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.
Starting December 1st, the Canadian Monthly Market Wrap will be offered exclusively as a Dashboard Template within YCharts. All data and visuals from the Canadian Monthly Market Wrap can be accessed from the YCharts Dashboard, by clicking Manage > Dashboard Templates > selecting the “Canadian Markets” template.
The US Market Wrap will continue to be published each month in its current form. Looking for the US Market Wrap? Click here.
Canada Market Summary for October 2022
Equities rebounded in a significant way following a September that, for several indexes, was the worst month since March 2020. The S&P/TSX 60 index rose 5.7%, while Canadian Large Caps advanced 6.5% and Small Caps finished up 5.8%. In the US, the S&P 500 rose 8.1%. North American equity indexes appeared to benefit from better-than-expected Q3 earnings from many of their constituents.
Five of the seven TSX sectors logged a positive October. Energy was the big winner with a 21.8% lift, due largely to rebounding oil prices, and Consumer Staples had the second-largest advance at 8.8%. Materials and Utilities were the two sectors that ended October in the red.
The 10 Year Benchmark Bond boasted the lowest yield among fixed-income instruments despite having the longest maturity. Yield on the 10-Year was 3.23% at October’s end, while the 1 Year Treasury Bill had the highest yield at 4.15%. Additionally, the 6 Month Bill was the only other instrument whose yield eclipsed 4%
The Canada Ivey PMI slipped 1.4 points in September to 59.5 but stayed firmly in “expansion territory” following a July where the index reported its first contractionary reading since December 2021. Canada Retail Sales growth of 0.7% affirmed the positive state of manufacturing, and Canada Real GDP rose 0.14% higher.
Canadian home prices declined by 0.08% in September, following growth of 0.08% in August. September’s decline snapped a 32-month consecutive growth streak in the Canada New Housing Price Index.
The price of gold in Canadian Dollars slipped 2.4% in September to C$2,243.20 per ounce. In the oil patch, crude prices rebounded in October. The spot price for a barrel of WTI crude bounced between $77.17 USD and $93.07 USD in October before settling at $86.12 USD at month’s end. Monthly Retail Sales among Canadian Gasoline Stations grew to C$6.99 billion in August, according to the latest data available.