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Monthly Archives: November 2015

Terry Broaders

Weekly Update November 24 2015

“The Best Revenge Is To Be Unlike Him Who Performed The Injury” -Marcus Aurelius

 

TSX: Slow Friday After A Solid Week

The S&P/TSX composite index was down 40.34 points at 13,433.49 Friday, after an otherwise solid performance over the week that saw strong advances in three of the four previous trading sessions. The S&P/TSX has added 2.7 per cent this week. The S&P 500 added 0.4 per cent to 2,089.19 in New York, after rising as much as 0.8 per cent. Declines in energy and consumer staples shares whittled down earlier gains.  The S&P 500 rose 3.3 per cent this week, the most since December, as shares rebounded from the worst weekly decline in almost three months. Minutes from the Federal Reserve’s October meeting released Wednesday stressed that the pace of any interest-rate increases will be gradual, reassuring investors that higher borrowing costs won’t derail economic growth. The index has rallied 12 per cent from its August trough and is 2 per cent from its all-time high set in May.  The Dow Jones industrial average rose 92.13 points, or 0.52 per cent, to 17,824.88, while the Nasdaq Composite added 31.28 points, or 0.62 per cent, to 5,104.92.

 

Women Occupy 19.5% of Seats on Corporate Boards

A new report says women hold 19.5% of the seats on the boards of Canada’s biggest companies, up from 17.1% in 2014. The report by the Canadian Board Diversity Council says it’s the largest one-year increase in female representation on the boards of FP500 companies, which are Canada’s largest firms by revenue, since 2001. The rise follows the introduction of a new “comply or explain” policy that forces publicly traded companies to disclose certain statistics on the representation of women on their boards and in executive officer positions. Securities regulators in every province and territory except for Prince Edward Island, Alberta and British Columbia implemented the “comply or explain” rules at the end of last year.
Pamela Jeffery, the founder of the Canadian Board Diversity Council, says that although Canada is heading in the right direction, the pace of change is too slow.  Jeffery says securities regulators should force publicly traded companies to have written board diversity policies rather than merely requiring the companies to disclose whether or not they have such a policy in place.  “In the context of board diversity at a global level, Canada is falling behind,” said Jeffery.
In the United Kingdom, there are no all-male boards in the FTSE100 — the 100 largest London Stock Exchange-listed companies based on market capitalization. In the FTSE250, the next 250 largest companies on the London Stock Exchange, that are only 15 companies that have no women on their boards.  In comparison, 109 of the companies in Canada’s FP500 have boards comprised entirely of men, said Jeffery.

 

Market Update as of November 20 2015

North America
The TSX closed at 13420, up 345 points or 2.64% over the past week. YTD the TSX is down -9.04%.
The DOW closed at 17824, up 579 points or 3.36% over the past week. YTD the DOW is down -0.05%.
The S&P closed at 2089, up 66 points or 3.26% over the past week. YTD the S&P is up 1.51%.
The Nasdaq closed at 5105, up 177 points or 3.59% over the past week. YTD the Nasdaq is up 8.00%.
Gold closed at 1076, down -5.00 points or -0.46% over the past week. YTD gold is down -8.19%.
Oil closed at 39.39, down -1.42 points or -3.48% over the past week. YTD oil is down -25.24%.
The USD/CAD closed at 1.33446, up 0.0024 points or 0.18% over the past week. YTD the USD/CAD is up 13.71%.

Europe/Asia
The MSCI World closed at 1701, up 29.00 Points or 1.74% over the past week.  YTD the MSCI World is down -0.53%.
The Euro Stoxx 50 closed at 3453, up 93.00 points or 2.73% over the past week.  YTD the Euro Stoxx 50 is up 9.73%.
The FTSE closed at 6335, up 217.00 points or 3.54% over the past week.  YTD the FTSE is down -3.53%.
The CAC closed at 4911, up 104.00 points or 2.14% over the past week.  YTD the CAC is up 14.94%.
The DAX closed at 11120, up 412.00 points or 3.84% over the past week.  YTD the DAX is up 13.40%.
The Nikkei closed at 19880, up 283.00 points or 1.44% over the past week.  YTD the Nikkei is up 13.92%.
The Shanghai closed at 3631, up 50.00 points or 1.39% over the past week.  YTD the Shanghai is up 12.24%.

 

Sources: Bloomberg; Investment Executive;  advisor.ca,

Terry Broaders

Weekly Update November 9 2015

” ‘Cause Nothing Lasts Forever, Even Cold November Rain” © – Guns N’ Roses

 

TSX Slightly Lower Friday on Solid Jobs Data

The Toronto stock market closed slightly lower Friday, with gold stocks bearing the brunt of the pain as the price of the precious metal declined to a three-month low. Toronto’s S&P/TSX composite index gave back 5.48 points to 13,553.30, while the loonie lost 0.73 of a U.S. cent to 75.21 cents U.S. The global gold sector of the TSX was the lead decliner, slipping 3.2%, as the December gold contract fell for a seventh straight session, settling at $16.50 to US$1,087.70 an ounce. That’s the lowest level that gold futures have been at in more than three months.  Statistics Canada announced that the economy added 44,400 new jobs, although much of the gain stemmed from temporary public administration work most likely linked to the federal election.
In New York, markets were mixed as solid jobs data made a December interest rate hike from the U.S. Federal Reserve seem increasingly likely. The Dow Jones average of 30 stocks gained 46.90 points to 17,910.33, the broader S&P 500 index declined 0.73 of a point to 2,099.20 and the Nasdaq rose 19.38 points to 5,147.12. The U.S. Labor Department said the economy added 271,000 jobs last month — the biggest gain so far this year — while unemployment declined to five per cent and hourly wages rose.

 

Canada Gains 44,000 Jobs, Unemployment Drops to 7%

The country’s labour force ballooned by 44,400 net jobs last month, thanks to a surge in temporary public-administration work likely generated by the federal election, Statistics Canada says. The agency’s latest job-market report also says Friday that the increase helped push October’s unemployment rate down one tenth of a percentage point to 7%. “The increase was seen across all provinces and mostly in temporary work, and coincided with activities related to the recent federal election,” the agency writes.
The October data also shows that the number of part-time positions soared by 35,400, while full-time jobs crept up by just 9,000. The overall net rise in employment last month was higher than economists’ expectations of a 10,000-job increase. It also surpassed the 12,000 positions added in September. The agency also finds that 143,400 more people were working compared to a year ago, and the overall employment number eclipsed 18 million last month for the first time. The report says the country added 41,300 positions in the private sector last month and gained 30,500 public-sector jobs. By province, Ontario, British Columbia, New Brunswick and Manitoba added jobs, while energy-rich Alberta, hit hard by the decline in oil prices, registered a decline. The other provinces only saw small changes.

 

Sources: Bloomberg; Investment Executive;  advisor.ca, Statistics Canada

Terry Broaders

Weekly Update November 3 2015

“All That We See or Seem is But a Dream Within a Dream” – Edgar Allan Poe

 

TSX Slumps On Friday

The Toronto stock market finished its last trading day of the month with a major loss amid a widespread decline in the heavily weighted financial sector and a further plunge in the stock price of trouble-plagued Valeant Pharmaceuticals International. The S&P/TSX composite index was down 262.71 points at 13,529.17. The loonie rose 0.53 of a U.S. cent to 76.48 cents U.S. In New York, the Dow Jones industrial average lost 92.26 points to 17,663.54, while the S&P 500 gave back 10.05 points to 2,079.36 and the Nasdaq shed 20.52 points to 5,053.75. On commodity markets, the December benchmark crude oil contract was up 53 cents at US$46.59 a barrel.  December gold was down $5.90 at US$1,141.40 an ounce.

 

Econmy Rebounding From Mild Recession

Canada’s economy grew by 0.1 % in August; the third consecutive monthly gain following five straight months of shrinking as the economy continued to pull out of the mild recession that began at the start of the year. Manufacturing, mining, quarrying, and oil and gas extraction and retail trade all expanded, Statistics Canada reported Friday October 30.  The data agency reported that GDP expanded by 0.1% in August, following growth of 0.3% in July and 0.4%in June. Prior to that, the economy had contracted during every month of 2015. On an annualized basis, Canada’s economy expanded at a 0.9 % pace between August 2014 and this past August. Both the monthly and the annualized figure were in line with what economists had been expecting.  “Though growth is muted, there is fairly broad breadth to the gains with only two sectors meaningfully dragging on growth,” Scotiabank said, singling out finance and insurance and wholesale trade for much of the weakness. Indeed, not all sectors of the economy expanded in August. In addition to the ones Scotiabank took note of, the arts, entertainment and recreation sector declined, as did the information technology, accommodation and food services, and public administration sectors.

 

 

 

Sources: Bloomberg; Investment Executive;  advisor.ca