Weekly Market Update
May 20, 2021

Weekly Market Update

Global equities declined while government bond yields climbed following reports of a greater-than-expected rise in U.S. inflation. Growth and technology stocks continued to slide as the rotation into value and cyclical stocks persisted. Oil and gold prices advanced.
The S&P/TSX Composite Index declined amid weakness in health care, technology, and discretionary. Staples, financials, and energy advanced. Canadian existing home sales cooled off in April falling 12.5% from record levels but real estate activity remains well above historical averages.
The S&P 500 Index (C$) declined amid weakness in discretionary, technology, and communications. Staples, financials, and materials edged higher. U.S. Federal Reserve officials reiterated that monetary policy will remain accommodative despite the spike in inflation which is viewed as transitory.
The MSCI EAFE Index (C$) declined led by weakness in technology and communications. Energy, staples, and financials edged higher. Asian-Pacific equities underperformed led by Japan which has been hampered by a resurgence of Covid-19 cases and related restrictions.


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