| Your weekly commentary – For the week ended April 7 | | Global equity markets lacked clear direction over the week as investors considered relatively weak economic data, what it might mean for upcoming global central bank decisions, and whether the global economy is headed for a recession. The S&P/TSX Composite Index posted a gain, led by Communication Services stocks. In the U.S., the S&P 500 Index declined, hindered by weakness in the Industrials sector. Oil and gold prices increased over the week. Yields on 10-year government bonds in Canada and the U.S. finished lower. | Canada’s manufacturing sector contracts- Canadian manufacturing activity slumped in March, falling into a contraction for the first time in three months.
- The S&P Global Canada Manufacturing Purchasing Managers Index fell to 48.6 in March from 52.4 in April. The decline marked the weakest reading for Canada’s manufacturing sector since June 2020.
- The contraction came amid a drop in output and new orders, suggesting weaker demand domestically and globally persists.
- Despite the decline in March, purchasing managers were more confident about the future and optimistic that Canada’s economy would improve.
| Canadian economy adds more jobs in March- The Canadian economy added 34,700 jobs in March, the seventh straight month of job additions.
- The increase came in above the 7,500 job additions economists expected.
- The participation rate ticked slightly lower. Canada’s jobless rate held steady at 5.0% in March.
- Wage increases moderated in March. The hourly wage rate rose by 5.2% year-over-year in March, down from February’s 5.4% year-over-year increase.
| Rogers acquisition of Shaw complete- Rogers Communications Inc. acquired Shaw Communications Inc. on April 3 for $20 billion.
- The Canadian federal government approved the deal on March 31. It was delayed two years due to concerns about the resulting competitive environment.
- The government set several conditions for the agreement, including a $5 billion investment to improve the reach of the 5G network and the creation of 3,000 jobs in Western Canada.
- Shares of Rogers moved higher over the week.
| China’s business activity ticks higher- According to the Caixin China Composite Purchasing Managers Index, business activity in China improved slightly in March, largely in response to its service sector.
- The service sector grew faster in March than in February, boosted by new orders and employment. The improved activity came as the Chinese government removed lockdown restrictions.
- Export orders in China’s service sector also climbed higher in March.
- Meanwhile, the manufacturing sector was less fortunate, narrowly missing a contraction in March, raising concerns about the overall strength of China’s economic rebound.
| | Equity markets | Level | YTD | 1 Yr | | S&P/TSX Composite Index C$ | 20,196.69 | 4.19% | -7.50% | | S&P 500 Index US$ | 4,105.02 | 6.92% | -8.78% | | Dow Jones Industrial Average US$ | 33,485.29 | 1.02% | -3.18% | | MSCI EAFE Index US$ | 2,101.06 | 8.08% | -1.20% | | MSCI Emerging Markets Index US$ | 987.07 | 3.21% | -12.34% | | MSCI Europe Index US$ | 1,919.25 | 10.84% | 1.65% | | MSCI AC Asia Pacific Index US$ | 161.33 | 3.59% | -8.32% | | Fixed income market | Level | YTD | 1 Yr | | FTSE Canada Universe Bond Index C$ | 1,093.20 | 4.00% | -0.19% | | FTSE World Broad Investment Grade Bond Index US$ | 210.48 | 4.09% | -5.17% | | Currency | Level | YTD | 1 Yr | | CAD/USD | 0.7401 | 0.45% | -6.68% | | Commodities | Level | YTD | 1 Yr | | West Texas Intermediate (US$/bbl) | 80.70 | 0.55% | -15.96% | | Gold (US$/oz) | 2,007.91 | 10.08% | 3.94% |
| | Market performance – as at April 7, 2023 | |
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