Canadian Markets Hold Steady Amid Global Economic Uncertainty

Global markets were mixed on Monday after a string of weak US economic data led investors to reduce their bets on an imminent interest rate hike from the Federal Reserve.

A hike next month is now priced at 30% down from about 50% just a week earlier, according to analysts. This shift in expectations weighed on Wall Street futures with the Dow pointing lower after major North American markets closed down on Friday.

TSX futures were in positive territory however, as markets awaited key economic data releases this week. Among them are US retail sales and industrial production numbers from China, Japan's real GDP and industrial production figures, Canada's consumer price index for July, and the US Empire State Manufacturing Survey for August.

Senior analyst Ipek Ozkardeskaya noted that big retailers are expected to announce soft results due to rising energy prices, higher inflation, and weakening consumer sentiment. However, she also expects a strong quarter from those offering low prices, such as Walmart, but warned that this may not change the fact that the biggest earners in the S&P 500 earned big despite potentially weakening consumer spending.