1. Earnings
Canada’s three major reporting periods are still to come. The first quarter ended April 30, while the latest comes next week. This quarter was driven by the energy sector. Natural gas producer Encana and midstream company Enbridge are among the names that will be releasing their financial results. This was the quarter when Canada’s commodity prices, such as metals and oil, were strongest. However, much of that profit is now “old money” as many of those stocks are up this year and will be reporting weaker profits. Elsewhere in the sector, the performance of utilities and telecom companies will help decide whether the Canadian market is poised for a decline or a rally.
2. Trade settlement talks
A crucial stage of trade negotiations between the United States and the rest of the world is about to begin. The U.S. will host a meeting of G7 nations in Quebec, where there will be meetings on Friday and Saturday. The U.S. may try to negotiate concessions to its demands for far more protectionist policies. This will be the first attempt since the G7 to get U.S. allies to start negotiating seriously. It is hoped that negotiations will have a significant impact on trade overall and also on NAFTA negotiations with Mexico and Canada. Until this point, talks had been slow-moving and last month it was reported that President Trump had declared “fire and fury” on China if it did not come to terms on the trade dispute.
3. Elections in British Columbia
The race for British Columbia’s provincial election is shaping up to be as close as possible. The polls indicate that the Liberals and NDP may each be close to claiming enough seats to form a minority government. In the event of no clear winner, British Columbia may end up with two different governments.
4. Stocks in the United States
The stock market has recovered much of the losses it suffered over the spring. However, it might not be long before investors start to grow concerned about rising interest rates and slowing global economic growth. The United States has its own worries: An investigation into alleged campaign collusion between the Trump campaign and the Russian government is being conducted by Special Counsel Robert Mueller. This could lead to one or more indictments in the coming weeks. So far, no-one has been charged.
5. Canada’s property market
Home sales in Canada fell by the most since 2009 last month, as buyers are beginning to act more cautiously amid fears that the market has been overheating. This was the second month in a row that sales declined. Investors are watching to see if recent changes to mortgage regulation are driving the decline, as some fear. The last major decline in sales happened in 2009. The housing market bottomed out after that period and has steadily recovered.