U.S. policy uncertainties, Canada’s resilience, & Europe’s growth
February 2025 was marked by heightened uncertainty in the U.S., with disruptive and protectionist policies fueling investor concerns of their impact on growth and inflation, amidst strong corporate earnings season. The new U.S. administration also stoked fear in Canada through tariff threats, but Canadian markets remained rather stable. European markets’ outperformance stood out, supported by earnings strength, monetary easing prospects, and strategic trade advantages to withstand U.S. tariffs.