April 18, 2022 Newsletter

Dear Friends,

Tangents:

Carolann is away from office this afternoon, I’ll be writing the newsletter on behalf of her.

PHOTOS OF THE DAY

The cherry orchard at Alnwick Gardens, which has the largest collection of Tai-haku trees
CREDIT: Lee Smith/Reuters

The new Wormhole library at Haikou Bay
CREDIT: Xinhua/Rex/Shutterstock

Up-cycled tires being painted for use at a go-karting track
CREDIT: AFP/Getty Images

Market Closes for April 18^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities rose for the third straight day to the highest closing point in nearly two weeks as a rally in energy and materials stocks offset a drop in the health-care sector. The S&P/TSX Composite rose slightly by 0.1%, or 22.71, to 21,878.41 in Toronto.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.0%. ARC Resources Ltd. had the largest increase, rising 6.6%.
Today, 98 of 239 shares rose, while 139 fell; 4 of 11 sectors were higher, led by energy stocks.
Insights
* The index advanced 13% in the past 52 weeks. The MSCI AC Americas Index gained 3.7% in the same period
* The S&P/TSX Composite is 1.5% below its 52-week high on April 5, 2022 and 15.3% above its low on April 20, 2021
* The S&P/TSX Composite is unchanged in the past 5 days and rose 3.3% 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$3.5t
* 30-day price volatility fell to 10.42% compared with 10.55% in the previous session and the average of 11.96% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 48.2467| 1.3| 28/6
Materials | 23.5186| 0.8| 21/30
Information Technology | 1.9280| 0.1| 3/13
Consumer Discretionary | 0.3477| 0.0| 10/4
Real Estate | -2.1775| -0.4| 7/16
Consumer Staples | -2.3210| -0.3| 3/8
Utilities | -3.3708| -0.3| 6/10
Communication Services | -4.3363| -0.4| 3/4
Health Care | -7.1314| -5.1| 0/8
Industrials | -15.0750| -0.6| 6/23
Financials | -16.9272| -0.3| 11/17
================================================================
| | |Volume VS| YTD |Index Points | | 20D AVG | Change Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian Natural Resources | 13.4800| 2.0| -0.4| 58.4
Nutrien | 11.8600| 2.2| -16.3| 51.9
First Quantum Minerals | 7.1080| 4.6| 45.7| 41.7
Bank of Nova Scotia| -4.3060| -0.6| -7.2| -5.5
Canadian National | -4.3540| -0.7| -59.6| 2.6
Brookfield Asset Management | -10.2400| -1.5| -50.8| -11.2
US
(Bloomberg) — U.S. stocks ended little changed in thin trading Monday and Treasuries ticked lower at the long-end of the curve as investors focused on corporate results and prospects for faster policy tightening by the Federal Reserve.
The S&P 500 closed down less than 0.1%, after swinging between narrow gains and losses on volumes almost 20% below the 30-day average in the first trading day following a long holiday weekend. Bank of America Corp. was poised for the biggest daily advance in more than a month as the bank joined a string of earnings beats by big lenders such as Morgan Stanley and Citigroup Inc. Markets in much of Europe were shut for Easter.
Treasury yields moved higher in longer maturities, as investors looked forward to speeches by Fed policy makers this week for new clues on whether the central bank will raise interest rates by a half point in May to curb price pressures. A jump in energy costs highlighted inflation concerns, as U.S. natural gas prices surged to the highest intraday level in more than 13 years. Oil climbed above $108 a barrel in New York.
“Volumes are light on this Easter Monday, with many European markets closed and even more families on spring break,” said Art Hogan, chief market strategist at National Securities. “In that environment it doesn’t take much of a sentiment shift to produce a relatively out-sized move.”
In other market moves, Twitter Inc. rose the most in two weeks after the social media company launched a so-called poison pill to thwart Elon Musk’s unsolicited bid to take the company private and Musk said the economic interests of the board are not aligned with shareholders.  Twitter posted modest gains in after-hours trading following a report that Apollo Global Management Inc. has held discussions about backing a possible deal for Twitter either by backing the offer made by Musk or another bidder like private- equity firm Thoma Bravo.
“The alternating excited and depressed markets have been a boon for traders, but not so much for long-term investors,” Paul Nolte, portfolio manager at Kingsview Investment Management, wrote in a report. “Volatility is up, worries abound, so investors are looking at companies and sectors that can still do well no matter the outlook. If inflation continues to be one of those worries, look for commodity companies to continue their run higher as well.”
The pattern across markets suggests investors remain uncertain whether high inflation has peaked. Price pressures are being fanned by supply-chain snarls from China’s Covid
restrictions and disruptions to commodity flows due to the war.
Concern is growing that the U.S. economy faces a downturn as the Fed pivots toward aggressive policy tightening to contain the cost of living.
History suggests the Fed will face a difficult task cooling inflation without causing a U.S. recession, according to Goldman Sachs Group Inc. It put the odds of a contraction at about 35% over the next two years.
The positive effects from inflation on earnings growth for U.S. firms have peaked as rising costs trim their margins and price pressures caused by the Ukraine war hit consumers, according to Morgan Stanley strategists.
A New York Fed survey showed potential home buyers are getting discouraged by rising mortgage rates and home prices. Chinese data were mixed, adding to investor concerns about the country’s stalled economic recovery. In Shanghai, officials reported the first deaths from a surging Covid-19 outbreak. The city has also published plans to resume production after a prolonged lockdown, recommending businesses adopt so-called closed-loop management, where workers live on-site and are tested regularly.
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 rose 0.1%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.2% to $1.0783
* The British pound fell 0.4% to $1.3011
* The Japanese yen fell 0.4% to 126.95 per dollar
Bonds
* The yield on 10-year Treasuries advanced three basis points to 2.86%
Commodities
* West Texas Intermediate crude rose 0.9% to $107.87 a barrel
* Gold futures rose 0.3% to $1,981.70 an ounce

–With assistance from Abigail Moses, Isabelle Lee and Peyton Forte.

Have a wonderful evening.

Be magnificent!

As ever,

Isabel

There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered. Nelson Rolihlahla Mandela, 1918 – 2013

Assistant to Carolann Steinhoff,

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

Tel: 778.430.5808
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