ClearWater Market Commentary as of April 1st, 2022

Here is the ClearWater Market Commentary as of April 1st, 2022:

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-0.40%
1 Month3.26%
1 Year15.43%

As of 2022/04/01 – Source:

Index PerformancesLast 5 DaysYTD
Hang Seng Index3.28%-7.18%
CAC 402.97%-10.09%
Shanghai Composite1.92%-17.85%
FTSE 1000.53%2.07%
Russell 20000.21%-6.90%
S&P 5000.14%-6.07%
Dow Jones Industrial-0.10%-4.20%
S&P/TSX Composite-0.40%3.24%
Nikkei 225-1.65%-10.60%
WTI Crude (oil)-12.70%32.10%

As of 2022/04/01 – Source:

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

US economy (S&P 500 0.14%):

  • The major indexes ended mixed for the week, with the S&P 500 Index closing out its best month since December but its worst quarter since early 2020.
  • Cyclically sensitive stocks underperformed as investors girded for a slowdown in growth, with the financial services and industrials sectors in the S&P 500 among the losers.
  • Higher interest rate expectations took a toll on the information technology sector, while the typically defensive consumer staples and utility sectors outperformed.
  • Stock prices fluctuated over the week in apparent response to the evolving situation in the war in Ukraine. There were reports that Russia was prepared to allow Ukraine to join the European Union in return for a pledge to stay out of NATO as well as progress in ceasefire talks. This was followed by a Russian official saying that talks with Ukraine yielded no breakthroughs and that Russia was regrouping forces in a push to complete the takeover of the eastern Donbas region.
  • Biden administration’s announcement of an extended-release from the nation’s Strategic Petroleum Reserve to combat inflationary pressures.
  • March nonfarm payrolls report, showed that job gains fell somewhat below expectations at 431,000 versus 490,000, but the unemployment rate fell a bit more than expected, to 3.6%.
  • Monthly growth in average hourly earnings met expectations, as did monthly consumer income gains. February job openings remained little changed and at near-record highs.

Canadian markets (S&P/TSX -0.40%):

  • Canada’s main stock index started the quarter slightly higher as the energy sector climbed despite crude oil prices dipping below US$100 per barrel.
  • The loonie followed the drop in oil prices with the Canadian dollar trading for 79.92 cents US compared with 80.03 cents US on Thursday.
  • The materials sector, which includes precious and base metals miners, fertilizer companies and forest products producers, led the TSX by increasing 2.1 percent despite lower metals prices.
  • The May crude contract was down $1.01 at US$99.27 per barrel and the May natural gas contract was up 7.8 cents at US$5.72 per mmBTU.
  • Canadian real GDP grew 0.2% in line with expectations. The goods sector drove the gains, with a 4% jump in utilities leading the way amid a chilly winter driving demand for heating.
  • The services sector was flat, largely due to the renewed pandemic restrictions.

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

European and Asian economies:

  • Shares in Europe gained ground in a choppy week of trading, overcoming concerns about the macroeconomic outlook amid strong inflation and the ongoing Russian invasion of Ukraine.
  • President Vladimir Putin signed a decree stipulating that foreign buyers must pay for Russian natural gas in rubles from April 1 onward, raising concerns about possible supply disruptions in Europe and the potential economic implications. The G-7 countries unanimously rejected the directive.
  • Germany said it would continue paying for Russian energy in euros and set in motion an emergency plan for rationing natural gas in case of deliveries cease or are curtailed.
  • Preliminary estimates showed that the eurozone’s annual inflation rate soared to a record 7.5% in March, compared with 5.9% in February. The increase was driven mainly by the upsurge in energy prices.
  • The unemployment rate dropped to a record low of 6.8% in February, as the economy continued to recover from the lifting of coronavirus lockdowns.
  • ECB President Christine Lagarde, Vice President Luis de Guindos, and Chief Economist Philip Lane expressed caution about the macroeconomic outlook as fighting continued in Ukraine.
  • Lagarde reiterated at a conference in Cyprus that the eurozone faced slower growth and higher inflation in the short term, but she warned that “the longer the war lasts, the higher the economic costs will be and the greater the likelihood we end up in more adverse scenarios.”
  • The UK economy grew more quickly than previously thought in the final quarter of 2021. However, the increase was mainly due to coronavirus-related activity in the health sector.
  • Japanese stock markets fell over the week. Growing pessimism about the peace talks between Russia and Ukraine and worries about global inflation and the impact of interest rate increases weighed on risk appetite.
  • As widely expected, Japan’s government announced that it would begin work on additional measures to boost the economy. It is seeking to cushion the impact of rising fuel and commodity prices on households and firms, amplified by a sliding yen, and help the economy recover from the coronavirus pandemic.
  • Prime Minister Fumio Kishida said that the priority is to deliver the spending plan as soon as possible—by late April.
  • Chinese markets gained for the week, as investors anticipated that Beijing would step in to support the country’s economy and markets.
  • Delisting concerns continued to pressure technology stocks, as investors worried about the risk of dual-listed Chinese firms getting kicked off U.S. exchanges.
  • On Wednesday, the U.S. Securities and Exchange Commission added five U.S.-listed Chinese internet companies to its growing list of companies facing possible delisting due to China’s refusal to allow U.S. regulators to inspect their audits.
  • Many economists have reduced their economic growth forecasts for China due to the virus’s resurgence and the government’s zero-tolerance approach to outbreaks. Shanghai saw a renewed COVID-19 outbreak with more than 32,000 cases reported in the past month, the biggest spread of infection in China since it first appeared in Wuhan.

What to watch this week:

  • Bank of Canada Outlook Survey
  • Canada’s Federal Budget
  • Canadian employment data
  • Canadian and US trade data
  • US Federal Reserve March meeting minutes
  • Global Purchasing Manager Indices

Sources:,, Barron’, and

Thank you for checking out our ClearWater Market Commentary for April 1st, 2022 If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.