May 23, 2019 Newsletters

Dear Friends,

Tangents:

1887 – First CPR Transcontinental Train Steams into the Vancouver Harbour Terminal.
Go to article »
1895: NY Public Library founded.
PHOTOS OF THE DAY

Geishas perform during the rehearsal of the ‘Azuma Odori’ at the Shinbashi Enbujo Theatre on May 22, 2019 in Tokyo, Japan.
CREDIT: THE ASAHI SHIMBUN VIA GETTY IMAGES

An iftar cannon is being fired to announce the fast breaking time ahead of the iftar dinner in The Old City of Jerusalem
CREDIT: FAIZ ABU RMELEH/ANADOLU AGENCY/GETTY IMAGES

The blinking lights of fireflies are captured in this composite image that combines 67 photos taken every 30 seconds at night in a woodland area in Suita, Osaka Prefecture.
CREDIT: NEWSCOM
Market Closes for May 23^rd, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Mimicking the heard invites regression to the mean. –Charlie Munger.
Canada
By Kristine Owram
     (Bloomberg) — Canadian equities posted their biggest drop this year, with energy and pot stocks leading the decline.
     The S&P/TSX Composite Index lost 1% to 16,164.61, the biggest drop since Christmas Eve, amid a global slump. Investors are increasingly worried that the U.S.-China trade war is settling in for the long haul amid escalating tensions.
     Health-care stocks slid 3% as cannabis companies retreated. CannTrust Holdings Inc. fell 4.7% and Cronos Group Inc. lost 4.6%. The energy index fell 2.3% as oil future in New York lost almost 6%, their worst daily performance of the year. MEG Energy Corp. was the biggest decliner on the Canadian benchmark, losing 9.9%.
In other moves:
Stocks
* Royal Bank of Canada lost 2.4% after reporting higher expenses and provisions for credit losses
* Toronto-Dominion Bank gained 2.2%. The bank posted a domestic net interest margin of 2.87%, the highest in at least two years
* Canada Goose Holdings Inc. fell 4.1% after Hedgeye Risk Management named the retailer to its best ideas short list
Commodities
* Western Canada Select crude oil traded at a $16.50 discount to WTI
* Gold rose 0.9% to $1,285.40 an ounce
FX/Bonds
* The Canadian dollar weakened 0.3% to C$1.3475 per U.S. dollar
* The Canada 10-year government bond yield fell 8 basis points to 1.64%, the biggest drop in a year
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — U.S. stocks retreated further on Thursday and investors sought refuge in gold and bonds as the world’s two largest economies hardened their trade-war stances. The yen gained against the dollar, while 10-year Treasury yields fell to their lowest since 2017.
     The S&P 500 Index dropped for a fourth session in five, and the Dow Jones Industrial Average lost 286 points, after the Chinese Communist Party’s flagship newspaper published two commentaries assailing U.S. moves to curb Chinese companies.
     Stocks in industries seen as susceptible to trade disruptions — including semiconductors, automobiles and energy — retreated. Emerging-market shares slid and West Texas crude fell below $60 a barrel, while yields on bunds and gilts hit two-year lows.
     Risky assets remain under pressure and havens in demand as investors dig in for what looks like a protracted trade dispute. One expert predicts tensions could endure until 2035, while economists are also turning more pessimistic. Goldman Sachs Group Inc. now sees higher odds of a stalemate between the two nations, and Nomura Holdings Inc. has shifted to forecasting a full-blown escalation of tariffs.
     “Continued weak global economic data and the lack of a specific date for the resumption of U.S.-China trade talks are clouding earnings visibility and weighing on risk appetite,” said Alec Young, managing director of global markets research for FTSE Russell. “Markets are pricing in the harsh reality that trade tension is more likely to linger than quickly be resolved, as had been the consensus expectation anchoring sentiment until late April.”
     The Stoxx Europe 600 Index had its worst day in two weeks as automakers tumbled after an EU official said the U.S. was unlikely to start trade talks with the bloc soon while it’s preoccupied with China. The dollar was little changed, while the British pound struggled to end its two-week losing streak against the euro.
     Elsewhere, China’s yuan dipped in onshore trading even after the People’s Bank of China set its daily fixing at a stronger-than-expected level for a fourth straight day. West Texas crude had its biggest two-day drop of the year as inventory data alleviated concerns over a supply crunch. Commodities slumped across the board as traders increasingly girded for a full-blown trade war.
Here are some notable events coming up:
* The European Parliament holds continent-wide elections May 23-26.
* On Thursday, the European Central Bank publishes its account of the April monetary policy decision.
And these are the main moves in markets:
Stocks
* The S&P 500 Index declined 1.2% as of 4:02 p.m. New York time.
* The Stoxx Europe 600 Index decreased 1.4% to the lowest in more than a week.
* The U.K.’s FTSE 100 Index fell 1.4%.
* The MSCI Emerging Market Index fell 1.4% to a 19-week low.
Currencies
* The Bloomberg Dollar Spot Index fell less than 0.05%.
* The euro climbed 0.3% to $1.118.
* The British pound fell 0.1% to $1.2657.
* The Japanese yen advanced 0.7% to 109.59 per dollar, the biggest gain in two months.
Bonds
* The yield on 10-year Treasuries fell seven basis points to 2.31%, the lowest in about 19 months.
* Germany’s 10-year yield fell three basis points to -0.12%.
* Britain’s 10-year yield declined six basis points to 0.953%, a 23-month low.
Commodities
* West Texas Intermediate crude decreased 5.4% to $58.13 a barrel, the lowest in over 10 weeks.
* Gold gained 0.8% to $1,283.91 an ounce. 
* The Bloomberg Commodity Index sank 1.3%, its biggest decline in over 16 weeks. 
–With assistance from Andreea Papuc, Adam Haigh, John Ainger,
Alexandra Harris and Yakob Peterseil.

Have a great evening.

Be magnificent!
As ever,

Carolann

Do one thing each day that scares you.

          -Eleanor Roosevelt, 1884-1962

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