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.
In what was another ugly month for equities worldwide, Canada served as a relative safe haven in February. The S&P/TSX 60 finished the month just 0.1% lower, whereas its US counterpart, the S&P 500, slipped another 3%. Investors favoured precious metal and commodity companies in light of Russia’s invasion into Ukraine, which sent both the Materials and Energy sectors surging in February. The Materials sector is 9.1% higher year-to-date, while the Energy sector is up 27.7%. In fixed income, the Canada 10-Year Benchmark Bondrate increased by 12 basis points in February, and as of month’s end is yielding 0.07% more than the US 10-Year. Finally, Canadian inflation breached 5% for the first time in over 30 years, but one of Canada’s leading manufacturing indexes, the Ivey PMI, rebounded back into expansion territory.
The price of gold in CAD was $2,401.10 per ounce at February’s end, representing a monthly price increase of 5%. Gold’s uptick in price provided a 4% lift to the iShares S&P/TSX Global Gold ETF (XGD.TO) in February.
Oil prices continued their rapid climb in February. As of February 28th, the WTI Daily Spot Price was $96.13 USD per barrel, and Brent surpassed $100 USD, sitting at $103.08 USD/barrel.