ClearWater Market Commentary as of February 1st, 2021

Here is the ClearWater Market Commentary as of February 1st, 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-2.85%
1 Month-0.55%
1 Year0.11%

As of 2021/01/29 – Source:

Index PerformancesLast 5 DaysYTD
WTI Crude (oil)-0.20%7.50%
CAC 40-2.61%-3.22%
Dow Jones Industrial-2.72%-1.77%
S&P 500-2.76%-0.84%
S&P/TSX Composite-2.85%-0.55%
Hang Seng Index-3.42%4.15%
FTSE 100-3.56%-0.15%
Nikkei 225-3.65%-0.32%
Russell 2000-3.76%5.42%
Shanghai Composite-3.80%0.39%

As of 2021/01/29

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

US economy (S&P 500 -2.76%):

  • Stocks declined sharply for the week amid much higher volatility and trading volumes. On Wednesday equities posted their worst day since October
  • Despite a busy earnings week with mostly positive quarterly financial results, unusual fluctuations in the prices of certain stocks that are popular with individual investors appeared to drive the market and received the bulk of media attention.
  • Encouraged by message boards such as Reddit, these investors seemed to target stocks with a high percentages of short positions. As investor moved money into these stocks it created a “short squeeze” where the rising stock price forced investors shorting these positions to buy back the shares at a higher price. This activity drove much of the decline on Wednesday.
  • This past week policy makers with the Federal Open Market Committee (FOMC) reinforced the message that the economic outlook remains uncertain and it will be some time before the economic stimulus drivers such as quantitative easing will be eased.

Canadian markets (S&P/TSX -2.85%):

  • The TSX fell in response to growing worries on new virus variants, vaccine rollout delays and supply shortages.
  • The decline in the TSX was led by the information technology sector, while healthcare was the only sector to advance as cannabis companies extended the gains they have experienced since the US election.
  • Hopes that a new fiscal aid package in the US would provide a near-term economic boost were dulled when lawmakers said passage of a deal was at least a month away.
  • However economic data in Canada from last week was generally positive.
  • Canada’s GDP in November was much strong then was forecasted, suggesting the economy was coping with the renewed restrictions better than anticipated.

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

European and Asian economies:

  • European shares fell amid worries that the economy could slow due to the resurgence of the coronavirus.
  • Many governments continue to tighten restrictions to curb the spread of the new COVID variants.
  • However, European economies such as Germany, France, and Spain reported resilient GDP numbers for the 2020 Q4, spurring hopes that the eurozone might avoid a deeper recession.
  • Japan implemented additional measures to curb the third wave of the coronavirus.
  • Chinese stocks saw a record drop amid concerns that country’s central bank removing liquidity from the banking system and an official cautioned about asset bubbles.

What to watch this week:


  • Markit Manufacturing Purchasing Managers’ Index (January)
  • Employment report (January)
  • International merchandise trade (December)


  • Markit and ISM Purchasing Managers’ Indices (January)
  • Construction spending (December)
  • Durable goods orders (December)
  • Employment report (January)
  • Trade balance (December)

Sources:,, Barron’, and

Thank-you for checking out our ClearWater Market Commentary for February 1st, 2021. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.