Key Canadian Market Indexes
| Index / Yield | Move | Note |
|---|---|---|
| S&P/TSX Composite | ▲ +0.4% | Led by tech and financial stocks. |
| S&P/TSX 60 | ▲ +0.5% | Supported by major banks and energy firms. |
| 10-Yr GoC Yield | ▼ -3.15% | Up 0.7% weekly on strong macro data and slower rate cut expectations. |
Key News – Debt & Mortgages
- Canada's Q3 2025 GDP shows ongoing weakness with modest 0.1% growth estimate; overall activity slowed, facing challenges in manufacturing and exports.
- Labor market data indicates a soft job market with ~6.9% unemployment and stable payrolls in November; some sectors improved but new entrants face longer job searches.
- Inflation continues to moderate with easing producer and consumer price pressures; core measures stable despite ongoing food and fuel costs.
- Bank of Canada holds policy rate at 2.25%, signaling no further cuts in December unless major growth or inflation drops; policy balances growth support and inflation control.
United States: Market Review & Macro
US Market Indexes
| Index / Yield | Change | Note |
|---|---|---|
| S&P 500 | ▲ +3.73% | Rose as weak consumption data raised rate cut expectations, channeling money into growth stocks. |
| Nasdaq | ▲ +4.91% | Tech benefited from bets on rate easing and acceleration in AI investments. |
| Dow Jones | ▲ +3.18% | Industrial and financial sectors strengthened amid positive overall sentiment. |
| 10Y Bond | ▼ -4.01% | Yield decline reflects expectations for further monetary policy easing. |
Macro – Key Highlights
- Private debt in the US is booming, reaching approximately $3 trillion at the start of 2025 with a forecast to $5 trillion by 2029.
- Retail Sales (Sep) came in at +0.2% MoM (below forecast +0.4%) and YoY +4.26%, indicating moderating consumption reduces inflationary pressure.
- PPI (Sep) headline was +2.7% YoY (as expected) with Core at +2.6%, showing slight easing in producer cost pressures.
- Consumer Confidence (Nov) fell to 88.7 (below forecast 93.5), as consumers remain cautious due to high living costs and elevated rates.
Spotlight Stocks
| Ticker | Weekly Move | Highlights |
|---|---|---|
| Broadcom (AVGO) | ▲ +16.2% | Surge due to deepened Google collaboration and strong AI chip revenue forecasts. |
| Micron (MU) | ▲ +17.4% | Surging demand for HBM/DRAM in AI projects and servers drives revenue and margins. |
Why It Matters
- Canada: The economy shows ongoing challenges with modest growth and a soft labour market, while inflation moderates and the central bank maintains a steady policy to balance growth and inflation pressures.
- United States: Markets rally on signs of moderating consumption and easing inflation, fueling optimism for monetary easing and strong tech-driven earnings, especially in AI—highlighting cautious but positive momentum.
