Morning Market Brief: Tuesday, May 23, 2023

Canada’s business confidence, UK inflation and more?

Several economic announcements this week can help you navigate financial markets. Raw material prices in Canada will add to the latest snapshot of inflationary pressure. UK inflation will also be in focus. Economists expect UK inflation to cool from unsustainable levels. Annual UK price gains have exceeded 10% each month since September 2022. ?

• Raw materials price update for April on Tuesday. According to Statistics Canada (StatsCan), raw material prices fell annually in February and March after rising continuously since 2021.
• On Tuesday, US new home sales for April will measure the health of the housing market. In March, single-family home sales climbed unexpectedly to 683,000 beating forecasts.
• Canadian manufacturing sales on Wednesday. Sales fluctuated between rises and falls month-on-month since December 2022, according to StatsCan.
• FOMC minutes will give insight into its monetary policy stance. The Federal Open Market Committee (FOMC) elected to raise interest rates by 25 basis points in May.
• Office for National Statistics provides UK inflation data on Wednesday. Consensus expects price growth of 8.3% in April versus 10.1% in March.
• CFIB business barometer for May released on Thursday. In April, the Canadian Federation of Independent Business (CFIB) long-term optimism index reached 55.7, the highest point in ten months. Confidence has increased in 2023, despite some tough global economic conditions.

The economic environment has shifted significantly over the past few years. Your situation may also have evolved. It is important to evaluate your risk tolerance and financial objectives regularly to ensure your investment strategy adapts to your changing circumstances.

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.