Categories: News

May 2023 market update – Inflation ticks higher in Canada

Introduction

Global equity markets finished slightly lower in May. Investors treaded cautiously amid uncertainty about an agreement on the U.S. debt ceiling, while inflationary pressures persisted, raising expectations central banks might be forced to keep hiking interest rates. The U.S. Federal Reserve Board (“Fed”), European Central Bank (“ECB”) and Bank of England (“BoE”) all raised rates during the month.

Data released during the month revealed the real estate markets in Canada and the U.S. gained momentum with higher sales and climbing prices. The pause by the Bank of Canada (“BoC”) and expectations that the Fed might also pause helped lift demand for real estate on both sides of the border. In Canada, the pullback in real estate over the past year has weighed heavily on economic growth. The recent rebound could influence the BoC’s upcoming decisions, particularly with mortgage costs pushing inflation higher.

In Canada, the S&P/TSX Composite Index declined, hindered by weakness in the Energy and Materials sectors. U.S. equities, as measured by the MSCI USA Index, finished higher over the month. Yields on 10-year government bonds in Canada and the U.S. finished higher but experienced wide swings amid uncertainty about the U.S. debt ceiling. Gold prices finished lower, as did the price of oil.

Please click here to read the full article 

Lazar Wealth

Recent Posts

April 2024 market update Economic pulse in Canada and around the world

Introduction Global equity markets finished lower over April amid geopolitical tensions, choppy inflation and expectations…

1 week ago

March 2024 market update – World wealth watch: interest rates and consumer spending around the globe

Introduction Central bank rate announcements dominated the headlines in March. Most held steady, while pointing…

4 weeks ago

February 2024 market update Whose economy is shrinking and who continues to outperform?

Introduction Global equity markets moved higher over the month of February. Investors held largely positive…

2 months ago

January 2024 market update Rates signal peak, consumers spending streaks and supply leaks

Introduction Global equity markets edged higher over January. Sentiment was largely mixed as investors parsed…

3 months ago

December 2023 market update Economic hurdles: a global tango of challenges

Introduction Investor sentiment improved in December on rising expectations that major central banks, including the…

3 months ago

December 2023 market update Economic hurdles: a global tango of challenges

Introduction Investor sentiment improved in December on rising expectations that major central banks, including the…

4 months ago