What Happened Last Week?
The US stocks had a good performance, but the TSX index experienced a loss. The NASDAQ has been performing exceptionally well for four consecutive weeks, with a gain of over 3% in just one week. Its performance surpassed that of the S&P 500 and the Dow.
Statistics Canada released the latest consumer inflation figures yesterday. The Consumer Price Index (CPI) increased by 4.4% year-over-year in April, slightly higher than March’s 4.3%. Prices rose by 0.7% in April compared to 0.5% in March. Gasoline, groceries, rent, and mortgage interest contributed most to the price increase. The rise in the year-over-year rate has raised questions about the Bank of Canada’s current rate pause.
StatsCan CPI release G&M inflation and rates
The United States debt ceiling negotiations are ongoing without a resolution. President Biden expressed concern that Republicans may force a default. Republicans want spending cuts in exchange for a higher borrowing limit. Neither side can escape fault if a default occurs. The deadline is approaching, and Biden and McCarthy have a meeting on Monday. It’s important to avoid a default to fulfill obligations and pay debts.
https://www.cnn.com/2023/05/21/politics/debt-ceiling-talks-biden-mccarthy/index.html https://www.nytimes.com/2023/05/19/us/politics/debt-ceiling-economy.html
What is Ahead for this Week and Beyond?
Following Victoria Day in Canada on Monday, there will be limited economic announcements and the markets will be closed for the upcoming week. The scheduled announcements include wholesale and manufacturing sales, the federal government’s budget balance, and the raw materials price index.
Several economic indicators will be reported in the U.S. before Memorial Day on May 29th. These include building permits, pending home sales, new home sales, durable goods orders, Gross Domestic Product, and April’s Personal Consumption Expenditures (PCE). The meeting minutes from the Federal Reserve’s latest interest rate announcement on May 3rd will also be published.
This week, there are several important events happening worldwide. In the Eurozone, there will be updates on consumer confidence, as well as manufacturing and services Purchasing Managers Indexes. Additionally, the European Central Bank (ECB) is holding a meeting. The Bank of Japan will be releasing its inflation indicator, while the Bank of China will announce its prime rate.