By Ketki Saxena
Investing.com– The S&P/TSX Composite Index closed at 21,911 points on Friday, down 0.2% for the week after reaching a new all time high on Thursday, March 31.
After 5 weeks of steady gains driven by the surge in commodities, the TSX ended its winning streak after the recent pullback in the price of crude and metals. Crude closed the week at $99.38, or down 12.7% for the week, while gold was at $1,923.54, down 2% last week. Approximately 30% of Canada’s benchmark index is weighted towards energy and materials.
However, the Canadian benchmark was still up 3.4% for the quarter, significantly outperforming U.S. counterparts for that period. In the last quarter, the S&P 500 is down 6.07&, and the DJIA 5.11% lower.
The CAD/USD pair was little changed last week, at USD $0.80 to a loonie.
Yields on the 10 year Government of Canada bonds closed the week at 2.45%, while yields on the 5 year bond were at 2.48%.
U.S. indices closed in the green last week, with the DJIA up 0.25% and the S&P 500 0.14% higher, buoyed by strong consumer sentiment and robust economic data. Investor sentiment appears optimistic, despite the ongoing volatility in the Ukraine and an inversion of the 2 and 10 year bond yield curve.
The inversion of this yield curve is traditionally an early indicator of a recessionary period, but typically when it remains inverted for at least a month, and is supported by further data points, including the inversion of the 10-year and three-month yield curves.
The Week Ahead: Canadian Economics and Earnings Calendar
Monday, April 4
In Canadian Economics:
Canadian building permits
Bank of Canada’s business outlook survey
Real Estate Board of Greater Vancouver releases March home sales data
Tuesday, April 5
In Canadian Economics:
Notable data: Canadian trade balance
Toronto Regional Real Estate Board releases March home sales data
In the U.S: trade balance, ISM services index
Wednesday, April 6
TSX Earnings: Tilray (TSX:TLRY)
No major Canadian economic data
In the U.S: Federal Reserve releases minutes from last meeting
Thursday, April 7
TSX Earnings: Roots
In Canadian Economics: Finance Minister Chrystia Freeland tables federal budget
In the U.S: initial jobless claims
Friday, April 8
TSX Earnings: Corus Entertainment (TSX:CJRb), MTY Food Group
In Canadian Econ: Canadian labour force