Canadian stock and bond markets mostly treaded water in the second quarter attempting to maintain the positive momentum brought on by the Bank of Canada June interest rate cut.
For the three months ending June 25th, The Morningstar Canada index returned 0.03%. Large company stocks had a harder time holding onto gains than small company stocks last quarter, with the Morningstar Canada Large Cap index down 1.32%, compared to the Morningstar Canada Small Cap index, up 4.38%.
The greatest headwind facing Canadian markets right now may be the idea that the Bank of Canada’s fight against inflation isn’t over.
“After four consecutive positive CPI reports in Canada, the May print landed with a thud,” said Robert Kavcic, Senior Economist at the Bank of Montreal, in a note on June 26. “Headline inflation accelerated to 2.9% year-over-year, and the various core measures picked up as well, disappointing expectations across the…
