NEW YORK ( TheStreet) -- Although Canadian equities have raced to yearly highs recently on lower Treasury rates, they are bound to break lower on falling commodities and on the prospect of higher rates in the U.S. in anticipation of monetary tightening by the Federal Reserve.The chart below is of iShares MSCI Canada Index (EWC). The issue is that the long-dated Treasury bond is still in a strong downtrend. This movement will pressure commodities, such as gold, and strengthen the dollar. Gold miners correlate heavily with Canadian equities, and over the past few days, gold miners have sold off.
Global Macro: Oh, Bearish Canada
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