Market week: Rate cut speculation lifts markets

06-07-2019
Market week: Rate cut speculation lifts markets

Weaker U.S. job creation

The main North American stock indices made gains on the week, as a weaker-than-expected May jobs report, with a below-consensus 75,000 new jobs created, led to speculation that the U.S. Federal Reserve might implement an interest rate cut next month in response. Simmering trade tensions between the U.S. and both China and Mexico failed to dampen investor sentiment, as the S&P 500 Composite Index advanced 4.4% on the week, with the Nasdaq Composite Index not far behind as it posted a 3.9% gain. Toronto’s S&P/TSX Composite Index posted a smaller gain of 1.2% on the week, as Canada’s job market added about 28,000 jobs, with the unemployment rate falling to 5.4%. Crude oil edged up 1.3% on the week, and is ahead 19% year to date.

INSERT TABLE

Index June 7, 2019 close Day Week Year to date  
S&P/TSX Composite 16,230.96 0.0% 1.21% 13.32%  
S&P 500 Composite 2,873.34 1.13% 4,.41% 14.62%  
Nasdaq Composite 7,742.10 1.7% 3.88% 16.68%  
Gold (US$) $1,344.90 0.2% 2.55% 5.09%  
Oil (WTI) (US$) $54.04 2.8% 1.29% 19.00%  

Monitor the main stock and commodity indices daily with the Fund Library’s interactive Markets Page.

FUND NEWS

* Fidelity launches new funds. Fidelity Investments Canada on June 6 launched two new funds targeted at investors looking to match their values with their investing dollars.

Fidelity Women’s Leadership Fund is a core U.S. equity mutual funds focused on investing in companies that prioritize and advance women’s leadership and development. The fund is sub-advised by FMR Co.

Fidelity Sustainable World ETF (NEO: FCSW) is a global multi-factor equity strategy that invests in companies that are believed to have favourable environmental, social, and governance (ESG) characteristics. The fund is sub-advised by Geode Capital Management, and is also available as a mutual fund, Fidelity Sustainable World ETF Fund.

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