August 31, 2022 Newsletter

Dear Friends,

Tangents:
On Aug. 31, 1997, Britain’s Princess Diana died in a car crash in Paris at age 36.  Go to article »
August 31, 2022: Kyrgyzstan declares independence from the Soviet Union and becomes an independent state.
1896: Gold discovered, Klondike.

‘This is so embarrassing’: Woman gets stuck upside down at the gym:  A woman used her smartwatch to call 911 after getting stuck in an interesting position at the gym. Watch the video here.
NASA releases stunning new image of the Phantom Galaxy:  In a galaxy far, far away — 32 million light-years from Earth — there is a remarkable spiral of solar systems. Take a look at the new image here.
How Princess Diana’s style legacy remains relevant.  Today marks 25 years since the death of Princess Diana, but her legacy and wardrobe continue to inspire new generations.

Goodbye, Mikhail Gorbachev.

PHOTOS OF THE DAY

At the annual Ride the Lights event thousands of cyclists travel along the six-mile promenade to preview the Lancashire seaside resort’s famous illuminations before the official switch-on this week
CREDIT: Christopher Thomond/The Guardian

Lightning strikes illuminate the stormy evening sky
CREDIT: Anadolu Agency/Getty Images

Pictures and flowers are left in memory of Diana, princess of Wales, around the Liberty Flame monument above the Alma Bridge tunnel where she died in a car accident on 31 August 1997
CREDIT: Sarah Meyssonnier/Reuters
Market Closes for August 31st, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1887, Thomas Edison received a U.S. patent for his new kinetoscope, the predecessor to the motion-picture camera.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities drop to their lowest level since late July, led by energy as oil posted a third monthly drop — the longest losing streak in more than two years.
The S&P/TSX Composite fell for the fourth day, dropping 0.9%, or 182.09 to 19,330.81 in Toronto.
The index dropped to the lowest closing level since July 27.
Enbridge Inc. contributed the most to the index decline, decreasing 3%.
Laurentian Bank of Canada had the largest drop, falling 10.3%.
Today, 164 of 238 shares fell, while 70 rose; 10 of 11 sectors were lower, led by financials stocks.
Insights
* This month, the index fell 1.8%
* The index declined 6.1% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 13% below its 52-week high on April 5 and 6.4% above its low on July 14
* The S&P/TSX Composite is down 3.4% in the past 5 days and fell 1.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13 on a trailing basis and 11.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility rose to 13.17% compared with 12.85% in the previous session and the average of 14.25% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -65.4928| -1.1| 11/18
Energy | -59.3403| -1.6| 8/30
Materials | -26.5313| -1.2| 13/35
Communication Services | -10.1868| -1.0| 0/7
Utilities | -6.4308| -0.6| 5/11
Consumer Discretionary | -5.9681| -0.9| 5/8
Real Estate | -4.1735| -0.8| 2/21
Consumer Staples | -3.9115| -0.5| 3/8
Information Technology | -1.6692| -0.2| 8/6
Industrials | -1.3595| -0.1| 10/19
Health Care | 2.9788| 4.2| 5/1
US
By Vildana Hajric
(Bloomberg) — US stocks and bonds ended a turbulent August lower as traders recalibrated rate-hike expectations after central banks across the globe vowed to step up their fights against inflation.
All major US indexes had their worst month since June.
Treasuries in August faced their biggest monthly loss since April as the Federal Reserve resolved to stay hawkish.
Oil posted a third monthly drop — the longest losing streak in more  than two years — hampered by the likelihood of slower global growth.
Federal Reserve officials in recent days quashed hopes of a dovish pivot, a view that had helped fuel bets that this year’s bear market is over.
Since then, investors have been sifting through sometimes-conflicting economic data for further policy clues.
While job openings data on Tuesday underscored tightness in the labor market, revamped ADP data on Wednesday showed US companies increased headcount at a relatively sluggish pace in August.
All eyes will be on the job report on Friday for further hints about the central bank’s path.
“Now that the Jackson Hole dust is settling, markets have gained clarity on today’s investment question,” said Florian Ielpo, head of macro research at Lombard Odier Asset Management.
“Yesterday’s question was ‘will inflation level down’ when today’s is ‘how big will the needed slowdown be.’ For now, markets are pricing a marked slowdown, not a fully-fledged recession.”
The Fed has ditched its soft landing goal and is instead aiming for a “growth recession,” which would mean a protracted period of meager growth and rising unemployment.
Euro-area inflation accelerated to another all-time high, strengthening the case for the European Central Bank to consider a jumbo interest-rate hike when it meets next week.
ECB Governing Council member Joachim Nagel urged a “strong” reaction.
Money markets have now priced in 125 basis points of tightening from the ECB by October, which implies a half-point hike and a three-quarter point increase spread over its next two policy decisions.
Investors are also contending with mounting friction between Beijing and Taipei after Taiwanese soldiers fired shots to ward off civilian drones and evaluating the latest Chinese data, which indicated factory activity shrank for a second month.
Power shortages, a property sector crisis and Covid outbreaks all took a toll.
Here are some key events to watch this week:
* ECB Governing Council members due to speak at event Tuesday through Sept. 2
* China Caixin manufacturing PMI, Thursday
* US nonfarm payrolls, Friday
* UK leadership ballot closes Friday. Winner announced Sept. 5

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.6%
* The Dow Jones Industrial Average fell 0.9%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.3% to $1.0049
* The British pound fell 0.3% to $1.1616
* The Japanese yen was little changed at 138.91 per dollar
Bonds
* The yield on 10-year Treasuries advanced six basis points to 3.16%
* Germany’s 10-year yield advanced three basis points to 1.54%
* Britain’s 10-year yield advanced 10 basis points to 2.80%
Commodities
* West Texas Intermediate crude fell 2.8% to $89.09 a barrel
* Gold futures fell 0.9% to $1,721.40 an ounce
–With assistance from Andreea Papuc, Felice Maranz, Isabelle Lee and Elizabeth Stanton.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Practice is the best of all instructors. –Publilius Syrus, 85-43 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