Morning Market Brief
This will be a relatively light week for economic announcements after the excitement from last week, which brought us Canadian inflation data and the US Federal Reserve Board’s (Fed) first interest-rate cut since 2020. Still, there will be some critical announcements here in Canada and abroad that’ll impact financial markets and future rate decisions. Here’s what to watch for this week.
- Statistics Canada (StatsCan) will release Canada’s gross domestic product (GDP) data for the month of July on Friday. Canada’s economy grew by 0.1% in June, with StatsCan estimating no change in July (0.0%). With interest rates falling, the Bank of Canada hopes economic activity will pick up in the months to come.
- The US will have several key announcements late in the week. On Thursday, durable goods orders will be announced, along with the third and final reading of GDP growth for the second quarter. On Friday, the Fed’s preferred inflation gauge, the personal consumption expenditure price index, will be released.
- Economic data releases from elsewhere include European services sector activity today, China’s industrial profits on Thursday and European consumer confidence on Friday.
- While there are only a few earnings announcements this week, there are some key ones. Notable earnings in Canada include Trillion Energy and BlackBerry. Key earnings in the US include Micron Technology and Costco.
Despite expecting few economic announcements this week, there will be some important ones. Market participants will be monitoring these economic announcements to see how recent rate cuts might be impacting economic activity. As we approach the fourth quarter of 2024, we note that global equity markets have risen this year but have experienced some bouts of volatility amid uncertain economic conditions.
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.