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Canada’s main stock index reached a record high, driven by strong performance in financial services and gold
mining shares. This boost was partly due to renewed trade talks between Canada and the U.S., which lifted investor
spirits. Following a positive month in May, the S&P 500 also saw gains in June, marking its first back-to-back monthly
increases since September 2024. The market experienced a broad V-shaped recovery, leading to new all-time highs for
both the S&P 500 and Nasdaq 100, as they quickly rebounded from earlier corrections this year.

The S&P/TSX Composite Index was up 2.6% in June and rose 7.8% in Q2. All the benchmark’s underlying sectors were
positive in Q2. Leading the way was information technology and consumer discretionary, which posted gains of 14.2%
and 13.4%, respectively. Small-cap stocks, as measured by the S&P/TSX SmallCap Index, gained 11.4% for the quarter.

The U.S. dollar depreciated by 5.4% against the loonie in Q2, reducing the returns of foreign markets from a Canadian
investor’s standpoint. Note that all returns in this paragraph are in CAD terms. U.S.-based stocks, as measured by the S&P
500 Index, rose 4.0% in June and finished the quarter higher by 4.8%. Information technology and telecommunication
services led the gains, with respective returns of 8.7% and 6.2%. International stocks, as measured by the FTSE
Developed ex-U.S. Index, rose 6.1% during the quarter, while emerging markets gained 3.0%.

Canadian investment grade bonds, as measured by the FTSE Canada Universe Bond Index, were down 0.6% during
the quarter. The key global investment grade bond benchmark we follow fell 0.9% in Q2 while global high-yield issues
were down 1.6%.

Turning to commodities, natural gas prices gained 0.3% in June but plunged 16.1% in Q2. The price of a barrel of crude
oil also rose in June, gaining 7.1% for the month but falling 8.9% in Q2. Gold, silver and copper all rose in June, gaining
0.6%, 8.5% and 7.5%, respectively. Gold and silver also rose in Q2, gaining 5.9% and 3.6%, respectively, while copper
fell 0.1% in the same period

Inflation in Canada rose to 1.7% year-over-year in May, maintaining the pace from April and in line with expectations.
The deceleration was due to a slowdown in rent inflation and falling prices for travel tours. The Canadian economy
added 8,800 jobs in May, as the nation’s unemployment rate rose to 7.0%. The Bank of Canada held its key interest rate
at 2.75% at its June meeting. This is the second consecutive meeting where the rate has remained unchanged. The
decision to hold steady was influenced by recent data indicating that inflation is slowing towards the Bank’s target and
that economic growth remains subdued.

U.S. nonfarm payrolls increased by 139,000 in May, as the unemployment rate held at 4.2%. The consumer price index
rose to 2.4% year-over-year in June. Energy costs were lower on the month and helped to partially offset the uptick in
food prices. The Federal Reserve kept its key rate at 4.25%-4.5%, where it has been since December. Still, the Fed
expects to make two rate reductions later this year, according to the closely watched dot plot.