The Q Review: October 2024
Welcome to the Q Review, a monthly report from Qtrade Direct Investing®. Each month, we'll share great information about what's been happening in the markets, what our Qtraders are doing, and what's new with us!
With October behind us, it's time to reflect on the key market events that have shaped investment landscapes worldwide. This month was marked by significant moves in central bank policies, fluctuations in commodity prices, and noteworthy corporate performance.
Interest rate cuts across the globe
In October, central banks around the world took decisive actions to influence their respective economies. The Bank of Canada reduced interest rates for the fourth consecutive time, this time by 50 basis points.
Similarly, the People's Bank of China cut its key lending rates by 25 basis points, bringing the one-year rate to 3.1% and the five-year rate to 3.6%. This decision was part of an ongoing effort to bolster economic growth in the face of slowing global demand.
Meanwhile, the European Central Bank also reduced its key interest rates by 25 basis points in October. This move was primarily driven by the need to combat sluggish inflation and stimulate economic activity in the Eurozone.
Gold's surge
Gold prices surpassed $2,700 an ounce for the first time in October, driven by heightened geopolitical tensions and global economic uncertainty. This precious metal continued to assert itself as a safe haven asset, attracting investors seeking stability amidst market volatility. For those with gold in their portfolios, this surge underscores the importance of diversification, particularly in times of economic turbulence.
Noteworthy movements in tech stocks
October was a mixed bag for tech stocks, with some companies experiencing significant gains while others faced setbacks. Netflix's stock surged by 11%, marking its best session since January, after the company reported adding over 5 million new subscribers in Q3. This positive momentum reflects Netflix's ability to adapt and thrive in the competitive streaming market, offering potential growth opportunities for investors.
Conversely, Apple saw a decline in its stock despite record iPhone sales. This dip may signal concerns about future growth prospects, prompting investors to reassess their positions. Meanwhile, Amazon exceeded expectations, leading to a notable surge in its stock. These developments highlight the dynamic nature of the tech sector and the importance of staying informed on company performance and industry trends.
Treasuries face challenges
October marked the worst month for Treasuries in two years, as investors reevaluated U.S. interest rates amid signs of economic resilience. The yield curve steepened, reflecting expectations of rising rates in the future. This development underscores the importance of monitoring interest rate trends and adjusting strategies accordingly for fixed-income investors.
Investors seeking income from bonds may need to consider alternative fixed-income instruments or adjust their duration exposure to mitigate potential losses.
Most bought and sold securities in October on Qtrade Direct Investing
Most purchased securities on Qtrade Direct Investing – September 2024
- ISHARES CORE EQUITY ETF PORTFOLIO
- TORONTO DOMINION BANK
- ISHARES CORE GROWTH ETF PORTFOLIO
- ISHARES PREMIUM MONEY MARKET ETF
- BCE INC
- TELUS CORP
- VANGUARD S&P 500 INDEX ETF
- GLOBAL X S&P 500 INDEX ETF
- NVIDIA CORP
- ISHARES CANADIAN FINANCIAL MONTHLY INCOME ETF
Most sold securities on Qtrade Direct Investing – October 2024
- TORONTO DOMINION BANK
- NVIDIA CORP
- TESLA INC
- SOUTH BOW CORP
- ISHARES PREMIUM MONEY MARKET ETF
- ENBRIDGE INC
- BANK OF NOVA SCOTIA
- BCE INC
- TELUS CORP
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October was indeed a month of contrasts in the financial world. From interest rate cuts and gold's impressive run to divergent performances in the tech sector, investors had much to absorb. These developments serve as a reminder of the complexity and interconnectedness of global markets.
As we move forward, the lessons learned from October's market events can guide investment strategies for the coming months. Whether it's reevaluating asset allocations, exploring new opportunities, or deepening market knowledge, proactive engagement is essential.
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The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes, and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters.