Looking at the week ahead, there will be several key economic announcements in Canada, particularly from its real estate market. Amid escalating trade tensions, economic and job uncertainty has heightened, which could dampen demand for real estate. The US will see its last headline inflation release before the US Federal Reserve Board’s (Fed) next interest rate decision on October 28. Here’s what to watch for this week.

Statistics Canada will release Canada’s wholesale and manufacturing sales for August on Thursday. Both will give some insight into the strength of demand during the month of August. Manufacturing sales fell in July, while wholesale sales increased.
Critical real estate announcements  will begin Wednesday when building permits are announced. Housing starts and existing home sales will be released on Friday.
In the US, inflation data will be released on Wednesday.  The annual inflation rate in the US was 3.4% in August. Another high reading could have the Fed thinking about a rate cut later this month.
China’s inflation rate will be released tonight, UK economic growth on Thursday and Europe’s trade balance and inflation rate on Friday.
Notable earnings in the US  include Goldman Sachs, JPMorgan Chase, Blackrock and other large financial institutions. There are few earnings announcements in Canada this week.

Canada’s real estate market activity has been muted in recent months and the outlook seems uncertain given ongoing geopolitical and trade tensions, which is weighing on consumer confidence. All eyes will be on the US this Wednesday when September’s inflation data is released. Inflation is expected to remain high given elevated price pressures for energy products.

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.