ClearWater Market Commentary as of April 8th, 2022

Here is the ClearWater Market Commentary as of April 8th, 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-0.36%
1 Month1.92%
1 Year13.76%

As of 2022/04/08 – Source:

Index PerformancesLast 5 DaysYTD
FTSE 1000.78%3.16%
Dow Jones Industrial-0.58%-4.45%
S&P/TSX Composite-0.96%-3.07%
WTI Crude (oil)-1.40%30.20%
S&P 500-2.06%-5.83%
CAC 40-2.34%-8.10%
Nikkei 225-3.30%-6.84%
Shanghai Composite-3.52%-12.99%
Russell 2000-4.81%-11.17%
Hang Seng Index-5.75%-9.36%

As of 2022/04/08 – Source:

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

US economy (S&P 500 -2.06%):

  • The major indexes finished lower for the week, with small-caps and growth stocks lagging considerably.
  • Sector performance also varied widely within the S&P 500 Index, with the typically defensive consumer staples and health care sectors recording solid gains, while information technology, communication services, and consumer discretionary shares registered steep losses.
  • Stocks fell further on Wednesday following news from the Fed that policymakers were preparing to reduce the central bank’s balance sheet greater than expected, and that they were prepared to raise rates by 50 basis points (0.50%) at their upcoming May meeting.
  • By the end of the week, futures markets were predicting that the most likely scenario was for the federal fund’s target range to hit 2.50% to 2.75% by the end of the year—well above its current range of 0.25% to 0.50%.
  • The week’s economic calendar was relatively light but arguably suggested that the economy was proving resilient in the face of inflation and the war in Ukraine. Most notably, weekly jobless claims fell much more than expected to 166,000, the lowest number since 1968.

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

  • Canada’s main stock index rose on the final trading day of the week as a strong employment report and rising wages increased the likelihood that the Bank of Canada will announce a bigger interest rate hike next week.
  • The macroeconomic conditions remain supportive of the Toronto stock market with energy, materials and financials leading the charge.
  • Canadian employment (Feb.) rose higher than expected for the month. The unemployment rate now sits at a record low of 5.3%.
  • The gains were concentrated in full-time jobs and gains in hotels & restaurants. Wage gains remain mild despite the tight job market.
  • Bank of Canada (BoC) Q1 Business Outlook Indicator fell but still marks the second-highest level on record. Inflation remains the primary concern; notably, the survey was taken before the invasion of Ukraine. The BoC conducted a follow-up survey in March, showing more than half of the companies expected higher input costs from the war.
  • The Survey of Consumer Expectations highlighted short-term inflation expectations reaching a record high, but long-term inflation expectations continue to hover around 2%.
  • Canada’s 2022 Federal Budget forecasted a decline in the fiscal deficit. The budget focused on housing affordability, accelerating green initiatives and defence spending.

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

European and Asian economies:

  • Shares in Europe rose modestly amid concerns about central bank tightening, inflation, and Russia’s invasion of Ukraine.
  • The European Union (EU) joined the U.S. in imposing more sanctions on Russia after reports that Russian forces had committed war crimes in Ukraine. The EU proposed to ban imports of Russian coal and new machinery exports while targeting the assets of more Russian oligarchs and President Vladimir Putin’s two adult daughters.
  • UK coronavirus infections hit a record high of 4.9 million in the week ended March 26, according to the Office for National Statistics.
  • The minutes from the ECB’s March meeting revealed that many policymakers believed that the persistence of high inflation called for immediate steps toward normalizing monetary policy to prevent a wage-price spiral.
  • Investor morale in the eurozone fell to its lowest level in nearly two years in April, according to a monthly survey conducted by German market research group Sentix.
  • Japan’s major stock benchmarks fell over the week. A further easing of border restrictions failed to offset the adverse impact on sentiment of a hawkish U.S. Federal Reserve and the negative repercussions, particularly inflationary pressures, of the war between Russia and Ukraine.
  • The BoJ remains committed to its powerful monetary easing in pursuit of its 2% inflation target, with a view to ensuring price gains accompanied by an increase in corporate earnings and wages.
  • The IMF downgraded its projection for Japan’s economic growth in 2022 from 3.3% year over year to 2.4%. The intergovernmental organization highlighted continued strong policy support and a high vaccination rate as factors underpinning growth but believes that the recovery in domestic demand will slow due to higher commodity prices and the elevated uncertainty related to the Ukraine conflict.
  • A streamlining of its core structure, the first in decades, saw the Tokyo Stock Exchange (TSE) reorganized into three trading segments—prime, standard, and growth. The reform aims to incentivize companies to seek to qualify for prime membership through improved governance and a greater focus on growth and creating value for shareholders.
  • Chinese markets eased as a coronavirus lockdown in Shanghai and expectations for aggressive monetary tightening by the U.S. Federal Reserve curbed risk appetite.
  • Shanghai has been under a citywide, two-stage lockdown that began on March 28 in an effort to stop the virus’s spread. With 23 Chinese cities currently under total or partial lockdown, approximately 13.5% of China’s economy is being impacted.
  • In economic news, the Caixin Services Purchasing Managers’ Index, a private survey focused on smaller businesses, sank to 42 in March from 50.2 in February, its lowest level since the pandemic started, reflecting the latest outbreak’s toll on consumer demand.
  • China’s market regulators proposed revising confidentiality rules involving offshore listings, a move that could end the country’s long-running dispute with the U.S. over audit inspections for dual-listed companies.
  • Tensions between the U.S. and China remained high, however, due to China’s refusal to criticize Russia after it invaded Ukraine. The U.S. deputy secretary of state warned the previous week that China might face sanctions if it provided material support to Moscow.

What to watch this week:

  • Canada, Europe, and New Zealand monetary policy meetings
  • US retail sales, small business sentiment, and industrial production data
  • China money supply and aggregate yuan financing data
  • China and UK trade data
  • UK GDP, Purchasing Manager Indices, and employment data
  • Global inflation data
  • 15 S&P 500 and 3 S&P/TSX companies report earnings

Sources:,, Barron’, and

Thank you for checking out our ClearWater Market Commentary for April 8th, 2022 If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.