Shifting global markets, rising inflation and geopolitical tensions – learn more about the forces shaping the economic landscape and what they could mean for investors and the road ahead.
May 7, 2026
Introduction
Global equity markets surged higher over the month of April. The U.S. and Iran agreed to a ceasefire, which had investors hoping the end of the conflict in the Middle East was nearing. Furthermore, the ceasefire largely put a lid on oil prices moving much higher over the month. Markets brushed aside concerns about inflation, which has picked up around the world. The Bank of Canada (BoC), U.S. Federal Reserve Board, European Central Bank (ECB), Bank of England and Bank of Japan all held their policy interest rates steady in April.
In April, the U.S. reported its economy expanded in the first quarter of 2026 at a faster pace than the previous quarter. Economic growth slowed in Europe. In China, the economy expanded by 5.0% year-over-year in the first quarter, putting it on track to exceed the government’s 2026 targets.
In Canada, the S&P/TSX Composite Index advanced, led by the health care sector. U.S. equities also advanced and reached a new record high. Yields on 10-year government bonds in Canada and the U.S. moved higher alongside inflation. The price of gold finished slightly lower, while the price of oil edged higher over the month.
