September 2, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.

September 2, 1969: The first automatic teller machine to use magnetic-striped cards opened to the public at Chemical Bank in Rockville Centre, New York.  Go to article »

1666: The Great Fire of London begins accidentally in the house of the king’s baker; it burned four days and destroyed a large part of the city, including Old St. Paul’s Cathedral and about 13,000 houses.
1864: Sherman enters Atlanta.

These cute robots could deliver your next coffee.  Some cafes and hotels have already deployed these coffee-delivering robots that resemble R2D2.

Webb telescope captures its first direct image of an exoplanet.   This planet outside of our solar system is a gas giant located about 385 light-years away from Earth. Take a look at the exoplanet here.

Photographer captures a rainbow in a very unusual place.  Now, these are the type of unexpected photos we actually like to see. Check out this stunning natural phenomenon captured in Washington state.

Stunningly perfect ‘Einstein ring’ captured by James Webb Space Telescope: NASA’s James Webb Space Telescope has snapped a perfect shot of an “Einstein ring.” The stunning halo is the result of light from a distant galaxy passing through warped space-time surrounding another galaxy aligned between the distant light source and Earth.
The new image, which was created by a Reddit-based astronomy enthusiast, is one of the best examples of the trippy astronomical phenomenon ever captured.

7,500-year-old Spanish ‘Stonehenge’ discovered on future avocado farm: Archaeologists have unearthed one of Europe’s largest Neolithic standing stone complexes near the city of Huelva in southwestern Spain, ahead of plans to grow avocados there.  The oldest upright stones — called “menhirs” in many parts of Europe, possibly from a Celtic word for “stone” — could be up to 7,500 years old, and the entire complex consists of thousands of individual stones spread out over 1,500 acres (600 hectares) of the sides and top of a small hill.  Full Story: Live Science (8/30) 

17 people found in a medieval well in England were victims of an antisemitic massacre, DNA reveals: The remains of 17 people, mainly children, found in 2004 during a construction project in Norwich, England, are probably those of medieval Jews massacred for their religion, according to a new study.   Genetic analysis of the remains indicates the dead were all Ashkenazi Jews — that is, the descendants of Jews who had established communities in northern Europe, mainly in what are now Germany and France, during the early medieval period. (Many Ashkenzai later moved from these regions to eastern Europe, after the 11th to 13th centuries.) And other research suggests the dead people in Norwich were murdered during an antisemitic massacre in the city in 1190, by crusaders who had pledged to campaign against Muslims in Jerusalem.  Full Story: Live Science (9/2)
PHOTOS OF THE DAY

A man dressed in a Spider-Man suit checks his phone
Photograph: Mark Baker/AP

Mapuche men, wearing ceremonial masks outside their homes. The men are in charge of driving away negative energies during the Mapuche new year
Photograph: Rodrigo Abd/AP

The world’s largest zoetrope, created by Peter Hudson with Building 180 and Les Machines de l’île, had its premiere in Canning Town as part of the Greenwich and Docklands international festival. The artwork, called Charon, is a 9.8-metre (32ft) high rotating zoetrope with posed human skeletons
Photograph: David Levene/The Guardian
Market Closes for September 2, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1776, a committee led by Thomas Jefferson recommended to the Continental Congress that the U.S. create a basic unit of currency called the “dollar.” The U.S. dollar derived its name from a Spanish and Austrian coin originally called the “thaler” (named for Joachimsthal, a silver-mining town in Bohemia).
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.7% at 19,270.85 in Toronto.
The move was the biggest since rising 0.8% on Aug. 25 and follows the previous session’s decrease of 1%.
Toronto-Dominion Bank contributed the most to the index gain, increasing 1.2%.
Eldorado Gold Corp. had the largest increase, rising 6.2%.
Today, 175 of 238 shares rose, while 60 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* This year, the index fell 9.2%, heading for the worst year since 2018
* This quarter, the index rose 2.2%
* So far this week, the index fell 3%, heading for the biggest decline since the week ended July 15
* The index declined 7.3% in the past 52 weeks. The MSCI AC Americas Index lost 15% in the same period
* The S&P/TSX Composite is 13.2% below its 52-week high on April 5, 2022 and 6.1% above its low on July 14, 2022
* 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$3.06t
* 30-day price volatility rose to 13.59% compared with 13.52% in the previous session and the average of 14.20% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 53.5234| 2.6| 46/5
Energy | 50.4868| 1.4| 36/1
Financials | 38.3953| 0.6| 24/5
Consumer Staples | 5.2516| 0.6| 8/3
Real Estate | 2.0705| 0.4| 18/4
Communication Services | 0.7647| 0.1| 4/3
Consumer Discretionary | 0.0014| 0.0| 8/5
Health Care | -1.3449| -1.8| 2/4
Industrials | -1.7091| -0.1| 20/9
Utilities | -4.5748| -0.4| 2/14
Information Technology | -14.7371| -1.5| 7/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
TD Bank | 12.7800| 1.2| -27.4| -11.8
Royal Bank of Canada | 11.2300| 0.9| -6.0| -8.4
Canadian Natural Resources | 10.7400| 1.9| -33.1| 38.1
Thomson Reuters | -1.8260| -1.1| -4.3| -5.1
Canadian National | -2.5400| -0.4| -4.5| -1.0
Shopify | -12.6700| -3.9| 20.0| -77.3
US
By Elaine Chen
(Bloomberg) — US stocks suffered a third weekly loss after jobs data did little to alter views on the Federal Reserve’s next policy move.
The S&P 500 contended with its longest weekly losing streak since mid-June, as the central bank’s hawkish chorus grew louder in recent days.
The index also ended Friday lower, erasing the gains it notched earlier in the session after the jobs report showed some signs of easing in a still-tight American labor market.
A delay in the opening of a key gas pipeline to Europe bruised sentiment in the afternoon, ahead of a three-day weekend for American markets.
Treasuries rallied on Friday, led by short maturities.
The policy-sensitive two-year yield ended the week nearly where it began, after topping 3.5% earlier.
The labor-market data on Friday add to a bevy of reports this week that validate the Fed’s assertion that the economy is robust enough to withstand more tightening.
Risk assets have been under pressure since Fed Chair Jerome Powell made clear the central bank will raise rates further and keep them elevated until price gains slow.
Despite the reassuring report, markets are still pricing in the likelihood of a three-quarters of a percentage point interest-rate hike this month.
“Unemployment remains relatively low, but the cause may be minimal labor force participation rather than a booming economy,” said Richard Flynn, managing director at Charles Schwab UK. “Investors will be mindful that jobs reports are a lagging indicator that are often strong heading into a recession. Indeed, broader economic indicators have been weakening recently.”
Meanwhile, in a massive blow to Europe, Russia’s Gazprom PJSC said its key gas pipeline to Europe can’t reopen as planned on Saturday as a new technical issue has been discovered.
The news moves the region a step closer to blackouts, rationing and a severe recession.
Investors are already concerned about the European Central Bank possibly raising rates by three-quarters of a percentage point next week.
That, combined with the restriction of natural gas supplies and escalating US-China tensions has worried investors, said Sam Stovall, chief investment strategist at CFRA Research.
Traders “don’t want to take extended long positions and thereby potentially be exposed over the long weekend,” he said.
Concern that rising rates will hurt growth has already weighed on markets, pushing global bonds into their first bear market in a generation.
The Bloomberg Global Aggregate Total Return Index of government and investment-grade corporate bonds down more than 20% from a 2021 peak.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.4%
* The Dow Jones Industrial Average fell 1.1%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $0.9952
* The British pound fell 0.3% to $1.1508
* The Japanese yen was little changed at 140.25 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 3.20%
* Germany’s 10-year yield declined four basis points to 1.53%
* Britain’s 10-year yield advanced four basis points to 2.92%
Commodities
* West Texas Intermediate crude rose 0.5% to $87 a barrel
* Gold futures rose 0.6% to $1,720.30 an ounce
–With assistance from Cecile Gutscher, Emily Graffeo, Elaine Chen and Vildana Hajric.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Continuous effort, not strength or intelligence – is the key to unlocking our potential. -Sir 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