Introduction
Global equity markets were volatile to begin the month of August after a weak U.S. labour market report raised concerns of a potential recession in the world’s largest economy. But global equity markets recovered and ended the month higher with signs pointing to the U.S. Federal Reserve Board (“Fed”) beginning to lower interest rates at its September meeting. Over the month, many countries and regions reported falling inflation rates, notably Canada, the U.S. and Europe. Services sector activity continued to be a key driver of business activity over the month, continuing to reflect an overall shift in spending patterns of consumers around the world.
The S&P/TSX Composite Index edged higher over the month, driven by gains in the Information Technology and Real Estate sectors. U.S. equities also advanced. Yields on 10-year Government of Canada bonds were largely unchanged over the month, while those for 10-year U.S. Treasuries declined. The price of gold moved higher, while the price of oil finished lower.
