ClearWater Market Commentary as of February 22nd, 2021

Here is the ClearWater Market Commentary as of February 22nd, 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	-0.41%
1 Month	3.02%
YTD	5.45%
1 Year	3.03%

^{As of 2021/02/12 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
FTSE 100	1.05%	4.00%
Hang Seng Index	0.84%	11.13%
CAC 40	0.60%	1.87%
Nikkei 225	0.55%	5.78%
Dow Jones Industrial	0.10%	2.71%
Shanghai Composite	–0.35%	4.88%
S&P/TSX Composite	-0.41%	5.45%
S&P 500	-0.70%	4.00%
WTI Crude (oil)	-0.80%	21.60%
DAX	-1.01%	–0.60%
Nasdaq	-1.36%	7.70%
Russell 2000	-1.86%	14.63%

^{As of 2021/02/12}

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

US economy (S&P 500 4.00%):

• Major index ended mostly lower as rising rates and fears of potential inflation weighed on markets.
• Equities began the week rallying as new COVID-19 cases fell, vaccine distribution ramped up, and most economic data pointing to a strengthening recovery.
• However, stocks as inflation fears took centre stage after the US Producer Price Index in January posted its largest monthly increase since 2009.
• Technology weighed heavily on the S&P 500 as fast growing tech companies are especially sensitive to inflation pressures, as most of their value derives from future earnings.
• Despite this though, most other economic data suggested a remarkably strong US economy.    

Canadian markets (S&P/TSX 5.45%):

• The S&P/TSX also touched on record highs last Tuesday, however reversed course as concerns that rising commodity prices and borrowing costs would soon weigh on corporate profit growth and the relative attractiveness of equities.
• Canada’s Consumer Price Index stepped up to its highest rate of increase since last February.
• Copper prices climbed to their highest level in almost nine years. Lumber futures jumped to all time highs thanks to the robust hosing market.
• Energy stocks benefited from the strength in oil prices. West Texas Intermediate (WTI) rose to its highest price in more than a year, helped by the deep-freeze in Texas.
• The decline in the TSX was led by the materials sector, which was lower due to falling gold prices.

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

• 

European and Asian economies:

• Shares in Europe ended the week modestly higher, supported by encouraging quarterly earnings. However these gains were tempered by concerns that rising inflation and higher bond yields might prompt the central banks to begin tightening monetary policy.
• The UK has started to outline plans for reopening the economy and latest data showed that the number of coronavirus cases in England, Wales, and Northern Ireland fell to their lowest levels since early October.
• Japans stock benchmarks produced mixed results. Although Japanese equities underperformed in 2020, they have done well so far in 2021 as global vaccine distributions have led to optimism about a pickup in economic activity in the coming months. Japan is set to begin its vaccination rollout this week.
• Chinese markets ended mixed after their weeklong Lunar New Year holiday. Economic data over the holiday was atypical due to efforts to discourage travel. However, China’s economy is on firm footing as analysts expect the country will gradually dial back pandemic stimulus measure.

What to watch this week:

Canada

• Industrial Product and Raw Materials Price Indices (January)

U.S.

• Conference Board Leading Indicator (January)
• Conference Board Consumer Confidence Index (February)
• New home sales (January)
• Durable goods orders (January)
• Gross Domestic Product (4^th Quarter)
• Personal income and spending (January)
• Univ. of Michigan Consumer Sentiment Index (February)

• 

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

Thank-you for checking out our ClearWater Market Commentary for February 22nd, 2021. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.