Global markets continue to reach new highs on solid fundamentals

Here's what we're thinking

Written by Lynn Healy-Goulet
January 30, 2018

Global markets are off to an impressive start to the year with the S&P500 index posting a 6.2% year-to-date gain while the S&P/TSX Composite index is up 1% in the same period (local currency terms). Meanwhile, WTI crude oil prices have climbed 6.7%, gold is 2.7% higher, and the Canadian dollar has appreciated 1% thus far in 2018. In large part, these gains are driven by strong and improving fundamental drivers including accelerating global economic growth, stable inflation, gently rising interest rates and bond yields, recovering commodity prices, a softer U.S. dollar, and healthy earnings growth.