Several critical economic announcements out of Canada this week will provide some insight into the health of Canada’s economy. They will be closely monitored by the Bank of Canada (BoC), which makes its next interest rate announcement on October 29. South of the border, the US government shutdown persists, which has delayed the release of key economic data. Across North America, quarterly earnings announcements will pick up this week.
 

• Canada’s inflation rate for the month of September will be released on Tuesday. The annual inflation rate accelerated to 1.9% in August, still below the BoC’s 2% target. The threat of higher inflation persists with global trade tensions lingering.
• Canada’s retail sales report for August will be released on Thursday. Retail sales dropped by 0.8% in July. However, Statistics Canada estimated an increase in August. Labour market weakness is raising concerns about consumer spending over the upcoming months.
• The US is scheduled to release its September inflation report on Friday. However, that will depend on the status of the government shutdown. Existing home sales and consumer confidence will be released, regardless of the government shutdown.
• Elsewhere, Japan’s trade balance will be released on Tuesday, UK inflation on Wednesday and European services sector activity on Friday.
• Key earnings in Canada include those from Teck Resources, West Fraser Timber and Rogers. Notable earnings in the US include Coca-Cola, GM, GE, Netflix, Alcoa, Tesla, IBM, American Airlines, Ford and Intel.

The inflation and retail sales reports will be vital pieces of information for the BoC ahead of its next interest rate announcement. They may also give investors some insight into consumer strength in Canada. Talk of trade will also be top-of-mind for investors with US-China trade tensions persisting and Canada trying to reach a new trade arrangement with the US.

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.