“I Never Said Most of the Things I Said” – Yogi Berra
TSX Ended The Week On a High Note
The Toronto Stock Exchange ended Friday’s session with gains as oil stayed strong and investors considered Thursday’s Fed chair’s speech and Friday’s US GDP data which exceeded expectations at 3.9 per cent. Federal Reserve Board Chair Janet Yellen said Thursday that she and other Fed policymakers do not expect recent economic and financial market turmoil to significantly alter the central bank’s policy, easing concerns about the world’s economic health. Wall Street was mixed as the session closed with the Dow outperforming both the S&P500 and the Nasdaq which both closed with losses. Europe shrugged off the ongoing drama of the Volkswagen emissions scandal to close higher. Asian markets closed broadly lower earlier in the day. The S&P/TSX Composite Index closed up 39.90 points and the Dow Jones closed up 113.4 points. There is much to like about the U.S. economy in the second half of the year, despite “all the global malaise,” said Jacob Oubina, senior economist at RBC Capital Markets in New York.
Statistics Canada Says Retail Sales Up In July
Retail sales rose for a third consecutive month in July to $43.3 billion as Canadians opened their wallets for a new ride and new clothes. The 0.5% increase from June’s level was helped by rising sales of new motor vehicles as well as clothing and clothing accessories, Statistics Canada said Wednesday. It said six of 11 retail subsectors posted gains. Excluding motor vehicle and parts dealers, retail sales were unchanged for the month. According to Thomson Reuters, economists had expected a gain of 0.5% for the month overall and 0.4% excluding autos.
The Canadian economy struggled through the first half of the year as it contracted in the first two quarters of 2015. However, most economists expect the economy to gain strength in the second half. To help offset the drag caused by the sharp drop in oil prices, the Bank of Canada has cut its key interest rate by a quarter of a percentage point twice this year and it now sits at 0.5%. The central bank expects the Canadian economy to grow at an annual pace of 1.5% in the third quarter before accelerating to an annual pace of 2.5% in the final three months of the year. Robert Kavcic, senior economist at BMO, says the “decent” retail sales report suggests the economy continued to rebound in July.
Market Update as of September 25 2015
The TSX closed at 13379, down -88 points or -0.65% over the past week. YTD the TSX is down -9.32%.
The DOW closed at 16315, down -70 points or -0.43% over the past week. YTD the DOW is down -8.51%.
The S&P closed at 1931, down -27 points or -1.38% over the past week. YTD the S&P is down -6.17%.
The Nasdaq closed at 4687, down -140 points or -2.90% over the past week. YTD the Nasdaq is down -0.85%.
Gold closed at 1146, up 4.00 points or 0.35% over the past week. YTD gold is down -2.22%.
Oil closed at 45.56, up 0.88 points or 1.97% over the past week. YTD oil is down -13.53%.
The USD/CAD closed at 1.332648, up 0.0181 points or 1.37% over the past week. YTD the USD/CAD is up 13.56%.
The MSCI World closed at 1587, down 44.00 Points or -3.96% over the past week. YTD the MSCI World is down -7.15%.
The Euro Stoxx 50 closed at 3113, down 44.00 points or -1.40% over the past week. YTD the Euro Stoxx 50 is down 1.06%.
The FTSE closed at 6109, up 5.00 points or 0.08% over the past week. YTD the FTSE is down -6.96%.
The CAC closed at 4481, down 55.00 points or -1.22% over the past week. YTD the CAC is up 4.87%.
The DAX closed at 9689, down 227.00 points or -2.30% over the past week. YTD the DAX is down -1.19%.
The Nikkei closed at 17881, down 189.00 points or -2.99% over the past week. YTD the Nikkei is up 2.46%.
The Shanghai closed at 3092, down 6.00 points or -0.18% over the past week. YTD the Shanghai is down -4.40%.
Sources: Bloomberg; Investment Executive; advisor.ca