Here is the ClearWater Market Commentary as of November 9th, 2020:
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|
As of 2020/10/30 – Source: www.marketwatch.com
|Index Performances||Last 5 Days||YTD|
|Hang Seng Index||7.32%||8.63%|
|Dow Jones Industrial||4.51%||-4.57%|
|WTI Crude (oil)||2.72%||8.59%|
As of 2020/11/09
In addition to the election results, early data suggesting that German pharmaceutical giant Pfizer has developed a safe and effective vaccine for COVID-19 is driving the markets today. For more information on this vaccine candidate, click here
Market Sectors: The technology and health care sectors led the S&P 500 gains. The Consumer Discretionary and Communication Services sectors were also particularly strong, as Amazon, Facebook and Alphabet were considered the beneficiaries of the U.S. election results.
Economic Data: As electoral uncertainty faded, economic data continued to show gradual improvement. Economic indices assessing manufacturing and service activity improved and unemployment claims continued to decline.
On Thursday, the Federal Reserve kept interest rates unchanged and made no changes to asset purchase programs. However, Fed Chairman Jerome Powell said he was looking for ways to stimulate stimulus by adjusting quantitative easing.
S&P 500 Sector Performance as of November 6th, 2020 :
Performance 2020: S&P 500/400/600 Sectors :
All sectors of the S&P/TSX Composite Index for Canada, with the exception of the energy sector, gained ground as the benchmark index posted its largest weekly increase in more than six months.
Market Sectors: Health care was the strongest sector as cannabis stocks soared – Democrats indicated during the campaign that they would decriminalize marijuana at the federal level.
The information technology sector was also particularly strong, with the e-commerce heavyweight Shopify Inc. keeping pace with the U.S. technology giants.
In the energy sector, stocks initially rose in value thanks to the International Energy Agency’s report showing sharp declines in crude oil inventories. However, the sector fell due to global demand concerns as European countries tightened travel restrictions due to increases in COVID-19 cases.
Economic Data: In October, Canada created more than 83,000 jobs. However, gains are coming at a slower pace.
All major stock markets in Europe and Asia rose, with the positive reaction to the U.S. elections outweighing fears of further restrictions in Europe and the risk of a double-dip recession.
British equities underperformed, as negotiations with the European Union on post-Brexit trade once again appeared to make little progress, despite indications earlier in the week that a compromise on the controversial issue of fishing rights may soon emerge.
Sources: Bloomberg.com,Yardeni.com, Barron’s.com, Factset.com and Newyorkfed.org
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