After a difficult week that saw investors buying and selling in see-saw fashion, markets ended higher Friday as investors bought in volume across a broad base of sectors. It was a tug-of-war between inflation fears and dip-buys all week.
In Canada, the S&P/TSX Composite exchange saw a 230.88-point increase although it ended the week down 106 points (0.54%). The broad rally was led by the energy sector, with oil prices increasing as well as gold (always a popular inflation hedge). Year-to-date, the TSX is up an impressive 11.09%, returns which are similar to the S&P 500 and Dow Jones Industrial Average.
U.S. markets saw their largest weekly decline since February, driven partly by long-term inflation fears. The U.S. Federal Reserve attempted to ease inflation fears and was partially successful – as the U.S. dollar declined – but while consumer sentiment and retail sales dipped, prices remain on an upward trajectory. Clearly, inflation remains a concern.
After dipping to a weekly low to end Wednesday, the S&P 500 rallied Thursday and Friday, ultimately closing the week down 59 points (1.39%) from last week. Year-to-date, the S&P 500 is up 11.13% and the Dow is up 12.34%.
The tech-heavy Nasdaq index continued to lag its more broadly-based counterparts (the S&P 500 and Dow), declining by 322 points (2.34%) for the week. Year-to-date, the Nasdaq has under-performed the S&P 500 and Dow by roughly 7% overall with a to-date return of 4.21%.
The U.S. dollar’s decline buoyed the Loonie, as did rising oil. As of this writing, the CAD/USD rate sits at $0.8265 U.S. and has appreciated by 5.17% vs the greenback year-to-date. The CAD has also increased versus the Euro, ending the day at € 0.6799 (up 5.69% year-to-date).
Most of the European indexes are up year-to-date in a similar vein as the TSX, S&P 500 and Dow while the Nikkei and the Shanghai index (two key Asian markets) sit roughly flat for the year.
Weekly Update – By The Numbers
| North America | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| Canada – S&P TSX Composite | 19,367 | -106 | -0.54% | 11.09% |
| USA – Dow Jones Industrial Average | 34,382 | -396 | -1.14% | 12.34% |
| USA – S&P 500 | 4,174 | -59 | -1.39% | 11.13% |
| USA – Nasdaq | 13,430 | -322 | -2.34% | 4.21% |
| Gold Futures (USD) | $1,844.00 | $12.00 | 0.66% | -2.86% |
| Crude Oil Futures (USD) | $65.51 | $0.69 | 1.06% | 35.02% |
| CAD/USD Exchange Rate | $0.8265 | $0.0026 | 0.32% | 5.17% |
| Europe / Asia | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| MSCI World Index | 2,939 | -40 | -1.34% | 9.26% |
| Switzerland – Euro Stoxx 50 | 4,017 | -17 | -0.42% | 12.46% |
| England – FTSE 100 | 7,044 | -86 | -1.21% | 9.02% |
| France – CAC 40 | 6,385 | -1 | -0.02% | 15.02% |
| Germany – DAX Performance Index | 15,417 | 17 | 0.11% | 12.38% |
| Japan – Nikkei 225 | 28,084 | -1,274 | -4.34% | 2.33% |
| China – Shanghai Composite Index | 3,490 | 75 | 2.20% | 0.49% |
| CAD/EURO Exchange Rate | € 0.6799 | € 0.0029 | 0.43% | 5.69% |
| Fixed Income | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| 10-Year Bond Yield (in %) | 1.6350 | 0.0580 | 3.68% | 78.49% |
Sources: Globe Advisor, Yahoo! Finance, CNBC.com