ClearWater Market Commentary as of March 8th, 2021

Here is the ClearWater Market Commentary as of March 8th, 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	-1.80%
1 Month	0.28%
YTD	5.40%
1 Year	26.64%

^{As of 2021/03/05 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
WTI Crude (oil)	7.80%	36.60%
S&P/TSX Composite	1.80%	5.40%
Dow Jones Industrial	1.45%	2.08%
FTSE 100	1.01%	3.10%
S&P 500	0.80%	2.30%
Hang Seng Index	–0.07%	5.85%
CAC 40	-0.39%	0.68%
DAX	-0.80%	-2.43%
Nikkei 225	-2.21%	-0.51%
Russell 2000	-3.65%	11.01%
Shanghai Composite	-3.66%	-1.49%
Nasdaq	-4.92%	0.25%

^{As of 2021/03/05}

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

US economy (S&P 500 0.80%):

• The major benchmarks finished mixed as longer-term interest rates continued their ascent.
• The rise in rates again weighed on growth stocks by increasing the discount on future earnings, while value stocks managed gains.
• Comments from the Fed Chair, Jerome Powell, offered no new commitments to continue the asset purchases or other actions, however, he simultaneously restated the policymakers’ willingness to see inflation rise above 2%. Powell’s satisfaction with the currant stance of monetary stimulus appeared to disappoint investors broadly, which lead to a sharp sell-off in equity and bond markets on Thursday.
• Within the S&P500 energy stocks outperformed as oil prices hit their highest levels in over a year.
• Biden’s stimulus bill advances amid overheating concerns, but this progress appeared to bolster further growth expectations.
• However on Friday markets rebounded due to the February jobs report, which surprised significantly to the upside.

Canadian markets (S&P/TSX 1.80%):

• Canada’s S&P/TSX index was higher after Statistics Canada reported that gross domestic product expanded much faster than the forecast and was on track to post an increase in early 2021.
• The economic outlook was further lifted by a surprise trade surplus in January.
• The energy sector led the gains as the price of crude oil continued its climb.
• Financial stocks continued to climb in response to higher bond yields.

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

• 

European and Asian economies:

• All major European equity markets were higher as PMIs across the region rose and the Euro area jobless rate held steady, despite extended lockdowns in many countries.
• Asian markets were also mostly higher after the shaking off a brief retreat in response to words of caution about debt levels from China’s top bank regulator.
• Japanese equities were down slightly due to disappointing employment and capital spending data.

What to watch this week:

Canada

• Bank of Canada interest rate decision (March 10)
• Employment report (February)

U.S.

• Wholesale inventories (January)
• Consumer and Producer Price Indices (February)
• Univ. of Michigan Consumer Sentiment Index (March)

• 

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

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