Market Recap* – Week of Nov 3

1. What happened in the markets?

Canadian stocks ended the week lower as investors grew cautious about global growth and commodity demand, which weighed on resource and energy names. Mid-week, optimism rose for a moment once the job market data came through stronger than expected, with 67K jobs gained, suggesting Canada’s economy may have more strength than feared. Still, overall, the market leaned toward caution.

U.S. shares saw a pull-back amid weakening consumer sentiment and the distraction of a government shutdown. While earnings held up reasonably well, fewer data releases, a cautious central bank tone, and concerns regarding market overvaluation spurred some profit-taking.

Bond prices remained steady. The solid job report and Canada’s new stimulative federal budget reduced the chances for a near-term BoC rate cut.

The Canadian dollar was almost unchanged during the week.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↓	A softer week for younger cohorts with higher equity exposure. Weakness in energy and materials offset gains from strong Canadian job numbers.
U.S. Equities	↓	Slight pullback for growth-oriented cohorts as investor confidence dipped amid weaker consumer sentiment and the ongoing U.S. government shutdown.
Bonds	↔	Modest bond price gains supported older cohorts focused on income and capital stability. Strong employment data in Canada helped steady prices.
Money Market	↔	Remained steady, benefitting older cohorts focused on income and stability.
Canadian Dollar	↔	The Canadian dollar remained stable this week.