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The
Canadian TSE 300 index broke the 10,000 mark. Since the beginning of the
year, its performance rose to nearly 20% and half of this gain was recorded in
June. In the United States, more and more factors indicate a slowdown in the
economy, which may translate into a modest increase in the interest rate by
the Federal Reserve. As of June 22, 2000 futures
of daily financing rates in the United States show a 24% probability of
increasing by 25 basis points. Cumulative return on investment since January
1, 2000 remains negative for the three major stock market indices.
The
European Central Bank has increased its rate by 50 basis points. The discount
rate is now 4.25%. This measure, taken to control inflation, has allowed the
euro to strengthen its position against other currencies. Since its low of May
4, 2000, the euro has increased in value by 9.1%. According to Merrill Lynch,
the euro should be over the $1.05 U.S./euro mark over the next 12-month
period.
For
the first quarter
of 2000, Mexico has recorded a 7.9% economic growth, compared
to a 5.2% for the previous quarter. This represents the greatest increase over
the past 11 quarters. It also exceeds the 6.6% prediction made by financial
analysts. Various factors favoured this important economic increase: the
dynamics of the American economy triggered Mexican manufacturing activity,
more specifically in the maquiladoras (factories located along the North Mexican border that
produce or finish articles exported to the United States). As a result, export
rose by 26.2%. Also, the Mexican Central Bank maintained a rigorous monetary
policy keeping inflation under 10% for the first time since the peso crisis of
December 1994. Nevertheless, the inflationary pressure related to the strong
economic growth is still present. Of note, salaries in the manufacturing
sector increased by 4.6%.
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Did
you know ...
The
Toronto Stock Exchange has announced that it might join a global stock exchange,
open 24 hours a day. This new stock exchange would be an international alliance
including the New York, Euronext (Paris, Amsterdam and Brussels), Tokyo, Hong
Kong, Australia, Mexico and Sao Paulo stock exchanges. Commanding more than 60%
of the world market capitalization, this merger aims to co-ordinate trade
activities in the three most important time zones.
News
Since
June 1, 2000, Yolanda McGettigan is responsible for the management of the
Fidelity Focus Health Care Fund. She relieves Ramin Arani who has been
appointed to manage Fidelity's Trend Fund, a fund available to American
investors. Ms. McGettigan also became Chief of the research group on
healthcare shares.
To
complement its product line, Synergy now offers a new global fund based on the
growth approach: Synergy Global Growth Class. Tom Marsico and Jim Gendelman
from Marsico Capital Management will be in charge of the fund's management.
In addition, they will be responsible for the growth section of the Synergy
Global Style Management Class Fund and the foreign content of the Synergy
Canadian Growth Class Fund.
Fidelity
has filed a preliminary prospectus for five new funds: Fidelity Canadian
Aggressive Fund, Fidelity American Opportunities Fund, Fidelity American
Opportunities Fund RSP, Fidelity Focus Telecommunications Fund and Fidelity
Focus Telecommunications Fund RSP.
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