Forthcoming Data Will Show Investors Which Way The Canadian Economy Will Turn

23 July 2012 09:00 - Phoebe Robinson

Email Article Print Article

Forthcoming Data Will Show Investors Which Way The Canadian Economy Will Turn 

There is to be a release of earning reports in Canada this week that will indicate the first real evidence of the impact of the slowing world economy on the country. Markets have prepared themselves for weak results and management guidance regarding future growth will be analyzed by economists. If there are any indicators that the global economy will remain low next year then stock prices will react strongly.

The primary cause of concern in Canada is the continuous falling of commodity prices such as oil, copper and coal are the main sources of anxiety. Investors in Canada are saying that they hope that these declines are just a sign of the slowing activity in the Chinese economy and other emerging markets and that these slows are just temporary and should pick up again soon.  If these markets were to weaken further it would threaten the outlook for the domestic economy and could even bring the growth of emerging economies to an end which would cause problems for Canada as they have benefited the Canadian economy greatly over the last few years.  Moreover corporate financial results may also shed some light on the impact of the worst North American drought in 50 years. There has been a huge jump in corn prices as there is speculation that because of the drought there will be lower crop yields.

Due to this speculation over crop prices there has been an increased demand in prices for fertilizer, though this does not affect the Canadian economy that much as depressed crop yields are bad news for the country. The Canadian National Railway Co. And Canadian Pacific Railway Ltd , will announce earnings on Wednesday and a poor harvest could reduce railcar loadings in the fall, this will lower revenues greatly.

In further Canadian Economy news the US-Canada (CED) Beyond the Border action plan has taken significant steps forward. This Includes efforts to modernize and expand infrastructure in key places. Recently a measure taken that went relatively unnoticed was that both countries agreed on a statement of privacy principles that will guide information sharing across the border. Moreover Obama and Harper together launched the US Canada Clean Energy Dialogue in 2009 which promoted ways to reduce green house gases and combat climate change. The second phase of this plan was released last month. This involves continued work on carbon capture and storage as well as integrating the electricity grid.

Canada’s Minister of the Environment Peter Kent explained that the CED, “strengthens our efforts to collaborate on innovative clean energy solutions that reduce greenhouse gas emissions.”


Related Links:
• Economic Calendar
Scheduled Economic Events


Compare Foreign Exchange and Currency >>

Compare Loan and Debt Products >>

Compare Cards Products >>

Compare Money Products >>

Pet Insurance. Most family's have that loved pet in there life , lets make sure they are insured .
31 August 2018
Which Way To Pay
Pet Insurance is something that not everyone is aware of and how it can save you thousands of Dollars.
Personal Loan Rates Set to Rise in recent study published
31 August 2018
Which Way To Pay
Recent studies have shown a rising increase on rates attached to Personal Loans.
Avoid the middle man when wanting to lend some extra funds.
04 April 2017
Which Way To Pay
Peer to peer lending is one of the best ways to lend money as your are basically cutting out the middle man.