Market View

China’s economic growth slowed down to 6.5% year-over-year, its weakest levels since 2009. This is likely to be due to its trade war with the US. Over the past week, the markets have seen an increased volatility owing to fears of rapidly rising interest rates. The possibility of rejection of Italy’s budget has led to bond yields reaching four-year highs. Canada became the 1^st G7 nation, this week, to legalize recreational cannabis. The Canadian dollar was 76.43 cents U.S. The week ended with the TSX and S&P500 both up 0.7%, respectively.

All but three TSX subgroups rose this week. The biggest greens were Healthcare and telecommunications, which were both up 3.5% respectively, Utilities 2.4%, Consumer staples 1.9%, Real estate 1.6%, and Consumer discretionary 1.5%. Technology, Financials, and Industries ended the week relatively flat. Energy was down 1.7%. The media company, Corus Entertainment reported quarterly profit beating estimates. This was attributed to lower restructuring and broadcasting costs that fell by 42%. Telecom company, Rogers reported a 17% jump in quarterly profit. Net income rose to C$1.15 per share from 98 cents per share in the same quarter a year prior. The most heavily traded shares by volume were Aurora Cannabis, Aphria Inc and Bombardier Inc. 

5 from 5i

Here are five reads we found interesting last week:

-Hot factors that drove stock performance over the past year   

-Following the past week’s sell-off, here’s the history of drawdowns

-What Damodaran thinks of cannabis

-Despite corporate earnings still beating estimates, macro risks exist.

-Who benefits from corrections?