CIBC Private Wealth
October 15, 2024
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Inflation data will steal the spotlight this week with four major economies announcing their consumer price index data. This includes Canada’s annual inflation rate. On Thursday, the European Central Bank (ECB) makes its first interest-rate announcement of the fourth quarter. Here’s what to watch for this week.
- Canada’s inflation rate for the month of September will be announced today. Canada’s inflation rate fell to 2.0% in August, the lowest level since February 2021. Economists are expecting it to stay close to the Bank of Canada’s (BoC) 2% target. The release might help form the next rate decision by the BoC.
- The Canadian Real Estate Association will also release existing home sales data today. Sales of existing homes rose by 1.3% in September but have been relatively muted in 2024. The BoC’s rate cuts are expected to lower mortgage rates, which could help lift demand.
- China’s economic growth over the third quarter of 2024 will be announced on Thursday. China’s economy continues to struggle for traction amid weak domestic demand and a troubled property market.
- Elsewhere, UK inflation data will be announced on Wednesday. European inflation, the ECB’s rate decision and US retail sales come on Thursday, and Japan’s inflation rate will be announced on Thursday night.
- It will be a quiet week for earnings in Canada. Notable earnings in the US include Bank of America, Citigroup, Kinder Morgan and Netflix.
These critical economic announcements are sure to drive financial market performance this week. Central banks’ intentions to make decisions based on incoming economic data will have investors carefully analyzing the results to try to predict how central banks will react. In Canada, the BoC’s next rate decision comes on October 23, where it is currently expected to reduce interest rates again. The BoC hopes the rate cuts will eventually help support Canada’s economy, labour market and consumer strength.
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