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 October 4, 2024.
| Country | Equity Indices | Level | 1 week | YTD |
| Canada | S&P/TSX Composite | 24,163 | 0.9% | 15.3% |
| U.S. | S&P 500 | 5,751 | 0.2% | 20.6% |
| U.S. | NASDAQ | 18,138 | 0.1% | 20.8% |
| Europe/Asia | MSCI EAFE | 2,413 | -3.7% | 7.9% |
Source: FactSet
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TSX closed higher in Friday afternoon trading, near best levels and new record high. Most sectors higher. Canadian equities recorded 0.9% weekly gain.
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US equities finished higher in Friday trading, ending near best levels after a fairly quiet session. S&P and Nasdaq finished narrowly higher for their fourth straight weekly gain. Big tech was broadly higher.
Economy
Canada
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The GDP report for July shows a 0.2% m/m increase and a 1.5% y/y increase, with mixed drivers of growth. While the rate cutting cycle should aid consumer weakness, the unemployment rate continues to drift higher and we believe further policy action will be necessary to support the prospect of a domestic soft landing.
U.S.
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The U.S. labor market continues to defy expectations after the September JOLTS report showed the number of job openings rising to a three-month high of 8.04 million, up from 7.71 million in July.
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September nonfarm payrolls significantly topping consensus. Printed at 254K against expectations in the 140-150K range. Highest headline level since March. Prior two months were also revised up, while the unemployment rate ticked down to 4.1%.
Further Afield
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French Prime Minister Michel Barnier announced spending cuts and tax hikes worth €60 billion or 2% of GDP in 2025 to reduce the nation’s widening budget deficit.
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All four Tier-1 cities in China, namely Guangzhou, Shenzhen, Shanghai, and Beijing, announced new measures to ease home purchase restrictions at the end of September. Guangzhou, in southern China, introduced the most aggressive policy changes by removing all curbs on homebuying.
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