Advisors - February 3, 2022
Monthly Canada Market Wrap: January 2022
Welcome back to the Canadian Monthly Market Wrap from YCharts! Here, we break down the most important market trends for Canada-based advisors and their clients every month. As always, feel free to download and share any visuals with clients and colleagues, or on social media.
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Canada was one of the best places to be in an ugly January for major global equity indices. The S&P/TSX 60 finished the month down just 0.2% for the month, compared to its US counterpart who dove 5.2%. Tensions between Russia and Ukraine fueled the possibility of reduced oil supply, sending the Energy sector up another 17.8% having already performed well in the current inflationary environment. The Canada 10 Year Benchmark Bond has moved mostly in tandem with the US 10 Year Treasury over the past year, ending January with a yield of 1.76%. Finally, unemployment dropped below 6% for the first time in nearly two years. However, one of Canada’s leading employment indexes fell sharply in January, and last month’s readings on the manufacturing sector signaled a contraction for the first time in a year.
Canadian Sector Movement
Hot Stocks: January’s Top 10 TSX 60 Performers
Canadian Natural Resources (CNQ.TO): 21.0% gain in January 2022
Cenovus Energy (CVE.TO): 19.2%
Suncor Energy (SU.TO): 14.8%
Imperial Oil (IMO.TO): 14.0%
TC Energy (TRP.TO): 11.6%
Manulife Financial (MFC.TO): 9.8%
Enbridge (ENB.TO): 8.8%
Canadian Imperial Bank of Commerce (CM.TO): 8.3%
Royal Bank of Canada (RY.TO): 8.0%
Teck Resources (TECK.B.TO): 7.8%
Laggards & Losers: January’s 10 Worst TSX 60 Performers
Shopify (SHOP.TO): -29.6% decline in January 2022
FirstService (FSV.TO): -18.5%
Bausch Health Companies (BHC.TO): -10.6%
Cameco (CCO.TO): -10.4%
Thomson Reuters (TRI.TO): -9.8%
Kirkland Lake Gold (KL.TO): -9.7%
Agnico Eagle Mines (AEM.TO): -9.6%
SNC-Lavalin Group (SNC.TO): -9.3%
Brookfield Asset Management (BAM.A.TO): -8.4%
Waste Connections (WCN.TO): -8.1%
Fixed Income Performance
Canadian Treasury Yield Curve
10 Year Treasury Rate: 1.79%
Featured Market & Advisor News
60/40 Portfolio Suffers Worst Loss Since March 2020 (InvestmentNews)
Economic Update — Reviewing Q4 2021 (YCharts)
December marked the first month since February 2020 in which the Canadian unemployment rate was below 6%, falling for the seventh consecutive month to 5.9%. However, full-time employment was adversely affected. The Canada Ivey Employment index slipped 4.5 points to an even 50.0, and the Canada Part-time Employment figure recorded a decrease of 67,000 part-time workers in December.
Production and Sales
The Canada Ivey PMI plummeted 16.2 points in December to 45.0, which is the first contractionary reading for the index since January of 2021.
Consumers and Inflation
The price of Bitcoin was $37,983USD as of January 31st, down 19.5% in the month and off 43.0% from its all-time high. Ethereum stood at $2,610USD, representing a 44.2% retracement, and Cardano ended the month at $1.04USD.
Have a great February! 📈
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