Canadian dollars are pictured in Vancouver, Sept. 22, 2011. THE CANADIAN PRESS/Jonathan Hayward

North American stock markets fall to end very strong November while loonie rises

North American stock markets fall to end very strong November while loonie rises

TORONTO — Despite losing some ground to start the week, North American stock markets concluded an exceptionally strong month of November on the back of positive news about COVID-19 vaccines.

The S&P/TSX composite index closed down 191.13 points to 17,205.43, but was up more than 10 per cent for the month.

In New York, the Dow Jones industrial average was down 271.73 points at 29,638.64. The S&P 500 index was down 16.72 points at 3,621.63, while the Nasdaq composite was down 7.11 points at 12,198.74 after setting a record high earlier in the trading session.

The three U.S. markets gained between 10.75 and 11.8 per cent in November.

The primary reasons for the recovery from weakness in September and October was investor optimism about vaccines and the fact that uncertainty about the U.S. election appears to have ended, said Pierre Cleroux, vice-president of research and chief economist for the Business Development Bank of Canada.

“I think they believe the vaccine will help the economy to return to normal. So I think that’s probably the main reason why November has been so good,” he said in an interview.

The Dow surpassed 30,000 points last week for the first time, Nasdaq reached 12,244 on Monday and the TSX moved last Thursday to within three percentage points of the all-time high set in February.

Cleroux said the pace of the market recovery since the spring COVID-19 selloff was surprising.

“I don’t think anybody in March thought that the market would come back so quickly,” he said.

Cleroux expects more records will be broken in December if Americans start to be vaccinated during the month.

“December, I think, will be probably more volatile, but I’m confident that the market will stay high as news on the vaccine will, I believe, continue to be positive.”

The Canadian dollar hit its highest level of the year and ended the month up two cents or 2.7 per cent. The loonie traded for 77.13 cents US compared with 77.01 cents US on Friday.

The gain came as the U.S. dollar continued to fall on investor concerns about rising infection rates, said Cleroux.

The energy sector fell the most on the TSX, dropping 6.3 per cent as crude oil prices slid on indecision by OPEC over future supply.

Some OPEC partners would like to reduce crude supplies to support prices, but others contend there’s no need to limit output, believing the economy is going to improve early next year, said Cleroux.

Shares of Crescent Point Energy Corp. and Vermilion Energy Inc. lost 9.7 and 8.3 per cent, respectively. Suncor Energy Inc. was down 7.3 per cent in heavy trading.

The January crude contract was down 19 cents at US$45.34 per barrel and the January natural gas contract was up 3.9 cents at US$2.88 per mmBTU.

Nonetheless, crude oil prices surged 26.7 per cent in November on hopes that vaccines would facilitate a recovery in demand.

Financials, real estate, utilities and industrials were also lower.

The materials sector was the bigger climber on the day, gaining about a half of a percentage point despite a further drop in gold price as copper prices rose.

The February gold contract was down US$7.20 at US$1,780.90 an ounce and the March copper contract was up 2.05 cents at nearly US$3.44 a pound.

Health care and technology were both higher, with shares of Shopify Inc. up 4.1 per cent.

This report by The Canadian Press was first published Nov. 30, 2020.

Companies in this story: (TSX:SHOP, TSX:CPG, TSX:VET, TSX:SU, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

World Juniors’ referee Mike Langin makes a called during the Canada vs. Slovakia at the 2021 World Junior Championship at Rogers Place in Edmonton, Dec. 27, 2020. (Photo by Matthew Murnaghan/Hockey Canada)
Former Sylvan Lake man lives his dream at World Junior Championships

Mike Langin was one the 25 Canadian officials who worked during the tournament

Red Deer College expects to become polytechnic institution, not a university

Red Deer College does not expect to become a university after all.… Continue reading

Maskwacis RCMP are investigating an attempted murder and kidnapping. (File photo by Advocate staff)
Maskwacis RCMP are investigating an attempted murder and kidnapping. (File photo by Advocate staff)
Central Alberta man charged with attempted murder

Suspect caught after fleeing from RCMP

Skylar Roth-MacDonald will run from Calgary to Red Deer this weekend as part of Project 24, a virtual charity. (Contributed photo)
Red Deer native will run from Calgary to hometown this weekend

Skylar Roth-MacDonald gearing up to run across Canada this summer to raise mental health awareness

NDP Energy Critic Kathleen Ganley said Friday that the party plans to file a emergency motion for the UCP to release all documents pertaining to the Keystone XL Pipeline. (Screenshot courtesy of Red Deer Advocate)
NDP urges UCP to release all financial documents related to Keystone XL Pipeline

The Alberta NDP is lobbying the UCP to release documents surrounding the… Continue reading

Former Alberta Premier Rachel Notley shakes hands with Joel Ward, former Red Deer College President and CEO, as Notley announces that the college is on the path to grant degrees. Red Deer-South MLA Jason Stephan says university status is not a necessary condition for offering degrees. (File photo by Advocate staff)
Future of Red Deer University increasingly uncertain

MLA’s college update says RDC more like SAIT and NAIT than a university

There are two confirmed COVID-19 cases at Red Deer College. Photo by Mamta Lulla/Advocate staff
Central Albertans were promised a university

Central Albertans were promised a university

Black Press File Photo
Maskwacis RCMP lay charges for attempted murder, kidnapping, and flight from police

Female victim remains in hospital in serious condition.

Canada’s 29th Governor General Julie Payette looks on alongside Prime Minister Justin Trudeau in the Senate chamber during her installation ceremony, in Ottawa on Monday, October 2, 2017. THE CANADIAN PRESS/Adrian Wyld
Trudeau says viceregal vetting process needs improvement after Payette resigns

OTTAWA — Prime Minister Justin Trudeau said his Liberal government will look… Continue reading

A digital Intensive care unit room at Cortellucci Vaughan Hospital in Vaughan, Ont., on Monday, Jan. 18, 2021. Hospitalizations due to COVID-19 are down slightly in Ontario and Quebec. THE CANADIAN PRESS/Frank Gunn
Ontario and Quebec report decreasing numbers of people in hospital with COVID-19

Prime Minister Justin Trudeau is urging people not to travel as Canada’s… Continue reading

B.C. Premier John Horgan listens during a postelection news conference in Vancouver on Sunday, October 25, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. announces plan for mass vaccination campaign starting in April

VICTORIA — British Columbia’s oldest residents will be able to pre-register for… Continue reading

Two families walk up to a COVID-19 test clinic in Montreal, on Thursday, Jan. 14, 2021. THE CANADIAN PRESS/Paul Chiasson
Rapid COVID-19 tests important to reopening safely: business group

OTTAWA — A group of large businesses in Banff National Park is… Continue reading

Conservative Leader Erin O’Toole listens to a question from a reporter during a news conference, in Ottawa, Monday, Dec. 7, 2020. THE CANADIAN PRESS/Adrian Wyld
New advocacy group launches pre-election ad campaign against O’Toole, Conservatives

OTTAWA — A new third-party advocacy group is launching an ad campaign… Continue reading

Jacqueline Donahue of Hazleton, right, buys la Mega Millions lottery ticket at the Anthracite Newsstand on Public Square, Monday, Jan. 18, 2021, in Wilkes-Barre, Pa. (Mark Moran/The Citizens’ Voice via AP)
Nearly $1B Mega Millions prize due to long odds, slow sales

Only the third time a lottery jackpot has grown so large

Most Read