CIBC Private Wealth
August 12, 2024
Money Education Financial literacy Economy News Weekly updateMorning Market Brief
Last week brought about wide swings in financial markets, with investors growing increasingly concerned about the health of the US and global economies. Investors will continue to parse through economic data to predict when more rate cuts will be coming. In Canada, the real estate market will take centre stage with plenty of announcements. Here is what to watch for this week.
- Canada’s building permits will be announced today. Building permits dropped in May for the second time in three months. The government is hoping to increase the supply of homes to help make housing more affordable.
- The Canadian Real Estate Association will report on Canada’s real estate activity in June on Thursday. Real estate activity has waned in recent months, with high rates and elevated prices weighing on demand.
- US inflation data will be announced on Wednesday. This will be a closely watched measure to predict if the US Federal Reserve Board will indeed begin lowering rates in September. The annual inflation rate was 2.9% in June. US retail sales will be released on Thursday.
- Looking elsewhere, the UK unemployment rate will be announced on Tuesday, the UK inflation rate on Wednesday, European industrial production also on Wednesday, China’s retail sales on Wednesday night and UK economic growth on Thursday.
- Earnings announcements will continue. Key earnings in Canada include Barrick, Sun Life, Encore, Metro and Hydro One. Notable earnings in the US include Home Depot, Cisco and Walmart.
It is shaping up to be a busy week. Financial markets could potentially be shaky as investors closely monitor these announcements to predict the next actions of global central banks. We will also be treated to some insight into the health of Canada’s real estate market. It will be a sector to watch as the Bank of Canada lowers interest rates, which could help spur demand.
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.