As at May 31, 2026
| Closing 31-05-26 |
Variation 30-04-26 |
Variation 31-12-25 |
|
|---|---|---|---|
| Key interest rate in Canada (%) | |||
| Key interest rate in Canada (%) | 2.25 | 0.00 | 0.00 |
| Oil WTI (USD) | |||
| Oil WTI (USD) | $87.36 | -16.9% ▼ | 52.1% ▲ |
| Gold (USD) | |||
| Gold (USD) | $4,540.26 | -1.7% ▼ | 5.1% ▲ |
| EUR/CAD | |||
| EUR/CAD | 1.61 | 0.8% ▲ | 0.0% |
| JPY/CAD | |||
| JPY/CAD | 0.01 | -0.3% ▼ | -0.8% ▼ |
| USD/CAD | |||
| USD/CAD | 1.38 | 1.3% ▲ | 0.7% ▲ |
Sources: Bank of Canada, Bloomberg Finance L.P.
CANADIAN MARKET
2.5% (S&P/TSX Composite 31-05-2026)The Canadian market returned 2.5% in May for its second consecutive month of gains.
Tech stocks were up on global enthusiasm for AI, while precious metals producers benefitted from the continued high price of gold in a context of persistent uncertainty. In contrast, the energy sector posted a more modest return because oil prices fell during the month.
On the economic front, the data revealed a more challenging environment. The Canadian economy contracted slightly – by 0.1% – on an annualized basis in the first quarter of 2026, after shrinking by 1.0% in the previous quarter. The second straight decline in economic activity fuelled talk of a technical recession, as uncertainty over U.S. tariffs continued to weigh on business investment and spending.
Against this backdrop, Canadian bond yields declined and the FTSE Canada Universe Bond Index returned 1.36%.
U.S. MARKET
6.5% (S&P 500 31-05-2026 in CAD)The United States dominated the developed markets in May, with the S&P 500 Index up 5.3% in U.S. dollars and 6.5% in Canadian dollars.
The advance was driven mainly by technology companies, especially those with exposure to AI and semiconductors. Investors responded favourably as a number of names reported better-than-expected earnings, reinforcing optimism about the tech sector’s growth prospects. Among the notable stocks, Dell Technologies jumped sharply at the end of the month after it reported earnings that exceeded expectations and raised its guidance.
The U.S. economy, however, sent more mixed signals. Data released during the month showed accelerating inflation as well as a downward revision to economic growth in the first quarter. Despite these macro concerns, investors remained optimistic because of solid corporate earnings.
As for monetary policy, a number of Federal Reserve officials pointed out that inflationary pressures from the energy shock could prove more persistent than expected. Investors expect the Fed to keep its key rate high for an extended period.
INTERNATIONAL MARKETS
4.4% (MSCI EAFE 31-05-2026 in CAD)International markets also had a positive month, advancing 3.8% in local currencies and 4.4% in Canadian currency.
The European bourses were supported by hopes of an extended ceasefire in the Middle East. Even so, Europe continued to record a more moderate performance than the United States and Asia, partially because it has less exposure to technology companies.
Euro zone inflation data still exceeded the European Central Bank’s target, reinforcing expectations that further monetary tightening will be needed in the coming months to contain inflationary pressures fuelled partly by energy costs.
In Japan, the market continued to rise on stronger-than-expected economic data. The country’s economic growth exceeded expectations in the first quarter.
EMERGING MARKETS
11.9% (MSCI Emerging Markets 31-05-2026 in CAD)Emerging markets were the biggest winners in May, advancing 9.7% in local currencies and 11.0% in Canadian currency.
This robust performance was driven mainly by the Asian markets, especially South Korea and Taiwan, which continued to benefit from their strategic positions in the global AI supply chain. Strong demand from hyperscalers supported the region’s semiconductor and electronic component manufacturers.
Optimism around AI is still a determining factor for emerging markets, more than offsetting concerns about geopolitical tensions and the economic slowdown in some parts of the world.
Despite the markets’ strength in May, investors will continue to monitor the Middle East conflict as well as the outlook for inflation and central bank decisions, which will be key drivers of market developments in the coming months.
