FLCA News and Press, Franklin FTSE Canada From 06/20/23

2023-06-20 14:19:00 ET Summary The latest rebound in equity prices has pulled the S&P 500 and Canada’s TSX back to levels seen two years ago in June/July 2021. In the real economy, Canada’s Producer Price Index (PPI) for May contracted 6.3% year-over-year and the...

2023-06-20 09:45:00 ET Summary Sticky inflation is leading major central banks to keep policy tight. We prefer emerging market debt as policy loosens and like short-dated bonds for income. Developed market short-term bond yields jumped after central banks signaled more rate hikes ...

2023-06-17 12:20:00 ET Summary Major developed market central banks around the globe are almost unanimously indicating rate cuts won’t happen until next year. The stark contrast with market expectations that global monetary loosening would begin before year-end likely means...

2023-06-13 12:10:00 ET Summary Last week was a momentous one, as the Reserve Bank of Australia and the Bank of Canada both decided to hike rates after enacting conditional pauses. These hikes were important because central banks’ policy decisions can prove infectious, convi...

2023-06-12 19:20:00 ET Summary The S&P 500 is up 11% YTD; the Nasdaq nearly 33%; and the TSX is +2.5%. The year-to-date market-weighted S&P 500 gain versus an equal-weighted basket is the most extreme since at least 1990. At the March 2000 cycle peak, tech accounted fo...

2023-06-08 13:34:00 ET Summary Why the BOC had to reconsider its rate pause. When the BOC hit pause, the Canadian economy looked very different. Economies were bracing for a recession. What happened? The Bank of Canada raised its benchmark interest rate to 4....

2023-06-08 12:15:00 ET Summary Bank of Canada surprises with rate hike. Canada's inflation fight isn't over. Why inflation may get stuck above 2%. The Bank of Canada has raised its key interest rate by 25 bps to 4.75%, its first increase since announcing a pa...

2023-06-08 11:38:00 ET Summary Bank of Canada announces 25 bps hike, raising the rate to 4.75% amid concerns of lagging inflation and housing market issues. Bonds and dividend-paying equities sell off in response, with a predicted 5% base rate by the end of 2023. Monetary poli...

2023-06-07 20:45:00 ET Summary The Bank of Canada un-paused today, after having “paused” following the January hike. he pause had been widely ballyhooed as the end of the rate hikes and a pivot toward rate cuts. Those hopes have now been bitterly disappointed. Ev...

2023-06-07 12:59:00 ET Summary The Bank of Canada has resumed interest rate increases after a five-month hiatus. Demand is proving to be more resilient and inflation could be more persistent. Another hike looks likely in July, but we are wary about pushing for more aggressive acti...