Written by Sid Mohapatra
We continue to witness an extension of the already extended rally of risk markets into the first week of December. Canadian job numbers cooled off slightly this month but we have seen steady gains in the previous months despite a sharp increase in COVID-19 cases. The Canadian economy created 62,000 jobs with the unemployment rate edging lower to 8.5%.
Non-Farm Payrolls in the US were muted for the month of November, which stirred expectations of additional fiscal stimulus under Joe Biden’s presidency. These fiscal support measures have propped up equities to record highs. In other asset classes, Oil remains steady with OPEC delaying production increases leading WTI Brent closing at a nine-month high.
The future path of risk markets remains dependent on the trifecta of vaccine progress, reopening of the economy and potential economic support from the fiscal side. Having said that, the TSX finished at 17,514 up 0.70% for the week and scraping out a YTD return of 2.60% while the S&P 500 closed at 3,699, up 1.70% posting a healthy 14.50% YTD.