Markets will continue to focus on the conflict in the Middle East and its potential short- and long-term impact on energy markets, financial markets, the global economy and consumer prices. The conflict has sent oil prices skyrocketing, which has raised inflationary fears and left markets wondering if central banks might need to raise interest rates. Looking at Canada, the real estate market will take centre stage this week with building permits, home sales and housing starts all scheduled to be announced.

• The Canadian Real Estate Association (CREA) will release Canada’s existing home sales for March on Thursday. Canadian home sales have struggled for traction early in 2026, falling by 5.8% in January and 1.3% in February.
• In the US, producer prices for March will be released on Tuesday. This will be closely watched to see what type of pressures are forming at the producer level from higher energy costs due to the conflict in the Middle East.
• The International Monetary Fund (IMF) and World Bank meet this week. The head of the IMF said the organization will likely revise lower its outlook for global economic growth in 2026.
• Elsewhere, China’s trade balance will be announced tonight, China’s first-quarter 2026 economic growth on Wednesday and UK gross domestic product and European inflation on Thursday.
• Notable earnings in Canada include those of MEG Energy and New Horizon Aircraft. Key earnings in the US include those of Goldman Sachs, BlackRock, JPMorgan, Citigroup, PepsiCo and Netflix.

There will be a lot of economic data and news for investors to digest this week, which will impact the direction of financial markets. Here in Canada, markets will closely monitor real estate market data. CREA expects sales to pick up in the spring of 2026, but its outlook could be muddled by geopolitical tensions in the Middle East, which are likely to push consumer prices higher and potentially weigh on 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.