Market developments
Equities: Global equity markets generally extended gains, with some mixed performance across regions. The S&P 500 in the US hit new records, driven by strong earnings from major technology companies, while the S&P/TSX in Canada also saw gains. European equities rallied, supported by positive earnings reports and hopes for de-escalation in Ukraine, outweighing concerns about tariffs. Asian markets showed mixed signals, with Japan outperforming due to clarity on tariff issues.
Fixed Income: Fixed income markets experienced some volatility, with Treasury yields initially plunging due to increased expectations of rate cuts following weaker jobs data. However, yields edged higher later in the week. There was a mixed performance in Treasuries and a weak 30-year auction led to raised yields at the long end.
Commodities: Commodity markets were significantly impacted by a U.S. government clarification that import tariffs would apply to one-kilo gold bars, causing turmoil and pushing gold futures to record highs. The Food and Agriculture Organization of the United Nations reported a rise in world food prices, driven by meat and vegetable oils, despite declines in other categories.