Morning Market Brief: November 6, 2023

Canadian company earnings in the spotlight

The first full week of November will be relatively light in terms of economic announcements in Canada and the US. However, that does not mean market participants have the week off. Economic results worldwide will help market participants predict the overall health of the global economy and how central banks might react. Here is what to watch for this week. 

• Canada’s trade balance in September will be released on Tuesday. Canada’s exports rose by 5.7% in August, which helped turn Canada’s trade balance from a deficit to a surplus.
• The value of building permits in Canada is set to be announced on Wednesday. Building permits edged higher in August, a positive sign as Canada seeks to increase the supply of housing, looking to make it more affordable.
• It will be a relatively quiet week in the US for economic announcements, but a key gauge of consumer sentiment comes on Friday: the University of Michigan’s Consumer Sentiment Index.
• Keep your eye on international markets, where European services sector activity will be announced today, European retail sales on Wednesday, China’s inflation rate on Wednesday night and UK economic growth on Friday.
• There will be plenty of notable earnings announcements in Canada over the week, including Brookfield, Boardwalk REIT, Hydro One, CGI, Manulife, Keyera, Suncor, Canadian Tire, Rogers, Saputo and Algonquin. In the US, notable earnings include Uber, eBay and Walt Disney.

There will be a lot to monitor for Canadian financial markets, particularly the earnings performance of some well-established Canadian names, that will broadly represent the health of the overall economy. Earnings announcements always bring opportunities to reconsider your valuations of the companies and potentially make purchases or sales depending on the result.

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.