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North American market indices got a major boost last week as labour market surveys showed major job gains in May as economies slowly begin to reopen. The U.S. added 2.5 million jobs, while the unemployment rate fell to 13.3% from 14.7% in April and from its recent high of 19%.
The S&P 500 Composite Index surged nearly 5% on the week, and is close to the breakeven mark for the year to date. The technology-weighted Nasdaq Composite Index has benefitted from the demand for information technology during the pandemic lockdown, gaining 3.4% on the week, powering the gauge to a year-to-date advance of 9.4%.
In Canada, Statistics Canada reported a net increase of 290,000 jobs, a hike of 1.8% month over month, as overall unemployment hovered at 13.7%, still the highest rate on record. In its June 3 statement, The Bank of Canada held its policy rate steady at 0.25%, the first announcement under the new governor, Tiff Macklem. In its statement, the Bank says that the impact of COVID-19 on the global economy “appears to have peaked, although uncertainty about how the recovery will unfold remains high.”
Toronto’s S&P/TSX Composite Index rallied 4.4% on the week, buoyed by a 10.3% advance in the price of a barrel of West Texas Intermediate crude oil, which in turn helped the S&P/TSX Capped Energy Index to an 18.2% week-over-week gain. Financials also got a boost from the recovering jobs picture, as the S&P/TSX Capped Financials Index enjoyed a 10.1% advance for the week.
Fund news and updates
* TD terminates funds. TD Asset Management Inc. announced on June 5 plans to shut down a number of funds, effective August 25. It will terminate the TD International Growth Fund, and the H5, T5, FT5 and FT8 Series of TD Advantage Balanced Income Portfolio, TD Advantage Balanced Portfolio, TD Advantage Balanced Growth Portfolio.
* Fiera closes fund. Fiera Capital Corp. announced on June 3 that Fiera Capital Income Opportunities Fund the distribution of Series A and Series F units of the fund by way of prospectus will cease on July 3, 2020. At that time, the fund will be closed to new purchases, but unitholders may continue to redeem units.
* TD adds new ETFs to lineup. TD Asset Management Inc. on June 2 debuted five new TD exchange-traded funds (ETFs).
TD Active Global Equity Growth ETF (TSX: TGGR) focuses on long-term growth by investing in companies with strong, sustainable franchises and strong capital allocation policies.
TD Q U.S. Low Volatility ETF (TSX: TULV) seeks to deliver long-term growth in U.S. equities with reduced volatility.
TD Q Canadian Low Volatility ETF (TSX: TCLV) aims for long-term Canadian equity growth with reduced volatility.
TD Active Global Infrastructure Equity ETF (TSX: TINF) aims to provide an alternative income stream with the potential for capital gains.
TD Active U.S. Enhanced Dividend ETF (TSX: TUED) seeks stable monthly income from U.S. stocks with the potential for capital gains.
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