell to 2.9% in July.
- The Canadian Federation of Independent Business also releases its business barometer on Friday, which signals expectations for businesses over the next year.
This week, the key announcement from the BoC will be a focal point for markets. Canadian retail sales released on Friday last week declined by 0.8% in May compared to April, indicating that consumer spending slowed. BoC Governor Tiff Macklem also noted that businesses have reduced hiring plans.
If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.