After a difficult week that saw investors buying and selling in see-saw fashion, markets ended higher Friday as investors bought in volume across a broad base of sectors. It was a tug-of-war between inflation fears and dip-buys all week.
In Canada, the S&P/TSX Composite exchange saw a 230.88-point increase although it ended the week down 106 points (0.54%). The broad rally was led by the energy sector, with oil prices increasing as well as gold (always a popular inflation hedge). Year-to-date, the TSX is up an impressive 11.09%, returns which are similar to the S&P 500 and Dow Jones Industrial Average.
U.S. markets saw their largest weekly decline since February, driven partly by long-term inflation fears. The U.S. Federal Reserve attempted to ease inflation fears and was partially successful – as the U.S. dollar declined – but while consumer sentiment and retail sales dipped, prices remain on an upward trajectory. Clearly, inflation remains a concern.
After dipping to a weekly low to end Wednesday, the S&P 500 rallied Thursday and Friday, ultimately closing the week down 59 points (1.39%) from last week. Year-to-date, the S&P 500 is up 11.13% and the Dow is up 12.34%.
The tech-heavy Nasdaq index continued to lag its more broadly-based counterparts (the S&P 500 and Dow), declining by 322 points (2.34%) for the week. Year-to-date, the Nasdaq has under-performed the S&P 500 and Dow by roughly 7% overall with a to-date return of 4.21%.
The U.S. dollar’s decline buoyed the Loonie, as did rising oil. As of this writing, the CAD/USD rate sits at $0.8265 U.S. and has appreciated by 5.17% vs the greenback year-to-date. The CAD has also increased versus the Euro, ending the day at € 0.6799 (up 5.69% year-to-date).
Most of the European indexes are up year-to-date in a similar vein as the TSX, S&P 500 and Dow while the Nikkei and the Shanghai index (two key Asian markets) sit roughly flat for the year.
Weekly Update – By The Numbers
|North America||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|Canada – S&P TSX Composite||19,367||-106||-0.54%||11.09%|
|USA – Dow Jones Industrial Average||34,382||-396||-1.14%||12.34%|
|USA – S&P 500||4,174||-59||-1.39%||11.13%|
|USA – Nasdaq||13,430||-322||-2.34%||4.21%|
|Gold Futures (USD)||$1,844.00||$12.00||0.66%||-2.86%|
|Crude Oil Futures (USD)||$65.51||$0.69||1.06%||35.02%|
|CAD/USD Exchange Rate||$0.8265||$0.0026||0.32%||5.17%|
|Europe / Asia||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|MSCI World Index||2,939||-40||-1.34%||9.26%|
|Switzerland – Euro Stoxx 50||4,017||-17||-0.42%||12.46%|
|England – FTSE 100||7,044||-86||-1.21%||9.02%|
|France – CAC 40||6,385||-1||-0.02%||15.02%|
|Germany – DAX Performance Index||15,417||17||0.11%||12.38%|
|Japan – Nikkei 225||28,084||-1,274||-4.34%||2.33%|
|China – Shanghai Composite Index||3,490||75||2.20%||0.49%|
|CAD/EURO Exchange Rate||€ 0.6799||€ 0.0029||0.43%||5.69%|
|Fixed Income||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|10-Year Bond Yield (in %)||1.6350||0.0580||3.68%||78.49%|
Sources: Globe Advisor, Yahoo! Finance, CNBC.com