Previous Trading Days Events 24.05.2024

Canadas retail sales contracted for a third consecutive month, missing expectations, underscoring the softness in economic growth and the impact of high interest rates on consumer spending. Retail sales in March dropped by 0.2 beating expectations for a slower decline.

The waning of momentum over the quarter reflects consumer caution as mortgages come up for renewal at higher interest rates, and sales look even worse in percapita terms, with volumes well below yearago levels, Katherine Judge, Director Senior Economist at CIBC Capital Markets, wrote in a note.

The Bank of Canada BoC is likely to cut interest rates at its June 5 monetary policy decision announcement as a sustained drop in inflation.

These data add more evidence that the economy is losing steam under a near23year highinterest rate of 5.

Source httpswww.reuters.commarketscanadamarchretailsalesdown02furnitureseenup07april20240524

New orders for key U.S.manufactured capital goods rebounded more than expected in April, suggesting a moderate improvement in business spending on equipment early in the second quarter. The figures were reported higher than expected showing that the economy is experiencing still hot activity and lowers the chances of inflation easing.

Despite elevated borrowing costs and stricter loan standards, U.S. business investment could pick up in the second quarter, said Sal Guatieri, a senior economist at BMO Capital Markets. However, the…