Stocks climbed in most major markets as the vaccine rollout became widespread, and increased optimism that Brexit and US stimulus deals would be finalized soon. Canada’s S & P / TSX Composite Index came close to an advance that would be its seventh straight week of gains after a wave of positive vaccine news began in early November. However, it faded to a small loss during the final minutes of Friday, as options ended trading. All three major US indices – the S&P 500, the Nasdaq Composite and the Dow Jones Indicators Average – reached record highs this week. The optimistic economic outlook boosted government bond yields and put further pressure on the US dollar, which fell to a two-and-a-half year low against other major currencies. In return, the weak greenback raised the prices of commodities, including gold and oil.
Investors bidding asset prices are focused on the expected economic acceleration for some time in 2021, as vaccine deployment allows economies to reestablish. In the near term, signs of recession are mostly being ignored due to increasing cases and restrictions of COVID-19. This week, Bank of Canada Governor Tiff Macklem warned that the economy may shrink marginally in the first quarter of 2021 due to a second wave of epidemics. Technology led TSX’s advancing areas as Shopify Inc. Reached a record height. The shares of the e-commerce company have now climbed almost 200% this year. The material sector was strong even at higher gold prices. Led the declining sectors in the energy sector. Although oil prices reached their highest level since February, energy producers’ shares fell after the Organization of Petroleum Exporting Countries cut its demand forecast.
The S&P 500 saw the benefit of technology, as many mega-capitalization companies resumed leadership, which they demonstrated most of the year, before their recent shift to value-oriented and small cap companies The speed was reduced. Apple Inc. Shares of the company said it expected to make 30% more iPhones in the first half of 2021 after the company had a particularly strong week. Consumer discretionary territory was higher as Amazon.com Inc. saw a similar return amid positive sentiment. Online holiday sales. As it did in Canada, the energy sector collapsed despite high oil prices. The US economic release continued to reflect some slow activity as COVID-19 preventative measures widened. Overall November retail sales fell short of projections, the Empire State Manufacturing Survey plummeted and applications for unemployment benefits unexpectedly reached an all-time high in three months. Perhaps counterintuitively, the dismal labor statistics helped drive the shares to their record highs by putting pressure on congressional leaders and increasing their chances of compromise on incentive spending. At its final policy meeting of the year, the Federal Reserve held interest rates near zero and promised to maintain its large-scale asset purchase program until it saw “substantial progress” in employment and inflation.
Most of the major European and Asian markets were high. However, the UK declined slightly as investors awaited news of the Brexit agreement. The Bank of England also stood on the sidelines amid uncertainty about the potential need for action. Germany’s DAX index was particularly strong, because the data formulation in that country was higher than expected. Japanese shares were supported by the Tanken survey of trading sentiment, which grew at the fastest pace in 18 years.
This weeks market closing values
|S&P/TSX||17,534.63||– 14.29||– 0.08%||+ 2.76%||+ 2.95%||+ 6.13%|
|S&P 500||3,709.41||+ 45.95||+ 1.41%||+ 13.14%||+ 13.33%||+ 11.18%|
|DJIA||30,179.05||+ 132.68||+ 0.60%||+ 4.21%||+ 4.19%||+ 10.11%|
|FTSE 100||6,529.18||– 17.57||+ 2.01%||– 13.13%||– 12.85%||– 2.12%|
|CAC 40||5,527.84||+ 20.29||+ 1.52%||– 0.70%||– 0.47%||+ 4.39%|
|DAX||13,630.51||+ 516.21||+ 5.13%||+ 9.96%||+ 10.62%||+ 5.91%|
|Nikkei||26,763.39||+ 110.87||+ 1.15%||+ 16.75%||+ 15.64%||+ 8.76%|
|Hang Seng||26,498.60||– 7.27||+ 0.12%||– 6.92%||– 6.93%||+ 2.27%|
|US$||1.2778||+ 0.0009||+ 0.07%||– 1.63%||– 2.57%||– 1.75%|
|Euro||1.5653||+ 0.0192||+ 1.24%||+ 7.45%||+ 7.39%||+ 0.63%|
|Yen||0.0124||+ 0.0001||+ 0.73%||+ 3.43%||+ 3.30%||+ 1.43%|
|3-month||0.11||– 0.02||Oil||$49.06||+ $2.49|
|5-year||0.45||+ 0.01||Gold||$1,880.44||+ $40.59|
|10-year||0.75||+ 0.03||Natural Gas||$2.70||+ $0.16|
What’s ahead next weeks:
- Gross Domestic Product (October)
- Building permits (November)
- Gross Domestic Product (3rd Quarter)
- Conference Board Consumer Confidence Index (December)
- Existing home sales (November)
- Durable goods orders (November)
- Personal Income, Spending (November)
- New home sales (November)
- Univ. of Michigan Consumer Sentiment Index (December)