September 27,2022 Newsletter

Dear Friends,

Tangents: Happy Tuesday.

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

On Sept. 27, 1964, the Warren Commission issued a report concluding that Lee Harvey Oswald acted alone in assassinating President John F. Kennedy.

Halloween decorations perplex the internet in viral video. An Illinois family has the internet wondering how they created this levitating Halloween decoration inspired by the Netflix show “Stranger Things.”

Imagine the Milky Way’s 100 billion stars as a flat, tranquil pool of water. Now, picture someone dropping a stone the size of 400 million suns into that water. The tranquility is shattered. Wave after wave of energy ripples across the galaxy’s surface, jostling and bouncing its stars in a chaotic dance that takes eons to calm. Astronomers suspect that something like this may have really happened — not just once, but several times over the past several billion years.
Full Story: Live Science

A rare type of diamond may suggest that water can penetrate deeper into Earth’s interior than scientists previously thought. Though more than 70% of our planet is covered with water, there is also water in minerals more than 200 miles (322 kilometers) underground, including in the upper mantle, the semi malleable layer that the crust “floats” on top of. Scientists have long thought that as the upper mantle transitions into the hotter, denser lower mantle, minerals can hold far less water.
Full Story: Live Science
PHOTOS OF THE DAY

Cast members from Cirque du Soleil attend a photocall for their latest production, Kurios, at the Royal Albert Hall
Photograph: Jonathan Brady/PA

Scotland is home to about 80% of the puffin population of the British Isles, with colonies in places such as Shetland, Orkney, the Isle of May, Fair Isle and the Treshnish Isles. This image was captured at Hermaness national nature reserve
Credit to: The Guardian, Mon 26 Sep 2022

Spectators watch on from behind a protective barrier. The event captures the essence of early outback motor racing – rough, dusty and spectacular
Credit to: The Guardian, Tue 27 Sep 2022
Market Closes for September 27, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1820, a train carried passengers for the first time as George Stephenson, a self-taught engineer in the coal mines of Newcastle, England, demonstrated his new steam-propelled locomotive on rails, “The Rocket.” The train hauls a huge cargo load from Brusselton to Stockton—a total of just under 21 miles—in four hours and 12 minutes, a blistering pace of 5 mph.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite is declining slightly to 18,326.42 in Toronto.
Brookfield Asset Management Inc. contributed the most to the index decline, decreasing 1.7%. Algoma Steel Group Inc. had the largest drop, falling 3.2%.
In midday trading, 99 of 236 shares fell, while 137 rose; 6 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index fell 14%, heading for the worst year in at least 10 years
* This quarter, the index fell 2.8%
* This month, the index fell 5.2%
* The index declined 10% in the past 52 weeks. The MSCI AC Americas Index lost 20% in the same period
* The S&P/TSX Composite is 17.5% below its 52-week high on April 5, 2022 and 0.9% above its low on July 14, 2022
* The S&P/TSX Composite is down 5.4% in the past 5 days and fell 7.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.4 on a trailing basis and 11.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.93t
* 30-day price volatility fell to 16.51% compared with 16.65% in the previous session and the average of 14.54% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -47.3546| -0.8| 8/21
Utilities | -11.5601| -1.2| 5/11
Industrials | -4.8420| -0.2| 13/14
Real Estate | -2.2974| -0.5| 3/19
Information Technology | -2.1237| -0.2| 8/6
Health Care | -0.0218| 0.0| 4/3
Consumer Discretionary | 0.1491| 0.0| 8/6
Communication Services | 1.2670| 0.1| 2/5
Consumer Staples | 5.2671| 0.7| 9/2
Materials | 28.4676| 1.4| 40/11
Energy | 31.7398| 1.0| 37/1
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Brookfield Asset Management | -9.8350| -1.7| 61.6| -24.5
TD Bank | -7.5900| -0.7| -13.4| -13.1
RBC | -4.9940| -0.4| -10.8| -8.1
Enbridge | 4.0440| 0.6| 39.0| 4.1
Cameco | 4.1980| 4.4| -10.4| 30.7
Nutrien | 10.0400| 2.4| -17.9| 21.0
US
By Isabelle Lee, Vildana Hajric and Peyton Forte
(Bloomberg) — US stocks ended a volatile session lower after a slew of Federal Reserve officials hammered home their resolve to remain aggressive in their fight against inflation.
The S&P 500 dropped for the sixth straight session, its longest losing streak since February 2020, sparked by harsh central bank tightening programs. The index swung between gains and losses throughout the session after the Federal Reserve’s James Bullard added to a chorus of officials saying more rate hikes are needed and the risks to the economy remain elevated.
Longer-dated Treasuries swung to a loss, erasing an earlier rebound. The Bloomberg Dollar Spot Index set a fresh record high as investors sought haven assets.
Risk assets have been in a tailspin since the Fed delivered a third jumbo hike and warned of more pain to come. An escalation of Russia’s energy conflict with Europe after three pipelines were wrecked in suspected sabotage pushed European natural gas prices higher, further bruising sentiment during the session.
Investors also digested a flurry of data on Tuesday, including core capital goods orders and consumer sentiment, that paint a picture of an economy that can likely withstand additional harsh central bank tightening.
“It is an unsettled market,” said Louise Goudy, partner at Crewe Advisors. “People aren’t sure what the direction and the terminal rate will be, and that’s until we get a better sense of where we’re really going. But the Fed knows that inflation is a genie that’s hard to get back in the bottle and they want to make sure that they take care of the problem at hand.”
Markets have been dealing with “one rolling shock after another,” and haven’t been able to fully recover, Jack Janasiewicz, portfolio manager with Natixis Investment Managers Solutions, said in an interview at Bloomberg’s New York headquarters.
“I think what’s driving the markets is they just aren’t comfortable with what’s the terminal rate that the Fed needs to get to — is it here, is it much higher, is it close?,” he said “That uncertainty creates interest-rate volatility and I think that’s what the market’s having a tough time digesting.”
Higher interest rates and the dollar are driving a lot of the recent selling, Shawn Cruz, head trading strategist at TD Ameritrade, said in an interview.
“Right now there’s a lot of variables up in the air and we’re not going back and forth between optimism and pessimism — there’s a legitimate repricing and re-evaluation going on at the moment, so it makes sense that you probably aren’t going to see technical levels hold, per se,” he said.
But every tumultuous market day is a step closer to recovery, according to Julie Biel, portfolio manager for Kayne Anderson Rudnick.
“I think there’s more realism, there’s more understanding that a soft landing is just impossible to really navigate when you’ve let out this much fiscal and monetary policy,” she said. “It’s just not possible to engineer this with inflation this high. And so that realism is a positive thing. The thing is that we still kind of have a long way to go in terms of a possible correction.”
UK markets also remained in turmoil days after the new prime minister unveiled sweeping tax cuts that threaten to add to inflationary pressures. The 30-year UK government bond yield topped 5% for the first time in two decades and the pound held near $1.07.

Key events this week:
* Fed’s Mary Daly, Raphael Bostic, Charles Evans and ECB President Christine Lagarde speak at events, Wednesday
* Euro zone economic confidence, consumer confidence, Germany CPI, Thursday
* US initial jobless claims, GDP, Thursday
* Fed’s Loretta Mester, Mary Daly speak at events, Thursday
* China PMI, Friday
* Euro zone CPI, unemployment, Friday
* US consumer income , University of Michigan consumer sentiment, Friday
* Fed’s Lael Brainard and John Williams speak, Friday

Some of the main moves in markets:

Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average fell 0.4%
* The MSCI World index fell 1.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.2% to $0.9592
* The British pound rose 0.3% to $1.0718
* The Japanese yen was little changed at 144.83 per dollar
Cryptocurrencies
* Bitcoin fell 0.2% to $19,074.67
* Ether was little changed at $1,323.64
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.98%
* Germany’s 10-year yield advanced 12 basis points to 2.23%
* Britain’s 10-year yield advanced 26 basis points to 4.51%
Commodities
* West Texas Intermediate crude rose 2.4% to $78.54 a barrel
* Gold futures rose 0.1% to $1,635.50 an ounce

–With assistance from Emily Graffeo.

Have a lovely evening.

Be magnificent!
As ever,

Isabel 

No one has ever become poor by giving. – Anne Frank, 1929-1945 

Isabel Luo
Assistant to Carolann Steinhoff

Queensbury Securities Inc.,
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Victoria, B.C. V8W 3Y7

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