This week in the financial markets, U.S. markets showed signs of fatigue after a week-long rally that pushed key indices to record highs [a0a5ab1c]. Nvidia, which momentarily became the most valuable publicly traded company, gave up most of its weekly gains [a0a5ab1c]. Canadian markets trended lower throughout the week, returning -0.32% largely due to poor performance of base metal stocks [a0a5ab1c]. European markets returned 0.14% as they shrugged off the impact of last week's European Parliament elections and as the Swiss National Bank announced a rate cut [a0a5ab1c]. Emerging markets closed 0.95% higher [a0a5ab1c].
U.S. yields continued to hover at their two-month lows, while European rates moved lower [a0a5ab1c]. In Canada, yields were slightly higher [a0a5ab1c]. The annual pace of Canadian housing starts in May climbed 10% compared with April, helped by gains in Montreal and Toronto [a0a5ab1c]. U.S. retail sales increased less than expected in May, with lower prices for gasoline and motor vehicles weighing on receipts at service stations and auto dealerships [a0a5ab1c]. The Bank of England kept its main interest rate unchanged at a 16-year high of 5.25% [a0a5ab1c].
In other news, Boeing's CEO, Dave Calhoun, testified before the Senate Homeland Security Committee's Permanent Subcommittee on Investigations regarding an investigation into the use of possible counterfeit titanium by a company that supplies Boeing's fuselages and Airbus' wing components [a0a5ab1c]. A Southwest Airlines Boeing 737 Max experienced a rare 'Dutch roll' incident during a flight, raising concerns about the safety of the aircraft [a0a5ab1c]. The titanium used in the Boeing and Airbus components was purchased from a little-known Chinese company and sold using allegedly fake documentation [a0a5ab1c]. This incident comes after Boeing faced significant challenges in 2019 when the 737 Max fleet was grounded due to a series of high-profile crashes [a0a5ab1c]. In January, a 737 Max 9 jet experienced a door panel blowout during a flight, and in April, Boeing disclosed a separate incident involving potentially falsified inspection records related to 787 Dreamliner wings [a0a5ab1c].
These developments in the financial markets and the investigation into Boeing's counterfeit titanium use have captured the attention of investors and industry observers.