analysis

Sid Mokhtari, chief market technician at CIBC Capital Markets.

Historically, December is a solid month for equity markets with gains accelerating into the end of the month with a “Santa Claus” rally.

The U.S. Federal Reserve interest rate announcement scheduled to take place on December 10 may provide the next catalyst for the stock market. Fed funds futures are pricing in an 83 per cent chance of a rate cut.

Over the past 30 years, the S&P/TSX Composite Index has delivered an average return of 1.1 per cent, according to a Nov. 30 research report from Sid Mokhtari, CIBC’s chief market technician.

Surprisingly, the sector with the lowest return in December is technology with an average gain of just 0.2 per cent. Meanwhile, he notes that amongst the leading sectors are financia

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