Toronto Stock Exchange Breaches 20,000 Mark
On Tuesday June 1st, the S&P/TSX Composite reached the 20,000-mark for the first time. On Friday, the TSX closed the day at 20,029.19, the first trading day the TSX closed above 20,000.
The TSX has been one of the strongest-performing indices thus far in 2021. The Canadian economy is driven by, among other sectors, commodities (lumber, gold, etc) & oil. Oil futures finished Friday at $69.37 per barrel. The cost of a barrel of oil is up nearly 43% year-to-date.
Optimism about lowering COVID numbers & increasing vaccination rates also helped propel the TSX upward. This week’s rally was broad-based, with gains in financial and manufacturing (as well as commodities & materials), thus continuing the so-called “reopening rally” trend of 2021.
This broad-based 2021 trend has been the antithesis of 2020’s investment story. In 2020, it was the growth-oriented, “work from home” stocks in the tech and health sectors that outperformed.
Pre-COVID, the TSX was approaching the 18,000-mark. The depths of the March 2020 pullback saw the TSX dip as low as 11,851 before regaining its footing. Since that COVID-low, the TSX has rallied 69%, once again driving home the concept that “riding out the storm” is beneficial in the long run.
Weekly Update – By The Numbers
| North America | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| Canada – S&P TSX Composite | 20,029 | 177 | 0.89% | 14.89% |
| USA – Dow Jones Industrial Average | 34,756 | 227 | 0.66% | 13.56% |
| USA – S&P 500 | 4,230 | 26 | 0.62% | 12.62% |
| USA – Nasdaq | 13,814 | 65 | 0.47% | 7.18% |
| Gold Futures (USD) | $1,894.10 | -$8.40 | -0.44% | -0.22% |
| Crude Oil Futures (USD) | $69.37 | $3.05 | 4.60% | 42.97% |
| CAD/USD Exchange Rate | $0.8260 | -$0.0025 | -0.30% | 5.10% |
| Europe / Asia | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| MSCI World Index | 2,997 | 18 | 0.60% | 11.41% |
| Switzerland – Euro Stoxx 50 | 4,089 | 18 | 0.44% | 14.47% |
| England – FTSE 100 | 7,069 | 38 | 0.54% | 9.41% |
| France – CAC 40 | 6,516 | 32 | 0.49% | 17.38% |
| Germany – DAX Performance Index | 15,693 | 173 | 1.11% | 14.39% |
| Japan – Nikkei 225 | 28,942 | -207 | -0.71% | 5.46% |
| China – Shanghai Composite Index | 3,592 | -9 | -0.25% | 3.43% |
| CAD/EURO Exchange Rate | € 0.6804 | € 0.0010 | 0.15% | 5.77% |
| Fixed Income | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| 10-Year Bond Yield (in %) | 1.5600 | -0.0210 | -1.33% | 70.31% |
Sources: Globe Advisor, Yahoo! Finance, CNBC.com, CBC.ca