The first week of May will bring with it plenty of critical economic data out of Canada and the US, most notably labour market data for April. In Canada, markets are expecting to hear about private business activity and international trade data. Markets are likely to move with sentiment on the conflict in the Middle East. The US and Iran have maintained their ceasefire but are unable to find enough reasons to come back to the table to negotiate a peace deal.

• Canada’s trade data will be released on Tuesday. In February, Canada’s trade deficit widened in large part due to a sharp increase in imports. Exports also increased, but at a slower pace.
• Statistics Canada will announce Canada’s labour market data on Friday. Canada’s economy added 14,100 jobs in March, the most since November 2025. Canada’s unemployment rate was unchanged in March at 6.7%.
• The US trade balance will be released on Tuesday. On Wednesday, ADP will release its employment data on private payrolls. Then on Friday, the US unemployment rate and nonfarm payrolls data will be announced.
• Elsewhere, China’s services sector activity will be announced on Tuesday night, Europe’s services sector activity and producer prices on Wednesday, European retail sales on Thursday and Germany’s industrial production on Friday.
• Notable earnings in Canada include RioCan, Shopify, Suncor, Cenovus, Loblaw, Canadian Natural Resources, BCE, Pembina Pipeline, Enbridge and TELUS. Key earnings in the US include Pfizer, Advanced Micro Devices, Walt Disney, Uber Technologies, Cheniere Energy and McDonald’s.

Beyond these critical economic announcements, there is a wide array of earnings results across several sectors that will give some insight into the health of business activity in Canada and the US. Earnings and progress towards a peace deal between the US and Iran will likely have a strong impact on the performance of financial markets 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.