In Canada, it will be a relatively quiet week for scheduled economic announcements. Investors will continue to monitor news on trade and geopolitical tensions, and how that might impact Canada’s economy and financial markets. South of the border, there will be several critical economic announcements, including July’s inflation report. Global financial markets could move alongside developments in the Middle East. Here’s what to watch for this week.

• Canada’s manufacturing and wholesale sales will both be released on Friday. Manufacturing sales have risen for four straight months in May, but an early estimate from Statistics Canada showed sales may have slipped in June.
• The US inflation rate report for July will be released on Wednesday. The annual inflation rate moderated in June to 3.5%, but it was still well above the US Federal Reserve Board’s 2% target, raising expectations for an interest rate cut this year.
• Elsewhere, Germany’s inflation rate will be announced on Wednesday, UK gross domestic product (GDP) on Thursday and Europe’s second estimate of GDP and employment change on Friday.
• Notable earnings in Canada include Cineplex, Constellation Software, Franco-Nevada, Air Canada and Canadian Tire. Key earnings in the US include Simon Property Group and Cisco Systems.

Markets will surely be glued to the US inflation report as they try to predict if and when the Fed may raise interest rates. In Canada, the manufacturing sector has improved in 2026, demonstrated by higher sales, but many industries are still weighed down by extensive US tariffs. The review of the Canada-United States-Mexico Agreement is still in progress, adding to uncertainty for those industries impacted by trade tensions with the US.

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.