The final quarter of the year was coloured by the outcome of the U.S. elections as campaign promises made by President Elect Trump filtered into equity markets. Global equities performed well during the quarter, led by the Japanese Nikkei Index which climbed 16.4% (in local currency).
Global equities moved higher in the third quarter although results varied by geography. Emerging markets as a group led performance, followed by European and Japanese equities. Canadian stocks were in the middle of the group while U.S. equities lagged. The S&P/TSX Composite Index (SPTSX) gained 5.5% on a total return basis in the third quarter.
In the second quarter Canadian equities continued to outperform most global equity markets and developed market equities in particular, an extension of the trend witnessed since the early part of the year. Resources, which make up approximately 31% of the S&P/TSX Composite Index (SPTSX) were the key driver of this outperformance.