Canada’s benchmark index is standing apart from the rest of the world this month, and not in a good way. After a strong start to 2014, the S&P/TSX composite index has been struggling in May. The culprit: falling U.S. bond yields.
This month, the index has fallen 0.4 per cent. While that is far from carnage, it does beg an explanation. After all, over the same period, most of the rest of the world has been on a tear: The S&P 500 has risen 1.5 per cent, Germany’s DAX index has risen 3.5 per cent and Japan’s Nikkei 225 has risen 2.6 per cent.