Morning Market Brief November 4, 2024

The Fed and US elections take centre stage

After the analysis of economic data and market predictions, the US Federal Reserve Board (Fed) will make its second-last interest rate announcement of 2024 this week. Markets are expecting another rate cut. There will be plenty of other key data and earnings announcements to monitor in Canada and elsewhere this week as well. Here is what to look out for.

• Canada’s labour market data for October will be released on Friday. In September, the Canadian economy added 46,700 jobs, which helped push the unemployment rate down to 6.5%. A Bloomberg survey of economists expects job additions to pull back in October.
• The US elections take place on Tuesday. Markets are sure to react based on the winner, and how potential policy changes could impact the economy.
• The Fed makes its next interest rate announcement on Thursday. Markets are expecting a 25-basis-point rate cut to a target range of 4.50%-4.75%. Recent data shows the US economy is relatively stable, which might give the Fed some room to gradually cut interest rates.
• Looking abroad, China’s trade balance will be announced on Wednesday and its inflation rate on Friday, and Germany’s industrial production, European retail sales and the Bank of England’s rate decision will be announced on Thursday.
• Notable earnings in Canada include Sun Life, Restaurant Brands International, Kinross, Boardwalk REIT, CGI, Manulife, Nutrien, BCE, Canadian Tire, Barrick Gold, Saputo and TELUS. There will also be several key earnings announcements this week in the US.

Despite the key announcements from around the world, most of the markets’ attention will be on the US elections and the Fed’s rate decision. Financial markets could see some swings as markets digest and react to the results. In Canada, corporate earnings and the labour market report should provide some insight on the overall? health of Canada’s economy.

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