Expect a relatively heavy week of economic news.

In Canada, GDP and employment data will be released on Friday, notes Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly market analysis.

GDP data will be released in the U.S. as well, along with Federal Reserve testimony and confirmation hearings. “We also have an OPEC meeting and potential advancement on tax legislation in the U.S.,” says Sagoo.

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Market action

Last week, the S&P 500 rose 0.9% to another record high, while the TSX added 0.7%.

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“Stronger [global] growth has helped the earnings backdrop,” says BMO economist Carl Campus, in a weekly equities report. Also supportive: little unit-labour cost pressure for firms, low inflation and still-accommodative monetary policy. Taken together, they’ve “created a breeding ground for equity returns,” he says.

This week, look for Canadian banks to “drive some of the direction” of the TSX, says Sagoo. Most Canadian banks report earnings this week, and make up about 25% of the index.

Read: The best ways to own Canadian banks

Further, tax loss selling will start to come into play, he says. As a result, “energy and materials constituents have seen some of largest declines.”

Sagoo also warns of elevated trading volumes and potential volatility for the MSCI on Thursday as the index undergoes a semi-annual rebalancing.

For an equities market summary, read the full BMO equities report.