As at October 31, 2026
| Closing 31-10-26 |
Variation 30-09-26 |
Variation 31-12-25 |
|
|---|---|---|---|
| Key interest rate in Canada (%) | |||
| Key interest rate in Canada (%) | 2.50 | 0.25 ▲ | 0.25 ▲ |
| Oil WTI (USD) | |||
| Oil WTI (USD) | $104.12 | 15.2% ▲ | 81.3% ▲ |
| Gold (USD) | |||
| Gold (USD) | $3,874.62 | -6.8% ▼ | -10.3% ▼ |
| EUR/CAD | |||
| EUR/CAD | 1.56 | -3.2% ▼ | -3.2% ▼ |
| JPY/CAD | |||
| JPY/CAD | 0.01 | -1.6% ▼ | 1.5% ▲ |
| USD/CAD | |||
| USD/CAD | 1.40 | -1.6% ▼ | 1.8% ▲ |
Sources: Bank of Canada, Bloomberg Finance L.P.
CANADIAN MARKET
1.2% (S&P/TSX Composite 31-10-2026)The Canadian market advanced 1.2% in October. All sectors ended higher, with the exception of materials, which fell 13.1%. The energy sector led the way with an 8.7% increase, followed by consumer staples and consumer discretionary.
The Bank of Canada raised its key interest rate for the first time since 2023, taking it from 2.25% to 2.50%. The year-over-year rate of inflation reached 3.1% in September, mainly because of gasoline prices. The labour market weakened, however, with the unemployment rate reaching 6.5% in September.
As for fixed income, the FTSE Canada Index rose 1.5% on lower bond yields.
U.S. MARKET
-2.5% (S&P 500 31-10-2026 in CAD)The U.S. market was down 2.5% in Canadian currency, versus a 0.9% decline in local currency, with the loonie’s appreciation increasing the decline for Canadian investors.
The negative return was driven by weakness in the large tech companies that account for about 40% of the S&P 500 Index. The technology and communication services sectors sold off sharply. In contrast, the more defensive sectors performed well, as did the energy sector, which advanced 14%.
U.S. GDP expanded by 0.8% in the third quarter relative to the previous quarter. Even so, the labour market showed signs of slowing, with only 22,000 jobs created and the unemployment rate rising to 4.2%, while the year-over-year inflation rate increased to 3.7%.
INTERNATIONAL MARKETS
-2.4% (MSCI EAFE 31-10-2026 in CAD)International markets fell 2.4% in Canadian dollars, versus a slight decline of 0.4% in local currencies. Even though the European markets advanced, a sell-off on the Japanese stock market kept the EAFE Index in the negative, with the Nikkei 225 Index down 5.2% in local currency on weakness in AI and semiconductor stocks.
In Europe, the STOXX 600 Index rose 1.9% in local currency. The euro zone’s economic growth exceeded expectations in the third quarter, increasing by 0.4% from the previous quarter. In France, however, political uncertainty and concerns about public finances continued to weigh on equities and bonds alike, and in October inflation reached its highest level since December 2023.
EMERGING MARKETS
-9.6% (MSCI Emerging Markets 31-10-2026 in CAD)Emerging markets retreated 9.6% in Canadian dollars, versus a 7.4% decline in local currencies. Asian markets heavily exposed to technology were affected the most amid concerns about the scale of data centre spending.
South Korea was hit especially hard, with the KOSPI falling 16.2% in local currency. Doubts about the profitability of AI spending weighed on chipmakers Samsung Electronics and SK hynix, even though both companies reported solid earnings. In Brazil, stocks fell nearly 20% in response to the presidential election result.
In November, investors will turn their attention to the midterm elections in the United States. The markets will also continue to scrutinize the profitability of AI investments, the evolving conflict in the Middle East and coming decisions by the main central banks.
