February 2025 Market Update from Canada Life Investment Management

Global equity markets edged lower in February. Investors feared that escalating trade tensions could weaken the global economy. Among major central banks, the Bank of England held a meeting in February, lowering its policy interest rate by 25 basis points. Inflation remained stubbornly elevated in many parts of the world, continuing to weigh on consumer activity.

In Canada, the economy grew at an annualized pace of 2.6% in the fourth quarter. Still, the S&P/TSX Composite Index moved lower, hindered by weakness in the Information Technology sector. Yields on 10-year government bonds in Canada declined. U.S. equities fell over the month. Yields on 10-year U.S. Treasury bonds also finished lower. Oil prices declined, while the price of gold increased.