Market View

Tensions between the United States and Iran kept investors on edge. Oil prices rose and gold prices stabilized after shooting up to a near six-year high. The S&P500 recorded a record high on Thursday, while the Dow Jones Industrial Average reached its third-highest close ever, just 0.28% off of its October 2018 record. The US Federal Reserve held interest rates and signaled interest rate cuts beginning as early as July, as a way to battle against growing global and domestic economic risks. Cyclical sectors like industrials, technology, and materials performed well this week after the Federal Reserve’s promise of further positive monetary policy. Lower interest rates should encourage more rapid inflation, helping gold prices and decreasing the dollar’s value. Oil prices jumped 5.4% this week as US-Iran tensions escalated after the Middle Eastern country shot down a US spy drone. The Canadian dollar was 75.70 cents. U.S. S&P500 was up 2.4% this week and TSX ended the week up 1.4%.

All, but one, subgroups ended the week positively. Materials irked up the highest by 4.1%, followed by energy, which was up 3.4%. Healthcare jumped by 3.2% and technology by 2.0%. Consumer staples slid down by 0.6%. Canopy Growth reported better-than-expected quarterly revenue as its increased production capacity resulted in higher sales. Net revenue rose 312% to $94.1 million in the quarter, from $22.8 million a year earlier. The most heavily traded shares by volume were Bombardier Inc, Enbridge Inc, and Barrick Gold Corp.

5 from 5i

Here are five reads we found interesting last week:

-Slack IPO, bleeding red

-Defensive investing and Investors

-Fund Managers surveyed by BAML

-Draghi sends European bond yields negative

-Emotions in model-driven portfolio

If you are not yet a member, get your free 1-month access here (no credit card required).