Previous Trading Days Events 19 Jan 2024

The U.K. Retail Sales report revealed that retailers experienced the biggest drop in sales for almost three years in December, with retail sales volumes falling 3.2, raising the risk the economy entered recession late last year.

Any recession could have major implications for Prime Minister Rishi Sunak in a probable election year.

Source httpswww.reuters.comworldukbritishretailsalesslump32december20240119

Canadian retailers experienced an unexpected decline in sales, a 0.2 monthonmonth decline in November led by a slowdown in sales of food and beverages although initial estimates suggested a rebound during the December holiday season.

Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, fell 0.6 in November.

The Bank of Canada BoC is expected to hold interest rates steady next week as inflation remains above its 2 target, despite falling from last years peak and with signs of slowing growth. Markets and economists expect the BoC to start trimming rates during the first half of the year.

Although the advance estimate for December suggested a 0.8 increase in sales, we expect that strength to be fleeting given the weakening labour market and the impact of higher interest rates on spending, said Katherine Judge, an economist at CIBC Economics.

Source httpswww.reuters.commarketscanadasnovemberretailsalesdown02mmledbyfoodbeverages20240119

The reports yesterday showed…