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.
| S&P/TSX Composite ||16,121||17,063||-5.5%|
| S&P 500 ||3,363||3,231||4.1%|
| 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