January 2025 Market Update from Canada Life Investment Management

Global equity markets moved higher in January. Despite the hiccup in U.S. technology heavyweight stocks and ongoing talk about tariffs, investors maintained a relatively bullish sentiment towards risk assets. Investors hope U.S. President Donald Trump’s pro-growth policies will benefit the global business environment.

Data showed that the U.S. and Chinese economies both expanded in the fourth quarter of 2024, demonstrating their relative strength. The Bank of Canada (“BoC”) and European Central Bank cut interest rates over the month, while the U.S. Federal Reserve Board (“Fed”) held steady.