Month: August 2020

Dear Friends,

Tangents: Happy Friday.

On Aug. 14, 1945, President Truman announced that Japan had surrendered unconditionally, ending World War II.  Go to article »

1969: British Army deploys on the streets of northern Ireland, marking the beginning of Operation Banner.

La Torta dei Fieschi, Italy:
In 1230, Count Opizzo, who returned victorious from a war, married the Sienese Bianca dei Bianchi, with a sumptuous marriage, and with the offer of a gigantic wedding cake to the people of Lavagna.
Therefore even today during the historical re-enactment, after reading the proclamation of the wedding, the Countess cuts the cake at the center of the town: a 13 ton cake, made by the local pastry chefs, whose recipe is jealously kept secret. The evening before, the bachelor party of Opizzo with his knights is held in the churchyard of the Basilica of San Salvatore, with a sumptuous banquet, music, dances and costume parade. At the very moment of the cake cutting, the game to find a soul-mate kicks off. Participants to the game are given coloured cards, pink and light blue cards for women and men, with a medieval word on each. During the cake cutting, they have to search for the owner of the card with same word in the square. The partners thus identified then go to the center of the square to receive the two slices of cake to be consumed together. And then, only time will tell.
With the distribution of the cake, then, the celebrations begin in honor of the groom and bride, with shows of a “medieval” character: duels, games, flag-wavers, dances and music, fire-eaters and acrobats.
 
The Fieschi represented in the re-enactment were a powerful family that reached the peak of their splendor in the thirteenth century, and the operation of recovery of this tradition dates back to the ’50s. The event is the culmination of a week of side events, which include palios, exhibitions, music and ancient dance, culminating then in the procession on August 14, with records of MORE than 10 thousand spectators in each edition. –from Italian Traditions.

PHOTOS OF THE DAY

Madagascan sunset setting over the 98-foot-tall baobab trees of the Avenue of the Baobabs located in Menabe, Madagascar. 
CREDIT: MEDIADRUMIMAGES/KIMPAFFEN/@OURPL

A meteor crossing the night sky over a sunflowers field during the Perseid meteor shower.
CREDIT: MARCOS DEL MAZO/ALAMY LIVE NEWS

The pack rides past vineyards in Monforte d’Alba during the 104th edition of the one-day classic cycling race Gran Piemonte between Santo Stefano Belbo and Barolo, Langhe countryside, northwestern Italy.
CREDIT: MARCO BERTORELLO/AFP

A couple read newspapers outside Tu Hwnt ir Bont Tea Rooms in Llanrwst, North Wales.
CREDIT: PETER BYRNE/PA WIRE

Lightning over Mow Cop Castle which is a folly at Mow Cop in the civil parish of Odd Rode, Cheshire, as thunderstorms continue during the current heatwave.
CREDIT: LEE SCALLY/BAV MEDIA

Market Closes for August 14^th , 2020 

Market Index	Close	Change
Dow Jones	27931.02	+34.30
		+0.12%
S&P 500	3372.85	-0.58
		-0.02%
NASDAQ	11019.301	-23.203 -0.21%
TSX	16514.61	-23.203
		-0.21%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	23289.36	+39.75
		+0.17%
HANG SENG	25183.01	-47.66
		-0.19%
SENSEX	37877.34	-433.15
		-1.13%
FTSE 100*	6090.04	-95.58 -1.55%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.614	0.639
CND. 30 Year Bond	1.130	1.144
U.S.    10 Year Bond	0.7094	0.7159
U.S. 30 Year Bond	1.4471	1.4244

Currencies

BOC Close	Today	Previous
Canadian $	0.75405	0.75639
US $	1.32618	1.32207
Euro Rate 1 Euro=		Inverse
Canadian $	1.57083	0.63661
US $	1.18447	0.84426

Commodities

Gold	Close	Previous
London Gold Fix	1944.25	1931.90
Oil
WTI Crude Future	42.01	42.24

Market Commentary:
On this day in 1935, the Social Security Act was signed into law, ensuring some retirement income for all working Americans. Payroll taxes were set at 1%, for both workers and employers, on the first $3,000 of earnings.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets closed little changed on Friday, held back by declines in real estate, tech and utilities stocks. The S&P/TSX Composite slipped less than 0.1% for the day, and dropped less than 0.2% for the week. Canada Pension Plan Investment Board, the country’s largest pension fund, returned 5.6% in the quarter ended June 30 as stock markets rebounded from a pandemic-induced selloff in March. Meanwhile, a warning from the head of Canada’s housing agency about risky mortgage lending won support from another federal agency. Peter Routledge, chief executive officer at Canada Deposit Insurance Corp., expressed backing for Canada Mortgage & Housing Corp.’s Evan Siddall, who sparked controversy this week when he urged lenders to reconsider offering high-ratio mortgages to less creditworthy homebuyers.
Commodities
* Western Canada Select crude oil traded at a $9.60 discount to West Texas Intermediate
* Spot gold fell 0.5% to $1,944.31 an ounce
FX/Bonds
* The Canadian dollar fell 0.3% to C$1.3260 per U.S. dollar
* The 10-year government bond yield fell to 0.611%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite declined slightly to 16,514.61 in Toronto. Shopify Inc. contributed the most to the index decline, decreasing 1.1 percent. Altus Group Ltd/Canada had the largest drop, falling 4.6 percent. Today, 120 of 221 shares fell, while 94 rose; 5 of 11 sectors were lower, led by information technology stocks.
Insights
* So far this week, the index was little changed
* The index advanced 2.9 percent in the past 52 weeks. The MSCI AC Americas Index gained 18 percent in the same period
* The S&P/TSX Composite is 8.1 percent below its 52-week high on Feb. 20, 2020 and 47.8 percent above its low on March 23, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.1 on a trailing basis and 24.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.52t
* 30-day price volatility fell to 10.62 percent compared with 10.64 percent in the previous session and the average of 14.52 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -13.3095| -0.8| 2/8
Materials | -7.0626| -0.3| 16/34
Utilities | -5.4513| -0.7| 4/11
Real Estate | -5.0534| -1.0| 5/21
Financials | -3.7434| -0.1| 13/12
Health Care | 0.5952| 0.4| 2/7
Industrials | 1.7382| 0.1| 11/14
Consumer Staples | 2.8755| 0.4| 4/5
Communication Services | 2.9049| 0.3| 7/1
Consumer Discretionary | 4.0267| 0.7| 9/4
Energy | 7.0284| 0.3| 21/3
US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — U.S. stocks closed mixed after reports showed the economic recovery slowed and stimulus talks reached a stalemate. Treasury debt yields fell for the time this week. The S&P 500 fell less than 0.1% after fluctuating near all- time highs for much of the day, with utilities and health care leading the declines and energy shares finishing higher. The Dow Jones Industrial Average edged 0.1% higher in the last moments of trading and the Nasdaq Composite ended in the red. Trading volume was about 10% below the 30-day average. The dollar weakened after the value of retail purchases increased 1.2% from the prior month and a separate report showed consumer sentiment remained weak. “The service sector is trying to recover, but it is nowhere near pre-COVID levels,” said David Wagner, a portfolio manager at Aptus Capital Advisors. “The U.S. economy is continuing to heal, but in an uneven fashion based on some of the recent economic data. All eyes remain on D.C. for a resolution on the fiscal stimulus situation.”
The Stoxx Europe 600 Index sank after Britain added France, the Netherlands and Malta to its list of countries from which people arriving have to quarantine for 14 days. Gold edged lower following two days of gains, while oil posted a second weekly advance. Traders continue to bank on further fiscal stimulus to help the nascent recovery even as negotiations over a new coronavirus relief plan remain at a standstill. “It appears the hopes of a fiscal stimulus deal being reached in August have gone from slim to none over the past few days — but investors are still assuming that a $1.5 trillion package will come in September,” said Yousef Abbasi’s, global market strategist at StoneX. “It does appear that the executive orders signed by President Trump last weekend have given Congress an excuse to pack it in for August with hopes that a fiscal stimulus deal will be sorted in September.”
On the virus front, Joe Biden said U.S. governors should require masks for the next three months, while New Zealand recorded 12 new confirmed local cases of the coronavirus. Germany added the most new cases since May, while the head of the French Health Agency Jerome Salomon said the situation in his country is worsening.
These are the main moves in markets:
Stocks
The S&P 500 Index was little changed at 3,372.85 as of 4:06 p.m. New York time.
The Dow Jones Industrial Average increased 0.1% to 27,931.02.
The Nasdaq Composite Index declined 0.2% to 11,019.30.
The MSCI All-Country World Index fell 0.3% to 569.30, the biggest fall in a week.
Currencies
The Bloomberg Dollar Spot Index decreased 0.2% to 1,174.34, the lowest in more than a week on the largest dip in more than a week.
The euro climbed 0.2% to $1.1839, the strongest in more than a week.
The Japanese yen strengthened 0.3% to 106.60 per dollar, the first advance in more than a week and the largest climb in more than two weeks.
Bonds
The yield on 10-year Treasuries dipped one basis point to 0.71%, the first retreat in more than a week.
The yield on 30-year Treasuries gained two basis points to 1.45%, hitting the highest in more than seven weeks with its sixth straight advance.
Germany’s 10-year yield decreased one basis point to -0.42%.
Commodities
West Texas Intermediate crude dipped 0.2% to $42.16 a barrel.
Gold weakened 0.5% to $1,943.37 an ounce.
Copper gained 1.7% to $2.88 a pound.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

I am an optimist.  It does not seem too much use being anything else.
                                                      -Winston Churchill, 1874-1965

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
August 13, 1942: The “Manhattan Project” commences, under the direction of US  General Leslie Groves; its aim – to deliver an atomic bomb.
There are bird-watchers and butterfly enthusiasts, but have you tried moth-watching?-The NY Times.

On Aug. 13, 1961, Berlin was divided as East Germany sealed off the border between the city’s eastern and western sectors in order to halt the flight of refugees. Go to article »
On this day in 1895, Mark Twain gives a 90-minute solo performance at the Seattle Theater, at Third Avenue and Cherry Street. Twain, whose given name was Samuel Clemens, wrote the classic American novel “The Adventures of Huckleberry Finn,” among others. He went on a 12-month world tour to earn money to pay off debts incurred by his publishing company, which failed in part because of the Panic of 1893, an economic depression. Twain dies at age 74 in 1910.-The Seattle Times.

On Monday, Monique Hanotte turned 100. You may not have heard of her, but, as Joe Shute finds out, the Belgian played a remarkable part in the Second World War, helping dozens of Allied airmen escape occupied Belgium as part of the “Comet Line” before joining the SOE as a spy. She tells Joe how she managed it in this wonderful interview.-The Telegraph.

I read this today in a periodical of which I’m a subscriber – thought you might find it an interesting observation, as I certainly did:
“More than any other country, the United States in the post-war era lionized the individual at the expense of community and family.  It was the sociological equivalent of splitting the atom.  What was gained in terms of mobility and personal freedom came at the expense of common purpose.  In wide swaths of America, the family as an institution lost its grounding.  By the 1960s, 40 percent of marriages were ending in divorce.  Only six percent of American homes had grandparents living beneath the same roof as grandchildren; elders were abandoned to retirement homes.”
      -Wade Davis, Leadership Chari in Cultures and Ecosystems at Risk, University of British Columbia, Rolling Stone Magazine, “The Unraveling of America,” August 6, 2020.

PHOTOS OF THE DAY

A rare full circle rainbow captured while flying above the  island volcano Haleakala. Photographer Anna Kim took a flight from Maui, Hawaii, to document her friend Doug Moh’s flying while he was on holiday from Colorado.
CREDIT: GO FLY MAUI/KENNEDY NEWS

A scuba diver captures a selfie with a huge ‘smiling’ stingray during a diving trip in Mo’orea an island in the French Polynesia.
CREDIT: CASSIE JENSEN/CATERS NEWS

A Perseid meteor streaks across the sky above a camping site at the Negev desert near the city of Mitzpe Ramon, southern Israel, during the Perseids meteor shower. The shower occurs every year when the Earth passes through the cloud of debris left by the comet Swift-Tuttle.
CREDIT: MENAHEM KAHANA/AFP

Giant panda Yuan Yuan cuddles its baby Rou Rou (Softy) at the Taipei Zoo. China donated a pair of giant pandas, Tuan Tuan (Make) and Yuan Yuan (Female) to the Taipei Zoo in 2008.
CREDIT: TAIPEI ZOO HANDOUT/EPA

Market Closes for August 13^th , 2020 

Market Index	Close	Change
Dow Jones	27896.72	-80.12
		-0.29%
S&P 500	3373.43	-6.92
		-0.20%
NASDAQ	11042.504	+30.265 +0.27%
TSX	16530.06	-45.22
		-0.27%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	23249.61	+405.65
		+1.78%
HANG SENG	25230.67	-13.35
		-0.05%
SENSEX	38310.49	-59.14
		-0.15%
FTSE 100*	6185.62	-94.50 -1.50%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.639	0.609
CND. 30 Year Bond	1.144	1.100
U.S.    10 Year Bond	0.7159	0.6747
U.S. 30 Year Bond	1.4244	1.3738

Currencies

BOC Close	Today	Previous
Canadian $	0.75639	0.75490
US $	1.32207	1.32468
Euro Rate 1 Euro=		Inverse
Canadian $	1.56216	0.64014
US $	1.18161	0.84631

Commodities

Gold	Close	Previous
London Gold Fix	1931.90	1939.65
Oil
WTI Crude Future	42.24	42.67

Market Commentary:
On this day in 1981, President Ronald Reagan signed into law the Economic Recovery Tax Act of 1981, the biggest tax cut in American history, which streamlined the Federal income tax brackets, lowered the top rate to 36%, and created the universally-deductible Individual Retirement Account.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets fell on Thursday, led by energy and communication stocks. The S&P/TSX Composite index fell 0.3% in Toronto. Energy stocks underperformed after oil fell the most in nearly a week as investors assessed the International Energy Agency’s reduced forecasts for global oil demand, in part due to a slowdown in air travel. On the deals front, Brookfield Asset Management Inc. said it raised a record $23 billion during the second quarter and expects to accelerate the pace of investments after the disruption caused by Covid-19. Meanwhile, Ontario is willing to increase the amount of debt it raises in foreign currencies as it seeks to fund a record long-term borrowing plan. “While our target remains to complete 70% to 80% of our long-term funding in Canadian dollars, we will respond to market conditions and investor demand and adjust this target if necessary,” a spokesperson for the Ministry of Finance said.
Commodities
* Western Canada Select crude oil traded at a $9.80 discount to West Texas Intermediate
* Spot gold rose 2% to ~$1,953.55 an ounce
FX/Bonds
* The Canadian dollar rose 0.2% to C$1.3218 per U.S. dollar
* The 10-year government bond yield rose to 0.638%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 0.3 percent at 16,530.06 in Toronto. The move follows the previous session’s increase of 0.5 percent. Enbridge Inc. contributed the most to the index decline, decreasing 3.7 percent. Great Canadian Gaming Corp. had the largest drop, falling 7.1 percent. Today, 129 of 221 shares fell, while 91 rose; 8 of 11 sectors were lower, led by energy stocks.
Insights
* So far this week, the index was little changed
* The index advanced 1.1 percent in the past 52 weeks. The MSCI AC Americas Index gained 15 percent in the same period
* The S&P/TSX Composite is 8 percent below its 52-week high on Feb. 20, 2020 and 48 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 0.3 percent in the past 5 days and rose 5.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.9 on a trailing basis and 24.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.53t
* 30-day price volatility little changed to 10.64 percent compared with 10.63 percent in the previous session and the average of 14.91 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -46.6314| -2.2| 1/23
Financials | -35.5781| -0.7| 6/19
Industrials | -10.6058| -0.5| 10/18
Communication Services | -9.0006| -1.0| 1/7
Utilities | -6.4132| -0.8| 4/12
Consumer Discretionary | -3.9394| -0.7| 6/7
Real Estate | -3.0032| -0.6| 3/24
Health Care | -0.3489| -0.2| 4/5
Consumer Staples | 4.8320| 0.7| 8/3
Information Technology | 5.2608| 0.3| 7/3
Materials | 60.2161| 2.5| 41/8
US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — U.S. equities pulled back from the cusp of record highs as investors mulled the stalemate in stimulus negotiations and signs of an economic recovery. Treasury yields rose a fifth day and crude oil declined. The S&P 500 fell 0.2% a day after surpassing the all-time closing high reached before the coronavirus pandemic. Energy, real estate and industrial sectors led the drop. Apple Inc. kept the Nasdaq Composite Index in positive territory, while Cisco Systems Inc. weighed on the Dow Jones Industrial Average. Trading volume was about 20% below the 30-day average. Adding to the uncertain outlook was a report showing that weekly jobless claims dropped below 1 million for the first time since March. “The good news may be bad news now because that gives a little more uncertainty about the need for stimulus,” said Chris Gaffney, president of world markets at TIAA Bank.

Gold resumed its advance and Treasury yields rose after the government sold a record amount of 30-year bonds. The dollar slipped against a basket of its peers. Stock markets in the U.S. and Asia have erased most of their losses triggered by the onset of the pandemic, though  investors continue to bank on further fiscal stimulus. The concern is that government lifelines merely deferred even more unemployment. “Investors assumed that a deal would get done in early August. Now that this is not happening, it raises some risks for the economy,” said Matt Maley, chief market strategist at Miller Tabak & Co. “Therefore, investors are going back to focusing on what will work even if the economy sputters once again.” Meanwhile, Florida’s governor warned that more Covid-19 virus deaths may be coming at nursing homes and assisted-living facilities. Germany recorded the highest number of new cases in more than three months, as cases also rose in France, Greece and Spain.
Here are some key events coming up:
* China releases a slew of data for July on Friday, including industrial production and retail sales.

These are the market movers:
Stocks
The S&P 500 Index dipped 0.2% to 3,373.43 as of 4:01 p.m. New York time.
The Dow Jones Industrial Average fell 0.3% to 27,897.17.
The Nasdaq Composite Index gained 0.3% to 11,042.50, the highest in a week.
The MSCI All-Country World Index decreased 0.1% to 570.50.
Currencies
The Bloomberg Dollar Spot Index dipped 0.2% to 1,177.13, the lowest in a week.
The Japanese yen was little changed at 106.94 per dollar, reaching the weakest in more than three weeks on its fifth straight decline.
The euro gained 0.2% to $1.1809, the strongest in a week.
Bonds
The yield on 10-year Treasuries advanced four basis points to 0.71%, reaching the highest in more than seven weeks on its fifth straight advance.
Germany’s 10-year yield increased four basis points to -0.41%, the highest in six weeks.
Britain’s 10-year yield climbed one basis point to 0.243%, the highest in two months.
Commodities
West Texas Intermediate crude dipped 0.8% to $42.31 a barrel.
Gold strengthened 1.9% to $1,951.58 an ounce, the biggest climb in more than a week.
Silver strengthened 6.7% to $27.23 per ounce, the largest gain in a week.

Have a great night.

Be magnificent!
As ever,

Carolann

Civility is not a sign of weakness, and sincerity is always subject to proof. 
Let us never negotiate out of fear.  But let us never fear to negotiate.
    -John F. Kennedy, 1917-1963, Inaugural Address, January 20, 1961

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
1676: King Philip assassinated.
1851: American inventor Isaac Singer patents the sewing machine.

Ferrari Sets Record for Most Expensive Car Ever Sold Online–Bloomberg Pursuits.

Idleness is more valuable than ever.

Travelling back in time. –Bloomberg.

Gray reef sharks form long-lasting social groups, likely for hunting
Great, now we’re jealous of a shark’s social life.-CNN

Jason Farago, a Times art critic, leads a guided tour through his favorite woodblock print by Katsushika Hokusai, the most famous Japanese artist of the 19th century.-The NY Times.

On Aug. 12, 1898, the peace protocol ending the Spanish-American War was signed. Go to article »

And finally, making sense of one of the most baffling animals that ever lived.  Nearly 250 million years ago, a reptile known as Tanystropheus patrolled the shorelines and coves of the Alps. The 20-foot creature had a toothy head and body echoing that of modern monitor lizards, but between them stretched a 9-foot giraffe-like neck.
The question of how Tanystropheus used its ridiculously long neck has puzzled paleontologists for over 100 years. New research shows evidence that its body was primed for aquatic hunting: A skull reconstruction revealed nostrils positioned on the top of the snout, like a crocodile, and long, curved fangs.
The reptiles probably ambushed prey in murky water, lunging forward with its long neck to snap up fish. –The New York Times.
PHOTOS OF THE DAY

Iceland horse raise dust as they run from their stables to a paddock at a stud farm in Wehrheim near Frankfurt, Germany
CREDIT: MICHAEL PROBST/AP

A giant inflatable model of the Moon, left, and the planet Earth, right, exhibited by the Brno Observatory and Planetarium are seen on the Cow’ Hill (Kravi hora) in Brno, Czech Republic
CREDIT: VACLAV SALEK/ CTK PHOTO/ALAMY LIVE NEWS

Sunset evening over the grade 1 listed White Mill Bridge at Sturminster Marshall, Dorest.
CREDIT: RACHEL BAKER/BNPS

Brothers Cian, Connell and Fionn Ryan from Dublin trying our their fishing skills while on staycation in Kinsale, Co. Cork, Ireland
CREDIT: DAVID CREEDON/ALAMY LIVE NEWS
Market Closes for August 12th , 2020 

Market Index	Close	Change
Dow Jones	27976.84	+289.93
		+1.05%
S&P 500	3380.35	+46.66
		+1.40%
NASDAQ	11012.238	+229.416 +2.13%
TSX	16575.28	+78.27
		+0.47%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	22843.96	+93.72
		+0.41%
HANG SENG	25244.02	+353.34
		+1.42%
SENSEX	38369.63	-37.38
		-0.10%
FTSE 100*	6280.12	+125.78 +2.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.609	0.570
CND. 30 Year Bond	1.100	1.066
U.S.    10 Year Bond	0.6747	0.6382
U.S. 30 Year Bond	1.3738	1.3297

Currencies

BOC Close	Today	Previous
Canadian $	0.75490	0.75199
US $	1.32468	1.32981
Euro Rate 1 Euro=		Inverse
Canadian $	1.56173	0.64031
US $	1.17895	0.84821

Commodities

Gold	Close	Previous
London Gold Fix	1939.65	2044.50
Oil
WTI Crude Future	42.67	41.61

Market Commentary:
On this day in 1920, Charles Ponzi was arrested for financial fraud in Boston after taking in more than $6 million from thousands of investors. He repaid each $1,000 invested with $1,500 just 90 days later—but only by taking more money from newcomers or, as a judge later put it, “robbing Peter to pay Paul.” Such pyramid arrangements were forever afterwards known as “Ponzi schemes.”
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets advanced, following a rally in U.S. stocks, which briefly surpassed pre-pandemic levels.
The S&P/TSX Composite rose 0.5% in Toronto. Energy was the best-performing sector as oil price closed above a key technical level, buoyed by U.S. energy data that suggest a much-awaited recovery in demand is underway as the summer driving season nears an end.
Meanwhile, Ontario’s deficit will be nearly twice as large as projected in March as the government bolsters measures to cushion the economy from the coronavirus pandemic.
Commodities
* Western Canada Select crude oil traded at a $11.00 discount to West Texas Intermediate
* Spot gold was flat at ~$1,913.08 an ounce
FX/Bonds
* The Canadian dollar rose 0.3% to C$1.3259 per U.S. dollar
* The 10-year government bond yield rose about 3 basis points to 0.602%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose 0.5 percent at 16,575.28 in Toronto. The move follows the previous session’s decrease of 0.7 percent.
Shopify Inc. contributed the most to the index gain, increasing 1.2 percent. ATS Automation Tooling Systems Inc. had the largest increase, rising 13.4 percent.
Today, 129 of 221 shares rose, while 88 fell; 8 of 11 sectors were higher, led by energy stocks.
Insights
* The index advanced 2.1 percent in the past 52 weeks. The MSCI AC Americas Index gained 16 percent in the same period
* The S&P/TSX Composite is 7.8 percent below its 52-week high on Feb. 20, 2020 and 48.4 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 0.4 percent in the past 5 days and rose 5.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.9 on a trailing basis and 24.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.52t
* 30-day price volatility fell to 10.63 percent compared with 10.75 percent in the previous session and the average of 15.11 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 26.4085| 1.3| 23/1
Financials | 25.2687| 0.5| 15/10
Industrials | 18.5880| 0.9| 21/6
Information Technology | 6.7235| 0.4| 2/7
Materials | 3.3746| 0.1| 26/23
Utilities | 3.2475| 0.4| 10/6
Communication Services | 1.2951| 0.1| 6/1
Health Care | 0.0217| 0.0| 7/2
Consumer Discretionary | -0.4356| -0.1| 6/7
Real Estate | -2.0260| -0.4| 6/21
Consumer Staples | -4.2103| -0.6| 7/4
US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — U.S. stocks briefly surpassed the all-time closing high reached before the coronavirus pandemic, propelled by surging technology shares. The dollar weakened and Treasury yields rose to five-week highs.
The S&P 500 climbed 1.4%, momentarily topping the 3,386.15 level reached on Feb. 19, and capping the more than 50% rally since the market lows in March. The record intraday high of 3,393.52 was set the same day. Ten of the benchmark index’s 11 industry sectors rose Wednesday, led by technology, health care and consumer discretionary shares. The Nasdaq Composite outperformed the S&P as Apple Inc., Microsoft Corp. and Tesla Inc. jumped. In Europe, the Stoxx Europe 600 Index rose for a fourth day.
“The main force that’s been driving markets the last few weeks has really been momentum,” said Kevin Caron, portfolio manager for Washington Crossing. “We’ve got a market that’s focused on the good case outcome for the virus, we’ve got a market that has taken a great deal of comfort in that fiscal policy is going to be there to support an economy through tough times.”
Treasury yields dropped from the highs of the day after the government’s sale of $38 billion in 10-year notes attracted stronger-than-forecast demand. Silver joined gold in rebounding, as investors decided the flight from precious metals driven by advancing bond yields had gone too far.
“It was just a matter of time. Once we hit 3,300, I think everybody knew we’d get to the new record before long,” said Matt Maley, chief market strategist at Miller Tabak + Co. “The question is whether we’ll rally further now that we’ve got it. I think we’ll take a breather now that we’ve reached the new high, which would actually be quite healthy.”
After setting a new peak on Friday above $2,070 an ounce, bullion had since tumbled as much as 10%. Crude futures posted a five-month high in New York trading after an industry report pointed to a third straight weekly drop in American crude stockpiles.
Elsewhere, Europe’s corporate bond spreads narrowed to their tightest since early March, just a few basis points off pre-virus levels, according to a Bloomberg Barclays index.
Here are some key events coming up:
* Earnings include Tencent, Cisco Systems, Swiss Life, Tui AG.
* China releases a slew of data for July on Friday, including industrial production and retail sales.

These are the main moves in markets:
Stocks
*The S&P 500 Index jumped 1.4% to 3,380.35 as of 4:01 p.m. New York time, the highest in about six months on the largest surge in more than five weeks.
*The Dow Jones Industrial Average climbed 1% to 27,976.69, the highest in almost six months.
*The Nasdaq Composite Index climbed 2.1% to 11,012.24, the largest increase in more than three weeks.
*The MSCI All-Country World Index jumped 1.2% to 570.82, the
highest in almost six months on the biggest surge in more than five weeks.
Currencies
*The Bloomberg Dollar Spot Index fell 0.2% to 1,179.14, the largest fall in a week.
*The euro gained 0.4% to $1.1788, the biggest advance in a week.
*The Japanese yen depreciated 0.4% to 106.89 per dollar, the weakest in three weeks.
Bonds
*The yield on 10-year Treasuries climbed two basis points to 0.66%, the highest in more than five weeks.
*Germany’s 10-year yield increased three basis points to -0.45%, the highest in four weeks.
*Britain’s 10-year yield gained four basis points to 0.237%, the highest in almost eight weeks.
Commodities
*West Texas Intermediate crude increased 2.3% to $42.56 a barrel, the highest in about five months on the largest climb in more than three weeks.
*Gold was little changed at $1,911.27 an ounce, the weakest in almost three weeks.
*Copper increased 0.2% to $2.88 a pound.
–With assistance from Michael G. Wilson.
Have a great night.

Be magnificent!
As ever,

Carolann

You don’t need a weather man to know which way the wind blows.
                                                                  -Bob Dylan, b. 1941

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
Wish upon a shooting star tonight:
Earth passes through cosmic debris all year long as it revolves around the sun. The results are meteor showers that can light up night skies. Tonight, the Perseids are putting on a show. The meteor shower is active from July 17 to Aug. 26 and will peak Tuesday night into Wednesday morning. Here’s how to watch.  The Perseids, seen above in 2018, occur when Earth runs into debris left behind by Comet Swift-Tuttle, a 17-mile wide dirty snowball that takes about 133 years to orbit the sun. The moon will be about half full tonight, which could interfere with viewing in some places, but usually between 160 and 200 meteors dazzle the night sky every hour during the display’s peak. -The New York Times.

Here’s how to watch the Perseid meteor shower
When everything on Earth is chaos, just look to the flaming rocks above. –CNN 

Night of the Shooting stars. –Bloomberg.

Tuscany’s medieval “wine windows” are back in use during the pandemic. (h/t Ellen Kominers)-Bloomberg.

Stop procrastinating, maybe later. –Bloomberg.

Visit the shores of Cape Cod, where oyster farming is a way of life. –The NY Times.

On Aug. 11, 1965, deadly rioting and looting broke out in the predominantly black Watts section of Los Angeles. Go to article »
PHOTOS OF THE DAY

Morning fog shrouds lower Manhattan and One World Trade Center as the sum rises in New York City as a man runs through the 9/11 Empty Sky Memorial in Jersey City, New Jersey
CREDIT: GARY HERSHORN/GETTY IMAGES

The Mayflower II makes its way through the Cape Cod Canal on its way to its homeport in Plymouth, Mass.
CREDIT: MERRILY/ CAPE COD TIMES VIA AP

Wildebeests (Connochaetes taurinus) cross the Mara river during their migration to the greener pastures, between the Maasai Mara game reserve and the open plains of the Serengeti, Southwest of Nairobi, in the Maasai Mara game reserve, Kenya
CREDIT: REUTERS/THOMAS MUKOYA

Mount Sinabung spews thick ash and smoke into the sky in Karo, North Sumatra
CREDIT: ANTO SEMBIRING/AFP VIA GETTY IMAGES
Market Closes for August 11^th , 2020 

Market Index	Close	Change
Dow Jones	27686.91	+4.90
		+0.21%
S&P 500	3333.67	-26.80
		-0.80%
NASDAQ	10782.824	-185.532 -1.69%
TSX	16488.86	-116.64
		-0.70%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	22750.24	+420.30
		+1.88%
HANG SENG	24890.68	+513.25
		+2.11%
SENSEX	38407.01	+224.93
		+0.59%
FTSE 100*	6154.34	+103.75 +1.71%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.570	0.494
CND. 30 Year Bond	1.066	0.978
U.S.    10 Year Bond	0.6382	0.5788
U.S. 30 Year Bond	1.3297	1.2544

Currencies

BOC Close	Today	Previous
Canadian $	0.75199	0.74886
US $	1.32981	1.33537
Euro Rate 1 Euro=		Inverse
Canadian $	1.56095	0.64063
US $	1.17382	0.85192

Commodities

Gold	Close	Previous
London Gold Fix	2044.50	2031.15
Oil
WTI Crude Future	41.61	41.94

Market Commentary:
On this day in 1928, accepting the Republican presidential nomination, Herbert Hoover declared: “We in America today are nearer to the final triumph over poverty than ever before in the history of any land.  The poorhouse is vanishing from among us… We shall soon, with the help of God, be in sight of the day when poverty will be banished from the nation.” Unfortunately, just over one year later, the Great Depression arrived, proving Hoover tragically wrong.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian shares fell, led by mining stocks weighed down by gold and silver’s decline.
The S&P/TSX Composite index fell 0.7% in Toronto after rising on Monday. The precious metal miners tumbled after the price of gold tumbled as bond yields spiked higher.
In the deals front, Brookfield Asset Management’s infrastructure arm is in talks to acquire Blackstone’s minority stake in liquefied natural gas terminal operator Cheniere Energy Partners, according to people familiar with the matter.
Commodities
* Western Canada Select crude oil traded at a $11.70 discount to West Texas Intermediate
* Spot gold fell 5.7% to ~$1,912.69 an ounce
FX/Bonds
* The Canadian dollar rose 0.3% to C$1.3308 per U.S. dollar
* The 10-year government bond yield rose 7 basis points to 0.567%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 0.7 percent at 16,497.01 in Toronto. The move was the biggest since falling 0.8 percent on July 31 and follows the previous session’s increase of 0.4 percent.
Today, materials stocks led the market lower, as 4 of 11 sectors lost; 118 of 221 shares fell, while 98 rose. Barrick Gold Corp. contributed the most to the index decline, decreasing 9.0 percent. First Majestic Silver Corp. had the largest drop, falling 12.0 percent.
Insights
* The index advanced 1 percent in the past 52 weeks. The MSCI AC Americas Index gained 13 percent in the same period
* The S&P/TSX Composite is 8.2 percent below its 52-week high on Feb. 20, 2020 and 47.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 0.8 percent in the past 5 days and rose 5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.8 on a trailing basis and 24.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.54t
* 30-day price volatility fell to 10.75 percent compared with 10.85 percent in the previous session and the average of 15.32 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -151.6285| -5.9| 7/43
Information Technology| -35.9340| -2.2| 1/9
Health Care | -4.0066| -2.4| 2/7
Utilities | -3.6886| -0.4| 5/11
Energy | 0.6918| 0.0| 9/14
Consumer Staples | 0.9890| 0.1| 6/5
Real Estate | 1.1903| 0.2| 17/8
Industrials | 3.3971| 0.2| 15/13
Consumer Discretionary| 5.5426| 1.0| 7/5
Communication Services| 6.9167| 0.8| 7/0
Financials | 68.0369| 1.5| 22/3
US
By Claire Ballentine and Katherine Greifeld
(Bloomberg) — U.S. stocks turned sharply lower in the final hour of trading as investors sold some of the rally’s biggest winners amid concern a spending package from Washington is not imminent.
The S&P 500 fell for the first time in eight trading sessions, with some traders citing comments from Senate Majority Leader Mitch McConnell saying stimulus talks are at a stalemate as a catalyst. The Nasdaq 100 fell for a third day. Treasury yields jumped before this week’s debt auctions and gold tumbled the most in seven years.
“There’s some profit taking going on, they’re looking to rotate into some of the stuff that hasn’t performed as well,” said Keith Gangl, portfolio manager for Gradient Investments.
A broad rally from industrial goods to health-care shares sent the Stoxx Europe 600 Index to its best increase in a week.
Adding to the earlier optimism was President Donald Trump announcement Monday that he’s considering a tax cut on capital gains, as well as rising hopes for an effective Covid-19 vaccine.
“It seems like a market in the final stages of a rally where investors try and play catch up in the highest beta/most cyclical areas, such as small caps, energy, financials,
industrials,” said Sameer Samana, Wells Fargo Investment’s senior global market strategist. “It is a risk-on market, but with a slightly different flavor than the one we saw while real rates and the dollar were declining.”
Elsewhere, the resignation of Lebanon’s government after the devastating explosion in Beirut threatened to upend prospects of a debt restructuring deal in the next few months.
Here are some key events coming up:
* Earnings include E.ON, Deutsche Telekom, Carlsberg, Tencent and JD.com.
* New Zealand’s central-bank policy decision is due on Wednesday.
* U.S. CPI for July is scheduled for Wednesday.
* China releases a slew of data for July on Friday, including industrial production and retail sales.

These are the main moves in markets:
Stocks
*The S&P 500 Index dipped 0.8% to 3,333.76 as of 4:01 p.m. New York time, the first retreat in more than a week and the largest decrease in more than two weeks.
*The Dow Jones Industrial Average dipped 0.4% to 27,688.29, the first retreat in more than a week.
*The Nasdaq Composite Index dipped 1.7% to 10,782.82, the lowest in more than a week on the largest decrease in more than two weeks.
*The MSCI All-Country World Index decreased 0.1% to 563.77.
Currencies
*The Bloomberg Dollar Spot Index increased 0.1% to 1,181.46, the highest in a week.
*The euro was little changed at $1.1733, the weakest in almost two weeks.
*The Japanese yen depreciated 0.5% to 106.54 per dollar, the weakest in more than two weeks on the largest fall in more than a week.
Bonds
*The yield on 10-year Treasuries climbed four basis points to 0.63%, the highest in more than three weeks on the biggest surge in more than two months.
*Germany’s 10-year yield jumped five basis points to -0.48%, the highest in more than two weeks on the largest surge in almost six weeks.
*Britain’s 10-year yield jumped seven basis points to 0.2%, the highest in five weeks on the biggest surge in more than four months.
Commodities
*West Texas Intermediate crude dipped 1% to $41.49 a barrel.
*Gold depreciated 5.4% to $1,916.58 an ounce, the weakest in more than two weeks on the biggest tumble in more than seven years.
*Copper decreased 0.6% to $2.84 a pound.
–With assistance from Vildana Hajric.

Have a great night.

Be magnificent!

As ever,

Carolann

Don’t be afraid of hard work.  Nothing worthwhile comes easily.
                                         -Gertrude Belle Elion, 1918-1999

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
1675~ King Charles II and John Flamsteed lay the foundation stone of the Royal Observatory in Greenwich, London.
1846~Smithsonian Institution established.
1945~Japan surrenders.
1962 – Marvel Comics superhero Spider-Man made his debut in issue 15 of “Amazing Fantasy.”  Go to article »

If the universe is a simulation, can we crash it? -Bloomberg.

“Real Genius” turns 35. (h/t Scott Kominers) –Bloomberg.

Do You Know the Difference Between Being Rich and Being Wealthy?:  To one man, money was a plaything. To another, it was a possibility. Guess which one came out ahead in the end? -WSJ.

And finally, if you drink Fresca or Squirt, you’re now also swallowing the latest mosquito repellent.  Nootkatone, an oil found in cedar trees and grapefruits, won approval today from the Environmental Protection Agency as an insect repellent. It is so safe that it is used as a flavor and fragrance by the food and perfume industries.
The chemical is not oily, lasts for hours and has a grapefruit-like scent. And it repels mosquitoes, ticks, bedbugs and fleas, according to the Centers for Disease Control and Prevention. Bonus: It may also be effective against lice, sandflies, midges and other pests. –The New York Times.
PHOTOS OF THE DAY

Aeronaut teams take part in a hot air balloon competition near the White Rock, also known as AqQaya, in Crimea.
CREDIT:ALEXEY PAVLISHAK/REUTERS

The scene is Keswick where the mountain recovery team carried out a dramatic rescue after a 60yo climber plunged 40ft down a crag and miraculously survived.
CREDIT: KESWICK MOUNTAIN RESCUE/SWNS

Meet the amateur gardener who fills more than 100 hanging baskets and pots in his small suburban garden with nearly 1,000 stunning plants every year. Shaun Schroeder, 57, spends up to three hours a day planting, tending, dead-heading and watering his stunning collection of petunias and other assorted flowers. He spends four months growing them out in May, during a mammoth week-long planting session. The sprawl across 120 hanging baskets and tubs that cover every inch of his modest 4m wide garden at the back of his semi detached home in Whitchurch, on the outskirts of Bristol
CREDIT: TOM WREN/SWNS

Jimmy Shuttlewood up on the Moors in North Yorkshire.
CREDIT: CHARLOTTE GRAHAM FOR THE TELEGRAPH
Market Closes for August 10^th , 2020 

Market Index	Close	Change
Dow Jones	27791.44	+357.96
		+1.30%
S&P 500	3360.47	+9.19
		+0.27%
NASDAQ	10968.355	-42.627 -0.39%
TSX	16605.50	+61.03
		+0.37%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	22329.94	-88.21
		-0.39%
HANG SENG	24377.43	-154.19
		-0.63%
SENSEX	38182.08	+141.51
		+0.37%
FTSE 100*	6050.59	+18.41 +0.31%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.494	0.479
CND. 30 Year Bond	0.978	0.947
U.S.    10 Year Bond	0.5788	0.5640
U.S. 30 Year Bond	1.2544	1.2336

Currencies

BOC Close	Today	Previous
Canadian $	0.74886	0.74706
US $	1.33537	1.33858
Euro Rate 1 Euro=		Inverse
Canadian $	1.56773	0.63787
US $	1.17401	0.85178

Commodities

Gold	Close	Previous
London Gold Fix	2031.15	2067.15
Oil
WTI Crude Future	41.94	41.22

Market Commentary:
On this day in 1897, looking for a remedy for his father’s rheumatism, a young German chemist named Felix Hoffman synthesized a stable form of acetylsalicylic acid in a laboratory in Berlin. The head of Bayer’s pharmacological institute, Heinrich Dreser, lambasted Hoffmann’s discovery as “typical Berlin hot air; the product is worthless.” Bayer soon named the product “aspirin,” and it became the best-selling drug of all time.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian shares rose to the highest level since March 4 on Monday, led by advancing energy and healthcare stocks.
The S&P/TSX Composite index rose 0.4% in Toronto. Energy stocks gained after oil posted the biggest gain in a week in New York amid signs that the U.S. may move forward with another economic stimulus deal that could bolster consumption.
On the deals front, the board of Canaccord Genuity Group Inc. may prefer a deal involving its U.K. wealth management unit to a sale of the entire company, analysts say. Canaccord, Canada’s largest non-bank brokerage, is exploring strategic options including a sale of all or part of its business, according to people familiar with the matter, Bloomberg reported Friday.
Mark Carney, the only person to run two major central banks, is helping Justin Trudeau the craft next steps in a plan to pull Canada out of a deep recession sparked by the coronavirus. Five months after stepping down as the Bank of England governor, Carney has become an informal adviser on policy matters to the Canadian prime minister.
Commodities
* Western Canada Select crude oil traded at a $11.75 discount to West Texas Intermediate
* Spot gold fell 0.5% to ~$2,025.70 an ounce
FX/Bonds
* The Canadian dollar rose 0.2% to C$1.3354 per U.S. dollar
* The 10-year government bond yield rose to 0.495%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose 0.4 percent at 16,605.50 in Toronto. The index advanced to the highest closing level since March 4 after the previous session’s decrease of 0.2 percent.
Suncor Energy Inc. contributed the most to the index gain, increasing 4.5 percent. Brookfield Business Partners LP had the largest increase, rising 11.0 percent.
Today, 129 of 221 shares rose, while 90 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* The index advanced 1.6 percent in the past 52 weeks. The MSCI AC Americas Index gained 14 percent in the same period
* The S&P/TSX Composite is 7.6 percent below its 52-week high on Feb. 20, 2020 and 48.6 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 2.7 percent in the past 5 days and rose 5.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24 on a trailing basis and 24.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.53t
* 30-day price volatility fell to 10.85 percent compared with 12.37 percent in the previous session and the average of 15.74 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 58.1996| 1.3| 20/4
Energy | 43.7136| 2.1| 22/2
Industrials | 15.3572| 0.8| 17/11
Consumer Discretionary | 7.1601| 1.3| 7/5
Utilities | 6.7565| 0.8| 14/2
Real Estate | 4.7570| 0.9| 17/10
Health Care | 2.4756| 1.5| 5/4
Communication Services | 2.2673| 0.3| 7/1
Consumer Staples | -3.8394| -0.5| 3/8
Materials | -10.4705| -0.4| 16/34
Information Technology | -65.3554| -3.8| 1/9
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks were mostly mixed as investors sold some of the high-flyers that drove the latest rally that almost pushed U.S. equities back to record highs. Crude oil rallied and the dollar touched a one-week high.
The S&P 500 approached its all-time high reached prior to the coronavirus pandemic, while the tech heavy Nasdaq 100 lost 0.5%. The energy and industrial sectors led gains. Chipmakers led declines amid renewed tensions with China. Media shares dropped on speculation over the cancellation of college football.
“Tech has been one of the few resilient sectors within this whole year, I wouldn’t be surprised if you saw a little bit of pullback in that areas just because it’s been one of the more resilient,” said Katy Kaminski, chief research strategist and a portfolio manager for AlphaSimplex Group’s managed futures strategy.
The S&P 500 Total Return Index, which includes reinvested dividends, rose to an all-time high, exceeding its February peak. The price-only version rose to less than 1% away from breaking out.
Oil gained the most in almost three weeks after Saudi Aramco said demand will continue to improve and traders bet on more U.S. stimulus. Turkey’s lira was weaker even as the banking regulator moved to slow lending in an attempt to stabilize the currency.
In Europe, stocks advanced led by financial companies.
Chinese equities climbed on the back of data showing the economy continuing to recover from the pandemic, with consumer inflation accelerating.

On Saturday, President Donald Trump signed four executive orders to maintain some assistance, including for unemployment benefits, a temporary payroll tax deferral, eviction protection and student-loan relief. Trump’s policy announcements come as Democrats and Republicans are still negotiating a broader additional virus relief package. The two sides are still trillions of dollars apart on overall spending and on key issues, including aid to state and local governments and the amount of supplementary unemployment benefits.
“We’re entering the week in a precarious position with the S&P 500 within earshot of an all-time high,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “Whether it breaks through that psychologically important barrier depends on how the market is able to take looming trade tensions and Washington machinations in stride.”
Elsewhere, shares in Lebanese real-estate company Solidere closed slightly higher as they traded for the first time since the deadly blast in Beirut’s port that killed more than 150 people.

Here are some key events coming up:
* Earnings include SoftBank, Telstra, Deutsche Telekom, Carlsberg, Tencent and JD.com.
* New Zealand’s policy decision is due on Wednesday.
* China releases a slew of data for July on Friday, including industrial production and retail sales.
* U.S. retail sales are expected Friday, with a smaller increase forecast for July than in the prior two months.

These are the main moves in markets:
Stocks
* The S&P 500 Index increased 0.3% to 3,360.59 as of 4:01 p.m. New York time, hitting the highest in almost six months with its seventh consecutive advance.
* The Dow Jones Industrial Average rose 1.3% to 27,792.88, reaching the highest in more than five months on its seventh consecutive advance.
* The Nasdaq Composite Index declined 0.4% to 10,968.36.
* The MSCI All-Country World Index climbed 0.1% to 563.83.
Currencies
* The Bloomberg Dollar Spot Index increased 0.1% to 1,180.45, the highest in a week.
* The euro declined 0.4% to $1.1745, the weakest in almost two weeks.
* The Japanese yen was little changed at 105.95 per dollar, the weakest in more than two weeks.
Bonds
* The yield on 10-year Treasuries increased one basis point to 0.58%, the highest in almost two weeks.
* Germany’s 10-year yield declined two basis points to -0.53%.
* Britain’s 10-year yield decreased one basis point to 0.131%.
Commodities
* West Texas Intermediate crude rose 2% to $42.05 a barrel, the largest advance in almost three weeks.
* Gold weakened 0.5% to $2,025.19 an ounce.
* Copper rose 2.7% to $2.87 a pound, the largest rise in more than two months.

–With assistance from Lu Wang and Kamaron Leach.
Have a great night.

Be magnificent!
As ever,

Carolann

By words the mind is winged.
      -Aristophanes, c.450 BCE-c.388 BCE

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday.

August 7, 1959: First photo of Earth from space taken by US satellite Explorer VI.
1882~Hatfield-McCoy feud erupts.
Mata Hari, Dutch spy, b.1876.
On Aug. 7, 1964, Congress passed the Gulf of Tonkin resolution, giving President Johnson broad powers in dealing with reported North Vietnamese attacks on United States forces. Go to article »
August 7, 1991~Tim Berners-Lee releases files describing his idea for the World Wide Web.  WWW debuts as a publicly available service on the Internet.

Airports may do away with check-in and security lines. -Bloomberg.

Black hole planets may exist. -Bloomberg.

Looking at deep red light may help eyesight. –Bloomberg.
PHOTOS OF THE DAY
A view of a room transformed by the artist Tuomas Kiuru inside a former residential building in Kerava, about 40 kilometers north of Helsinki, Finland
CREDIT: MAURI RATILANINEN/EPA -EFE/SHUTTERSTOCK

A bear cub cling to his mother’s back as they hitch a ride across a wide river in Lake Clark National Park, Alaska
CREDIT: PATTIE WALSH/SOLENT NEWS & PHOTO AGENCY

SpaceX’s Starship SN5 full-size prototype completed its first successful test flight, soaring to 490 ft(150 metres) over Boca Chica Texas
CREDIT: UP/ALAMY LIVE NEWS

People enjoy a warm day at La Concha beach in San Sebastian, Basque Country, northern Spain
CREDIT: JAVIER ETXEZARR
Market Closes for August 7^th , 2020 

Market Index	Close	Change
Dow Jones	27433.48	+46.50
		+0.17%
S&P 500	3351.28	+2.12
		+0.06%
NASDAQ	11010.984	-97.086 -0.87%
TSX	16544.48	-34.62
		-0.21%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	22329.94	-88.21
		-0.39%
HANG SENG	24531.62	-398.96
		-1.60%
SENSEX	38040.57	+15.12
		+0.04%
FTSE 100*	6032.18	+5.24 +0.09%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.479	0.464
CND. 30 Year Bond	0.947	0.925
U.S.    10 Year Bond	0.5640	0.5346
U.S. 30 Year Bond	1.2336	1.1974

Currencies

BOC Close	Today	Previous
Canadian $	0.74706	0.75136
US $	1.33858	1.33092
Euro Rate 1 Euro=		Inverse
Canadian $	1.57764	0.63386
US $	1.17859	0.84847

Commodities

Gold	Close	Previous
London Gold Fix	2067.15	2048.15
Oil
WTI Crude Future	41.22	41.95

Market Commentary:
On this day in 1990, The Wall Street Journal published market guru Joe Granville’s forecast that the stock market would “crash within a few days.” Mr. Granville called for the Dow to fall below 2,200 by the end of August and to drop below 1,750 by the spring of 1992. Unfortunately for him, and fortunately for everyone who ignored him, the Dow barely budged, finishing the month at 2,614 and soaring past 3,200 by the spring of 1992.
Canada
By Divya Balji
(Bloomberg) — After an epic rally from its pandemic low, Canada’s equity market may be losing some steam.
The S&P/TSX Composite Index has made a remarkable comeback since March. It still needs to rise another 519 points, or 3.1%, to break even for the year. The index has been carried by big gains in gold and technology: Only 41% of its members (91 of 221) are in the green for 2020, according to data compiled by Bloomberg.
As the coronavirus outbreak ravages economies and businesses around the globe, Canadian companies have shown some resilience — with a majority of firms beating analyst estimates in the second quarter. A jump in commodity prices and Shopify Inc.’s big leap have pushed the nation’s equity benchmark to its longest monthly rally since September.
In the 96 trading days since the March low, the TSX has closed in the green on 61 days, or 64% of the time. That’s higher than the 54% seen annually going back two decades, according to data compiled by Bloomberg. But a resurgence in virus cases, stalled U.S. fiscal stimulus talks ahead and geopolitical tensions — all in the midst of America’s tumultuous presidential election campaign –have renewed volatility.
The abrupt plunge in stocks earlier this year was met with an equally rapid bounce thanks to fiscal and monetary stimulus, “and now that shock effect seems to be wearing off and we’re dealing with the ‘what’s next?’,” said Greg Taylor, chief investment officer at Purpose Investments Inc. Equity markets are painting a more optimistic picture than bonds. Stocks bulls are focused on the economic recovery, while fixed-income markets suggest the growth profile will be a slow and long grind, according to Kevin McCreadie, chief executive officer of AGF Management Ltd.
“You have to barbell a little bit of both in your portfolio right now to position,” he said on BNN Bloomberg.
The tug-of-war for investor sentiment can be seen in Canada’s economic recovery. While the country has a handle on the virus outbreak and has seen a strong recovery in employment numbers, a larger part of the economy is still dependent on its major trading partners and many of them are still in crisis mode against Covid-19, said Ed Moya, a senior market analyst at Oanda Corp.
What could provide a solid boost to Canada’s market is bank earnings results due later this month. The nation’s Big Six banks — which make up almost a fifth of the S&P/TSX Composite — are slated to report in about two weeks. Strong profit growth or an improving outlook for loan losses, indicating projections
a solid economic recovery, could help with giving the equity market a lift.
Investment firms that have reported so far have seen strong growth in assets under management and trading activity, which could be also a positive indication for earnings at Canada’s biggest banks. “People are starting to realize that there’s potential the Canadian banks could have a positive surprise, and that’s really not priced in stocks at all given how much they’ve underperformed other sectors this year,” Purpose’s Taylor said.
Economy
*Canada’s economy recorded a third straight month of strong employment gains that have recouped more than half of losses from Covid-19. Employment rose by 418,500 in July, bringing to 1.7 million the number of jobs reclaimed over the past three months.
*Visible minorities were among those hardest hit by Canada’s recession, with some groups reporting jobless rate increases about double those of the least affected.

*Canadian households are showing a newfound economic optimism, a good sign for the nation’s nascent recovery. After stalling at the end of June, sentiment around personal finances, job security, economic growth and real estate are all beginning to march higher again, telephone polling shows.
*Home sale numbers in Toronto and Vancouver also picked up in July with a 29.5% gain year-over-year in Canada’s most- populous city and 22.3% in the latter.
Politics
*Canada will hit the U.S. with retaliatory tariffs after President Donald Trump announced plans to impose duties on Canadian aluminum. Deputy Prime Minister Chrystia Freeland released a list of more than 60 U.S. aluminum-containing products that could face higher tariffs, but vowed not to escalate the situation beyond what she said was a dollar-for-dollar equivalent duties, totaling C$3.6 billion ($2.7 billion) in goods.
*Ontario Premier Doug Ford also joined the spat, urging consumers to shift purchases away from U.S. goods to fight against the tariffs.
–With assistance from Brandon Kochkodin and Shelly Hagan.

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 0.2 percent at 16,544.48 in Toronto. The move follows the previous session’s increase of 0.5 percent. Shopify Inc. contributed the most to the index decline, decreasing 2.7 percent. Cominar Real Estate Investment Trust had the largest drop, falling 12.7 percent.
Today, 113 of 221 shares fell, while 105 rose; 5 of 11 sectors were lower, led by materials stocks.
Insights
* So far this week, the index rose 2.3 percent
* The index advanced 1.7 percent in the past 52 weeks. The MSCI AC Americas Index gained 15 percent in the same period
* The S&P/TSX Composite is 7.9 percent below its 52-week high on Feb. 20, 2020 and 48.1 percent above its low on March 23, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.5 on a trailing basis and 25.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.53t
* 30-day price volatility fell to 12.37 percent compared with 12.48 percent in the previous session and the average of 16.46 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -52.9709| -2.0| 11/39
Information Technology | -45.0039| -2.5| 3/7
Health Care | -7.7484| -4.6| 3/5
Consumer Staples | -3.6103| -0.5| 3/8
Communication Services | -1.5768| -0.2| 3/5
Consumer Discretionary | 0.4276| 0.1| 8/5
Real Estate | 0.7303| 0.1| 12/13
Energy | 5.6852| 0.3| 15/9
Utilities | 6.1748| 0.8| 12/4
Industrials | 20.7259| 1.1| 15/13
Financials | 42.5331| 0.9| 20/5
US
By Claire Ballentine and Katherine Greifeld
(Bloomberg) — Tech shares fell as the White House ramped up its confrontation with China, while a better-than-forecast jobs report helped fuel advances for smaller U.S. companies.
The Nasdaq Composite Index pared a weekly increase as heavyweights including Apple Inc., Microsoft Corp. and Amazon.com Inc. fell. Gains for smaller banks, manufacturers and utilities helped lift the Russell 2000. Investors kept a close eye on efforts by the White House and lawmakers to reach a deal to extend a coronavirus relief package, with Treasury Secretary Steven Mnuchin saying he’ll recommend President Donald Trump move ahead with executive actions to halt evictions and possibly restore some unemployment aid after talks stalled.
Tech shares were also among the worst performers in Asia after the White House’s latest attack on Chinese tech companies and a plan to sanction Hong Kong’s chief executive. The dollar strengthened on haven demand, while gold retreated for the first time in six days. Europe’s benchmark stock gauge ended higher.
Trump Ban on Top Messaging App Risks Snarling Global Business Investors have bid up U.S. stocks back toward record-high levels and a global gauge of equities has almost wiped out losses for the year. But with elevated levels of unemployment, investors had been seeking a new U.S. relief package to cushion the blow for consumers.
“The risk is that a policy failure drains the tentative strength that had been creeping back into the economy in recent months,” said Seema Shah, chief strategist at Principal Global Investors. WeChat operator Tencent Holdings Ltd. slumped 5% in Hong Kong after Trump signed executive orders prohibiting U.S. residents from doing any business with WeChat, TikTok or the apps’ Chinese owners.
Elsewhere, oil slumped along with copper.

     These are some of the main moves in markets:
Stocks
* The S&P 500 Index rose less than 0.1% at 4 p.m. New York time.
* The Stoxx Europe 600 Index rose 0.3%.
* The MSCI Asia Pacific Index declined 1.3%.
* The MSCI Emerging Market Index declined 1.6%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.5%.
* The euro sank 0.8% to $1.1786.
* The Japanese yen weakened 0.4% to 105.96 per dollar.
Bonds
* The yield on 10-year Treasuries rose three basis points to 0.56%.
* Germany’s 10-year yield rose two basis points to -0.51%.
* Britain’s 10-year yield rose three basis points to 0.14%.
Commodities
* West Texas Intermediate crude fell 1% to $41.52 a barrel.
* Gold weakened 1.6% to $2,030.99 an ounce.
* Copper fell 4% to $2.793 per pound.

–With assistance from Jeanny Yu, Adam Haigh, Robert Brand, Yakob Peterseil and Vildana Hajric.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

The world turns aside to let any man pass who knows where he is going.
                                                                 –Epictetus, 50 AD-135 AD

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Hiroshima Day.

On Aug. 6, 1945, the United States dropped an atomic bomb on Hiroshima, Japan, that instantly killed an estimated 66,000 people in the first use of a nuclear weapon in warfare. Go to article »

If I had only known, I would have been a  locksmith. -Albert Einstein.

Setsuko Thurlow was 13 years old and in Hiroshima when the U.S. dropped the first of two atomic bombs on Japan. Ever since, she has been fighting for the abolition of nuclear weapons, sharing a Nobel Peace Prize for the work in 2017.  Our Tokyo bureau chief’s profile of Ms. Thurlow, now 88, comes on the 75th anniversary of the Hiroshima bombing and serves as a reminder of the urgency of hearing the stories of a dwindling number of survivors.  A new book documents the human impact of the bombings, which ended World War II,
with photographs that the U.S. once banned both at home and in Japan. -The NY Times.

The front page of The Times from Aug. 7, 1945. –The NY Times.

Alfred Lord Tennyson, poet, b. 1809.
Lucille Ball, actress, b. 1911.
Andy Warhol, artist, b. 1928

Giuseppe Paternò graduated with honors last week from the University of Palermo, with a degree in history and philosophy. Mr. Paternò is 96.
That he reached his lifelong goal — despite an impoverished childhood, World War II and family demands — drew attention across Italy, resonating as millions of schoolchildren faced extraordinary uncertainty amid the pandemic.  “Don’t get lost because you find obstacles — because there will always be obstacles,” Mr. Paternò said after donning the traditional red-ribboned laurel wreath.
“You have to be strong.” –The NY Times.
PHOTOS OF THE DAY
A full moon is seen just right behind the Christ the Redeemer monument in Rio de Janiero, Brazil
CREDIT: ANTONIO LACERDA/EPA-EFE/SHUTTERSTOCK

Family of marmots who live in the Austrian countryside
CREDIT: @MURMELTIERFOTOS.DE/CATERS NEWS

Locomotive SR 926 Repton travels through Goathland on the North Yorkshire Moors Railway on route from Grosmont to Pickering in North Yorkshire this morning.
CREDIT: ANDREW MCCAREN/LNP

Iceland horse raise dust as they run in their paddock at a stud farm as the sun rises early Wednesday, Aug 5, 2020, in Wehrheim near Frankfurt, Germany.
CREDIT: AP PHOTO/MICHAEL PROBST
Market Closes for August 6^th , 2020 

Market Index	Close	Change
Dow Jones	27386.98	+185.46
		+0.68%
S&P 500	3349.16	+21.39
		+0.64%
NASDAQ	11108.070	+109.673 +1.00%
TSX	16579.10	+77.49
		+0.47%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	22418.15	-96.70
		-0.43%
HANG SENG	24930.58	-171.96
		-0.69%
SENSEX	38025.45	+362.12
		-0.96%
FTSE 100*	6026.94	-77.78 -1.27%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.464	0.502
CND. 30 Year Bond	0.925	0.946
U.S.    10 Year Bond	0.5346	0.5477
U.S. 30 Year Bond	1.1974	1.2224

Currencies

BOC Close	Today	Previous
Canadian $	0.75136	0.75387
US $	1.33092	1.32648
Euro Rate 1 Euro=		Inverse
Canadian $	1.58054	0.63270
US $	1.18756	0.84207

Commodities

Gold	Close	Previous
London Gold Fix	2048.15	1977.90
Oil
WTI Crude Future	41.95	42.19

Market Commentary:
On this day in 1957, with Japan’s postwar economic boom underway, the Nikkei 225 stock index surpassed the level of the Dow Jones Industrial Average (which closed at 494.13) for the first time.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks rose Thursday after a slew of corporate earnings and U.S. equities climbed on optimism that officials will come to terms on fresh economic stimulus.
The S&P/TSX Composite Index rose 0.5%, with seven of eleven sectors advancing. Industrials led the way, with energy also climbing.
The Trump Administration will reimpose tariffs on some Canadian aluminum imports, hitting a crucial trade partner just weeks after the president’s landmark North American trade agreement went into effect, according to several people familiar with the matter.
Canadian Natural Resources, the country’s largest oil and gas producer, is prioritizing maintaining a streak of 20 years of dividend increases but won’t rule out making acquisitions as low crude prices create motivated sellers.
Meanwhile, supply chain software provider Kinaxis is hiring proactively as its business booms amid the Covid-19 pandemic that has led to countries globally closing their borders.
Commodities
* Western Canada Select crude oil traded at a $12.10 discount to West Texas Intermediate
* Spot gold rose 1.4% to ~$2,066 an ounce
FX/Bonds
* The Canadian dollar weakened 0.3% to C$1.3305 per U.S. dollar
* The 10-year government bond yield fell 3.9 basis points to 0.464%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.5 percent, or 77.49 to 16,579.10 in Toronto. The index advanced to the highest closing level since March 4.
Canadian National Railway Co. contributed the most to the index gain, increasing 1.3 percent. Pretium Resources Inc. had the largest increase, rising 25.7 percent.
Today, 125 of 221 shares rose, while 93 fell; 7 of 11 sectors were higher, led by industrials stocks.
Insights
* So far this week, the index rose 2.5 percent
* The index advanced 2.7 percent in the past 52 weeks. The MSCI AC Americas Index gained 16 percent in the same period
* The S&P/TSX Composite is 7.7 percent below its 52-week high on Feb. 20, 2020 and 48.4 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.7 percent in the past 5 days and rose 5.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.1 on a trailing basis and 25.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.52t
* 30-day price volatility fell to 12.48 percent compared with 13.86 percent in the previous session and the average of 16.77 percent over the past month

================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | 34.8355| 1.9| 21/7
Financials | 30.6162| 0.7| 16/9
Energy | 25.2641| 1.2| 20/4
Communication Services | 7.9280| 0.9| 5/2
Consumer Staples | 5.6791| 0.8| 7/4
Information Technology | 5.6498| 0.3| 8/2
Real Estate | 2.1936| 0.4| 20/6
Utilities | -2.4491| -0.3| 5/11
Health Care | -4.3309| -2.5| 1/8
Consumer Discretionary | -6.6182| -1.2| 9/4
Materials | -21.2958| -0.8| 13/36
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks climbed on optimism that officials will come to terms on fresh economic stimulus, putting a gauge of global stocks on the verge of erasing this year’s losses. Gold extended gains amid speculation interest rates will stay low for longer.
The S&P 500 rose for a fifth straight day, with Apple Inc. leading the charge as it reached a record and helping lift the MSCI All-Country World Index to little changed for the year. Stocks got a lift in the afternoon as lawmakers pledged to keep working toward a coronavirus relief package and President Donald Trump said he could act unilaterally on some measures. The dollar slipped.
Equity gains have mounted in the past week amid better-than-forecast earnings and optimism on a coronavirus vaccine, but any hint that negotiators won’t be able to resolve differences over a new U.S. relief package has sparked jitters. The White House and congressional Democrats are up against a self- imposed Friday deadline to strike a deal as data Thursday showed almost 1.2 million unemployment claims.
“Anything that we can do to continue to provide a bridge to people as we get through this crisis is going to be really important,” said Chuck Cumello, president and chief executive officer of Essex Financial Services. “The U.S. consumer is driving two-thirds of the economy.”
Elsewhere, mining and energy producers were among the laggards as European stocks slumped. Turkey’s lira touched a record low against the dollar as interventions by state banks failed to reassure markets. Gold climbed above $2,050 an ounce in a fifth straight day of gains.
Here are some key events coming up:
* Germany’s June industrial production figures are scheduled for Friday.
* July U.S. jobs reports expected Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index rose 0.6% at 4 p.m. New York time.
* The Stoxx Europe 600 Index declined 0.7%.
* The MSCI Asia Pacific Index rose 0.2%.
Currencies
* The Bloomberg Dollar Spot Index slipped 0.1%.
* The Japanese yen was little changed at 105.56 per dollar.
* The Turkish lira weakened 2.5% to 7.2253 per dollar and fell as low as 7.31.
Bonds
* The yield on 10-year Treasuries decreased one basis point to 0.54%.
* Britain’s 10-year yield dipped two basis points to 0.11%.
* Germany’s 10-year yield declined three basis points to -0.53%.
Commodities
* West Texas Intermediate crude fell 0.4% to $42.03 a barrel.
* Gold strengthened 1.2% to $2,061.90 an ounce.
* Copper fell 0.1% to $2.9135 per pound.
–With assistance from Gregor Stuart Hunter, Adam Haigh and Todd White

Have a great night.

Be magnificent!
As ever,

Carolann

A doubtful friend is worse than a certain enemy.  Let a man be one thing or the other,
and we then know how to meet him.
                                                                              -Aesop, c. 620-564 BCE

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
Picnic Day, Australia.
Jamaica Independence Day.

The Indy 500 will run without fans this year 
If a car zooms around a turn and no one’s there to hear it, does it make a sound? -CNN

Five minutes is all it will take to make you fall in love with these 21st-century composers. –The NY Times.

Take a virtual stroll through the Bronx with Michael Kimmelman, The Times’s architecture critic, and the conservation ecologist Eric Sanderson as they explore the borough’s geological past.-The NY Times.

It really worked. Three men stranded on a remote, uninhabited Pacific Ocean island were rescued after their message in the sand was seen from the air. Take a look. –The Seattle Times.
On August 5, 1963 the United States, Britain and the Soviet Union signed a treaty in Moscow banning nuclear tests in the atmosphere, outer space and underwater. Go to article »

1583~Humphrey Gilbert claims Newfoundland for the British crown – first English colony in North America and the beginning of the British Empire.

See the devastation of the massive Beirut blast from above. -Bloomberg.

PHOTOS OF THE DAY

Hikers stop to admire the view of the full moon as it rises over Somerset.
CREDIT: MITCHELL GUNN/ESPA -IMAGES
​​​​​​​A boy runs past a WWII memorial sculpture entitled “The Tragedy of the people” by Zurab Tsereteli at Poklonnaya Hill in western Moscow
CREDIT: ALEXANDER NEMENOV/AFP

The picture shows a rare weather pattern known as a blue sky halo – where a rainbow forms around the sun-in the sky above Coverack, Cornwall.
CREDIT: ZOE HOLMES/SWNS.CO.

The view over Gold Hill at Shaftesbury, Dorset.
CREDIT: RACHEL BAKER/BNPS
Market Closes for August 5^th , 2020 

Market Index	Close	Change
Dow Jones	27201.52	+373.05
		+1.39%
S&P 500	3327.77	+21.26
		+0.64%
NASDAQ	10998.398	+57.232 +0.52%
TSX	16501.61	+133.58
		+0.82%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	22514.85	-58.81
		-0.26%
HANG SENG	25102.54	+155.91
		+0.63%
SENSEX	37663.33	-24.58
		-0.07%
FTSE 100*	6104.72	+68.72 +1.14%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.502	0.431
CND. 30 Year Bond	0.946	0.887
U.S.    10 Year Bond	0.5477	0.5085
U.S. 30 Year Bond	1.2224	1.1869

Currencies

BOC Close	Today	Previous
Canadian $	0.75387	0.75080
US $	1.32648	1.33191
Euro Rate 1 Euro=		Inverse
Canadian $	1.57361	0.63548
US $	1.18631	0.84295

Commodities

Gold	Close	Previous
London Gold Fix	1977.90	1958.55
Oil
WTI Crude Future	42.19	41.70

Market Commentary:
On this day in 1861, federal income tax was imposed on the public for the first time, as the Revenue Act of 1861 became law, assessing a tax of 3% on all personal income in excess of $800 a year to help pay for the Civil War.
Canada
By Michael Bellusci
(Bloomberg) — Canadian shares advanced Wednesday amid a slew of corporate earnings while insurance stocks rallied.
The S&P/TSX Composite Index gained 0.8%, with nine of 11 sectors rising. Great-West Lifeco Inc. jumped the most since June 8 after posting second-quarter financial results that crushed analysts’ estimates.
After months of lagging behind their equity counterparts, fixed-income ETFs attracted net capital of C$3.7 billion ($2.8 billion) in July, their highest month of inflows this year, according to data from National Bank of Canada.
Meanwhile, Husky Energy Inc. returned to the Canadian- dollar bond market for the first time in three years as investors sort out the lowest corporate bond yields on record.
Commodities
* Western Canada Select crude oil traded at a $12.00 discount to West Texas Intermediate
* Spot gold rose 0.9% to $2,038.18 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.3% to C$1.3278 per U.S. dollar
* The 10-year government bond yield rose 6.6 basis points to 0.494%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.8 percent, or 133.58 to 16,501.61 in Toronto.
The index advanced to the highest closing level since March 5.
Shopify Inc. contributed the most to the index gain, increasing 1.3 percent. Hudbay Minerals Inc. had the largest increase, rising 10.0 percent.
Today, 149 of 221 shares rose, while 70 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* The index advanced 1.4 percent in the past 52 weeks. The MSCI AC Americas Index gained 16 percent in the same period
* The S&P/TSX Composite is 8.2 percent below its 52-week high on Feb. 20, 2020 and 47.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 2.4 percent in the past 5 days and rose 5.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 22.8 on a trailing basis and 25.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.5t
* 30-day price volatility rose to 13.86 percent compared with 13.74 percent in the previous session and the average of 16.97 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 71.1909| 1.6| 24/1
Materials | 16.9642| 0.6| 33/17
Industrials | 16.8361| 0.9| 24/4
Energy | 16.2087| 0.8| 16/8
Information Technology | 15.7898| 0.9| 9/1
Consumer Discretionary | 5.7588| 1.0| 9/4
Real Estate | 3.2029| 0.6| 20/6
Consumer Staples | 1.5226| 0.2| 6/5
Health Care | 0.6212| 0.4| 4/4
Communication Services | -7.1064| -0.8| 0/8
Utilities | -7.3967| -0.9| 4/12
US
By Vildana Hajric
(Bloomberg) — The S&P 500 Index posted a fourth straight advance amid encouraging news on the vaccine front and speculation U.S. lawmakers are making progress on an economic aid package.
The benchmark stock gauge rose to within 2% of its record closing high of 3,386, and a measure of global equities was near wiping out its losses for the year. Payment processor Square Inc. and media titan Walt Disney Co. rose after better-than-forecast earnings. Novavax Inc. jumped on positive early data from its experimental vaccine for Covid-19.
Gold continued its ascent above a record $2,000 an ounce as investors sought an alternative to low bond yields. The dollar fell. Ten-year Treasury yields edged up. Oil rose after a decline in U.S. stockpiles.
Investors have been pushing stocks higher in recent days as pressure grows on Republicans and Democrats to resolve differences over a new U.S. virus relief package, especially with jobs data Wednesday painting a grim picture. Gains in precious metals suggest traders are nervous about the outlook for the global economy and seeking a hedge.
“Stock markets in general have been underpinned by expectations for further stimulus out of the U.S.,” said Candice Bangsund, portfolio manager of global asset allocation at Fiera Capital Corp. “The second-quarter earnings season has also lent some notable support and helped to counteract some of the fears about the latest resurgence in Covid cases.” U.S. economic data was mixed, with payroll gains slowing sharply in July, suggesting the pickup in coronavirus cases is putting the brakes on the job market. Meanwhile, service industries expanded in July at the fastest pace since February 2019.
Elsewhere, the Stoxx Europe 600 Index advanced while Asian shares were mixed.
Here are some key events coming up:
* Reserve Bank of India and Bank of England rate decisions due Thursday.
* Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.
* July U.S. employment and jobs reports expected Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index advanced 0.6% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index gained 0.5%.
* The MSCI Asia Pacific Index climbed 0.7%.
* The MSCI Emerging Market Index advanced 1.2%.
Currencies
* The Bloomberg Dollar Spot Index declined 0.5%.
* The euro increased 0.5% to $1.1864.
* The Japanese yen rose 0.1% to 105.59 per dollar.
Bonds
* The yield on 10-year Treasuries added four basis points to 0.54%.
* Germany’s 10-year yield increased five basis points to -0.51%.
* Britain’s 10-year yield climbed five basis points to 0.13%.
Commodities
* West Texas Intermediate crude added 1.1% to $42.16 a barrel.
* Gold strengthened 1.1% to $2,040.59 an ounce.
–With assistance from Gregor Stuart Hunter, Joanna Ossinger, Marton Eder, Farah Elbahrawy, Andreea Papuc and Anchalee Worrachate.
Have a great night.

Be magnificent!
As ever,

Carolann

Great thoughts reduced to practice become great acts.
                                    -William Hazlitt, 1778-1830

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
August 4, 1944: Anne Frank arrested in Amsterdam by German Security Police (Grüne Polizei) following a tip-off from an informer who was never identified.

1962-Nelson Mandela arrested.
Louis Armstrong, musician, b. 1900.

Get a glimpse of life within the remote villages of Patagonia. -The New York Times.

Inside undersea rocks, life thrives without sunshine. (h/t Scott Kominers) –Bloomberg.

On Aug. 4, 1914, Britain declared war on Germany while the United States proclaimed its neutrality. Go to article »

PHOTOS OF THE DAY

The moon rises behind the columns if the ancients marble Temple of Poseidon at Cape Sounion, about 70km (45 miles) south of Athens
CREDIT: AP PHOTO/PETROS GIANNAKOURIS

A stunning photo of a bubble of gas that resembles a butterfly has been taken by the European Southern Obsercatory
CREDIT: ESO/COVER IMAGES

The comet, which has been in the solar system for a month or so, is already near the horizon, in sharp contrast to the faint airglow and extreme brightness of the Big Dipper in the sky. Qiqihar, Heilongjiang province, China
CREDIT: COSTFOTO/BARCROFT MEDIA VIA GETTY IMAGES
Market Closes for August 4^th , 2020 

Market Index	Close	Change
Dow Jones	26828.47	+164.07
		+0.62%
S&P 500	3306.51	+11.90
		+0.36%
NASDAQ	10941.168	+38.371 +0.35%
TSX	16368.03	+198.82
		+1.23%

 

 

 

 

 

 

 

 

 

 

International Markets

Market Index	Close	Change
NIKKEI	22573.66	+378.28
		+1.70%
HANG SENG	24946.63	+488.50
		+2.00%
SENSEX	37687.91	+748.31
		+2.03%
FTSE 100*	6036.00	+3.15 +0.05%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	0.431	0.467
CND. 30 Year Bond	0.887	0.927
U.S.    10 Year Bond	0.5085	0.5282
U.S. 30 Year Bond	1.1869	1.1925

Currencies

BOC Close	Today	Previous
Canadian $	0.75080	0.74551
US $	1.33191	1.34136
Euro Rate 1 Euro=		Inverse
Canadian $	1.57183	0.63620
US $	1.18013	0.84736

Commodities

Gold	Close	Previous
London Gold Fix	1958.55	1957.65
Oil
WTI Crude Future	41.70	40.27

Market Commentary:
On this day in 1790, Congress enacted Alexander Hamilton’s plan to fund the public debt, ending years of turmoil and haggling over the junk bonds issued by the federal and state governments during the Revolution, making government spending possible, and giving birth to the American securities markets.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks rose Tuesday after trading was closed for Monday’s Civic Holiday.
The S&P/TSX Composite Index gained 1.2% to the highest since March 5. Energy shares led the way after oil climbed to the highest level in nearly two weeks after an explosion at Lebanon’s main port rocked the capital of Beirut.
Information technology stocks also rallied, with Lighspeed POS up 9.8%, and Kinaxis Inc. advancing 5.8%. Spot gold soared to a record above $2,000 an ounce as investors continue to seek a haven for their assets amid daunting economic and geopolitical risks.
Commodities
* Western Canada Select crude oil traded at a $11.15 discount to West Texas Intermediate
* Spot gold was flat at ~$2,019.23 an ounce
FX/Bonds
* The Canadian dollar weakened 0.1% to C$1.3325 per U.S. dollar
* The 10-year government bond yield fell 3.5 basis points to 0.432%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose 1.2 percent at 16,368.03 in Toronto. The move was the biggest since rising 1.7 percent on July 14 and follows the previous session’s decrease of 0.8 percent.
Shopify Inc. contributed the most to the index gain, increasing 4.8 percent. Lightspeed POS Inc. had the largest increase, rising 9.8 percent.
Today, 146 of 221 shares rose, while 72 fell; 8 of 11 sectors were higher, led by materials stocks.
Insights
* The index advanced 0.6 percent in the past 52 weeks. The MSCI AC Americas Index gained 12 percent in the same period
* The S&P/TSX Composite is 8.9 percent below its 52-week high on Feb. 20, 2020 and 46.5 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.3 percent in the past 5 days and rose 4.9 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 22.6 on a trailing basis and 24.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.46t
* 30-day price volatility rose to 13.74 percent compared with 13.36 percent in the previous session and the average of 17.11 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 67.9995| 2.6| 41/8
Energy | 63.4970| 3.3| 24/0
Information Technology | 54.3912| 3.2| 7/3
Communication Services | 17.2336| 2.0| 8/0
Consumer Discretionary | 6.6733| 1.2| 10/3
Health Care | 5.0674| 3.0| 6/3
Utilities | 2.3363| 0.3| 8/8
Real Estate | 0.1036| 0.0| 11/15
Consumer Staples | -0.5796| -0.1| 8/3
Financials | -4.0159| -0.1| 11/13
Industrials | -13.8824| -0.7| 12/16
US
By Brendan Walsh
(Bloomberg) — U.S. equities eked out a gain as investors tried to gauge the outlook for a stimulus bill to blunt the economic impact of the coronavirus pandemic.
The S&P 500 Index ended 0.4% higher after wavering between small losses and gains throughout the day. Energy companies led the advance as crude climbed.
Financial shares suffered as American International Group Inc. fell after posting a $7.9 billion loss. Treasuries rose. Argentina’s overseas notes rallied after the government reached a $65 billion restructuring deal with creditors.
With the S&P 500 less than 3% off its pre-pandemic high, U.S. equity investors are closely monitoring efforts in Washington to negotiate a new virus relief package that many see as key to keeping the economy afloat. The pressure is building as negotiators seek to shrink the wide gap that remains between Republicans and Democrats.
“We see U.S. stocks at risk of fading fiscal stimulus,” BlackRock Investment Institute strategists led by Mike Pyle wrote in a note. “U.S. employment figures are in focus this week as this fiscal cliff nears and the pandemic’s spread in Sunbelt states is starting to affect economic activity.”
Elsewhere, shares dipped in Europe, with Diageo Plc tumbling after bar closures sapped sales. Major indexes rose more than 1% in Japan and Hong Kong.
West Texas-grade crude oil rose past $41 a barrel after the biggest gain in almost two weeks Monday. Spot gold reached an intraday record.
Here are some key events coming up:
* Euro-zone PMI reports are scheduled for Wednesday.
* Reserve Bank of India and Bank of England rate decisions due Thursday.
* Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.
* July U.S. employment and jobs reports expected Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index rose 0.4% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.1%.
* The MSCI Asia Pacific Index increased 2%.
Currencies
* The Bloomberg Dollar Spot Index slipped 0.2%.
* The euro rose 0.3% to $1.1801.
* The Japanese yen rose 0.3% to 105.67 per dollar.
Bonds
* The yield on 10-year Treasuries decreased five basis points to 0.51%.
* Britain’s 10-year yield fell two basis points to 0.074%.
* Germany’s 10-year yield dipped three basis points to -0.55%.
Commodities
* West Texas Intermediate crude rose 1.5% to $41.61 a barrel.
* Gold rose 1.8% to $2,012.38 an ounce.
* Copper fell 0.5% to $2.8965 per pound.
–With assistance from Nancy Moran, Andreea Papuc, Todd White and Cecile Gutscher.
Have a great night.

Be magnificent!
As ever,

Carolann

Never ruin an apology with an excuse.
        –Benjamin Franklin, 1706-1790

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com