March Market Summary - What You Need to Know!

Global

• Global equities declined due to tariff risks

• There was a negative reaction from investors with the U.S. government's tariff announcements across sectors such as automotive, steel and aluminum

• China returned to deflation (a decrease in general prices of goods and services, can potentially lead to lower consumer spending and slowing economic growth)

• China's market also saw some gains through foreign inflows returning to the tech sector

• Japan saw a stronger Yen

• All sectors of the MSCI All Country World Index posted negative returns, apart from energy and utilities

• U.S. Federal Reserve kept rates steady (once again confirmed its outlook for two rate cuts later this year)

• Bank of Japan held short-term interest rates steady at 0.5%

• The European Central Bank cut interest rates by another 25 basis points

• U.S. and Canadian treasury bond yields were volatile, rising month over month

  • This suggested some uncertainty with growth and inflation as investors have been waiting for some clarity regarding the U.S. government tariff policy

Canada

• Canadian equities declined during March

  • This was mainly driven by growing trade tensions with America as well as national elections in April

• Although Canadian equities were down, they still managed to outperform their U.S. peers

  • Due to strong gains in materials and energy sectors along with positive returns in defensive sectors such as consumer staples and utilities

• We saw losses in the information technology sector

  • Investors showed concern for stretched valuations

• Cyclically sensitive sectors such as financials, industrials and consumer discretionary came under some selling pressure

U.S.

• U.S. equities declined in March

• Inflation concerns mounted from anticipation of additional tariffs on key trading partners and rising trade tensions

  • Fears of stagflation also grew

  • Stagflation - slow economic growth, high unemployment, rising prices and rising inflation

• Consumer discretionary, information technology and communication services made the largest detractions from returns

• Energy and utilities helped to offset this

• Value stocks outpaced growth (from a style perspective)

• Mid-caps outperformed small-cap and large-cap stocks

  • Small-cap: typically have a market cap between $250 million and $2 billion

  • Mid-cap: typically have a market cap between $2 billion and $10 billion

  • Large-cap: typically have a market cap above $10 billion

• We saw a rise in unemployment in February, rising to 4.1%

Information and articles provided by Fidelity Investments and Mackenzie Investments

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. This blog was prepared by Alison Cannell, for the benefit of Alison Cannell, Financial Advisor with Cannell Wealth Management Inc., a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this blog comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.

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