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Recent TSX Outperformance Holds But Higher Yields Still Weigh

CANADA
  • The TSX composite is outperforming SPX today with a more subdued decline of -1.0% vs -1.7% for the S&P 500, the latter led lower by solid declines in both consumer staples and discretionary alike compared to a more idiosyncratic health care led fall (Canopy Growth -10%).
  • In doing so it extends recent outperformance to SPX over the past week (-1.4% vs -3.2%) but in a relative sense is still down some 10% since late June.
  • Part, but not all of that, likely comes from the increased monetary policy headwind expected, judging by the return to a positive Can-US front-end yield differential.

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