Brenda O'Farrell/Investing.com | Jun 29, 2020 09:16
There are a few key events Canadian investors should keep their eyes on this week.
GDP Figures Expected Tuesday
How bad has it been? That is the question that will be answered tomorrow as Statistics Canada releases its latest figures that measure Canada’s gross domestic product for the month of April.
GDP numbers will give everyone a read on the pulse of the economy in this time of COVID-19, and the breakdown by industry will be where we can see just how every sector of the economy has been affected.
The April figures will also provide the first glance of how the second quarter will be doing. The first quarter of 2020 was one of the worst.
In March, the Canadian economy contracted by 7.2%. Although bad, the real figures were better than what had been expected. But that does not detract from the fact that it was the sharpest monthly shrinkage on record, and it was all due to the pandemic. The sector that took the biggest hit was the service industry, which suffered an 8.1% decline.
StatsCan has since issued a preliminary estimate of what to expect for April. It predicts an 11% contraction in real GDP for the month.
Canadian Trade Figures Due Out Thursday
On Thursday, Statistics Canada will release its international merchandise trade figures for May. These numbers provide the level of Canada’s trade activity – including imports and exports.
In April, the country’s trade deficit jumped to $3.3 billion. That was on top of the deficit posted in March, which was pegged at $1.5 billion.
Of course, just about everything in 2020 is widely different, but just for comparison purposes nonetheless, Canada’s merchandise trade balance in May 2019 showed a surplus, only the second time since December 2016. In May last year, the country registered a $762-million trade surplus, as exports jumped 4.6% that month compared with April, due in part to an increase in vehicle exports. Imports were up 1%, mainly due to increased aircraft imports.
May 2019 was the first time since December 2016 that Canada posted a monthly trade surplus.
Cineplex Earnings Today
A key earnings report by a Canadian company will be issued today, as Cineplex Inc. (TSX:CGX) unveils its first quarter results.
Canada’s largest movie-theatre operator faces two major issues: How movie-goers will react as theatres across the country begin to reopen? And, will it take legal action over the $2.8-billion buyout deal that fell apart with Cineworld?
Shareholders will be eager for news on both fronts as they will play major roles in determining where the company will stand in the post-pandemic era.
Couch Tard Reports Later Today
Also today, Alimentation Couche-Tard Inc (TSX:ATDb) releases its fourth-quarter results after the closing bell.
This convenience store operator, which has more than 15,000 outlets across the country and around the world, including in the U.S., Mexico, Norway, Denmark, Poland, Russia, Japan, China and Indonesia, is expected to give an update on its plans to purchase Caltex Australia Ltd. The deal was ditched due to the COVID-19 crisis, but not totally abandoned, as the company said it would be interested in pursuing the acquisition when conditions turned more favourable for retail.
TSX Closed Wednesday
And, as all Canadians know, the Toronto Stock Exchange will be closed Wednesday for the Canada Day holiday.
Written By: Brenda O'Farrell/Investing.com
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