“About the time we can make the ends meet, somebody moves the ends” – Herbert Hoover
Anthony’s Financial Brief – 2018 Mid-Year Review
Following a particularly volatile start to the year in the first quarter, many global equity markets delivered somewhat steadier returns in the second quarter. The MSCI World Index finished the period with a gain of 1.9% in U.S. dollar terms, while the S&P 500 Index, a broad measure of U.S. stocks, rose about 3.4%. Overseas results varied, with gains for equity indexes in England, France and Japan offset by losses in Germany and several Asian markets.
In Canada, the S&P/TSX Composite Index performed well, registering a broad-based advance of 6.8% for the quarter. Stronger oil prices buoyed energy shares, and the health care, information technology and financial sectors all added to performance. The Canadian benchmark has gained nearly 2% year-to-date.
The Canadian dollar, meanwhile, declined in value relative to the U.S. dollar over the quarter, enhancing returns for Canadian investors with assets priced in U.S. currency. The MSCI World Index, for example, returned 4.1% for the quarter when expressed in Canadian dollars, the S&P 500’s gain was 5.6% and the loss for the MSCI Emerging Markets Index was reduced to 5.9%.
Steady growth and firming inflation will likely lead central banks to continue rising interest rates to dial back monetary accommodation. The U.S. is the furthest along, with the U.S. Federal Reserve having raised rates seven times this cycle and is actively shrinking its balance sheet at a measured pace.
Weekly Update – By The Numbers
- The TSX closed at 16394, down -42 points or -0.26% over the past week. YTD the TSX is up 1.14%.
- The DOW closed at 25451, up 393 points or 1.57% over the past week. YTD the DOW is up 2.96%.
- The S&P closed at 2819, up 17 points or 0.61% over the past week. YTD the S&P is up 5.42%.
- The Nasdaq closed at 7737, down -83 points or -1.06% over the past week. YTD the Nasdaq is up 12.08%.
- Gold closed at 1223, down -9.00 points or -0.89% over the past week. YTD gold is down -6.64%.
- Oil closed at 68.92, up 0.83 points or 1.22% over the past week. YTD oil is up 14.07%.
- The USD/CAD closed at 0.7655, up 0.0045 points or 0.59% over the past week. YTD the USD/CAD is down -3.75%.
- The MSCI closed at 2162, up 27 points or 1.26% over the past week. YTD the MSCI is up 2.81%.
- The Euro Stoxx 50 closed at 3527, up 63 points or 1.82% over the past week. YTD the Euro Stoxx 50 is up 0.66%.
- The FTSE closed at 7701, up 22 points or 0.29% over the past week. YTD the FTSE is up 0.17%.
- The CAC closed at 5512, up 114 points or 2.11% over the past week. YTD the CAC is up 3.75%.
- DAX closed at 12860, up 299.00 points or 2.38% over the past week. YTD DAX is down -0.45%.
- Nikkei closed at 22713, up 15.00 points or 0.07% over the past week. YTD Nikkei is down -0.23%.
- The Shanghai closed at 2874, up 45.0000 points or 1.59% over the past week. YTD the Shanghai is down -13.09%.
- The 10-Yr Bond Yield closed at 2.96, up 0.0600 points or 2.07% over the past week. YTD the 10-Yr Bond is up 23.33%.
Sources: Dynamic, Advisor.ca
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.