Below, you will find our monthly market update and relative information that pertains to the current state of the economy.  As always if you require more clarity or information, do not hesitate to reach out!

Market Update

• All market indices except the NASDAQ have closed higher than the beginning of the month.
  • • The S&P 500 finished at 5,522.30 pts (+1.13%)
    • The DOW finished at 40,842.79 pts (+4.41%)
    • The NASDAQ finished at 17,599.40 pts (-0.75%)
    • The TSX finished at 23,110.81 pts (+5.65%)

Canada

Monetary Policy

• On July 24^th, The Bank of Canada (“BoC”) decided to reduce the overnight lending rate.
  • Currently, the overnight rate is 4.50%, the Bank Rate is at 4.75%, and the deposit rate is at 4.50%.
  • In the BoC’s most recent outlook, they identify inflation continuing to moderate in 2024 before reaching its 2% target in 2025.
  • The next scheduled date for announcing the overnight rate target is September 4^th, 2024.

Economic Data

• Canada’s inflation rate was 2.7% in June, down from 2.9% in May, and dropping more than economists’ expectations of 2.8%.
• Statistics Canada reported that Canada’s gross domestic product (“GDP”) grew by 0.2% in May, outpacing the 0.1% growth economists had expected.
• The Canadian economy lost 1,400 jobs in June. This was the second month in the past four that the economy has lost jobs.
  • The losses were concentrated in the full-time sector.

U.S.

Monetary Policy

• The Fed announced that it was maintaining its federal rate in its July meeting.
  • The target range for the federal funds rate is still 5.25-5.50%.

• The Fed believes a restrictive rate is still needed but signalled its intention to begin lowering interest rates, which markets expect will be in September.
• The next meeting will take place on September 17^th-18^th.

Economic Data

• The U.S. economy added 206,000 jobs in June, which was above estimates but below the 218,000 job additions in the previous month.
  • The government added the largest number of jobs over the month. Notable job gains also came from the health care and construction industries.
• The U.S. unemployment rate ticked higher to 4.1% in June, its highest level since November 2021.
• The U.S. inflation rate fell more than expected in June, reaching 3.0% versus the 3.1% economists had expected.
  • This was down from the 3.3% rate in May and was the lowest since June 2023.

Global

• In the U.K., the Bank of England (“BoE”) lowered its key intertest rate by 25 basis points to 5.25%.
  • This is in response to slowing inflation and soft economic growth.
• The Bank of Japan (“BoJ”) raised interest rates from a range of 0.00% – 0.10% to 0.25%.
  • This was the BoJ’s second rate increase in 2024 amid elevated inflationary pressures.
• A flash estimate showed Europe’s economy expanded by 0.3% in the second quarter of 2024, matching the rate of growth from the first quarter.
  • Second quarter growth diverged among Europe’s largest economies. While the economies of France, Italy and Spain expanded, Germany’s contracted. Europe’s largest economy was hindered by a weak industrial sector brought on by soft demand.

Notes From our Firm

• On Monday August 12^th our firm will be volunteering in the 9^th annual Wise Girls “Tee Party” Golf Tournament being held at the St. Catharines Golf and Country Club!  This is a sold out event with 144 golfers and it is the next major event under the Wise Guys Charity Fund banner!  Thank you to all who support with their time, talent or treasure!  It goes a long way in helping The Wise Guys Charity Fund on hitting their goal of raising the most money for the Niagara Region.  Please remember Wise Guys is a 100% volunteer-driven charity with ZERO government grants or handouts.  For more information on how you can help in the future please visit the website here.

As always if you have any questions, please feel free to reach out to us. Or, if you know someone who would like an opinion on their investments or insurance, please connect us! There is no better compliment than a referral from one of our current clients.

The Team, C.R. Smith Financial