TexBr
By Garey J. Aitken, CFA, & Timothy W. Caulfield, CFA
Market Overview
Following a strong first quarter and new all-time highs reached in the middle of the second, the S&P/TSX Composite Total Return Index (‘TRI’) slipped in June to finish the period down 0.5%. Canadian equity performance continues to pale in comparison to the U.S., underperforming the S&P 500 TRI’s advance of 4.3% (5.3% in Canadian dollars). For context, the U.S. equity juggernaut, driven by mega cap information technology (‘IT’) and related growth stocks, has now outpaced the S&P/TSX Composite TRI in the past six consecutive quarters.
Benchmark 10-year interest rates in Canada and the U.S. ended the second quarter roughly flat at 3.50% and 4.40%, respectively, remaining at highs not seen since the Global Financial Crisis. Consensus expectations for Fed rate cuts in 2024 tempered further in the second quarter – with futures now pushing out most cuts to late…
