ClearWater Market Commentary as of December 14th, 2020

Here is the ClearWater Market Commentary as of December 14th, 2020:

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 Day0.16%
1 Month2.09%
1 Year3.60%

As of 2020/12/04 – Source:

Index PerformancesLast 5 DaysYTD
Russell 20001.16%14.85%
WTI Crude (oil)0.70%-23.70%
S&P/TSX Composite0.16%2.85%
Nikkei 225-0.38%15.42%
Dow Jones Industrial0.77%3.59%
S&P 5001.17%11.57%
CAC 40-1.31%-2.19%
Hang Seng Index-1.44%-7.04%
Shanghai Composite2.05%9.80%
FTSE 1002.08%14.84%

As of 2020/12/04

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

  • US economy (S&P 0.16%):
  • US Small-caps continue to outperform. The major indexes hit new highs on Wednesday and the Russell 2000 index outpaced the S&P 500 for the 5th consecutive week
  • The S&P 500 however continues to show signs that its momentum is extending
  • Pfizer/BioNTech vaccine nears distribution. This positive vaccine news appeared to boost investor sentiment as they confirmed the vaccine was 95% effective. The brightening outlook for an eventual end to the pandemic came against a grim set of current milestones, however. Daily U.S. deaths from the virus crossed 3000 for the first time and new state restrictions continued to be announced for the holidays 
  • The Bipartisan relief bill remains in doubt. Whether congress will respond with further fiscal stimulus remains unknown.
  • The impact of latest wave of infections was perhaps most evident in the weekly jobless claims which jumped from 716,000 to 853,000.

Canadian markets (S&P/TSX 0.72%):

  • Although Canadian equities closed mixed last week, the TSX rose to a nine-month high following the fresh record highs set last week by the major U.S. indexes.
  • The Bank of Canada left its policy rate unchanged near zero and highlighted that the outlook remains fluid with both downside and upside risks.
  • Even as the economic momentum slows in the near term, the outlook for the economy remains positive over the next year, though the road may be bumpy.  
  • The rollout of vaccines (Canada approved the Pfizer vaccine last week) will likely accelerate growth and clear the way for a durable rebound in economic activity.
  • Later next year we should hopefully see the economy closer to its normal state due to easy of restrictions and a economic re-opening will unless pent-up consumer demand.

Performance 2020: S&P 500/400/600 Sectors

  • European and Asian economies:
  • European shares fell on concerns about the rising number of coronavirus cases in key economies. France extended lockdown measures and Germany is set to follow.
  • There remains uncertainty surrounding a post-Brexit trade deal. Talks between the British Prime Minister Boris Johnson and Ursula von der Leyen, the European Commission president, failed last week to break the deadlock over a UK-EU trade deal. A Final deadline announcement to be set for this week.
  • On brighter news, the EU approved a historic budget and the ECB extended stimulus measures. The 1.8 trillion budget will start distribution money to needy member states in the second half of next year.
  • Japan stocks posted mixed results as the Japanese government unveiled a third round of stimulus.
  • China equities fell on renewed tensions with the U.S. after a second major index provided removed some Chinese companies from its benchmarks following a Trump administration executive order. Worries over U.S. sanctions continue to weigh on sentiment.

What to watch this week:


  • Statistics Canada will release its Monthly Survey of Manufacturing on Tuesday
  • Statistics Canada will release its Consumer Price Index for November on Wednesday.
  • BlackBerry will release Q3 results after market close on Thursday

United States:

  • This upcoming Friday is the deadline to avoid a government shutdown…again.
  • Nike reports earnings this upcoming Thursday.
  • This upcoming Wednesday, the Federal Open Markets Committee announces interest rates and monetary policy.

Sources:,, Barron’, and

Thank-you for checking out our ClearWater Market Commentary for December 14th, 2020. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.