Much of the global investor community will be focused on the US this week as the world’s largest economy releases its inflation and retail sales data. Both should give some insight into the health of the US economy amid escalating trade tensions. In Canada, it will be a relatively light week for economic announcements, but some critical ones are coming from the real estate market. Not unlike previous months this year, trade policy will be closely monitored for any developments. Here’s what to watch for this week.

• Canada’s building permits will be announced on Tuesday. This should give some insight into Canada’s progress towards increasing the supply of homes to help improve affordability.
• The Canadian Real Estate Association will release existing home sales for July on Friday. Home sales have increased for two straight months. Recent data from the Toronto and Vancouver real estate markets suggests the real estate market is improving.
• US consumer prices will come into the spotlight on Tuesday. The US inflation rate increased to 2.7% in May from 2.4% in the previous month, owing to a rise in prices for food and transportation services. On Friday, retail sales for July will be announced. Retail sales increased in June after two straight declines.
• Elsewhere, the UK unemployment rate will be released on Tuesday, UK and European economic growth on Thursday, China’s retail sales on Thursday night and Japan’s industrial production on Friday.
• Notable earnings in Canada include Franco-Nevada, Barrick, Cineplex, CAE, Hydro One, Metro, Birchcliff Energy and CCL. Key earnings in the US include Cisco, Deere and Applied Materials.

There will be no shortage of economic and corporate announcements that might drive financial markets over the week. Trade policy and its potential impact on the global economy remain top of mind for the investment community. Markets will be checking for any new tariff announcements, progress on negotiations and trade deals reached.

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.