Independent Accountants' Investment Counsel Inc.

(source: Bloomberg, MSCI and ARG Inc. analysis)


What happened last week?

  • The TSX and major U.S. corporates (i.e., Dow Jones Industrial Average) lost ground last week.  The 2½% gained last week, and the 24% year-to-date, and 10½% over the past 12 months has placed the NASDAQ far into the lead compared to its North American rival indexes. 

  • The deadline of early June, where the U.S. government will run out of cash and be unable to meet its debt obligations is quickly approaching.  It appears that a 2-year deal has been tentatively reached between President Biden and House Leader McCarthy.  Once the 150-page deal is finalized it will have to pass through the U.S. Senate and House of Representatives and receive Biden’s signature before it becomes law.  The reaction for equities is still uncertain since the U.S. Treasury will need to replenish is cash reserves, which could pull capital away from stocks and temporarily, at least, place downward pressure on share prices. 

  • Additionally, the Federal Reserve released its meeting minutes from the most recent interest rate decision on May 3rd that showed officials were divided on whether further interest rate increases were required.  Their next opportunity to adjust rates to respond to inflation, employment and economic growth is scheduled for June 14th.  The Bank of Canada will announce its interest rate plans on June 7th. 

Source: CNN and Debt Ceiling, CNBC and Debt Ceiling, Federal Reserve Meeting Minutes


What’s ahead for this week?

  • In Canada, first quarter Current Account, Gross Domestic Product for March, and year-to-date and manufacturing Purchasing Managers Indexes (PMI) will be released.

  • In the U.S., Monday has American markets closed for Memorial Day.  Starting on Tuesday the Conference Board will release consumer confidence information, ADP will release its payroll report ahead of the U.S. Depart of Labor’s weekly unemployment claims and the Bureau of Labour Statistics monthly jobs report.

  • Globally, Japan will release its jobs data, and its industrial production, consumer confidence and retail sales, while China will report several PMIs.  The Eurozone will announce business climate, consumer confidence, services and industrial sentiment and inflation expectations.  The European Central Bank will release its Financial Stability Review.


For more information contact: [email protected] | Tel (519) 291-2817 | 135 Main Street, East | PO Box 68 | Listowel, ON N4W 3H2


This report is produced by Independent Accountants' Investment Counsel Inc (“IAIC”) in conjunction with ARG Inc.  All graph and chart statistical data contained in this report has been supplied by ARG Inc. The views and opinions expressed in this report are based on market statistics.  No guarantee of outcome is implied, and opinions may change without notice.  Investors should not base any of their investment decisions solely on this report nor should any opinions expressed within this report be construed as a solicitation or offer to buy or sell any securities mentioned herein.  Although the information contained in this report has been obtained from sources that IAIC believes to be reliable, we do not guarantee its accuracy, and as such, the information may be incomplete or condensed. All opinions, estimates and other information included in this report constitute our judgment as of the date hereof and are subject to change without notice.

Please contact your IAIC representative if you have any questions regarding this report. 


©Copyright 2023 Independent Accountants’ Investment Counsel Inc. All rights reserved.


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