Market News: Week Ending April 10, 2026

Market News– Week Ending April 10, 2026

The Institute for Supply Management announced that its Non-Manufacturing (Services) PMI moved lower to 54.0 in March, from February’s 56.1 level. Regardless, the March reading is the 21^st straight above the key 50.0 (generally expanding) level for the services sector. With the market looking for a smaller decline, this report is somewhat weaker than consensus expectations. This result indicates signs of further expansion of the service sector.

The U.S. Department of Labor announced that initial jobless claims totalled 219,000 (seasonally adjusted) in the week ending April 4, an increase of 16,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 202,000 to 203,000. The 4-week moving average was 209,500, an increase of 1,500 from the previous week's revised average. The previous week's average was revised up by 250 from 207,750 to 208,000. These results are in line with market estimates.

 

Statistics Canada announced that overall employment rose by 14,100 in March following job losses totalling 108,700 for January and February. The March results left the overall annual rate of job growth at a negligible 0.4%. Continuing the recent trends, public sector employment was up 1.2% on a year-over-year basis while private sector employment was up just 0.6% on the same basis. Sadly, entrepreneurs (the self-employed) continued to decline (-0.2%) on monthly and (-1.6%) on a year over year basis, a sixth consecutive negative reading for annual growth. At the same time, the overall unemployment rate was steady at 6.7%, as the labour force reported a modest rebound (15,100). Another increase in the population (11,200) left the participation rate (the percentage of working age individuals who were either working or looking for work) at 64.9%, the lowest since January 2021 (also 64.9%) and far below the pre-pandemic peak of 67.3%. This indicates that as the population has surged, there are now 818,000 potential workers still on the sidelines compared to 95,000 at the end of 2010. A return to 67.3% participation would produce a more realistic unemployment rate of 9.7% - consistent with a recession. The headline results were in line with market expectations and the report will raise questions regarding the likelihood of a monetary policy adjustment by the Bank of Canada at their next interest rate announcement, scheduled for April 29.

 

The U.S. Bureau of Labor Statistics reported that the consumer price index jumped 0.9% (seasonally adjusted basis) in March as the energy price surge, particularly gasoline (+21.2%), hit the CPI data. Over the last 12 months, the overall index has increased 3.3%, well above the 2.4% pace posted in the previous report. The current data also revealed that core inflation (CPI ex food and energy) rose 0.2% during the month and 2.6% for the year ending in March. This report shows a destabilization of US inflationary pressures. Regardless, these figures are in line with market expectations. Market participants will remain focused on the volatility of energy prices heading into the Fed’s pending two-day policy meeting, scheduled for April 28 and 29.

 

Regards,

Glenn

Note:
All index performance is in Canadian dollars.

IMPORTANT DISCLAIMERS
The information in this letter is derived from various sources, including CI Global Asset Management, CRA, Bloomberg, National Post, Globe and Mail, Wall Street Journal, Bloomberg, Reuters, Investment Executive, Advisor.ca, MarketWatch, Toronto Sun, The Guardian, MSN.ca and Statistics Canada at various dates. This material is provided for general information and is subject to change without notice. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document.