Independent Accountants' Investment Counsel Inc.

(source: Bloomberg, MSCI and ARG Inc. analysis)


What happened last week?

  • Equity markets lost value and experienced renewed volatility last week as U.S. inflation for April was released. 
    • Driving the drop is U.S. inflation; larger than expected at 4.2% over one year ago and 0.8% more than the last reported month (March).  The core inflation rate, which excludes food and energy, rose 0.9% over March.  This is the largest one-month inflation increase in 40 years, which was 1981.
    • The Federal Reserve and other central banks will be paying close attention to inflation to determine if it is directly related to reopening during the pandemic.  Many American states reduced restrictions simultaneously causing a surge in domestic demand, leading prices higher as supply lagged.  Wage growth could guide price increases once short-term stimulus savings are spent.  It appears, at this time, that wage growth is not positioned to fuel additional price increases. 
  • Canada’s inflation numbers will be released during the coming week, and are expected to mirror U.S. figures, but in a more muted manner since our reopening is lagging the timing in the U.S.

What’s ahead for this week?

  • In Canada, April’s housing starts, existing home sales, average home prices and retails sales will be announced.  Inflation for April will also be released through the Consumer Price Index as we proceed toward the Victoria Day holiday observed this year on May 24th.
  • In the U.S., housing starts, building permits and existing home sales for April are the major indicators on the calendar.
  • Globally, China will announce its industrial production and retail sales, Japan will announce its Gross Domestic Product (GDP), trade balance, inflation and industrial production, Europe will also announce its GDP along with consumer confidence.


For more information contact: [email protected] | Tel (519) 291-2817 | 135 Main Street, East | PO Box 68 | Listowel, ON N4W 3H2


This report is produced by Independent Accountants' Investment Counsel Inc (“IAIC”) in conjunction with ARG Inc.  All graph and chart statistical data contained in this report has been supplied by ARG Inc. The views and opinions expressed in this report are based on market statistics.  No guarantee of outcome is implied, and opinions may change without notice.  Investors should not base any of their investment decisions solely on this report nor should any opinions expressed within this report be construed as a solicitation or offer to buy or sell any securities mentioned herein.  Although the information contained in this report has been obtained from sources that IAIC believes to be reliable, we do not guarantee its accuracy, and as such, the information may be incomplete or condensed. All opinions, estimates and other information included in this report constitute our judgment as of the date hereof and are subject to change without notice.

Please contact your IAIC representative if you have any questions regarding this report. 


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