April 7, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.  World Health Day.
April 7, 1948: WHO founded by the United Nations.

April 7, 1947 Auto pioneer Henry Ford died at age 83. Go to article »

Billy Holiday, singer, b. 1915.
William Wordsworth, poet, b. 1770.

Scientists watch a failed star turn into a planet.

Asteroid the size of a house flies by Earth.  Have no fear, NASA is here. The agency said it is standing by and ready to deflect all objects that pose a threat to our planet.

The world’s skinniest skyscraper is ready for its first residents.  The building is skinny, but the prices are not. A studio apartment goes for $7.75 million and the penthouse is $66 million.

PHOTOS OF THE DAY

A gull flies as waves crash against a lighthouse during Storm Diego
CREDIT: Stéphane Mahé/Reuters

A child plays in an onion field
CREDIT: Anadolu Agency/Getty Images

Alvin Ailey American Dance Theater performs at the Dorothy Chandler Pavilion, Los Angeles
CREDIT: Earl Gibson III/Rex/Shutterstock

Market Closes for April 7^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1775, Francis Cabot Lowell, one of the founding fathers of the American industrial revolution, was born in Newburyport, Mass. In 1814, in Waltham, Mass., Lowell built the first textile mill that could turn raw cotton into finished cloth.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian stocks edged higher, erasing earlier losses as investors weighed the impact of the looming Canadian federal budget release.
The S&P/TSX Composite rose 0.2% at 21,834.89 in Toronto.
The move follows the previous session’s decrease of 0.6%.
Nutrien Ltd. contributed the most to the index gain, increasing 3.6%.
NexGen Energy Ltd. had the largest increase, rising 11.4%.
Today, 167 of 239 shares rose, while 68 fell; 8 of 11 sectors were higher, led by materials and energy stocks.
Insights
* So far this week, the index fell 0.5%, heading for the biggest decline since the week ended Feb. 18
* The index advanced 14% in the past 52 weeks. The MSCI AC Americas Index gained 9% in the same period
* The S&P/TSX Composite is 1.7% below its 52-week high on April 5, 2022 and 15.1% above its low on April 20, 2021
* The S&P/TSX Composite is down 0.3% in the past 5 days and rose 2.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.3 on a trailing basis and 14 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.48t
* 30-day price volatility fell to 11.15% compared with 12.05% in the previous session and the average of 12.69% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 52.2281| 1.8| 47/5
* Energy | 46.7661| 1.3| 30/4
* Communication Services | 12.4480| 1.1| 6/1
* Consumer Staples | 10.0312| 1.2| 10/1
* Industrials | 6.4800| 0.3| 14/15
* Utilities | 5.8311| 0.6| 14/2
* Consumer Discretionary | 4.8430| 0.7| 12/2
* Real Estate | 3.5228| 0.6| 17/6
* Health Care | -3.7997| -2.6| 1/6
* Information Technology | -11.4086| -0.8| 7/8
* Financials | -80.6647| -1.2| 9/18
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Nutrien | 17.2100| 3.6| -47.0| 38.1
* Canadian Natural Resources | 10.7500| 1.7| -49.4| 48.4
* Cameco | 8.5700| 8.8| 7.0| 39.7
* Brookfield Asset Management | -10.0400| -1.4| -40.3| -7.2
* Bank of Montreal | -10.8600| -1.6| -3.7| 5.7
* Royal Bank of Canada | -15.4400| -1.2| 32.4| 1.0

US
By Isabelle Lee and Emily Graffeo
(Bloomberg) — Markets stabilized on Thursday as traders weighed comments from Federal Reserve officials following minutes from the central bank’s latest meeting, which provided more clarity on the bank’s campaign to quell rampant inflation.
U.S. equities rebounded from a decline while the U.S.
Treasury curve steepened with 10- and 30-year yields rising to the highest level since 2019.
St. Louis Fed President James Bullard said early in the session he prefers rising rates to 3% to 3.25% in the second half of 2022, while Chicago Fed President Charles Evans and his Atlanta counterpart Raphael Bostic said they favor raising rates to neutral while still monitoring how the economy performs as they proceed.
“The soft landing that the Fed so desires is easier said than done, especially in an environment when inflation is so high and energy prices are through the roof,” Craig Erlam, senior market analyst at Oanda, wrote in a note. “And when you consider the kind of tightening that’s being proposed, the economy is going to have to display incredible resilience to weather the storm.”
The dollar strengthen against major peers.
Data Thursday showed applications for U.S. state unemployment insurance fell last week by more than forecast, backing the Fed’s contention that the economy is strong enough to withstand rate increases. Meanwhile, crude oil fluctuated as the International Energy Agency announced they would be adding 240 million barrels of oil to the global supply given Russia’s war in Ukraine.
Coal stocks gained as the European Union agreed to ban coal imports from Moscow.
The Fed minutes Wednesday showed officials were focused on tamping down inflation and outlined plans to pare its balance sheet by more than $1 trillion a year.
Though hawkish, the minutes provided some clarity for investors who were concerned that a too-steep tightening path could stall economic growth.
“With a clear vision of the cadence and tempo of both rate hikes and balance sheets reduction, the market’s reaction function to hawkish commentary should be far less volatile,” wrote Art Hogan, chief market strategist at National Securities.

The Europe Stoxx 600 declined while shares of Atlantia SpA, the billionaire Benettons’ highway and airport group, held on to gains after a non-binding bid from Global Infrastructure Partners and Brookfield Asset Management Inc.
The European energy sector ended in the red as Shell Plc’s hit from its withdrawal from Russia weighed on oil producers.
On the war front, President Vladimir Putin’s army is expected to regroup for a showdown in Ukraine’s east after failing to seize the capital Kyiv with a lighting war.

Key events to watch this week:
* Reserve Bank of India rate decision Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index fell 0.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.2% to $1.0873
* The British pound was little changed at $1.3073
* The Japanese yen fell 0.1% to 123.95 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 2.64%
* Germany’s 10-year yield advanced three basis points to 0.68%
* Britain’s 10-year yield advanced three basis points to 1.73%
Commodities
* West Texas Intermediate crude rose 0.7% to $96.93 a barrel
* Gold futures rose 0.6% to $1,935.50 an ounce
–With assistance from Lynn Thomasson, Robert Brand and Sunil Jagtiani.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

There is genius in persistence.  It conquers all opposers.  It gives confidence.  It annihilates obstacles.  
Everyone believes in a determined man.  People know that when he undertakes a thing, the battle is half won,
for his rule is to accomplish whatever he sets out to do. -Orison Swett Marden, 1848-1924.

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