2018 gets off to a strong start as fundamentals remain solid

Here's what we're thinking

Written by Lynn Healy-Goulet
January 16, 2018

Global markets have started 2018 in solid fashion with healthy performances across equities (S&P500 +3.1%; S&P/TSX +0.9%), commodities (WTI crude oil +4.1%, gold +0.9%) and currencies (CAD +1.0%) in the first week of trading. Bond yields are also on the march higher year-to-date with U.S. and Canada 10-year federal government bond yields up by 15bp to 2.54% and 2.19%, respectively. These early gains can be attributed to, among other things, ongoing solid economic growth data and the recently approved U.S. tax cut package in late December, which boosts the corporate profit outlook, in our view.