By Mike Keerma
Canadian and U.S. stock markets closed Friday with gains on the week after
U.S. consumer prices remained docile in April, with the headline consumer
price index edging up only 0.2% in the month, for an annual rate of 2.5%.
The core rate, which excludes food and energy prices, expanded a minuscule
0.1% in April, for an annual rate of 2.1%, well within the Federal Reserve
Board’s target range. In addition, the benchmark U.S. government 10-year
Treasury note closed the week below the psychologically important 3% yield
threshold at 2.97%, easing immediate concerns of another Fed rate hike. The
S&P 500 Composite Index gained 2.4% on the week, while the
Nasdaq Composite Index advanced 2.7%. Canada’s April job creation numbers showed a loss of 1,000
jobs (as part-time job losses offset stronger full-time gains), helping the
S&P/TSX Composite Index rally 1.6% on the week as pressure for another rate increase by the Bank of
Crude oil gained another 1.0% on the week, giving additional impetus to Canada’s
* BMO launches tech innovation ETF.
BMO Asset Management’s
BMO Global Communications Index ETF (TSX: COMM) commenced trading on May 8. In a release BMO said the ETF is designed to
capitalize on technology innovation and new media trends in the
communications services sector. The fund invests in companies in the
communications equipment, gaming software, media and publishing services,
telecommunications and web-based data sectors, including Apple Inc.,
Netflix Inc., Facebook Inc., Alphabet Inc. (Google), The Walt Disney
Company, and Time Warner Inc.
“This ETF provides investors with a unique balance of global companies that
are reshaping and driving the market through communications, technology and
new media,” said Kevin Gopaul, Head of BMO Global Asset Management Canada.
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