ClearWater Market Commentary as of April 19th, 2021

Here is the ClearWater Market Commentary as of April 19th, 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	0.64%
1 Month	2.64%
YTD	11.00%
1 Year	34.76%

^{As of 2021/04/16 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
Oil ($/bbl)	6.50%	30.20%
CAC 40	2.36%	8.70%
FTSE 100	1.99%	7.77%
DAX	1.93%	7.60%
Shanghai Composite	1.89%	0.13%
Nasdaq	1.46%	9.03%
Russell 2000	1.44%	14.74%
S&P 500	1.13%	9.13%
Dow Jones Industrial	0.94%	9.43%
Hang Seng Index	0.79%	3.96%
S&P/TSX Composite	0.64%	11.00%
Nikkei 225	0.06%	0.55%

^{As of 2021/04/16}

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

US economy (S&P 500 1.13%):

• Most of the major benchmarks recorded their fourth consecutive week of gains and moved to record highs. The technology-heavy Nasdaq Composite index and the small-cap Russell 2000 Index slightly lagged the large- and mid-cap benchmarks and stayed below their recent highs.  
• Health care shares were particularly strong within the S&P 500 Index, helped by gains in insurance stocks, while rising gold and copper prices boosted mining shares. Energy shares were roughly flat after retreating late in the week. 
• The week kicked off the unofficial start of earnings season with 22 of the S&P 500 companies scheduled to report first-quarter results.
• Vaccine news also appeared to drive sentiment. Futures wavered on Tuesday morning, after U.S. regulators announced that they were suggesting a “pause” in Johnson & Johnson’s coronavirus vaccinations following rare reports of blood clots. On Thursday, however, investors seemed encouraged by Pfizer’s announcement that it could deliver 10% more of its vaccine by the end of May than earlier promised.
• For the second week in a row, lower US treasury yields led to a weaker US dollar, which in turn helped boost commodity prices. Oil prices received an additional lift when the International Energy Agency reported falling crude inventories and said that the global energy market was well on its way to recovery.
• In a “60 Minutes” interview, US Federal Reserve Chair Jerome Powell said that the US economy was poised to accelerate if COVID-19 continues to retreat.

Canadian markets (S&P/TSX 0.64%):

• The Bank of Canada’s quarterly Business Outlook Survey hit its highest level in almost three years. However, the survey was taken before the March surge in COVID-19 cases and tighter restrictions.
• Canadian home sales and prices in March continued to climb at a remarkable pace: new listings were the highest on record.
• The push to new highs for the S&P/TSX Composite Index was led by the materials sector, as gold prices rose. 

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

European and Asian economies:

• Shares in Europe rose on hopes of a strong recovery in the global economy and corporate earnings, despite a resurgence in coronavirus infections.
• German Chancellor Angela Merkel urged Parliament to approve new laws that would allow federal authorities to impose strict coronavirus restrictions, such as curfews, on areas with high infection rates. 
• England, which has vaccinated almost two-thirds of its population, started reopening shops, personal care services, and outdoor dining this week.
• Japanese stock markets were mixed during the week with both the Nikkei 225 Stock Average (-0.6%) and the broader TOPIX (-0.3%) ultimately finishing the period marginally lower. Increasing Coronavirus cases remain a major concern.
• Asian and Chinese markets were broadly higher Friday following key Chinese economic data.
• The economy surged 18.3% year over year in the first quarter, albeit versus a very low base in 2020, when stringent shutdowns were imposed to contain the initial COVID-19 outbreak.

What to watch this week:

Canada

• Bank of Canada interest rate decision (April 21)
• Consumer Price Index (March)

U.S.

• Conference Board Leading Index (March)
• Existing home sales (March)
• New home sales (March)
• Markit Purchasing Mangers’ Indices (April)

• 

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

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