CIBC Private Wealth
May 06, 2024
Money Education Financial literacy Economy News Weekly updateMorning Market Brief
After the global investment communities’ attention was squarely focused on the US Federal Reserve Board last week, attention will be diverted elsewhere this week, including towards Canada. While it will be a relatively light week for economic announcements in Canada, critical labour market data will be announced, which will help set expectations for the next move from the Bank of Canada (BoC). Here’s what to watch for this week.
- Statistics Canada will release Canada’s labour market data on Friday. In March, the Canadian economy shed 2,200 jobs, which was its first decline in eight months. Canada’s unemployment rate rose to 6.1% in March, its highest level since October 2021.
- The US has few economic announcements on the agenda this week. Among the most notable include May’s consumer confidence index from the University of Michigan on Friday.
- The Bank of England (BoE) makes its interest-rate announcement on Thursday. The BoE is currently expected to hold steady at 5.25%, but market participants will listen closely for any clues to when it might begin lowering interest rates.
- Other economic announcements from around the world include European services sector activity today, European retail sales on Tuesday, China’s trade activity on Wednesday and UK gross domestic product on Friday.
- There will be plenty of earnings announcements this week. Key earnings in Canada include Boardwalk REIT, RioCan, Suncor, Shopify, Manulife, Canadian Tire, Quebecor, Sun Life and Enbridge. Notable earnings in the US include Walt Disney, Uber and Constellation Energy.
Those are the key economic and earnings announcements to monitor this week, which will be sure to drive financial market performance. In Canada, the labour market report will be carefully analyzed to help predict when the BoC might begin cutting interest rates. There are signs economic conditions in Canada are cooling, which could put pressure on Canadian households and businesses.
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.