“Little Attention Is Paid to People Who Talk Too Much” – Kin Hubbard

 

TSX Up On Banks and Materials Gain

Canada’s main stock index rose on Friday, helped by gains in financials and materials stocks. The Toronto Stock Exchange’s S&P/TSX composite index closed up 75.55 points, or 0.54 per cent, at 13,953.66. It gained 1.4 per cent on the week. Equities got a further boost Friday as China’s central bank cut its benchmark lending rate, stepping up efforts to cushion a deepening economic slowdown. The move comes ahead of Bank of Japan and Federal Reserve meetings next week, as central banks worldwide seek to revive slowing global growth and lacklustre inflation. The Dow Jones industrial average rose 160.68 points, or 0.92 per cent, to 17,649.84, the S&P 500 gained 22.69 points, or 1.11 per cent, to 2,075.2 and the Nasdaq Composite added 111.81 points, or 2.27 per cent, to 5,031.86.

 

Retail Sales Rise Higher Than Expected

Canadian retail sales rose for a fourth-consecutive month in August, beating expectations, driven by higher sales of new trucks and alcohol. The value of Canadian retail sales increased 0.5% to a seasonally adjusted 43.62 billion dollars in August, Statistics Canada said October 22. Market expectations were for a 0.1% gain, according to economists at Royal Bank of Canada. Excluding motor-vehicle and parts sales, retail sales were flat in August compared with the previous month, at C$32.59 billion. Retail sales rose in seven provinces in August with Quebec’s gain of 1.2% the largest increase in dollar terms. Sales in B.C. rose 1.4%, while Ontario gained 0.2%.  Economists had expected sales excluding motor-vehicle and parts to rise 0.2% in the month. Retail sales volume, which economists say offers a better gauge of economic activity, rose 0.7% in the month.
The August retail-sales report comes one day after the Bank of Canada downgraded its outlook for economic growth during the next two years but maintained its key interest rate at 0.5%. Recent data suggests that while Canada’s economy is rebounding from an oil-price driven slump in the first half of the year, low commodity prices continue to be a drag on growth.

 

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Market Update as of October 23 2015

North America
The TSX closed at 13954, up 116 points or 0.84% over the past week. YTD the TSX is down -5.42%.
The DOW closed at 17647, up 431 points or 2.50% over the past week. YTD the DOW is down -1.04%.
The S&P closed at 2075, up 42 points or 2.07% over the past week. YTD the S&P is up 0.83%.
The Nasdaq closed at 5032, up 145 points or 2.97% over the past week. YTD the Nasdaq is up 6.45%.
Gold closed at 1164, down -12.00 points or -1.02% over the past week. YTD gold is down -0.68%.
Oil closed at 44.69, down -3.04 points or -6.37% over the past week. YTD oil is down -15.18%.
The USD/CAD closed at 1.31154, up 0.0206 points or 1.59% over the past week. YTD the USD/CAD is up 11.76%.

Europe/Asia
The MSCI World closed at 1689, up 13.00 Points or 0.81% over the past week.  YTD the MSCI World is down -1.19%.
The Euro Stoxx 50 closed at 3426, up 161.00 points or 4.93% over the past week.  YTD the Euro Stoxx 50 is up 8.88%.
The FTSE closed at 6444, up 66.00 points or 1.04% over the past week.  YTD the FTSE is down -1.86%.
The CAC closed at 4924, up 221.00 points or 4.70% over the past week.  YTD the CAC is up 15.23%.
The DAX closed at 10795, up 691.00 points or 6.83% over the past week.  YTD the DAX is up 10.09%.
The Nikkei closed at 18825, up 533.00 points or 2.92% over the past week.  YTD the Nikkei is up 7.88%.
The Shanghai closed at 3412, up 21.00 points or 0.62% over the past week.  YTD the Shanghai is up 5.50%.

 

Sources: Bloomberg; Investment Executive;  advisor.ca