Performance
Investors faced a challenging and volatile August as the stock market took a breather after what was a generally constructive first seven months of the year for equity investors
Canadian stocks fell, thanks in part to disappointing earnings from the financial sector and continued uncertainty in the economy
The S&P 500, as measured in USD, notched its first monthly decline since February
Nvidia’s stellar earnings report fuelled more excitement in artificial intelligence, and Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium boosted market sentiment in the closing weeks of August
Canada’s benchmark S&P/TSX Composite Index was 1.6% lower in August, as seven of the underlying sectors in the index were negative during the month
Posting the biggest losses were consumer discretionary (-5.4%), utilities (-5.1%), financials (-4.4%) and materials (-4.0%)
Energy was the top-performing sector, gaining 4.4%
Small-cap stocks, as measured by the S&P/TSX SmallCap Index, fell 1.5% for the month
U.S.-based stocks, as measured by the S&P 500 Index, posted a 1.1% gain in August
Six of the underlying sectors were in the green for the month, with energy and telecommunication services leading the benchmark’s gain, rising 4.2% and 2.5%, respectively
International stocks, as measured by the FTSE Developed ex-US Index, declined 1.4% during the month, while emerging markets fell 3.0%
Currency
The U.S. dollar rose by 2.0% versus the loonie during the month, boosting returns of foreign markets from a Canadian investor’s standpoint
Fixed Income
Canadian investment grade bonds, as measured by the FTSE Canada Universe Bond Index, decreased by 0.2% during the month
Key global investment grade bond benchmark fell 1.4%. Global high-yield issues gained 0.3%
Commodities
Natural gas prices rose 5.1% during the month
Price of a barrel of crude oil rose 2.2%
Silver, gold and copper all had a negative month, declining 2.0%, 1.2% and 5.9%, respectively.
Inflation
Inflation in Canada rose to 3.3% year-over-year in July, led by increases in energy and shelter costs
The Canadian economy lost 6,400 jobs in July, as the nation’s unemployment rate rose to 5.5%
September 6 BOC decided to hold key interest rate steady @ 5%, however indicated another hike may come before year end
This document was prepared by the Investment Products & Platforms Team. The opinions expressed in this document do not necessarily reflect the opinions of iA Private Wealth Inc. The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Contents copyright by the publishers. The information contained herein may not apply to all types of investors.
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