The only certainty in the global economy and financial markets seems to be uncertainty. Last week, investors questioned whether the end of the conflict in the Middle East was nearing. As the conflict persists, uncertainty about its long-term impact on economic activity, prices and the labour market has come to the forefront. As we approach April, there will be several economic announcements related to March data, which may show some early signs of what is happening economically in response to the conflict. In the meantime, here are some things to watch for this week, some of which may not provide evidence of the impact from the conflict just yet.

• Canada’s gross domestic product in January will be released tomorrow. In December, Canada’s economy expanded by 0.2%, which was its first monthly expansion since September. An early estimate showed the economy stalled in January.
• Canada’s trade balance will be announced on Thursday. Canada ran a fourth straight trade deficit in January.
• In the US, retail sales in February will be released on Wednesday. The labour market report for March will be announced on Friday. The US unemployment rate rose to 4.4% in February.
• Looking elsewhere, China’s manufacturing sector activity will be released tonight, UK economic growth and European inflation on Tuesday and China’s private business activity on Thursday.
• Notable earnings in Canada include goeasy, Novagold Resources, Tilray Brands and NuVista. Key earnings in the US include Nike and RH.

It will be a busy week for investors with plenty of critical economic announcements to come along with monitoring the situation in the Middle East. Financial and commodity markets could continue to remain choppy amid lingering uncertainty. Inflation and higher interest rates remain concerns with oil prices having surged higher since the conflict in the Middle East began.

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.