Aviso Weekly Market Pulse: May 27th – May 31st

Jun 3, 2024

Market developments

Equities:
Technology stocks tumbled, dragging down the broader market and trimming the monthly rally fueled by hopes of Fed rate cuts. As inflation cools, interest rate cuts could provide a tailwind for growth-oriented tech stocks by boosting cash flows for investments and acquisitions. AI, cloud computing, and 5G trends are also driving demand in parts of the tech sector. The TSX also closed lower this week as Bank of Montreal earnings missed analyst estimates, offsetting the stronger report and performance of Royal Bank of Canada.

Fixed income:
U.S. treasuries had their best month of 2024 as the price gage for personal consumption expenditures came in line with expectations. The Fed will likely need to see more consistent favourable data before initiating the first rate cut and traders are currently pricing in a 50% probability for that to happen by mid September. The Bank of Canada and ECB are likely to begin easing earlier than the U.S., as the market is expecting the announcement of the first rate cut to come as early as next week.

Commodities:
Oil prices fell for the third consecutive day on Friday and closed lower for the week. This decline occurred despite the U.S. inflation data meeting expectations, as the market awaits the OPEC+ meeting this weekend where production cuts are expected to be extended into the third quarter or beyond.

Read more…

Recent Posts

Aviso Weekly Market Pulse: June 10th – June 14th

Market developments Equities: France's CAC 40 index was down around 2.6% on Friday, on pace for its largest weekly drop since March 2022, weighing on the broader Stoxx 50 index. The sell-off in French stocks is driven by concerns over the upcoming snap election, where...

Buying with friends or family may let you buy a home sooner

If you don’t have a partner to buy a home with, can you still do it? We explore alternative ownership arrangements. In this article: Homebuyer purchasing preferences Potential pitfalls and benefits of co-ownership Before you buy Ways to save for a downpayment A recent...

Aviso Weekly Market Pulse: June 3rd – June 7th

Market developments Equities: U.S. stocks held near all-time highs, after chipmakers came off session lows following a stronger-than-expected jobs report. The very strong payrolls report should be seen as net positive for equity markets, although the upside to wages...

Should you wait for your dream home?

With a surge in home prices and mortgage rates, saving for a down payment seems to be an uphill battle, and owning a detached home might feel far out of reach. A recent Leger survey commissioned by Aviso revealed that two-thirds of Canadian home buyers, regardless of...

Aviso Weekly Market Pulse: May 20th – May 24th

Market developments Equities: U.S. stocks climbed after data showed consumers tempered their inflation expectations in late May. The S&P 500 had its fifth straight week of gains, the longest bullish streak since February. It topped 5,300 and the Nasdaq 100 rose...

NEI Monthly Market Insights: April 2024

Robust earnings helped mitigate fear of persistent inflation Market sentiment turned bearish in early April for both equity and fixed income markets as sticky U.S. inflation data fuelled market fears that central banks will not ease monetary policy as quickly as...