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A boy rides his bicycle past a line of trucks stuck along highway BR-163 also known as the Highway of Death, in Lucas do Rio Verde, Mato Grosso state, September 26, 2012.
A boy rides his bicycle past a line of trucks stuck along highway BR-163 also known as the Highway of Death, in Lucas do Rio Verde, Mato Grosso state, September 26, 2012.
(Nacho Doce/Reuters)

SCOTT BARLOW

When Fed withdraws QE, TSX could shrink in tandem

ROB Insight is a premium commentary product offering rapid analysis of business and economic news, corporate strategy and policy, published throughout the business day. Visit the ROB Insight homepage for analysis available only to subscribers.

A Barclays research report outlining the likely market effects of reduced monetary intervention by the U.S. Federal Reserve carries some ominous news for Canadian investors. According to Barclays, the two global asset classes that would be most negatively affected by a tapering of Federal Reserve’s quantitiative easing strategy are European high yield debt and emerging markets equities – whcih also have significant effects on the S&P/TSX Composite Index.