ClearWater Market Commentary as of April 12th, 2021

Here is the ClearWater Market Commentary as of April 12th, 2021:

In this issue:
– Performance of Major Indices
– Market Commentary
– Last Week’s Key Economic  
  Events and Upcoming Events

Performance of Principle Indexes: 

S&P/TSX Composite Index
5 Day	1,25%
1 Month	1.49%
YTD	10.29%
1 Year	36.60%

^{As of 2021/04/01 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
S&P 500	2.45%	7.91%
CAC 40	1.92%	6.20%
FTSE 100	1.71%	5.67%
Dow Jones Industrial	1.69%	8.41%
DAX	1.67%	5.57%
Nasdaq	1.42%	7.85%
S&P/TSX Composite	1.25%	10.29%
Nikkei 225	0.40%	0.28%
Russell 2000	-0.88%	13.67%
Hang Seng Index	-1.11%	3.14%
Shanghai Composite	-2.05%	-1.73%

^{As of 2021/04/09}

Last week’s and next week’s key economic events:
 

US economy (S&P 500 2.45%):

• US stocks hit new highs on strong data, although the Russell 2000 index recorded a modest loss.
• Trading got off to a strong start thanks to the previous week’s monthly payrolls data, which was released when the market was closed for the Good Friday holiday. The Labor Department reported that employers added 916,000 jobs in March, well above consensus estimates of around 650,000, and the most since last August. 
• The reopening of bars and restaurants and the rebound in travel were clearly at work, with 280,000 jobs added in leisure and hospitality industries.
• Much of the rest of the week’s economic data also surprised on the upside.
• The Fed’s reiteration of its pledge to keep benchmark rates low and to make no changes to its bond-buying program any time soon prompted a drop in government bond yields and the US dollar. The lower dollar, in turn, boosted prices of most commodities, including gold and copper. Oil prices bucked the trend, falling due to concerns about global demand, as COVID-19 continued to spread rapidly in several large countries, including India and Brazil.
• Big gains in mega-capitalization Internet and technology companies dominated action in the S&P 500. Consumer discretionary (Amazon.com Inc.), technology (Apple Inc., Microsoft Corp.) and communication services (Alphabet Inc., Facebook Inc.) led the advancing sectors.
• These five companies comprise more than 20% of the S&P 500, with the latter three trading at all-time highs this week. Energy was the only sector to lose ground.  

Canadian markets (S&P/TSX 1.30%):

• The improvement in Canada’s economy was evident in the March employment report (which exceeded expectations) and in the second consecutive monthly surplus for the country’s merchandise trade balance — the first back-to-back surpluses in more than four years.
• Gains in the TSX were led by technology, where sector heavyweight Shopify Inc. jumped in tandem with giant US Internet and technology stocks, which rallied strongly with the improving market sentiment.
• The materials sector was strong as higher metals prices lifted mining stocks, and forestry and lumber companies were lifted by record-high prices for wood products.
• The energy sector declined as oil prices retreated and the health care sector fell as cannabis company stocks weakened.

Performance 2021: S&P 500/400/600 Sectors

European and Asian economies:

• Europe and much of Asia got off to a slow start after being closed for Easter Monday but finished off the week higher.
• Shares in Europe rose on growing hopes that injections of fiscal stimulus and dovish central bank policies would spur a global economic rebound.
• Prime Minister Boris Johnson said that England would move to the second phase of its “road map” for lifting the lockdown on April 12, when outdoor pubs, nonessential shops, hairdressers, indoor gyms, and other facilities will be allowed to reopen. The UK government also announced a framework for the resumption of international travel, which could begin to take effect on May 17, at the earliest.
• Chinese stocks recorded a weekly loss, extending several weeks of underperformance against other major global markets. 
• Data indicating higher inflation and elevated U.S.-Sino tensions weighed on sentiment and outweighed positive corporate earnings.

What to watch this week:

Canada

• Manufacturing sales (February)
• Housing starts (March)
• Wholesale trade sales (February)

U.S.

• Consumer Price Index (March)
• Import and Export Price Indices (March)
• Retail sales (March)
• Empire State Manufacturing Survey (April)
• Industrial production (March)
• Capacity utilization (March)
• Housing starts and building permits (March)
• Univ. of Michigan Consumer Sentiment Index (April)

• 

Sources: Bloomberg.com,Yardeni.com, Barron’s.com, Factset.com and Newyorkfed.org

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