Canada’s Equity and Bond Markets Climb Higher on Rate Cut   – AGF Perspectives

Author: The editor’s desk

June 5, 2024

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A mid-week analysis of what’s happening in global financial markets from the perspective of AGF’s investment management team.

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The Bank of Canada’s (BoC) decision to cut its target interest rate by 25 basis points on Wednesday marks its first rate cut since 2020 and makes it the first G7 country to begin its easing cycle. The market expects the European Central Bank to make its first cut tomorrow, with the U.S. Federal Reserve widely expected to remain on hold at its meeting next week.

From an equity market perspective, we believe that lower rates generally benefit interest-sensitive sectors, dividend payers, small capitalization stocks, and companies…