Bourstad stock market simulations - Summary of
the markets for the week ended on November 22, 2024
Stocks and bonds with no clear direction, commodities and cryptos on the
rise
After a week of gains, followed by a week of declines, stocks and bonds
traded with no clear direction this week; however, North American stock markets
ended higher. In Canada, the retail sector performed well in September, with
six of the nine sectors recording increases compared with August 2024. In the
United States, the Conference Board's index of leading indicators fell again in
October, marking the 32nd consecutive month without an increase; the index is
now at its lowest level in eight and a half years. In Europe, the Eurozone
Composite Purchasing Managers' Index fell back into contraction territory in
November, dropping below the 50.0 threshold to 48.1. Over the coming week,
we'll be watching: in Canada, gross domestic product for the third quarter of
2024 (Friday); in the U.S., October new home sales (Tuesday), third-quarter
gross domestic product (Wednesday) and the price index based on personal
consumption expenditure for October (Wednesday).
Three of the six stock markets we follow ended the week higher. Once
again this week, the Toronto Stock Exchange posted the biggest gain, up 2.2%;
since the start of 2024, the Canadian stock market is up 21.4%. The other
markets on the rise were the US exchanges: the NASDAQ 100 gained 1.9% and the
New York Stock Exchange 1.7%. The Paris Bourse limited its loss to -0.2%. Asian
stock markets fell the most: the Tokyo Stock Exchange by -0.9% and the Shanghai
Stock Exchange by -1.9%.
Yields on 10-year government bonds are up in two of the four top-rated
countries we track. Higher yields mean lower bond prices, given the inverse
relationship between yields and bond prices. The U.S. bond yield, the market's
main benchmark, is down -3 bps (1 basis point or bps = 0.01%) to 4.41%. The
Canadian bond rate is up 15 bps, making the Canadian rate 99 bps lower than the
U.S. rate. Germany's bond yield fell by -11 bps to 2.25%. Japan's bond yield
climbed 1 bps to 1.08%.
On the commodities market, three of the four commodities we follow are
up, while the price of corn remains unchanged. The commodities most closely
followed by the financial press, oil and gold, jumped by 6.3% and 6.0%
respectively; geopolitical tensions in Ukraine and the Middle East continue to
worry financial markets. Copper is up 0.6%.
In the crypto-currencies sector, the two cryptos we follow are once
again rising strongly: bitcoin by 8.5% and ethereum by 7.4%. Crypto-currencies
continue to benefit from the positive impact of Donald Trump's election in the
November 5 American presidential election; bitcoin is closing in on the USD
100,000 threshold.
As of
November 22, it costs 1.1¢ CAD less to buy one US dollar than it did on
November 15. At the opposite end of the spectrum, the euro and yen are trending
downwards against Uncle Sam's dollar: the single European currency by -1.2% and
the Japanese currency by -0.3%.
See the detailed table by following this link:
https://iclf.ca/DL/BTTT_sommaire_marches_241122.pdf
Paul
Bourget
Project Director, Bourstad
CIRANO
paul.bourget@cirano.qc.ca
About
CIRANO (www.cirano.qc.ca )
The Center
for Interuniversity Research and Analysis of Organizations (CIRANO) is a
multidisciplinary, liaison and transfer research center, whose mission is to
accelerate the transfer of knowledge between the research community and users
in industry and public services.
About
BOURSTAD (www.bourstad.ca )
The
Bourstad program is an activity of the Center for Interuniversity Research and
Analysis of Organizations (CIRANO) which receives support from many partners
for this financial education project: the Autorité des marchés financiers, its
main partner, TD Bank, CFA Montreal , the Canadian Investment
Regulatory Organization (CIRO), Les Affaires, Finance Montreal, TMX Group,
Hyprasoft, Groupe Investissement
responsable and QuoteMedia.