Morning Market Brief: Monday, April 17, 2023

Canadian inflation, China’s growth, and more this week

Several economic announcements will drive financial market performance this week. By monitoring developments in the Canadian and global economy, you can make timely decisions related to spending, saving and investing. Here are some key announcements to watch:?

• On Tuesday, Statistics Canada will release Canada’s inflation rate for March. This will be closely watched by not only market participants but the Bank of Canada, who hopes its aggressive rate hikes over the past year will help pull inflation closer to its 2% target.
• The relative strength of Canadian consumers will be highlighted on Friday when February’s retail sales are announced. Despite ultra-tight financial conditions, Canadian consumers have shown relative resiliency in recent months due to high savings accumulated during the pandemic and a strong labour market.
• Plenty of news will come from other countries around the world. China will announce its first-quarter gross domestic product growth tonight, Europe’s March inflation will be released on Wednesday, and a preliminary look at April’s U.S. manufacturing sector will be available on Friday.
• Major U.S. earnings announcements are scheduled for this week. Bank of America Corp., Johnson & Johnson, The Goldman Sachs Group Inc., Netflix Inc. and Tesla Inc., among others, are all set to report this week. It will be a bit quieter in Canada, with a notable earnings announcement coming from Metro Inc.

There is considerable uncertainty in financial markets right now. From possible recessions to geopolitical tensions, it could be a difficult time to be an investor, and these announcements are sure to drive financial market performance this week. Despite expectations of volatile conditions, holding a well-diversified portfolio built to perform over the long term can help weather any short-term drops in market prices. Amid the volatility, we can find opportunities to help grow your wealth.

At?CIBC Private Wealth, we aim to take a comprehensive approach to managing, building and protecting your wealth. If you'd like to discuss this market and economic update in more detail, please get in touch with your advisor any time.