Market Commentary
The Happy New Year Economic Comment
December 31, 2013 | Posted by: Francine Tracey
Thanks again to
It’s official. The TSX, Dow and S&P500 will finish 2013 by hitting new highs as they advanced right out of the gate this morning. Both US averages will post their best year since 1997 with gains of almost 30%, while the resource-laden TSX should finish with again just shy of 10%. Gold was obviously the laggard this year with its worst showing in three decades, which has resulted in the 9 worst performing stocks in the index all from that sector. The TSX’ best performing stock? Air Canada was flying high with a massive gain of 325%. The best stock in the S&P500 index was Netflix which has surged almost 300% on the year. Emerging markets stocks, in general, fared poorly this year with the MSCI Emerging Markets index losing 5%. Dubai’s index will be added to this benchmark in 2014, which has resulted in the Dubai Financial Market leading all world markets higher this year with a gain of 108%. Economic data finishing the year on a positive note as consumer confidence in the US climbed more than forecast, while home prices posted their biggest 12-month gain in over seven years. The TSX is up 50 pts. The Dow is up 55 pts.
The Canadian dollar is finishing the year with a small gain, up 17 bps to US$0.9415. Bond yields are also higher on the pair of economic reports, with the 5-year Canada yielding 1.96% and the 10-year 2.79%. Oil is down 83 cents to US$98.46/barrel. Natural gas is off 12 cents to US$4.31/mbtu. Silver is flat at US$19.61/oz. Gold is up $4 to US$1208/oz.
2013 has been an exhilarating year. 2014 is shaping up to be even better and I am confident “will ” be MA’s best year yet! On a personal note, I hope your 2014 brings you happiness, good health, prosperity and contentment.
Happy New Year!