ClearWater Market Commentary as of June 7th, 2021

Here is the ClearWater Market Commentary as of June 7th, 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	1.51%
1 Month	2.86%
YTD	14.89%
1 Year	26.33%

^{As of 2021/06/04 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
Oil ($/bbl)	4.80%	37.30%
DAX	1.84%	14.47%
S&P/TSX Composite	1.51%	14.89%
CAC 40	1.41%	17.77%
Russell 2000	1.30%	15.84%
FTSE 100	1.04%	9.83%
Dow Jones Industrial	0.66%	13.56%
S&P 500	0.61%	12.61%
Nikkei 225	0.55%	5.74%
Nasdaq	0.48%	7.19%
Shanghai Composite	-0.44%	3.64%
Hang Seng Index	-1.17%	5.81%

^{As of 2021/06/04 – Source: www.marketwatch.com}

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

US economy (S&P 500 0.61%):

• The major indexes closed moderately higher in a shortened trading week due to markets being closed on Monday in observance of Memorial Day.
• Energy shares performed the best as oil prices reached their highest levels in two years.
• The strength of the economic recovery remained in the spotlight, with Friday bringing the closely watched monthly nonfarm payroll reports. Jobs continued to be added reducing the unemployment rate.
• Much of the rest of the week’s economic data came in above consensus.

Canadian markets (S&P/TSX 1.51%):

• The S&P/TSX closed above 20,000 for the first time with a strong week for both the US and Canadian markets.
• The market rally was led by an ideal American jobs report, as it perceived as a positive sign for the economy while being conservative enough to hold back fears of increased inflation.
• The Canadian jobs report was more negative, however, the relaxed fears around inflation in the short term meant gold had a great finish to the week.

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

European and Asian economies:

• Shares in Europe rose amid optimism about the prospect of an economic recovery. However, worries that central banks might begin withdrawing stimulus sooner than expected because of the inflationary pressures curbed the market advances.
• The UK continues to mull delaying full re-opening due to recent spikes in cases.
• Germany continued to see an improving trend in cases and Chancellor Angela Merkel said she was ready to give up emergency powers.
• The European Union is planning to lift all quarantine rules for those who have been vaccinated starting July 1st, and to introduce digital passports for travellers.
• Japan’s stock market returns were mixed for the week, as sentiment remained weak following the government’s extension of the coronavirus state of emergency in Tokyo, Osaka, and seven other prefectures.
• However, the Organization for Economic Cooperation and Development (OECD) just upgrade its projections for Japan’s economic growth, stating that post-summer economic activity is expected to strengthen.
• Chinese stocks retreated after recording three weeks of gains.
• China made a surprise announcement on May 31st, stating that it would relax the current two-child policy and allow couples to have a third offspring.

What to watch this week:

• Chinese Trade Balance (May).
• U.K. British Retail Consortium Retail Sales Monitor (May).
• Japanese Gross Domestic Product (GDP) (Q1).
• Eurozone GDP (Q1).
• Eurozone ZEW Economic Sentiment Index (June)
• U.S. Trade Balance (April).
• Job Opening and Labor Turnover Survey (JOLTS) Job Openings (April).
• Chinese Consumer Price Index (CPI) (May).
• Bank of Canada Interest Rate Decision
• European Central Bank (ECB) Interest Rate Decision.
• U.S. Core CPI (May).
• G7 Summit Begins and Continues Through Friday.
• U.K. Manufacturing Production (April).
• U.K. Trade Balance (April).

• 

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

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