The TSX, Canada’s main stock market index, is made up of some of the largest companies in the country, so it’s natural to expect the performance of the TSX to track Canada’s economic growth. That’s why investors pay close attention to economic gages like gross domestic product (GDP), inflation, employment levels, consumer spending, and the […]
Tag Archives: interest rates
13
Feb
Feb
The year 2023 defied expectations for Bay Street and Wall Street. Despite stubbornly high inflation and decades-high interest rates, the U.S. stock market closed out the year with one of its best performances. The S&P 500 advanced 24%, its longest winning streak since 2004, while the Nasdaq soared more than 43%, its highest annual gain […]
07
Feb
Feb
Between January 1 and October 31, 2023, the TSX lost 3.3% of its value. But from November 1, 2023 to January 31, 2024, the TSX has rallied an impressive 12.2%. And the long-term outlook for the TSX remains bullish. But investors may be getting ahead of themselves. Why Is the TSX Doing So Well? On […]
01
Feb
Feb
The Bank of Canada held its key lending interest rate at 5% for the fourth consecutive meeting. Of particular note, the central bank said, for the first time, that it won’t raise interest rates again if the economy moves in line with forecasts. “If the economy evolves broadly in line with the projection we published […]
23
Jan
Jan
Statistics Canada announced that the country’s inflation rate in December ticked up to 3.4%, which is up from 3.1% in November. The increase was fueled due to gas prices and higher prices at grocery stores. Grocery prices held pat at 4.7% while prices at restaurants have risen by 5.6% over the last year. Housing prices […]
09
Jan
Jan
A lot can change in a year. In January 2023, Canada’s inflation rate stood at 5.9%, the Bank of Canada increased its overnight lending rate to 4.25%, and the TSX closed out 2022 down 1.25%. Fast forward to January 2024, and the inflation rate is down, but still too high at 3.1%, the overnight lending […]
28
Nov
Nov
Statistics Canada announced that Canada’s inflation rate slowed to 3.1% in October, that’s down significantly from the 3.8% reading in September. There is a caveat to that drop in inflation, however. The big deceleration was mainly a result of lower gas prices, which were down 6.4% over September and down 7.8% from where gas prices […]
21
Nov
Nov
This year was supposed to be a mixed one for stocks, with rising interest rates, stubbornly high inflation, and lower commodity prices expected to be headwinds for Canadian and U.S. stocks. But it hasn’t turned out that way. In spite of economic uncertainty, the S&P 500 is up 17.5% year-to-date, the NASDAQ has rallied an […]
08
Nov
Nov
Halloween may be over but that doesn’t mean it isn’t still scary on Bay Street and Wall Street. On July 27 the S&P 500 hit a 52-week high of 4,240, putting it up 19.5% year-to-date. The big moves defied logic, with inflation stubbornly high and interest rates still on the rise. But then stocks started […]
25
Oct
Oct
Canada’s inflation rate unexpectedly dipped in September to 3.8%. That’s down from 4.0% in August. The 3.8% figure is below the 4.0% figure economists were expecting inflation to come in at. The cooling of Canada’s inflation was pretty broad based too, with prices falling for some travel-related services, durable goods, and groceries. The latter of […]
