Market Pulse

Global financial markets were rocked through March and into early April as investors reacted sharply to sweeping new US tariffs targeting over 60 countries, including China and the EU. The move reignited recession fears and triggered a broad selloff. Equities plunged, with European stocks falling more than 10% from recent highs and the S&P 500 suffering its steepest two-day slide since March 2020. Oil tumbled, credit spreads widened, and Treasury yields fell as traders sought safety and priced in aggressive Fed rate cuts. Markets appeared to sideline fundamentals in favour of geopolitical risk, as Washington’s increasingly unilateral trade stance cast a long shadow over global growth.

In Canada, inflation, as measured by the Consumer Price Index, surged to 2.6% in February, the fastest pace in eight months, complicating the Bank of Canada’s policy outlook. Food, alcohol, and restaurant prices led the gains after the expiry of a temporary tax break. Core inflation hit 2.9%, pushing three-month averages to 3.3%, exceeding forecasts and forcing markets to reassess the odds of an April rate cut. With further US-Canada tariff escalation on the horizon, policymakers now face the dual challenge of cooling price pressures without deepening a trade-induced slowdown.

Germany, meanwhile, passed a historic fiscal package that breaks with decades of austerity, unlocking over €500 billion in borrowing for defense and infrastructure. The legislation, championed by Chancellor-in-waiting Friedrich Merz, frees military spending from constitutional debt limits and sets up a vast off-budget fund for transport, climate, and regional projects. Aimed at reversing years of stagnation, the move positions Germany as a stronger player in European defense and economic revival. Economists expect the stimulus to double the country’s growth rate by 2026.

In the first quarter, CPP Investments demonstrated a dynamic investment strategy across multiple global markets. It bolstered its infrastructure portfolio with a $346 million follow-on investment in India’s National Highways Infra Trust, reinforcing its long-term commitment to the country’s transport sector. In private equity, they explored strategic options for Encino Acquisition Partners (its U.S.-based oil and gas platform) including a potential sale or IPO that could value the company at up to $7 billion. Further expanding its global footprint, the fund formed new partnerships in Korea and Brazil’s residential housing sectors, while exiting a Chinese retail and residential venture. These moves contributed to total net assets reaching $699.6 billion by the end of Q3 FY2025, highlighting the fund’s ongoing evolution and scale.

In corporate news, Alphabet is nearing a $33 billion deal to acquire cloud-security firm Wiz Inc., a move that would mark its largest acquisition ever and signal a renewed push in the cloud arms race against Microsoft and Amazon. The deal, which is still subject to final terms, follows a previously rejected US$23 billion offer and comes amid a cooling M&A landscape hampered by tariffs and regulatory uncertainty. While antitrust scrutiny remains a risk, Google’s third-place position in cloud computing could offer some cover.

All data sourced from FACTSET and Bloomberg L.P.
All data is for the reported month and in local currency.

The Ups & Downs

• Gold helped push the model’s Alternative allocation above it’s target return, after the precious metal surged over 9% in the month of March on higher demand due to tariff concerns.

• Tourmaline Oil (TOU) was a bright spot in the equity model, gaining 5.33% in the month after reporting strong earnings and guidance on March 5th.

• CRH Plc (CRH) dropped 14.42% as investors react to announcements from the US administration. Shares traded downwards as trade war concerns heightened.

• TransAlta (TA) continued to decline, going down another 9.74% in the month. Energy demand from new data centers investment is shrinking with tariff implications.

All data sourced from FACTSET and SIACharts.
All data is for the reported month and in local currency.

Portfolio Returns

As of March 31st, 2025