Performance
Canada’s benchmark S&P/TSX Composite Index was 1.6% higher in February
Six of its underlying sectors were positive during the month. The healthcare sector posted an 8.3% gain for the month, while the industrials and consumer staples sectors rose by 5.6% and 5.2%
Global equities advanced in February in a broad-based market rally
Expectations of an AI-boosted rise in productivity, continued growth in the U.S. economy and positive earnings growth lifted investor sentiment
U.S. equity markets continued to rally in February, boosted by better-than-expected quarterly earnings results from the tech-based "Magnificent Seven" (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla)
The Japanese stock market continued its upward trend in February, supported by continued buying interest from overseas investors as well as a weaker yen and better-than-expected quarterly earnings reports during the month
The Canadian equity market ended the month higher, while the S&P 500, the Dow Jones Industrial Average, and Nasdaq 100 all reached new all-time highs.
Canada's best sectors during the month were health care, industrials and consumer staples
Canada's top laggards were communication services, utilities and materials
U.S.-based stocks, as measured by the S&P 500 Index, rose 6.6% in February
All 11 underlying sectors were in the green for the month, with the consumer discretionary and industrials sectors as the leading contributors, gaining 10.1% and 8.5%
International stocks, as measured by the FTSE Developed ex-US Index, rose 3.2% during the month
Emerging markets rose 5.4%
Small-cap stocks, as measured by the S&P/TSX SmallCap Index, were up 0.6% for the month.
Chinese equities rebounded strongly in February, following strong travel and spending data during the Chinese New Year holiday and further monetary easing
Fixed Income
Fixed income markets were under pressure as investors deferred expectations of interest rate cuts
Bloomberg Global Aggregate Index recorded a decline of 1.3% in February
The investment grade fixed income indices we follow were down in January
Canadian investment grade bonds, as measured by the FTSE Canada Universe Bond Index, fell 0.3% during the month, while the key global investment grade bond benchmark was down 1.3%
Global high-yield issues were up 0.2%.
Inflation
Canada's inflation cooled more than expected in January to 2.9%
The U.S. dollar rose by 1.1% versus the loonie during the month, boosting returns of foreign markets from a Canadian investor’s standpoint
Commodities
Natural gas prices fell 11.4% during the month
The price of a barrel of crude oil rose 3.2%
Gold prices rose 0.3%, while copper and silver fell 1.8% and 2.2%
Information provided by iA Private Wealth and Fidelity Investments
This document was prepared by the Investment Products & Platforms Team. The opinions expressed in this document do not necessarily reflect the opinions of iA Private Wealth Inc. The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Contents copyright by the publishers. The information contained herein may not apply to all types of investors.
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