Trends from the first half of the year continued into the third quarter of 2019. Canadian and U.S. markets sustained their turbulent upward trajectory while 10-year government yields continued to sink, with the Federal Reserve cutting rates twice since the end of July. With the Bank of Canada holding steady with its own rate the loonie has seen a small appreciation. A drone strike in Saudi Arabi provided a temporary boost to WTI prices, but the country’s production has since returned to pre-attack levels. Gold prices meanwhile are up 15.0% year-to-date as we move one quarter further into uncertain times.

MARKETS QTR-END
30-Sep-19
YR-END
31-Dec-18
CHANGE
THIS YEAR
S&P/TSX Composite
16,659 14,323 16.3%
S&P 500
2,977 2,507 18.7%
EAFE
1,889 1,720 9.9%
GoC 10-Year
1.36% 1.96% -60bps
US Gov 10-Year
1.68% 2.69% -101bps
CAD$ / US$
0.755 0.733 3.0%
WTIC Oil
$54.07 $45.41 19.1%
Gold
$1,473.85 $1,281.34 15.0%

Returns are based on price change only, and exclude dividends.  Foreign indices are in USD.

Source: National Bank Financial, QUANT Monitor as of Sept 30, 2019