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Source: Bored Panda - National Geographic Instagram Photography Contest – Photographer: Matt Potenski
Happy New Year!
Please find in this January edition of the BMO Segregated Funds Monthly update:
Please find the latest version of This Week in the Markets
- The S&P 500 Index lost 1.9%, as a hawkish turn from the Federal Reserve proved too much for investors to stomach. Long-duration assets suffered as treasury yields saw dramatic surges, with the benchmark 10-year treasury yield spiking 25 bps. Technology was among the worst sectors as investors sold growth stocks indiscriminately, with the tech-centric Nasdaq Composite Index tumbling over 4%, while banks were in favour due to sharply steeper yield curve.
- The S&P/TSX Index fell 0.7% and outperformed its U.S. counterpart. Sector composition was key as its concentration in banks and energy companies helped arrest declines. Long-term treasury yields tracked the U.S. higher, as Canada saw an even more dramatic spike in 10-year yield (29 bps) which helped boost the Financials sector, now accounting for a third of the TSX’s weight. Energy stocks also rose in tandem with oil prices, while Technology was by far the worst sector as Shopify endured a 17% decline.
- Global stocks all reacted to the Fed’s hawkish stance. Europe’s STOXX 600 declined 0.3%, Japan’s Nikkei 225 Index was down 1.1%, while China’s CSI 300 Index fell 2.3% as its property sector continues to struggle with defaults.
