ClearWater Market Commentary as of May 24th, 2021

Here is the ClearWater Market Commentary as of May 24th, 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	0.08%
1 Month	2.32%
YTD	12.00%
1 Year	30.18%

^{As of 2021/05/21 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
Nasdaq	2.94%	6.22%
Dow Jones Industrial	1.05%	12.45%
Russell 2000	0.98%	13.01%
CAC 40	0.90%	15.45%
S&P/TSX Composite	0.80%	12.00%
DAX	0.54%	12.83%
FTSE 100	0.25%	9.29%
Nikkei 225	-0.09%	3.25%
Hang Seng Index	-0.38%	5.78%
S&P 500	-0.40%	10.60%
Shanghai Composite	-0.87%	0.79%
Oil ($/bbl)	-2.30%	31.60%

^{As of 2021/05/21}

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

US economy (S&P 500 -0.40%):

• Stocks posted mixed results in a volatile week of trading, with the large-cap S&P 500 ending modestly lower, and the tech-heavy Nasdaq composite gaining a little ground.
• These mixed results likely reflect strength in the U.S. economy, as well as concerns about inflation and the timing of when the Federal Reserve might start to rein in its accommodative policies.
• Early preliminary estimates on the PMI (Purchasing Managers’ Index), which is a measure of the prevailing direction of economic trends in manufacturing, came in strong and well above consensus. However, this data also highlighted inflationary pressures in the U.S. economy.

Canadian markets (S&P/TSX 0.80):

• The S&P/TSX index headed into the long weekend by reaching another record high before ending weaker, despite the energy sector rebounding from three days of declining crude oil prices.
• The loonie also saw its highest level in six years, as key energy and materials sectors advanced. There is a very close correlation between oil and the loonie right now, and this is what’s driving up the CAD.
• Employment gains also continue to indicate a continuing economic recovery. The economy continues to adjust to shutdowns, yet is still seeing job growth as employers and companies look to a time where we get past COVID. The overall trend continues to show falling unemployment and increasing new jobs created.

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

European and Asian economies:

• Shares in Europe rose on signs that the economy is rebounding as restrictions instituted to control the spread of the coronavirus have begun to ease.
• However, worries about inflation curbed gains.
• The UK moved to phase two of its plan for lifting coronavirus restrictions.
• Like in North America, Eurozone business activity accelerated at the fastest pace in three years with strong PMI indicators.
• Japan’s stock markets finished the week higher, as export growth and manufacturers’ business confidence continued to rise.
• Chinese stocks had a volatile week as economic data was mixed.

What to watch this week:

• U.S. New Home Sales (April).
• U.S. Pending Home Sales (April).
• U.S. Preliminary GDP (Q1).
• Japanese Tokyo Core Consumer Price Index (CPI) (May).
• U.S. Core Personal Consumption Expenditure (PCE) Price Index (April).
• U.S. Goods Trade Balance (April).
• U.S. Retail Inventories Excluding Autos (April).

• 

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

Thank-you for checking out our ClearWater Market Commentary for May 24th, 2021. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.