ClearWater Market Commentary as of August 23, 2021

Here is the ClearWater Market Commentary as of August 23, 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	-0.87%
1 Month	0.75%
YTD	4.16%
1 Year	23.13%

^{As of 2021/08/20- Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
Nikkei 225	-0.11%	0.18%
Nasdaq	-0.53%	14.17%
DAX	-0.61%	15.38%
FTSE 100	-0.64%	10.03%
S&P/TSX Composite	-0.70%	16.67%
S&P 500	-0.85%	18.25%
Shanghai Composite	-1.14%	0.12%
Dow Jones Industrial	-1.42%	14.75%
Russell 2000	-1.71%	9.66%
CAC 40	-2.26%	20.41%
Hang Seng Index	-4.09%	-7.79%
Oil ($/bbl)	-9.60%	27.50%

^{As of 2021/08/20- Source: www.marketwatch.com}

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

US economy (S&P 500 -0.85%):

• Stocks pulled back for the week but not before the S&P 500 Index reached a new record high of 4,480 on Monday afternoon. This is more than double the low seen on March 23, 2020.
• Small-cap stocks lagged for the week and energy shares performed the worst within the S&P500.
• There are several factors which have been weighing on sentiment over the week, including signs that an economic slowdown in China is emerging, as well as the regulatory uncertainties they’re seeing.
• The Federal Reserve policymakers also signaled that they would begin tapering the central bank’s monthly asset purchase program, which also concerned investors.
• Fears around the delta variant and weaker-than-expected retail sales also stoked a pull back in the equity markets.

Canadian markets (S&P/TSX 0.39%):

• The TSX slid most of last week, but did recover slightly on Friday, putting it on course to end its four-week winning streak. The index was mostly pulled down by energy stocks as oil prices tumbled on fears for a slowing global growth picture, and rising COVID-19 cases.
• Concerns about China’s economic growth and the United States also seeing a slow down furthered hampered commodities and equity prices. The financial services, another heavyweight Canadian sector, tracked its worst week since January.
• Due to Canada’s greater exposure to economically-sensitive sectors it has been hit especially hard. Whether this is a short-term pull back or the start of a trend, it has yet to be seen.

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

European and Asian economies:

• Inflation in the UK rose less than expected in July and cooled from June’s levels. Meanwhile however, inflation did pick up overall within the eurozone from June to July.
• UK retail sales saw declines, likely compounded by poor weather. But other data point to a continued recovery in the UK labor markets.
• Japan’s stock markets finished the week sharply lower, with the Nikkei 225 falling to close to its lowest level this year. News from the Japanese Toyota Motor was to cut production for September by 40% from its previous plan casted doubt on the economic recovery from pandemic lows.
• The governments decision to extend the coronavirus state of emergency covering Tokyo and five other areas to September 12 th also dampened sentiment.
• The positive economic data signaling a Japanese economy return to growth failed to stem the markets’ losses.
• Chinese stocks slumped as Beijing’s regulatory clampdown on the technology sector stoked uncertainty about what other sectors the government might target next.
• On the economic front, monthly indicators for July missed expectations and showed that economic activity slowed more than expected. Heavy flooding across China and COVID-19 outbreaks caused by the delta variant further weighed on retail sales and consumer services.

What to watch this week:

• EA Markit Manufacturing PMI Flash Report (August).
• EA Consumer Confidence Flash Report (August).
• U.S. New Home Sales (July).
• U.S. Durable Goods Orders (July).
• China Industrial Profits (July).
• U.S. Weekly Jobless Claims.
• The U.S. Federal Reserve hosts its annual Jackson Hole Economic Symposium in Wyoming.

• 

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

Thank you for checking out our ClearWater Market Commentary for August 23, 2021. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.