Global government bond yields declined as long-term inflation expectations remained stable despite reports of a near-term acceleration in consumer prices. Lower interest rates benefited the growth factor and real estate equities. Gold prices pulled back; energy prices climbed as the outlook for global demand improved.
The S&P/TSX Composite Index advanced led by solid gains in health care, I.T., and real estate. Financials and consumer discretionary declined. The Bank of Canada maintained its policy rate, as widely expected, but pointed to stronger economic growth in the months ahead led by consumer spending.
The S&P 500 Index (C$) advanced led by real estate, health care, and consumer discretionary. Financials, industrials, and materials declined U.S. consumer prices surged 5% in May, on a year-over-year basis, driven by positive base effects and higher prices for goods, particularly vehicles.
The MSCI EAFE Index (C$) advanced led by health care, real estate, and I.T. Financials, materials, and industrials declined. Asian equities underperformed