Come what May: A rise in Canadian stocks and bonds
Investor sentiment shifted mid-month from risk-on to risk-off. This tempered very strong equity gains made earlier in the month, while giving a lift to bond prices as yields dropped. In Canada, this left the end of month results looking pretty darn good for both the equity and bond indices. The mid-month change in sentiment came in response to political turmoil in Italy, vexing trade negotiations, and the troubling nature of the on-again/off-again North Korea and US Summit.
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