June 2025 market update

Global equity markets rose in June as trade talks between the U.S., China, Canada and the EU made progress, and central banks held steady. Inflation concerns and bond market volatility kept investors alert.

Introduction

Global equity markets advanced over the month of June. A framework for a U.S.-China trade deal, along with ongoing negotiations between Canada and the U.S., and the European Union and the U.S., lifted sentiment towards global equities. The U.S.-China deal was particularly notable, with ongoing tensions between the two economic giants expected to bring down global economic activity.

Several global central banks held steady in June as they continued to monitor the impact of tariffs on their domestic economies. Inflation continued to subside, but the threat of higher inflationary pressures persists in response to tariffs. In Canada, data pointed to slower economic activity amid trade tensions with Canada’s largest trade partner. The Bank of Canada held steady at its June meeting.

The S&P/TSX Composite Index moved higher in June and reached a new record high, led by the Health Care sector. U.S. equities also advanced. The price of gold finished largely unchanged, while the price of oil increased. Yields on 10-year Government of Canada bonds ticked higher, while the yield on 10-year U.S. Treasury bonds declined. Yields on both sides of the border were choppy as economic, trade and geopolitical developments shifted.

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