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Financial markets at a glance - June 30, 2021

Investment Views, Investments

Posted by Empire Life Investments

Jul 22, 2021 3:06:00 PM

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2021-Budget-infographic-ELSymbol
FINANCIAL MARKETS
AT A GLANCE

 

JUNE 30, 2021

Canadian and U.S. equity sectors were generally positive last quarter. We saw a flattening of the yield curve this quarter. As a result, corporate and short-term bonds began to trail long-term government bonds. Here are the financial markets at a glance.

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CANADIAN EQUITIES
 
US EQUITIES
 
 
Sector
10 of the 11 Canadian equity sectors ended the month in positive territory. Here are the best and worst performing sectors relative to last quarter.
 
Sector
9 of the 11 U.S. equity sectors ended the month in positive territory. Here are the best and worst performing sectors relative to last quarter.
 
 

Information Technology

Information
Technology

Materials

Materials

Communication Services

Communication Services
15.9% Up arrow
6.9% Up arrow
10.4% Up arrow

Consumer Discretionary-nobg

Consumer
Discretionary

Energy

Energy

Healthcare

Healthcare
4.6% Down arrow
20.7% Down arrow
-11.9% Down arrow
 

Information Technology

Information
Technology

Healthcare

Healthcare
9.9% Up arrow
6.8% Up arrow

Financials

Financials

Energy

Energy
6.8% Down arrow
9.7% Down arrow
 
 
Company size
Large corporations didn't make major gains but outperformed small and medium-sized companies.
 
Company size
Small and medium-sized companies underperformed large corporations.
 
 
Small Business Medium Business Down arrow
Large Corporations Even icon
Small & Medium
Businesses
Large
Corporations
 
Small Business Medium Business Down arrow
Large Corporations Even icon
Small & Medium
Businesses
Large
Corporations
 
 
What’s working/What’s not working
  • From a style perspective, growth and momentum regained some ground this quarter, but only enough to become neutral with value.
  • Quality and dividends were both positive, but were the weakest performing factors.
 
What’s working/What’s not working
  • In a reversal of recent market leadership, growth once again took the lead this quarter, outperforming the S&P 500 Index.
  • Quality was the only other style factor to outperform the broader market, with value being the weakest over the quarter.

 

 

 
GLOBAL EQUITIES
 
FIXED INCOME
 
 
 
Regional
 
World Map with pins showing: Canadian Equities 8.5%; U.S. Equities 7.0%; Emerging Markets 3.6%; European Equities 6.1%; Asian Equities (ex-Japan) 3.2%
Company size
Global small companies outperformed large corporations.
Small Business Up arrow Large Corporations Down arrow
Small
Businesses
Large
Corporations

What’s working/What’s not working
  • High dividend, value and low volatility
    outperformed the MSCI World Index.
  • Momentum, Growth and small/mid were
    positive, but trailed the broader equity market.
 
We saw a flattening of the yield curve this quarter, with yields on the short end moving higher and those on the long end moved lower.
Long-term Bonds Up arrow Short-term Bonds Down arrow
Long-term Bonds Short-term Bonds
Government Up arrow Corporate Down arrow
Government Corporate
Bond Yield image Bond yields were mixed this month.
Yield on the Canada 2-year rose from 0.32% to 0.45%,
Canada 5-year rose from 0.90% to 0.97%,
Canada 10-year fell from 1.49% to 1.39%,
Canada long bond fell from 2.03% to 1.84%.
 
     
     
     
     
     

 


Source: Morningstar Research Inc., as of June 30, 2021

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This article includes forward-looking information that is based on the opinions and views of Empire Life as of the date stated and is subject to change without notice. The information contained herein is for general purposes only and is not intended to be comprehensive investment advice. We strongly recommend that investors seek professional advice prior to making any investment decisions. Empire Life and its affiliates assume no responsibility for any reliance on or misuse or omissions of the information contained herein.

 

July 2021

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