Market Update. Trade optimism & rate cuts rally global equities in September

Oct 15 23:10 2019 Print This Article

The month at a glance

All WealthBar equity weighted portfolios ended September higher after a volatile month in August. Markets rallied as the US-China trade talks started to appear more optimistic and both the European Central Bank (ECB) and the US Federal Reserve (the Fed) introduced key rate cuts. 

Read on for a deeper dive into how these events are shaping the market or jump to performance.

September Market Movers

Double dose of stimulus: both the ECB and the Fed cut interest rates. 

The ECB cut rates to a new record low of -0.5% to combat a weakening eurozone economy. It also announced that it will restart its bond buying program this November to the tune of €20 billion ($29 billion CAD) per month. 

Meanwhile, the Fed cited its decision to cut interest rates as a preemptive move to shield the US economy from global weakness and the trade dispute.

Read More

About Article Author


WealthBar is Canada's first and only full-service online financial advisor. They help thousands of Canadians save time and money with online personal financial planning facilitated by real financial advisors and offer professionally managed investment strategies that are a faction of the cost of traditional mutual funds while also offering better diversification

Related Items

How To Buy Bonds

Over time, bonds should find a place in your portfolio. How much you should have will definitely depend on your investment strategy and appetite for market swings. If you are in the market for bonds, you can get in on ... Read more ...

Market Update: Investors Optimistic as Global Economies Reopen

The quickest bear market in the history of the US S&P 500 turned into the best 50-day bull market rally in history in May. By market close on June 3, 2020, the S&P 500 Index was up 37.7% from its March 23, 2020 low. This bullish investor sentiment has been based on the continued decline in new coro ...

5i Stock Screener: Reliable companies for shareholders during a crisis

Shareholder yield is a great way to measure how well companies give back to shareholders and is the sum of both dividend and buyback yield. Companies that repurchase shares in addition to paying a stable dividend also give a few positive signals, particularly during these tough times. ...

IMCO's Big Stake in Apollo's New Fund

Christine Idzelis of Institutional Investor reports that Apollo took just two months to raise a credit fund that seeks to profit from tumultuous markets — and it got a swift and significant contribution from Canadian pension manager IMCO:When Apollo Global Management approached the Investment Man ...

Latest in Mortgage News: Stress Test Rate to Drop

Thanks to a reduction in some Big-Bank posted rates in recent days, Canada’s mortgage stress test rate will fall as early as next week. Both RBC and BMO cut a number of their posted mortgage rates this week, which should cause the mortgage stress test to fall from 5.04% to 4.99%, according to Rate ...

Episode 2: How Is the Pandemic Changing the Race to Automate?

  All of a sudden, front line workers are being treated as the heroes of this pandemic and that is only fair. Bus drivers, grocery workers, cleaners, meat plant employees – all of these people jobs that need doing and they put themselves at risk in the process. In acknowledgement of that, many e ...

Episode 3: Can We Prepare Our Communities for the Future of Work?

As the labor market goes through an evolution that started long before the pandemic, our communities are being transformed as well. In many cases that means good things, as when successful companies hire and prosperity increases. Other times there are less-positive spin-offs, with some people being ...

Did wind-generated electricity displace gas-generated electricity in Ontario in June 2019?

Financiers of green energy projects often claim in public filings that the energy generated by the projects they have financed has avoided some definite number of tons of CO2 emissions. Run the numbers, and you usually find they have assumed some annual capacity factor, say 35 percent in the case o ...