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What To Watch in Canadian Markets This Week

Published 2020-04-20, 09:09 a/m
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Statistics Canada will release its consumer price index for March on Wednesday. The monthly report offers a snapshot of inflation in the country.

In February, the pace of inflation slowed, the numbers showed. That trend is expected to continue as millions of Canadians began adhering to stay-at-home protocols in March to slow the spread of COVID-19.

Typically, monthly inflation tends to hit its highest points during the months of January until May. In January 2020, inflation was pegged at 0.39%. Compared to the same month in 2019, when it was 0.19%, this put inflation at a 0.2% boost. In February 2020, the inflation rate was deemed to be at 0.27%, which was down from 0.42% registered in February 2019, therefore, showing a 0.15% drop.

It is likely that the drop in much of the economic activity across the country will contribute to another downturn in the inflation rate for March.

Several Key Earnings Reports

A number of Canadian companies will be releasing their latest quarterly earnings.

Among them is Canadian Pacific Railway Ltd (TSX:CP), which will reveal its first quarter results after the closing bell on Tuesday. Given the downturn in business due to the COVID-19 crisis it is widely expected that they will show a dramatic drop in freight volumes.

On Wednesday, Metro Inc. (TSX:MRU) and Rogers Communications Inc (NYSE:RCI) will both release their latest quarter earnings.

The Montreal-base grocery store chain will drop its second-quarter results in the midst of time of unprecedented demand due to the pandemic. Reports have outlined how Metro’s delivery service has been swamp due to increased activity.

Metro stock prices have gained 12% since the beginning of the year, going from $53.30 on Jan. 2 to close at $59.72 last Friday. The stocks rose as high as $61.41 earlier this month.

Also on Wednesday, Rogers Communications will unveil its first quarter financials. It is expected to post earnings below estimates, according to analysts. This should be viewed in context, however. In general Canadian telecommunications companies, it has been reported, are positioned better deal with the looming global recession as compared to other large companies in other sectors.

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