ClearWater Market Commentary as of September 7, 2021

Here is the ClearWater Market Commentary as of September 7, 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	0.86%
1 Month	1.69%
YTD	19.43%
1 Year	23.38%

^{As of 2021/09/07- Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
Nikkei 225	6.29%	8.79%
Shanghai Composite	2.11%	4.19%
S&P/TSX Composite	1.16%	20.38%
Russell 2000	0.95%	16.23%
FTSE 100	0.95%	11.25%
CAC 40	0.95%	21.47%
Hang Seng Index	0.89%	-4.12%
Oil ($/bbl)	0.80%	42.70%
Nasdaq	0.68%	19.21%
DAX	0.61%	16.13%
S&P 500	0.28%	20.75%
Dow Jones Industrial	0.03%	15.56%

^{As of 2021/09/07- Source: www.marketwatch.com}

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

US economy (S&P 500 0.28%):

• The major indexes ended the week mixed after the S&P Mid Cap 400 Index joined the S&P 500 and Nasdaq Composite indexes in reaching new intraday highs on the Thursday.
• Trading volumes were generally subdued during what is widely considered the last week of the summer vacation season.
• Data from last week indicated a slow down in employment gains, which seemed to provoke a mixed reaction in markets. Previous months’ gains were revised higher, however, and the unemployment rate still fell to a new pandemic-era low of 5.2%. Hourly earnings also have risen sharply by 0.6% roughly double expectations.
• The jump in hourly earnings appeared to spur inflation fears and an in increase in the benchmark 10-year U.S. Treasury yield.
• Some positive economic data did fuel growth hopes, and Fed Chair Jerome Powell’s dovish remarks in last weeks Jackson Hole meeting were also supportive as the Fed has indicated they are less likely to being tapering their asset purchases later this year.

Canadian markets (S&P/TSX 0.86%):

• Last week Canada’s main stock exchange started September in record territory as the country’s two largest railways pushed the industrials sector to an all-time high.
• Shares of Canadian Pacific Railways Ltd. And Canadian National Railway Co. rose sharply on Wednesday a day after the U.S. transportation regulator rejected CN’s proposed voting trust for Kansas city Southern.
• The Industrials sector increased to 2.2% all record high, which also helped the index.
• Energy was also up as crude oil prices inched higher even as EPEC plus allies said they would increase monthly output as expected, while natural gas prices surged.

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

European and Asian economies:

• Shares in Europe were little changed, as investors assessed signs of slowing economic momentum.
• Core eurozone government bond yields rose on higher-than-expected eurozone inflation and hawkish commentary from some European Central Bank policymakers, who have called for a reduction in the purchase pace of the Emergency Purchase Program.
• An increase in the number of coronavirus infections in the U.S. prompted the European Council to ban nonessential travel, however fully vaccinated travelers should still be allowed up proof of a negative COVID-19 test.
• Although cases have stabilized across the EU, the number of deaths are rising and this has led for intensified vaccination campaigns.
• Eurozone inflation accelerated more than its 3% forecast, however other economic sentiment indicators have weakened.
• Japan’s Prime Minister Yoshihide Suga’s resignation contributed to a strong rally in Japanese equities, as this removed some political uncertainty and raised expectations of increased economic stimulus.
• Chinese stocks rose for a second consecutive week as Chinese companies posted robust earnings for the June quarter, with a 36% annual increase in earnings per share.
• On Thursday, President Xi Jinping announced the launch of a new stock exchange in Beijing. This new exchange will be aimed at providing equity financing for small and mid-size enterprises and reflects China’s strong commitment to its capital markets.
• This news was well received as many foreign investors have grown weary of investing in Chinese assets following a regulatory clampdown on a number of industries.

What to watch this week:

• EA Unemployment (Q2).
• EA GDP Growth (Q2).
• Japan GDP Growth (Q2).
• The Bank of Canada meets on monetary policy and interest rates – September 8th
• China Inflation Report (August).
• China PPI (August) – September 9th
• European Central Bank Interest Rate Report (September 9th )
• U.S. Core Producer Price Index (August).

• 

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

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