Below is a summary of some of the relevant news items from the Capital Markets and the Economy from the past week extracted from RBC Global Insights and FactSet Research.
You can catch up on the past four weeks’ Weekly Update in the link to my Blog.
Read my latest Smart Investor newsletter on my website. The Q4 2024 edition covers Market Review for first nine months of 2024, a discussion about lower interest rates, as well as the U.S. presidential election. Shiuman’s Corner is about my first ride in the RBC Granfondo Whistler.
Markets
Market scorecard as of close on Friday November 29, 2024.
| Country | Equity Indices | Level | 1 week | YTD |
| Canada | S&P/TSX Composite | 25,648 | 0.8% | 22.4% |
| U.S. | S&P 500 | 6,032 | 1.1% | 26.5% |
| U.S. | NASDAQ | 19,218 | 1.1% | 28.0% |
| Europe/Asia | MSCI EAFE | 2,302 | 1.2% | 3.0% |
Source: FactSet
-
TSX closed higher in Friday afternoon trading, near best levels and new all-time high. Most sectors higher led by tech. TSX rose 0.8% for a fourth consecutive weekly gain, and more than 6% month-to-date.
-
US equities closed higher in uneventful Friday trading, ending a bit off best levels in a short session after the US Thanksgiving Day holiday. Major indices capped gains for the week; the S&P set a fresh all-time closing high and saw its best monthly performance of the past year.
Economy
Canada
-
GDP rose 1.0% (annualized rate) in Q3 – broadly in line with expectations ahead of the report, but softer than the BoC’s latest 1.5% forecast and slower, again, than the pace of population growth. Per-capita GDP fell for a 6th consecutive quarter, and 8th out of the last nine.
-
The asking rent for units across Canada fell for the first time in three years in October with big declines seen in the largest and most expensive cities of Toronto and Vancouver—providing some relief to lease hunters where rent unaffordability has been crushing.
U.S.
-
The U.S. government deficit is unusually large at 6.4% of gross domestic product in 2024—the average over the last five decades is 3.7%. Promises from the new Trump administration on the campaign trail suggest it is likely to grow even bigger over the next four years.
-
Massive fiscal spending has been fueling U.S. growth, but will have important and, ultimately, costly consequences for the economy. Lower corporate taxes could also hurt Canada’s competitiveness, at a time when the economic divergence with the U.S. is already large.
Feel free to contact me with any questions and/or to discuss investment ideas.
I appreciate the opportunity to serve you and look forward to continuing to help you accomplish your long-term financial goals.
Regards,
Shiuman