May 12, 2022 Newsletter

Dear Friends,

Tangents:
Carolann is away from the office today, I will be writing the newsletter on her behalf.  

PHOTOS OF THE DAY

A paratrooper of the Hungarian army’s 24th Gergely Bornemissza Scout Regiment leaps from an aircraft during a drill. The paratroopers made their jumps from heights of between 500 and 3,000 metres as a tribute to late Staff Sergeant Szabolcs Gál, a member of the Hungarian armed forces’ world champion parachute team, who died on Wednesday after a parachute accident at the end of April
CREDIT: Zsolt Czeglédi/EPA

Robbie Williams and Ed Godrich’s debut exhibition, Black and White Paintings, is installed at Sotheby’s
CREDIT: Tristan Fewings/Getty Images for Sotheby’s

A yacht sails across the North Sea under storm clouds
CREDIT:  Owen Humphreys/PA

Market Closes for May 12^th, 2022

International Markets

Bonds

Currencies

Commodities

Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the sixth day, dropping 0.7%, or 138.2 to 19,699.05 in Toronto. The index dropped to the lowest closing level since May 25, 2021.
Manulife Financial Corp. contributed the most to the index decline, decreasing 10.2%. Cascades Inc. had the largest drop, falling 23.0%.
Today, 144 of 239 shares fell, while 94 rose; 6 of 11 sectors were lower, led by financials stocks.
Insights
* So far this week, the index fell 4.5%, heading for the biggest decline since the week ended March 20
* The index advanced 3.1% in the past 52 weeks. The MSCI AC Americas Index lost 5% in the same period
* The S&P/TSX Composite is 11.3% below its 52-week high on April 5, 2022 and 3.3% above its low on May 13, 2021
* The S&P/TSX Composite is down 4.8% in the past 5 days and fell 9.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.5 on a trailing basis and 12.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.17t
* 30-day price volatility fell to 17.83% compared with 17.86% in the previous session and the average of 13.47% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -98.8451| -1.6| 8/19
Materials | -79.8607| -3.1| 4/48
Energy | -26.3822| -0.7| 7/27
Communication Services | -7.0578| -0.7| 2/5
Utilities | -4.5161| -0.5| 2/14
Industrials | -3.5215| -0.2| 14/16
Health Care | 3.4648| 3.8| 5/3
Real Estate | 7.3499| 1.4| 20/3
Consumer Discretionary | 13.8099| 2.2| 12/2
Consumer Staples | 23.1801| 2.9| 10/1
Information Technology | 34.1943| 3.4| 10/6
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Manulife Financial | -33.2600| -10.2| 139.8| -9.3
Brookfield Asset | | | |
Management | -17.1600| -2.8| 57.1| -22.5
Barrick Gold | -12.9700| -3.8| -16.1| 10.3
TC Energy | 7.5520| 1.6| -42.4| 20.6
Couche-Tard | 16.1700| 5.2| 50.6| 9.0
Shopify | 37.5200| 11.6| 41.2| -73.5
US
By Rita Nazareth
(Bloomberg) — Stocks rebounded sharply in the final hour of New York trading, with the S&P 500 almost wiping out a selloff that pushed it to the brink of a bear market earlier Thursday.
The turnaround came as Federal Reserve Bank of San Francisco President Mary Daly told Bloomberg News that a 75-basis-point increase in rates is “not a primary consideration, ”while adding that the US is in a strong place and should be able to withstand monetary tightening. For a market that’s been haunted by fears that restrictive Fed policy could cause a recession, those comments offered a degree of comfort at the end of a day marked by brutal volatility. Read: Powell Reiterates Half-Point Hikes Are Likely in June and July
The caution born from rising rates held firm on Thursday as data showed prices paid to US producers rose more than forecast in April, reinforcing bets the Fed will further tighten policy.
Treasuries rose with the dollar as investors sought haven assets.
The euro tumbled, the Swiss franc weakened to reach parity with the dollar for first time since 2019 and Hong Kong’s Monetary Authority intervened to defend its currency peg.
The Japanese yen — a traditional haven that, in an ironic twist, has not acted in that role so much of late — rallied.

Comments:
* “Right now, confidence is shaken among market participants and people are in no mood to take on risk,” wrote Fawad Razaqzada, an analyst at City Index and FOREX.com. “Even when we see periods of relative calm, it doesn’t last very long.”
* “It’s a really hard ride for retail investors, really hard,” said Craig W. Johnson, chief market technician at Piper Sandler.
* “Even though we should reach peak inflation soon, the issue of inflation is not going to subside enough to avoid stagflation from becoming a bigger problem,” said Matt Maley, chief market strategist at Miller Tabak + Co. “Therefore, any near-term bounce should be sold, even if that bounce lasts a couple of weeks.”

The Senate voted to confirm Jerome Powell for a second four-year term as Fed chairman on Thursday, trusting him to tackle the highest inflation to confront the country in decades.
The Fed began raising interest rates in March and says it will keep going until price pressures cool, seeking a soft landing that doesn’t crash the economy. But critics doubt the central bank can avoid a recession as it tightens monetary policy that had been eased dramatically during the pandemic.
US mortgage rates jumped again this week, extending a steep climb that is shutting some would-be homebuyers out of the market. The average for a 30-year loan was 5.3%, up from 5.27% last week and the highest since July 2009, Freddie Mac said Thursday.
Stocks
* The S&P 500 fell 0.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.2%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 1.3% to $1.0373
* The British pound fell 0.5% to $1.2194
* The Japanese yen rose 1.2% to 128.43 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to
2.87%
* Germany’s 10-year yield declined 15 basis points to 0.84%
* Britain’s 10-year yield declined 16 basis points to 1.66%
Commodities
* West Texas Intermediate crude rose 1% to $106.74 a barrel
* Gold futures fell 1.8% to $1,821.20 an ounce
–With assistance from Sunil Jagtiani, Andreea Papuc, Srinivasan Sivabalan, John Viljoen, Vildana Hajric, Isabelle Lee, Sagarika Jaisinghani and Ksenia Galouchko.
Have a lovely evening everyone.

Jordan

The brain is wider than the sky -Emily Dickinson, b. 1830

Assistant to Carolann Steinhoff

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

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