Morning Market Brief
Last week, the US released its inflation data for July, and this week will be Canada’s turn. The report will be closely monitored to see what impact tariffs might be having on consumer prices. From there, markets will try to interpret what this means for the Bank of Canada (BoC). Outside of Canada, there will be plenty of global economic announcements that will give clues on the health of the economy amid trade tensions. Here’s what to watch for this week.
- Canada’s inflation rate for July will be released on Tuesday. The annual inflation rate accelerated to 1.9% in June, owing in part to a rise in prices for passenger vehicles. The BoC has expressed concern that tariffs could push consumer prices higher.
- The Canadian consumer comes into the spotlight on Friday when June’s retail sales are announced. Retail sales have been relatively muted in 2025 as trade disruptions have caused some uncertainty among consumers.
- In the US, there will be plenty of announcements about the real estate market. These include builders’ confidence, housing starts and existing home sales.
- Outside of North America, the People’s Bank of China’s interest-rate decision will be announced on Tuesday, UK and European inflation rates on Wednesday, European services sector activity on Thursday and Japan’s inflation rate on Thursday night.
- Earnings announcements will slow after a busy few weeks across Canada and the US. Notable earnings in the US include The Home Depot, Target and Walmart.
Canadian inflation will be top of mind in Canada as investors try to predict the next move from the BoC. After holding steady over the past few meetings, markets are expecting another rate cut from Canada’s central bank this year. In addition to these key economic announcements, developments in trade and geopolitics will garner investor attention over the week. Equity markets in Canada and the US are up year-to-date as of August 15.
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.