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North American equity markets are flirting with new highs, even as the incoming U.S. administration introduced fresh uncertainty.

Both U.S. and Canadian equity markets reached new all-time highs after a post-election boost, while markets overseas have trended lower.

Global equity markets have drifted lower recently

North American equity markets continue to push to record highs, bolstered by a promising start to the U.S. third-quarter earnings season.

The U.S. Federal Reserve cut interest rates this past week, joining many other major developed central banks who have started to reduce interest rates in recent months.

A continued decline in inflationary pressures, coupled with ongoing signs of a cooling Canadian economy, prompted the Bank of Canada (BoC) to make its third consecutive interest rate cut this week.

Global markets moved higher over the past couple of weeks, with the Canadian equity market rebounding to new highs and U.S. equities nearing their mid-July peak.

Global equity markets have recently retraced some of their year-to-date gains, while government bond yields have fallen.