June 2026 market update

Global markets were relatively steady in June, but investors continued to watch inflation, interest rates and geopolitical developments closely.

One of the month's biggest stories was an interim peace agreement between the U.S. and Iran, which helped ease concerns about global oil supplies. As tensions in the Middle East cooled, oil prices fell significantly, offering hope that inflationary pressures—particularly higher fuel costs—may begin to ease.

Despite this positive development, inflation remained elevated in many countries. In Canada, annual inflation rose to 3.2% in May, driven mainly by higher gasoline and grocery prices. While this has put pressure on household budgets, core inflation has remained closer to the Bank of Canada's target, leading the Bank to leave its benchmark interest rate unchanged at 2.25%.

In the United States, inflation also climbed above 4%, prompting expectations that the Federal Reserve may need to consider future rate increases if price pressures persist. Meanwhile, China's economy showed signs of slowing consumer demand, increasing the likelihood of additional government stimulus later this year.

Market performance was mixed. Canadian equities posted modest gains, led by financial stocks, while U.S. markets slipped slightly. Bond markets were relatively stable, and gold prices declined alongside falling oil prices.

As always, markets continue to respond to changing economic conditions and global events. Maintaining a long-term investment perspective remains the best approach, even during periods of uncertainty.

To read the full update, including data tables and detailed commentary, visit the full article on Canada Life: Monthly Market Update – June 2026.