ClearWater Market Commentary as of February 11th, 2022

Here is the ClearWater Market Commentary as of February 11th, 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 Day1.27%
1 Month0.90%
1 Year16.73%

As of 2022/02/11 – Source:

Index PerformancesLast 5 DaysYTD
WTI Crude (oil)1.70%24.80%
S&P/TSX Composite1.27%1.62%
Russell 20001.01%-9.46%
Shanghai Composite-0.02%-5.79%
Hang Seng Index-0.09%4.95%
FTSE 100-0.21%2.34%
Nikkei 225-0.62%-5.95%
Dow Jones Industrial-1.01%-4.40%
S&P 500-1.45%-7.29%
CAC 40-2.51%-4.47%

As of 2022/02/11 – Source:

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

US economy (S&P 500 -1.45%):

  • After another volatile week, the large-cap indexes ended the week lower, while the S&P Mid-Cap 400 and small-cap Russell 2000 indexes recorded modest gains.
  • The technology-heavy Nasdaq Composite fared worst and ended the week down roughly 15% from its recent peak, still in correction territory.
  • The tug of war between healthy earnings growth and fears over monetary tightening continued to dominate sentiment. Warnings from U.S. officials that a Russian invasion of Ukraine might be imminent may have also contributed to a late-week sell-off.
  • Declines in mega-cap technology stocks weighed on the broader indexes on Monday, but the so-called reopening trade helped stocks regain their footing at midweek.
  • Shares in restaurants, hotels, casinos, air and cruise lines, and online travel agency stocks all rallied.
  • Highly anticipated inflation data on Thursday unwound the gains, however. The Labor Department reported that the headline consumer price index (CPI) advanced 7.5% over the year ended January, more than consensus expectations and its highest annual gain since February 1982. Core prices, which exclude food and energy purchases, rose 6.0%, the most since August 1982.
  • Several states, including California and New York, announced the rollback of mask mandates and vaccine requirements during the week.

Canadian markets (S&P/TSX 1.26%):

  • Canada’s main stock index closed up slightly Friday as oil prices topped US$93 a barrel on tensions in Ukraine, while U.S. stock markets were down sharply over rate hike fears.
  • Oil prices that were set to end the week lower and natural gas prices that were set to see a -20% week cut those losses on the geopolitical concerns. WTI and Brent crude oil prices jumped ~$4 on Friday to ~US$94/bbl propelling the energy heavy TSX to outperform the S&P 500 by more than 3% on the week. Oil prices were heading lower on the possibility of a new nuclear deal with Iran that would bring an additional supply.
  • The volatile cap to the week came after high U.S. inflation readings increased the likelihood of aggressive central banks action, while concerns about a potential Russian invasion of Ukraine helped rattle markets.
  • The S&P/TSX composite index closed up 17.12 points at 21,548.84 as the energy index climbed 3.6 percent to offset losses in tech, financials and industrials.
  • Statistics Canada is scheduled to release the country’s January inflation reading next Wednesday, two weeks before the next Bank of Canada decision that’s widely expected to include a rate hike.

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

European and Asian economies:

  • Shares in Europe rallied, buoyed by strong corporate earnings. Value-oriented stocks and those in cyclical industries fared well, reflecting inflationary pressures and the possible implications for key central banks’ monetary policies.
  • The heads of the Dutch and German central banks, both of whom are members of the European Central Bank’s (ECB’s) governing council, separately commented that the ECB should wind down its asset-purchase programs to set the stage for potentially raising interest rates before year-end.
  • However, ECB President Christine Lagarde, the head of France’s central bank, and ECB Chief Economist Philip Lane pushed back against potentially tightening policy prematurely, citing the view that record-high inflation could subside and approach the central bank’s 2% target in the medium term.
  • The EC lowered its 2022 outlook for economic growth in the European Union (EU) and eurozone to 4.0% from its previous forecast. The winter update to the EC’s forecasts also said inflation was expected to accelerate to 3.9% in the EU and 3.5% in the eurozone—faster than previously expected.
  • In a holiday-shortened week, Japan’s stock markets generated a positive return, supported by solid corporate earnings.
  • Investor speculation about prospective policy normalization by the Bank of Japan has increased as other major central banks have tightened monetary policy amid a buildup of inflationary pressures in the global economy. However, BoJ Governor Haruhiko Kuroda has continued to assert that, with inflation in Japan remaining well below the central bank’s 2% target, it will continue on its current trajectory, which is among the most dovish in the world.
  • The government extended by three weeks to March 6 the coronavirus quasi-states of emergency in Tokyo and 12 other prefectures, as well as adding the Kochi region to the list.
  • Chinese stocks rose amid supportive official comments and a perception that the country’s regulatory crackdown cycle had peaked. The Shanghai Composite Index gained 3% and the CSI 300 Index added 0.8% since January 28, the last day of trading before a weeklong Lunar New Year holiday.
  • In property sector news, cash-strapped developer China Evergrande Group plans to pay off its debt by restoring construction and sales activity, not by selling assets on the cheap and vowed to complete 50% of pre-sold homes this year.
  • However, worries about cross defaults and delayed payments in China’s debt-laden property sector continued to keep investors on edge.

What to watch this week:

  • US, Eurozone, and Japan industrial production data
  • US Federal Reserve Minutes from January meeting
  • Eurozone and Japan GDP and trade data
  • Eurozone consumer confidence data
  • UK employment data
  • Global retail sales data
  • Global inflation data
  • 62 S&P 500 and 34 S&P/TSX companies report earnings

Sources:,, Barron’, and

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