The first quarter of 2024 got the year off to a strong start with the S&P 500 (in CAD) and S&P/TSX Composite gaining 13.34% and 6.62%, respectively. Ql 2024 saw financial markets navigate through a landscape marked by escalating geopolitical tensions and evolving central bank policies that continue to focus on inflation. Inflation reports remained persistently higher than expected, contributing to fluctuations in bond yields and currency markets; the Canadian Universe Bond Index fell 1.22% during the quarter and the US Dollar depreciated by 2.25% against the Canadian Dollar.
Major Themes and Events in Ql 2024:
Economic Indicators
Major central bankers continue to monitor employment and inflation reports to gauge when they can lower interest rates. In the USA and Canada, inflation has fallen from its high, however in the USA employment reports remain robust, and inflation appears to have bottomed during the quarter, putting central bankers in a tough position to cut rates sooner. While in Canada, GDP growth expanded in the fourth quarter more than expected, however employment conditions are showing some signs of weakening. Outside of North America, China’s recovery has been choppy as real estate concerns continue to loom.
Have a wonderful summer!
-The Gilman Deters Team
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