Last week was eventful with the Bank of Canada (BoC) and US Federal Reserve Board making their final interest rate decisions of 2025. This week will leave us with no shortage of critical announcements that will set the stage for financial markets as we close out the year and give a look at the health of the Canadian and global economies. In Canada, home sales, inflation and retail sales are all on the docket. The US will also announce several key economic indicators that investors will closely monitor. Here’s what to watch for this week.

• The Canadian Real Estate Association will announce today Canada’s existing home sales in November. Canada’s real estate market struggled for traction in 2025 amid falling confidence and economic uncertainty. Recent outlooks from several recognized industry participants (i.e., Royal LePage) are predicting a stronger 2026.
• Canada’s inflation rate will also be announced today. Canada’s annual inflation rate edged lower to 2.2% in October. Core inflation remained close to 3%.
• The week will conclude with Canada’s retail sales in October. Retail sales dropped by 0.7% in September.
• In the US, the unemployment rate and retail sales will be announced on Tuesday, inflation on Thursday and home sales on Friday. Notable corporate earnings include those from FedEx and Nike.
• On Thursday, the Bank of England, European Central Bank and Bank of Japan will be making their interest rate announcements.

It is shaping up to be a busy week of critical economic announcements. This year has brought plenty of uncertainty about the health of the domestic and global economies. Many of these announcements will give a glimpse into how economies are faring heading into 2026. The Canadian economy has faced challenging conditions in the past, but history has shown its ability to demonstrate its resiliency.

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.