A resurgence of COVID-19 cases is keeping the market on its toes. Stocks remain down year-to-date in most regions, however the S&P500 hit new highs in September, demonstrating a divergence between the economy and the stock market in the States. Bond yields moved up marginally from Q2 but remain low as central banks maintained rock-bottom interest rates, and while the loonie remains down from its pre-COVID levels, greenback inflation fears led to a small increase in Canada’s exchange rate. Meanwhile oil remains down a sizeable 34.1% and gold continues to push towards new all-time highs.

MARKETS QTR-END
30-Sep-20
YR-END
31-Dec-19
CHANGE
THIS YEAR
S&P/TSX Composite
16,121 17,063 -5.5%
S&P 500
3,363 3,231 4.1%
EAFE
1,855 2,037 -8.9%
GoC 10-Year
0.56% 1.70% -114bps
US Gov 10-Year
0.69% 1.92% -123bps
CAD$ / US$
0.751 0.770 -2.5%
WTIC Oil
$40.22 $61.06 -34.1%
Gold
$1,899.84 $1,520.50 24.9%

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, 2020