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 Q3 2024 edition covers Market Review for first half of 2024, and a list of questions for those thinking about their retirement. Shiuman’s Corner is about my favourite podcasts.

 

Markets

Market scorecard as of close on Friday September 13, 2024.

Country	Equity Indices	Level	1 week	YTD
Canada	S&P/TSX Composite	23,569	3.5%	12.5%
U.S.	S&P 500	5,626	4.0%	18.0%
U.S.	NASDAQ	17,684	6.0%	17.8%
Europe/Asia	MSCI EAFE	2,388	0.2%	6.8%

Source: FactSet

• TSX higher in Friday afternoon trading, near best levels and new all-time high. Most sectors higher. Canadian equities were up 3.5% for the week.

• US equities were higher in Friday trading, though a bit off best levels. However, S&P 500 and Nasdaq both posted five-straight gains this week after prior week's notable slide, with S&P now within 1% of its July record close.

 

Economy

Canada

• The economy added a weaker-than-expected 22,100 jobs in August, according to Statistics Canada’s monthly Labour Force Survey. Despite returning to positive job gains after edging lower in the previous two months, the unemployment rate increased to 6.6% from 6.4% in July.

• In our view, rising unemployment and continued declines in per-capita GDP will likely motivate the Bank of Canada to retain its “dovish” stance and move forward with a fourth consecutive interest rate cut at its October meeting.

U.S.

• Headline CPI growth edged down to 2.5% in August after dipping below 3% (2.9%) for the first time since March 2021 in July alongside underlying details that also point to further easing in broader inflation pressures. And a gradual updrift in the unemployment rate should signal to monetary policymakers that inflation will continue to drift lower rather than higher.

• Small businesses in the U.S. dialed back their hiring expectations in August, with only 13% of net respondents stating they plan to create new jobs over the next three months, down from 15% in July. Understanding that small businesses are significant contributors to U.S. job growth, we view the recent weakness in hiring expectations as a worrying sign that unemployment may continue to move higher in the coming months.

Further Afield

• The European Central Bank (ECB) cut interest rates by 25 basis points to 3.5%, as expected by markets. Headline eurozone inflation dropped markedly in August to 2.2% y/y, the lowest level since July 2021, thanks to lower energy prices.

• Asia Pacific equity markets traded broadly lower during the first half of the week as the sluggish September seasonality continues to weigh on sentiment.

 

Notes About Companies in Model Portfolio

• Dollarama (DOL) reported Wednesday fiscal 2025 Q2 results. Sales increased by 7.4% to $1,563.4 million, compared to $1,455.9 million same period last year. Operating income increased by 15.3% to $422.9 million, representing an operating margin of 27.0%, compared to 25.2% in the previous year.

 

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