Canada will release key economic data this week, including its trade balance. Reports and comments from key officials have showed that Canada and the US have returned to talking trade. While a deal remains elusive, being back at the table is a positive sign. Meanwhile, Canada and the European Union held a summit late last week, where they spoke about strengthening their relationship in trade, AI and security. Here’s what to watch for this week.

• Canada’s international merchandise trade balance will be released on Wednesday. Canada’s trade balance widened in August, benefiting from higher exports. Even exports to the US increased, but this was largely due to US customers front-loading orders before new tariffs.
• Statistics Canada will announce Canada’s labour market data for October on Friday. Canada’s economy lost jobs for a second straight month in September. The unemployment rate rose to 6.5%.
• The US will also release its labour market report this week. The US jobless rate rose to 4.2% in September due in part to an increase in unemployed persons.
• Looking elsewhere, China’s business activity will be announced on Tuesday, European services sector activity and inflation rate on Wednesday, Bank of England interest rate decision on Thursday and European retail sales on Friday.
• Notable earnings in Canada include RioCan, Shopify, Suncor Energy, Cenovus Energy, BCE and Cineplex. Key earnings in the US include Apple, AMD and McDonald’s.

The US midterm elections will be held this week, which could guide the path of US policy over the next two years. The outcome of the midterm elections will likely have some impact on Canada, the extent of which is to be seen. In addition to the two above, Canada will have several other key economic announcements that will give some insight on the health of Canada’s economy.

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.