Equity markets tumbled in December to finish off a painful year for stocks
Nasdaq, S&P500 and Dow all posted their worst calendar returns in 2022 since 2008
Year end 2022- Nasdaq approx. -33%, S&P500 approx. -20%, Dow approx. -9%, and TSX approx. -8.5%
Nasdaq had 4 consecutive negative quarters for the first time since 2001
2022 was the worst year for the FTSE Canada Universe Bond Index since its inception (down approx. 12%)
Inflation, aggressive rate hikes from the Fed and geopolitical concerns assisted in sparking fears of a recession
Canada's benchmark S&P/TSX was 5.2% lower in December- index however ended Q4 5.1% higher
9 of S&P/TSXs underlying sectors were positive during the quarter, led by a 12.5% gain in I.T., health care was main detractor for the quarter down 11.3%
Small cap Index gained 7.8%
U.S. $ depreciated by 2% vs. the loonie during the quarter (slightly dampening returns of foreign markets from a Canadian investor standpoint)
S&P500 fell 5.9% in December, however finished the quarter 5.1% higher
Top performing sectors were energy (19.4%), industrials (16.5%), and materials (12.3%)
Consumer disc. (-12.1%) and telecommunication services (-3.4%) were the only sectors in the red during the quarter
Canadian investment grade bonds increased by 0.1%
Key global investment grade bond benchmark rose 4.5%
Global high-yield issues added 4.3%
Price of natural gas plummeted 33.9% in Q4
Crude oil was up 1%
Copper (11.7%), silver (26.3%) and gold (9.9%) all had a positive quarter
Inflation in Canada
Inflation in Canada edged down to 6.8% year-over-year in November (suggests positive news for the economy)
The Canadian economy added 10,000 jobs in November
Canada's unemployment rate fell to 5.1%
BOC raised its benchmark interest rate by 50bps and signaled a pause in hikes could be coming
BOC hiked rates by another 25 basis points this morning
The slowing inflation rate was due in large part to a 2% decline in gas prices from a month ago
Fed raised its benchmark rate 50bps to a range of 4.25%-4.5%- highest in 15 years
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