Q2 2017 Market Review

Q2 2017 Financial Market Review

Canadian Equities

  • Canadian equities fell this quarter, returning -1.64%.
  • The health care, industrials, consumer discretionary and utilities sectors led the S&P/TSX Composite Index this quarter.
  • The energy, materials and financials sectors were the only components within Canadian equities that generated negative returns.
  • International Equities

  • World markets, represented by the MSCI World Index (C$), and the U.S. market represented by the S&P 500 (C$) were up 1.5% and 0.5% respectively for the quarter.
  • The MSCI EAFE Index (C$) was up 3.6% for the quarter.
  • The MSCI Emerging Markets (C$) Index was also up for the quarter, achieving a return of 3.6%.
  • Fixed Income

  • The Bank of Canada (BOC) raised its key interest rate to 0.75%. This was the first rate hike in seven years. The BOC indicated that the Canadian economy has been robust and it has been fueled by household spending.
  • The Federal Open Market Committee raised the federal funds target rate by 0.25% to 1.0-1.25% during its June meeting. This is the Fed’s fourth rate hike since 2006. In their June projections, the Fed is still forecasting for one more rate hike.
  • The FTSE TMX Canada Universe Bond Index was up 1.1% for the quarter.
  • Provincial and Municipal bonds outperformed the index for the quarter while Federal and Corporate bonds under-performed.