Financial markets at a glance – September 30, 2024

 

FINANCIAL MARKETS
AT A GLANCE

 

September 30, 2024

Canadian and U.S. equities were positive over the quarter. Bond yields fell through the quarter. Corporate bonds outperformed government bonds, and long-term bonds outpaced short-term bonds. Here are the financial markets at a glance.

 

 

 

CANADIAN EQUITIES

 

U.S. EQUITIES

 

 

Sector
10 of the 11 Canadian equity sectors ended the quarter in positive territory. Here’s the sector performance, with arrows indicating performance relative to last quarter.

 

Sector
10 of the 11 U.S. equity sectors ended the quarter in positive territory. Here’s the sector performance, with arrows indicating performance relative to last quarter.

 

WORST PERFORMERS

BEST PERFORMERS

Real Estate

Financials

Utilities

23.0%

17.0%

16.6%

Energy

Industrials 

 

Consumer Discretionary

-6.2%

2.7%

7.8%

 

Utilities 

Real Estate

17.8%

15.7%

Energy

Information
Technology

-3.6%

0.3%

 

 

Company size performance comparison 
Large sized companies outperformed medium and small sized companies, with small companies trailing. 

 

Company size performance comparison 
Small sized companies outperformed large and medium sized companies, with medium trailing. All were positive over the quarter.

 

 

 

 

 

What’s working/What’s not working

From an investment style perspective, value outperformed the S&P/TSX Composite Index while growth trailed. Both factors and the index were positive over the quarter.
All other factors were positive over the quarter. Dividends and low volatility outperformed the S&P/TSX Composite Index, while momentum and quality trailed.

 

What’s working/What’s not working

From an investment style perspective, value outperformed the S&P 500 Index while growth trailed. Both factors and the index were positive over the quarter.
All other factors were positive over the quarter. Dividends and low volatility outperformed the S&P 500 Index, while quality and momentum trailed.

 

 

 

GLOBAL EQUITIES

 

CANADIAN FIXED INCOME

 

 

 

Regional*
 

Company size performance comparison 
Global large and small companies were positive over the quarter, with small companies outperforming.

   

Large Companies
Small Companies

What’s working/What’s not working

From an investment style perspective, value outperformed the MSCI World Index while growth trailed but both factors and the index were positive over the quarter.
All other factors were positive over the quarter. Dividends and low volatility outperformed the index, while quality and momentum trailed. 

 

Yields fell this quarter. Long-term bonds outperformed short-term bonds. Corporate bonds outperformed government bonds. 

Relative bond performance 

 

   Bond yields 

 

Both shorter and longer date bond yields fell over the quarter.

Canada 2-year yield fell from 3.99% to 2.91%.
Canada 5-year yield fell from 3.51% to 2.73%.
Canada 10-year yield fell from 3.50% to 2.95%.
Canada long bond† yield fell from 3.39% to 3.13%.

† Maturity date of the the Canada long bond is 2055.12.01. 

 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 

Unless otherwise indicated, all index, factor and sector performance data is Canadian dollars and total return.

* Representative indexes are as follows: Canadian Equities – S&P/TSX Composite TR Index, U.S. Equities – S&P 500 TR Index, Emerging Markets – MSCI Emerging Markets GR Index, European Equities – MSCI Europe GR Index, Asian Equities – MSCI Pacific ex Japan GR Index, Japanese Equities – MSCI Japan GR Index. Indices are unmanaged and cannot be invested in directly. 

Source: Morningstar Research Inc. as of September 30, 2024. © 2024 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 

Segregated Fund contracts are issued by The Empire Life Insurance Company (“Empire Life”). A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a Segregated Fund is invested at the risk of the contract owner and may increase or decrease in value. Past performance is no guarantee of future results. Please read the information folder, contract and fund facts before investing.

This article includes forward-looking information that is based on the opinions and views of Empire Life as of the date stated and is subject to change without notice. The information contained herein is for general purposes only and is not intended to be comprehensive investment advice. We strongly recommend that investors seek professional advice prior to making any investment decisions. Empire Life and its affiliates assume no responsibility for any reliance on or misuse or omissions of the information contained herein.

 

September 2024