Morning Market Brief: Monday, June 5, 2023

All eyes on the BoC?

The Bank of Canada (BoC) will hold its June meeting on Wednesday. While most expect the BoC to continue its current path at this meeting, the release of stronger-than-expected economic growth data in Canada in the first quarter has many questioning whether the BoC might hike rates again. Actions by the BoC and other global central banks dominated news headlines for the past year and are likely to continue in the months ahead. ?

• The BoC will announce its interest rate decision on Wednesday. Based on a Bloomberg survey, economists expect the BoC to hold steady at 4.50%. No matter the decision, market participants will closely monitor any statements by the BoC to determine if they’re considering more rate hikes.
• May’s Canadian labour market details will be announced on Friday. The Canadian economy added 41,000 jobs in April, its eighth consecutive month of adding jobs. Canada’s jobless rate stood at 5.0% at the end of April.
• While it’s a big week for Canadian economic announcements, there is no shortage of key announcements from around the world. European retail sales for April will be released on Tuesday, China’s May trade activity comes on Tuesday night, and April US exports and imports results will be released on Wednesday.
• It will be a relatively light week for earnings announcements on both sides of the border. Key Canadian earnings include Dollarama Inc., Saputo Inc. and Delta Resources Ltd. Notable earnings in the US include GameStop Corp. and DocuSign Inc.

Canadian financial markets will likely be driven by expectations of BoC policy this week and at its next meeting, depending on what statements are made regarding its monetary policy stance. The US debt ceiling uncertainty abated but financial markets could swing between gains and losses as investors digest incoming economic data to decipher how central banks will respond. It is important to diversify your portfolio across geographies and asset classes, which may help insulate it from financial market volatility.

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.