Q2 2017 Market Review
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.
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%.
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.