| Closing 30-09-24 |
Variation vs 31-08-24 |
Variation vs 31-12-23 |
|
|---|---|---|---|
| Interest rate in Canada (%) | |||
| Key rate | |||
| Key rate | 4.25 | -0.25 ▼ | -0.75 ▼ |
| Commodities ($US) | |||
| Oil (WTI) | |||
| Oil (WTI) | $68.17 | -7.3% ▼ | -4.9% ▼ |
| Gold | |||
| Gold | $2,634.58 | 5.2% ▲ | 27.7% ▲ |
| Currencies | |||
| EUR/CAD | |||
| EUR/CAD | 1.51 | 1.0% ▲ | 3.0% ▲ |
| JPY/CAD | |||
| JPY/CAD | 0.01 | 1.4% ▲ | 1.3% ▲ |
| USD/CAD | |||
| USD/CAD | 1.35 | 0.1% ▲ | 2.0% ▲ |
Sources: Bank of Canada, Bloomberg Finance L.P.
CANADIAN MARKET
3.2% (S&P/TSX Composite 30-09-2024)Canada’s S&P/TSX Composite Index returned 3.2% on the month, with almost all sectors advancing, but especially financials. Only the energy sector recorded losses as a result of lower oil prices and reduced global demand.
The country’s bond market also benefited from central bank announcements. The FTSE Canada Universe Bond Index ended the month with a return of 1.9%. Expectations of another Bank of Canada rate cut grew stronger after the Fed cut its key interest rate by 50 basis points. In addition, Canada’s inflation rate hit its lowest level since the pandemic, clocking in at 2% in August on a year-over-year basis.
U.S. MARKET
2.4% (S&P 500 30-09-2024 in CAD)In the United States, the S&P 500 Index advanced 2.1% in local currency and 2.4% in Canadian dollars on increased confidence in the Fed’s ability to orchestrate a soft landing for the U.S. economy. Investors welcomed the Fed’s long-awaited decision to cut its key rate by 50 basis points. The consumer discretionary and information technology sectors contributed the most to the return. Conversely, the health care and energy sectors detracted the most.
EUROPEAN MARKET
0.6% (MSCI Europe 30-09-2024 in CAD)The performance of the European market was more mixed, with the MSCI Europe Index returning -0.7% in local currencies, owing to slowing economic growth, especially in Germany, and concerns about a recession. The European Central Bank even cut its key rate by 25 basis points, the second reduction since the start of the year. Energy, health care and information technology detracted from the return the most. That being said, the appreciation of the major European currencies against the loonie helped limit the losses, increasing the return to 0.6% in Canadian dollars.
ASIAN MARKET
5.4% (MSCI AC Asia-Pacific 30-09-2024 in CAD)The Asian market, as measured by the MSCI All Country Asia Pacific Index, rose 3.7% in local currencies and 5.4% in Canadian dollars on China’s unprecedented economic stimulus package. The government and the People’s Bank of China stepped up their efforts with a combination of fiscal and monetary policies designed to support the property market and to boost consumer spending after months of economic decline. The consumer discretionary and materials sectors recorded the biggest gains.
EMERGING MARKETS
7.0% (MSCI Emerging Markets 30-09-2024 in CAD)Emerging markets turned in an even stronger performance, with the MSCI Emerging Markets Index up 5.6% in local currencies and 7.0% in Canadian dollars. The return was driven mainly by China’s stimulus measures. The consumer discretionary and real estate sectors ended the month with the largest gains.
