The BIG Picture

Despite potential headwinds, we are generally constructive on Canadian markets, though we expect less outperformance in credit.

Investors have been closely focused on the U.S. election in recent weeks, with Donald Trump elected 47th president of the United States. Both U.S. and Canadian equity markets reached new all-time highs after a post-election boost

Global equity markets have drifted lower recently, with North American equity markets retreating from highs. In the U.S., interest rate cuts are expected to continue, but investors have tempered their expectations for how quickly rates will fall

China’s economy is struggling. A coordinated stimulus to curb the crippling housing crisis and support local governments is being announced. We explore the measures undertaken and contemplated and their potential implications for portfolios.

The Bank of Canada lowered its benchmark interest rate by half a percentage point in October, to 3.75%.

The level of the overnight rate is still restrictive at 3.75% and the BoC in the press release hinted at future rate cuts will follow to support a return to stronger GDP growth.

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