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.
Canadian equities rebounded in July as smaller, rate-sensitive companies led the charge. The S&P/TSX 60 rose 3.9%, Canadian Large Caps added 4.6%, and Canadian Small Caps surged 8.8% higher. Around the world, the US-domiciled S&P 500 popped 9.2%, and global developed markets as measured by the MSCI EAFE index tacked on 5%.
Only Materials logged a negative July among all sectors. Info Tech’s 10% gain led all TSX sectors, while REITs came in second at 5.8%. Interestingly, Consumer Staples logged the third highest performance among sectors in a month where cyclically-sensitive companies tended to have the most standout performances.
Canadian inflation surpassed 8% for the first time since January 1981. June’s inflation number came on the heels of May’s 7.73% print, which was the first to top 7% since March 1983. Nonetheless, the Canadian unemployment rate fell to another all-time low of 4.9%. Lastly, the surging Canadian housing market continued its hot streak as the Canada New Housing Price Index increased for the 30th consecutive month.
The price of gold was C$2,246.70 per ounce as of July 29th, a monthly decline of 4.1%. As a result, the iShares S&P/TSX Global Gold ETF (XGD.TO) dropped 9.0% in June and is now down 18.3% year to date.