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Canadian Equities Supported by Low Volatility and Bank of Canada Pause

May 31, 2023   |   
Author: Bilal Hafeez

Canadian equities have performed well so far in 2023. The S&P/TSX 60 Index Futures traded on the Montréal Exchange has risen over 6% this year. Notably, this rally has occurred alongside falling volatility. The three-month (realised) volatility of the S&P/TSX 60 Index Futures has fallen from 17% at the start of the year to 11% at the start of May. This is the lowest since 2021 and lower than the current volatility in the US S&P 500(R) Index.

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