What To Watch In Canadian Markets This Week

In a week that will include big news south of the border, including the U.S. Federal Reserve making an interest rate announcement on Wednesday while the impeachment trial of President Donald Trump continues, and Britain taking its exit from the European Union on Friday, Canadian investors will have a lot of factors that could affect their decisions this week.

Canadian Earnings Reports To Watch

Among the Canadian companies that will be reporting earnings this week are Canadian National Railway, Canadian Pacific Railway, Metro Inc, OpenText and Imperial Oil.

First up with be grocery store chain Metro Inc . (TSX:MRU) on Tuesday. Its first-quarter results will offer some insight on where the Quebec-based company is heading this year. Its full-year revenues from the previous fiscal year came in at $16.767 billion, a 16% increase over the year before.

The food retailer also said it aimed to about double the number of stores with self checkouts this year. It operates 950 stores across the country, including outlets under the Metro, Super C and Food Basics banners. It also has a network of 650 drugstores under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics names.

Also after the closing bell on Tuesday, Canadian National Railway (TSX:CNR) will unveil its fourth-quarter and full-year results for fiscal 2019. The big headline to look for will be how big a dent the railway’s revenues took due to the eight-day strike in November. The strike, which halted all the company’s trains across the country, has already shown it took a toll on other sectors, including manufacturing and agriculture.

Canadian Pacific Railway (TSX:CP) reports its fourth-quarter earnings before the opening bell on Wednesday. An earnings call is scheduled at 10 a.m. with president and CEO Keith Creel. In the previous quarter, CP posted total revenues of $1.979 billion, which was up 4% compared with the previous three-month period.

On Thursday, Open Text Corp (TSX:OTEX), reports its second-quarter results. The Ontario-based firm is Canada’s largest software company. The company, traded on both the TSX/S&P Composite and the Nasdaq, has a $16.47-billion market cap, with its shares gaining 28.6% in the last year.

And finally on Friday, Imperial Oil (TSX:IMO) will present its fourth-quarter earnings. The Calgary-based oil producer and refiner is expected to post lower year-end earnings on increased revenues compared with the last fiscal year. But if the actual results are better, that could have a positive effect on its stock price.

BoC Deputy Governor Speaks in Quebec City

One week after announcing a hold on its key interest rate, the Bank of Canada’s deputy governor Paul Beaudry will be in Quebec City to give a speech at Laval University on the central bank’s monetary policy.

Last week, the bank kept the overnight interest rate at 1.75%, pointing to a slight slowing in the economy so far in 2020, and raised the possibility of a possible rate cut later this year.

Latest GDP Numbers on Friday

Statistics Canada will release the gross domestic product numbers for November on Friday.

All eyes will be looking to see if the results of the previous month, when GDP slipped 0.1 in October compared with September – the first month-over-month decline in eight months – will continue.