ClearWater Market Commentary as of January 11th, 2021

Here is the ClearWater Market Commentary as of January 11th, 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	3.50%
1 Month	3.50%
YTD	3.50%
1 Year	5.09%

^{As of 2021/01/08 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
WTI Crude (oil)	8.50%	8.50%
Russell 2000	7.32%	5.75%
FTSE 100	5.34%	5.34%
Nasdaq	3.97%	2.43%
S&P/TSX Composite	3.50%	3.50%
CAC 40	2.35%	2.35%
Hang Seng Index	1.88%	1.88%
DAX	1.44%	1.44%
S&P 500	1.35%	1.35%
Nikkei 225	1.33%	1.33%
Dow Jones Industrial	1.13%	5.53%
Shanghai Composite	0.81%	1.68%

^{As of 2021/01/08}

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

US economy (S&P 500 1.35%):

• Stocks jumped to record highs after Georgia election completes Blue Wave. As the US political drama dominated the first week of 2021, investors focused on the prospect of more economic stimulus in the wake of Democrats winning both the Senate runoff elections in Georgia, and the likelihood political calm will now prevail
• Heightened prospects for signification fiscal stimulus under the Biden Administration appeared to be the major factor driving last weeks gains
• Despite the assault on the U.S. Capito last Wednesday, this only unsettled markets moderately, as the markets returned its focus to potential fiscal stimulus

Canadian markets (S&P/TSX 3.50%):

• For the first time since February 2020, Canada’s S&P/TSX climbed to a record high
• Rising shares of cannabis companies made health care the strongest sector of the TSX, as the likelihood of the US Senate legalizing marijuana continues .
• A weak USD provided a lift to commodity prices, including oil and copper
• The energy sector was heavily buoyed by rising oil prices and was the leading sector

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

• 

• 

European and Asian economies:

• All major European and Asian markets rode the wave of US Stimulus optimism to higher levels
• Most European markets outperformed US equity indices after data showed euro-area manufacturing grew in December at the fastest rate in more than two-and-a-half years
• Stocks in London were strong, despite the third lockdown across the UK as the manufacturing PMI rose to a three-and-half-year high
• The recent uncertainty-lifting Brexit agreement continued to boost investor confidence
• Japanese stocks posted strong gains for the week
• Chinese stocks began the year on a strong note, but sentiment was shaken after the New York Stock Exchange said would move ahead with de-listing three Chinese telecommunications companies.  

What to watch this week:

Canada

• Bank of Canada Business Outlook Survey (4^th Quarter)
• Existing home sales (December)

U.S.

• Consumer and Producer Price Indices (December)
• Import and Export Price Indices (December)
• Empire State Manufacturing Survey (January)
• Retail sales (December)
• Industrial production (December)
• Capacity utilization (December)
• Univ. of Michigan Consumer Sentiment Index (January)

• 

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

Thank-you for checking out our ClearWater Market Commentary for January 11th, 2021. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.