This week will bring plenty of critical economic announcements that are sure to drive financial market performance. Given central banks have noted their intentions to make interest-rate decisions based on incoming data, markets will be sure to react to these economic announcements. While there will be few economic announcements out of Canada, the week will conclude with very important labour market data for September. Here’s what to watch for this week.

• Statistics Canada will release Canada’s labour market data on Friday. In August, Canada’s economy added jobs, reversing two straight months of job losses. Still, Canada’s unemployment rate increased to 6.6%.
• Also on Friday, the Bank of Canada (BoC) will release its third-quarter business outlook. The business outlook weakened in the second quarter amid tight financial conditions, which weighed on consumer and business activity. With inflation and interest rates coming down, business sentiment could improve in the quarters to come.
• US inflation data will steal the headlines on Thursday. The annual inflation rate fell to 2.5% in August, the lowest level since February 2021.
• Looking elsewhere, European retail sales will be announced today, Germany’s industrial production on Tuesday and UK gross domestic product on Friday.
• Notable earnings in Canada this week include Tudor Gold and Aritzia. In the US, earnings from financial services companies are on the way, including Bank of New York, JPMorgan and Blackrock. Other key earnings include Pepsi and Delta Air Lines.

Investors will have plenty to digest this week. Data released over the next few weeks will help guide the interest-rate decisions of global central banks at their final meetings of the year and give insight into the health of the global economy heading into 2025. In Canada, the BoC has two more meetings in 2024, and markets expect it to reduce rates further.

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.