ClearWater Market Commentary as of February 8th, 2021

Here is the ClearWater Market Commentary as of February 8th, 2021:

In this issue:
– Performance of Major Indices
– Market Commentary
– Last Week’s Key Economic  
  Events and Upcoming Events

Performance of Principle Indexes: 

^{As of 2021/02/05 – Source: www.marketwatch.com}

^{As of 2021/02/05}

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

US economy (S&P 500 4.34%):

• The large-cap S&P 500, Nasdaq Composite, and small-cap Russell 2000 indexes all reached record highs.
• This rebound from the previous weeks steep losses, was helped by fiscal stimulus plans and vaccine optimism.
• The social media-coordinated “short squeeze” targeting hedge funds with short positions in GameStop and a few other companies also abated, but buyers turned their attention instead to the silver market, sending silver prices to their highest level since 2013.
• On Tuesday, President Joe Biden met with Republican Senate leaders to discuss a compromise, with Republicans proposing instead a relief bill totaling USD 618 billion. Early Friday morning, the Senate passed a budget resolution moving forward legislation authorizing the full USD 1.9 trillion President Biden had requested. 

Canadian markets (S&P/TSX 4.61%):

• Canadian stocks posted their best weekly gain since April, with the TSX closing at fresh record highs.
• Crude oil traded to the highest levels in more than year, logging an almost 10% gain for the week, and providing a boost to the domestic equity market.
• Even the January jobs report disappointed, as the Canadian economy shed 213,000 jobs, and the unemployment rate jumped to 9.4%, the outlook for renewed labour-market improvement later this year remains intact.
• As infection trends have improved and as lockdowns are gradually eased, consumer spending, and therefore the economic recovery, remain well supported by additional fiscal stimulus, accommodative central-bank policies, and the rollout of vaccines. 

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

European and Asian economies:

• Shares in Europe rose with global markets on hopes of a quicker economic recovery, spurred in part by hopes that the pace of coronavirus vaccinations would improve and by the prospect of more U.S. fiscal stimulus. 
• The pace of coronavirus vaccination in continental Europe remained slow but picked up in the UK, where more than 10.5 million people have received a first dose.
• Poland became one of the first European Union nations to begin reopening its economy, allowing the hospitality sector to start operating from mid-month.
• The eurozone’s economy contracted less than expected in the fourth quarter, according to Eurostat’s initial estimate, which suggested that GDP fell 0.7% sequentially and 5.1% year over year. 
• Japan’s stock markets surged for the week on the back of the global markets.
• Chinese stocks also rose for the week. The large-cap CSI 300 Index gained 2.5% and outperformed the Shanghai Composite Index’s 0.4% rise.
• Following clusters of new coronavirus outbreaks in northern China, Beijing and several other major cities have tightened travel restrictions and testing requirements ahead of next week’s Lunar New Year holiday, normally the busiest travel season for the year.

What to watch this week:

Canada

• Wholesale trade sales (December)

U.S.

• Consumer Price Index (January)
• Wholesale inventories (December)
• Univ. of Michigan Consumer Sentiment Index (February)

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

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