… the Canada economy navigates uncertainty. Stay up-to-date with January highlights.

Introduction

Global equity markets moved higher in January. Despite the hiccup in U.S. technology heavyweight stocks and ongoing talk about tariffs, investors maintained a relatively bullish sentiment towards risk assets. Investors hope U.S. President Donald Trump’s pro-growth policies will benefit the global business environment.

Data showed that the U.S. and Chinese economies both expanded in the fourth quarter of 2024, demonstrating their relative strength. The Bank of Canada (“BoC”) and European Central Bank cut interest rates over the month, while the U.S. Federal Reserve Board (“Fed”) held steady.

In Canada, the S&P/TSX Composite Index advanced, led by the Materials sector. U.S. equities also advanced. Yields on 10-year government bonds in Canada and the U.S. ticked lower. The price of oil and gold finished higher over the month.

On February 1, the U.S. announced a 25% tariff on Canada and Mexico, along with a 10% tariff on China. Energy exports from Canada will have a 10% tariff. The tariffs were widely expected but the timing was a bit uncertain. After the announcement, the Canadian government announced a 25% tariff on the U.S. However, the tariffs on Canada and Mexico have been delayed by a month. The two countries met with the U.S. and agreed to the delay.

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