Bay Street in Canada's financial district is shown in Toronto on Wednesday, March 18, 2020. THE CANADIAN PRESS
Toronto's primary stock index saw a decline on Monday, while U.S. markets displayed a mixed performance, anticipating significant economic data releases later in the week.
Investment strategist Craig Fehr from Edward Jones described the day as one where markets seemed stagnant, awaiting direction in the days ahead. Major economic indicators expected include reports on consumer and wholesale inflation.
The S&P/TSX composite index closed down 49.76 points, with the Dow Jones industrial average in New York also experiencing a decline. Fehr noted that markets are currently in a mode of observation, reacting to stronger economic data suggesting lesser interest rate cuts in the U.S. than previously expected.
The upcoming Consumer Price Index (CPI) data, to be released later in the week, will likely shape market sentiment, potentially validating recent positive market trends or reigniting concerns observed in April.
Volatility is anticipated this week, with investors reacting not only to U.S. inflation data but also to retail sales data and earnings reports from major companies like Home Depot and Walmart. The focus remains on both declining inflation and resilient economic growth.
In Canada, where economic cooling has been more pronounced, interest rate cuts may come as early as June. The Canadian dollar saw a slight decline against the U.S. dollar, while crude oil and natural gas prices experienced modest increases. Gold prices declined, while copper prices showed a slight rise.
