Equity Markets Push Higher, Delivering Strong 1Q Results; Fixed Income Pauses
The US equity market pushed higher, but adding the smallest monthly gain so far this year of 0.12%, but closing the quarter with a strong 6.07% total return. Stock prices continued to benefit from strong corporate earnings and improved business and consumer confidence over the last year, undoubtedly reinforced by the US election that stimulated hopes for tax cuts, increased public spending as well as regulatory reforms. That said, the market may be taking a bit of a pause as investors’ enthusiasm over the likely implementation of the new administration’s policy initiatives is tamped down in light of the failure during the month to repeal and replace the affordable care act. Markets outside the US and Canada were up a stronger 2.75%, reflecting broad based earnings growth, economic confidence (except perhaps in the UK) and rejections of anti-euro politicians in recent European results and optimism about forthcoming elections in France.
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