Markets took investors on a wild ride last week. The implementation of reciprocal tariffs and heightened trade tensions pushed North American equity markets sharply lower. However, US President Donald Trump delayed higher reciprocal tariffs, easing the tension on investors, which drove markets much higher. The uncertainty could keep financial markets choppy in the weeks to come. In Canada, attention will turn to the Bank of Canada (BoC). Here’s what to watch for this week.

• Canada’s inflation rate for the month of March will be released on Wednesday. Canada’s annual inflation rate rose to 2.6% in February, largely in response to the end of the sales tax holiday.
• The BoC will make its interest-rate announcement on Wednesday. The BoC lowered its benchmark overnight interest rate by 25 basis points to 2.75% at its last meeting, citing concerns about the impact of tariffs on the economy. According to a Bloomberg survey, economists are expecting the BoC to hold steady at this meeting.
• US retail sales will be released on Wednesday. Retail sales rose by 0.2% in February after falling sharply in January. If tariffs push up prices and weigh on economic activity in the US, retail spending could weaken.
• Looking elsewhere, the UK unemployment rate will be released on Tuesday, China’s retail sales and industrial production on Tuesday night, European inflation on Wednesday and the European Central Bank’s rate decision on Thursday.
• Notable earnings in Canada include PrairieSky and Metro. Key earnings in the US include Goldman Sachs, Citigroup, American Express, UnitedHealth and Netflix.

The trade standoff between the US and China could garner much of investors’ attention this week, as could negotiations between the US and other countries to avoid tariffs. In Canada, we are quickly approaching a federal election. The candidates are still on the campaign trail, often trying to convince Canadians how they can best improve Canada’s fractured relationship with the US. There’s plenty to watch for this week.

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.