Financial markets at a glance – September 30, 2021

FINANCIAL MARKETS AT A GLANCE

SEPTEMBER 30, 2021 Canadian equity sectors were mixed while U.S. equity sectors were generally positive last quarter. We saw a steepening of the yield curve. As a result, government bonds trailed corporate bonds, while short term bonds outperformed long term bonds. Here are the financial markets at a glance.

	CANADIAN EQUITIES		US EQUITIES
	Sector 7 of the 11 Canadian equity sectors ended the quarter in positive territory. Here are the best and worst performing sectors relative to last quarter.		Sector 9 of the 11 U.S. equity sectors ended the quarter in positive territory. Here are the best and worst performing sectors relative to last quarter.
WORST PERFORMERS BEST PERFORMERS	Consumer Staples Energy Industrials 4.2% 4.0% 3.5% Materials Consumer Discretionary Healthcare -5.6% -5.9% -20.3%		Financials Utilities 5.1% 4.1% Materials Industrials -1.3% -2.0%
	Company size Small companies underperformed medium and large-sized companies.		Company size Small and medium-sized companies underperformed large companies.
	Small Companies Large & Medium Companies		Small & Medium Companies Large Companies
	What’s working/What’s not working From a style perspective, growth ended the quarter in negative territory with value coming in slightly above the index. Dividends were the big winner this quarter, with momentum and quality trailing.		What’s working/What’s not working Growth continues to lead this quarter, outperforming the S&P 500 Index. Momentum was the only factor to outperform the broader market, with dividends being the weakest over the quarter, but still positive.

	GLOBAL EQUITIES		FIXED INCOME
	Regional   Company size Global small companies performed well but were still outpaced by large companies.     Large Companies Small Companies What’s working/What’s not working From a style perspective, growth outperformed value and the MSCI World Index. Momentum and quality were the factors that outperformed the index, and while positive dividends underperformed.		We saw a steepening of the yield curve this quarter, with yields in the middle and long end moving higher. Long-term Bonds Short-term Bonds Government Corporate Bond yields were up this quarter. Yield on the Canada 2-year rose from 0.45% to 0.53%. Canada 5-year rose from 0.97% to 1.11%. Canada 10-year rose from 1.39% to 1.51%. Canada long bond rose from 1.84% to 1.98%.

Source: Morningstar Research Inc., as of September 30, 2021

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November 2021