ClearWater Market Commentary as of May 31st, 2021

Here is the ClearWater Market Commentary as of May 31st, 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 Day1.66%
1 Month3.89%
1 Year30.67%

As of 2021/05/28 – Source:

Index PerformancesLast 5 DaysYTD
Oil ($/bbl)4.80%37.30%
Shanghai Composite2.75%3.47%
Hang Seng Index1.99%6.41%
Russell 20001.84%14.86%
Nikkei 2251.72%5.13%
S&P/TSX Composite1.66%13.87%
CAC 401.18%16.80%
Dow Jones Industrial0.39%12.82%
S&P 5000.17%11.93%
FTSE 100-0.41%8.70%

As of 2021/05/28 – Source:

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

US economy (S&P 500 0.17%):

  • US stocks rose and had solid gains for the week, bringing the S&P 500 to within 0.5% of the all-time high established on May 7th.
  • The technology-heavy Nasdaq Composite and small-cap Russell 2000 indexes performed best.
  • Growth stocks handily outperformed their value counterparts.
  • Weekly jobless claims fell more than consensus expectations, to a new pandemic-era low of 406,000.
  • Negotiations also continued on a new round of infrastructure spending, with Republicans unveiling a USD 928 billion counteroffer to President Joe Biden’s latest proposal of roughly USD 1.7 Trillion.
  • Officials from the US Fed also stressed that inflation pressures should prove temporary, with inflation concerns being a main driver to recent market pullbacks.

Canadian markets (S&P/TSX 1.66%):

  • The S&P/TSX ended a record week by moving to within 100 points of a new milestone on a broad-based rally led by health care and commodities.
  • The S&P/TSX has outpaced its U.S. peers over this past month as a result.
  • Cannabis producers got a lift after Hexo Corp announced its recent acquisition of Redecan.
  • Energy climbed 1.9% as crude oil prices rose on expectations that the economic recovery will boost travel demand.
  • Canada’s heavyweight financials sector also increased with the Bank of Montreal up 1.5% following the release of its strong quarterly results.
  • The Canadian dollar also strengthened as the Bank of Canada’s shift to a more hawkish stance, as investors await U.S. inflation data that could provide clues on the US Federal Reserve’s policy outlook.

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

European and Asian economies:

  • Shares in Europe advanced on continued affirmations of ultra-easy monetary policy and reports of a massive U.S. fiscal spending plan.
  • The UK widened its vaccination rollout to include anyone over the age of 30 now, with some regions now lowering the threshold to 18.
  • Germany’s Business Climate Index hit its highest level since May 2019, as optimism about the economic outlook strengthened.
  • However, the French economy slipped into recession in the first quarter.
  • Switzerland abandoned talks on a framework trade deal with the European Union, which put an end to seven-years of talks between the parties.
  • Japan’s stock markets saw gains for the week as the country accelerated its COVID-19 vaccine rollout. The government, however, is set to extend the COVID-19 state of emergency covering Tokyo and eight other prefectures for three weeks until June 20th.
  • Chinese stocks rose strongly, with both the CSI 300 Index and Shanghai Composite Index posting the best weekly gain in more than three months.
  • Tourism-related names and other stocks leveraged to an economic reopening rose after China passed a milestone of over 500 million COVID-19 vaccinations.

What to watch this week:

  • Market Holiday in the U.S. for Memorial Day and in the U.K. for Bank Holiday.Canadian GDP (Q1).
  • Canadian Building Permits (May).
  • U.S. Federal Reserve Beige Book.
  • Chinese Caixin Services PMI (May).
  • Japanese Services PMI (May).
  • U.S. Services PMI (May).
  • Eurozone Retail Sales (April).
  • U.S. Nonfarm Payrolls (May).
  • U.S. Unemployment Rate (May).
  • U.S. Labor Force Participation Rate (May).
  • Canadian Unemployment Rate (May).

Sources:,, Barron’, and

Thank-you for checking out our ClearWater Market Commentary for May 31st, 2021. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.