Economic and market uncertainty has reigned in 2025 as escalating trade tensions have weighed on sentiment. Since the pause in higher reciprocal tariffs, investors have closely monitored the progress of negotiations between the US and other countries. While some countries are speaking with the US, China has retaliated with high tariffs of its own, which is putting the health of the global economy into question. Here’s what to watch for this week.

• Statistics Canada will announce retail sales for the month of February on Friday. Retail sales dropped by 0.6% in January after six straight monthly increases. Canadian households seem to be pulling back on spending as confidence deteriorates, with tariffs weighing on the outlook for Canada’s economy.
• South of the border, attention will be on trade talks. Still, there are a few important economic announcements, including durable goods orders and existing home sales on Thursday, followed by consumer confidence on Friday. US consumer confidence has weakened thus far in 2025.
• Several critical economic announcements will be made outside of North America. These include the IMF World Economic Outlook today, European manufacturing and services sector activity on Wednesday, and UK retail sales on Friday.
• Notable earnings in Canada include West Fraser Timber, Rogers, Teck Resources and Celestica. Key earnings in the US include GE, 3M, Tesla, AT&T, Boeing, IBM, PepsiCo, American Airlines, Alphabet and Intel.

Financial markets could be choppy again this week given the overhang of US trade policy, particularly with China. Last week, the Bank of Canada held steady but noted its outlook is dependent on the direction of US trade policy. Canada is also closing in on a federal election, which takes place on April 28. The Prime Minister is expected to have discussions with US President Trump following the election.

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.