Morning Market Brief
The second half of 2024 begins with some critical economic announcements. Investors will closely monitor these announcements to try to predict how central banks, particularly the US Federal Reserve Board (Fed), will react. There will be several key announcements out of Canada as well. Here is what to watch for.
- Canada's manufacturing activity for the month of June will be released today. The sector has struggled amid a drop in demand, which has weighed on output levels. The sector has contracted for 13 straight months.
- Canada's labour market data will be announced on Friday. Canada's unemployment rate has ticked higher in recent months, suggesting the labour market is cooling off. The economy continues to add jobs but with more people entering the workforce, the number of unemployed has risen.
- The Fed will release the minutes from their last meeting on Wednesday. Investors will search for clues on when the Fed might begin lowering interest rates. The US will also release manufacturing, labour market and trade data over the week.
- Several critical international economic announcements will be released. European inflation will be released today, China's business activity tonight, European services sector activity on Wednesday and European retail sales on Friday.
Global equity markets finished the first half of 2024 higher but did experience some bouts of volatility along the way. It could be much the same in the second half as more central banks move towards lowering interest rates, but economic conditions in some parts of the world remain relatively shaky. This week's announcements could set the stage for what is to come in the second half of 2024.
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.