Canada’s labour market will come into the spotlight this week, particularly as uncertainty heightened in response to the conflict in the Middle East. The war on Iran has pushed up oil prices and raised concerns about inflation. Markets expect the conflict to have an impact on global economic activity. The US believes there may be a quick recovery once the war ends; however, Europe has countered that it may take some time. Either way, the global economy and financial markets have always seen dips but have historically recovered and then grown over time. That is particularly true here in Canada.

• Canada’s labour market report for March will be released on Friday. Canada’s unemployment rate rose to 6.7% in February, in large part due to the Canadian economy losing 83,900 jobs. That marked the second straight month of job losses after adding jobs for four straight months to end 2025.
• There will be several critical economic announcements from the US this week. The personal consumption expenditure price index (PCE) will be released on Thursday, along with personal spending and personal income.
• On Friday, the US inflation rate for March will be announced. This will be a closely watched measure to see if the conflict in the Middle East is having an immediate impact on prices.
• Elsewhere, European services sector activity will be released on Tuesday, German factory orders and European retail sales on Wednesday and China’s inflation rate on Thursday.
• Notable earnings in Canada include those of Cogeco and MTY Food Group. Key earnings in the US include those of Exxon Mobil and Delta Air Lines.

While markets will monitor the situation in the Middle East, several of these economic announcements might give some insight into the impact the conflict in the region is having on the global economy. While the impact on prices may be more immediate, the overall impact on economic activity might take some time. Uncertainty weighs on consumer and business confidence, which could eventually impact economic performance.

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.