The lingering COVID-19 pandemic did not prevent markets from reaching new highs in the first quarter. Canada experienced the strongest run up, followed by the US and then international markets. Our Northern advantage is partly thanks to rising oil prices. Generous stimulus packages and the improving economy have some economists concerned about rising consumer prices, however; while Canadian bond yields have fallen to 0, US yields have risen, a sign that investors are worried about rising inflation. That said, these fears have not stopped gold from falling, signaling a risk-on market.

MARKETS QTR-END
31-Mar-21
YR-END
31-Dec-20
CHANGE
THIS YEAR
S&P/TSX Composite
18,701 17,433 7.3%
S&P 500
3,973 3,756 5.8%
EAFE
2,208 2,148 2.8%
GoC 10-Year
0.00% 0.68% -68bps
US Gov 10-Year
1.74% 0.93% 81bps
CAD$ / US$
0.796 0.785 1.4%
WTIC Oil
$59.16 $48.52 21.9%
Gold
$1,704.74 $1,897.77 -10.2%

Returns are based on price change only, and exclude dividends.  Foreign indices are in USD.

Source: National Bank Financial, QUANT Monitor as of March 31, 2021