June 7, 2019 Newsletter

Dear Friends,

Tangents: Happy Friday!
Photos of the week

 -from CNN today:
The small museum in Canada had been trying to open an old safe since the ’70s. A tourist’s lucky guess cracked the code on his first try.

Want to swim in the world’s first infinity pool with breathtaking 360-degree views and a staircase that rises out of the waters? Head to London.

An asteroid the size of a football field is speeding towards Earth, but it’ll (probably) miss us by just this much.

On June 7, 1929, the sovereign state of Vatican City came into existence as copies of the Lateran Treaty were exchanged in Rome.  Go to article »

PHOTOS OF THE DAY

Britain’s Prince Harry, Duke of Sussex shakes hands with Chelsea Pensioners during the annual Founder’s Day Parade at the Royal Hospital Chelsea in London on June 6, 2019 as part of D-Day commemorations making the 75 anniversary of the World War II Allied landings in Normandy. -Over 300 Army veterans live at the Royal Hospital today, including those who have served in Korea, the Falkland Islands, Cyprus, Northern Ireland and World War II.
CREDIT: ADRIAN DENNIS/AFP/GETTY IMAGES

Unbelievable close-up photographs of marine creatures making a home out of litter on the seabed. Two yellow Pygmy Gobies living in a discarded aluminium Coca cola can. The images were taken in Lembeh Straits, North Sulawesi, Indonesia, and prove to be a stark, and sad reminder of how lazy people are forcing these aquatic animals to adapt to the carelessness of those responsible for disposing of their litter in an irresponsible way.
CREDIT: ALEX TATTERSALL/ CATERS NEWS

Pilgrims cross the Quema river in Villamanrique, during a pilgrimage on their way to the village of El Rocio. El Rocio pilgrimage, the largest in Spain, gathers hundreds of thousands of devotees in traditional outfits converging in a burst of colour as they make their way on horseback and on board decorated carriages across the Andalusian countryside.
CREDIT: CRISTINA QUICLER/AFP/GETTY IMAGES

Staff at a Scottish farm say they are ‘absolutely delighted’ to have welcome a baby alpaca into the world this morning. Mum, Nunavut, gave birth to the baby boy huacaya alpaca, which has not yet been named, weighting 9.6 kg. Stuart Ramsay , the owner of Velvet Hall Alpacas, in Innerleithen, Scottish Borders said he was surprised when the baby was born an “unusual rose grey colour”.
CREDIT: SWNS
Market Closes for June 7th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Mirror, mirror: Who’s the most-photographed NYSE trader of all? Until recently, it was Peter Tuchman. But now, a new, younger contender has emerged.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were little changed while the Canadian dollar rose to its highest level since February as the labor market continued its strong run of job gains.
     The S&P/TSX Composite Index rose less than 0.1% to 16,230.96, capping off the benchmark’s biggest weekly gain since April. Technology stocks led the way for a third session, with Shopify Inc. adding 2.1% to a fresh high.
     Materials brought up the rear, falling 0.8% as copper prices posted an eighth consecutive weekly decline, the longest string of losses since 2001, and gold stocks retreated after a six-day run.
In other moves:
Stocks
* Saputo Inc. lost 6.5%, bringing its two-day decline to 13%. Desjardins Securities downgraded the dairy stock to hold from buy amid a disappointing earnings outlook
* Transcontinental Inc. fell 5.2% to the lowest since 2015. The company’s legacy segments face “secular pressures” while its packaging division struggles with execution issues, according to BMO Capital Markets
* Cenovus Energy Inc. gained 3.9%. The company is working to restart three wells that were shut down due to wildfires Commodities
* Western Canada Select crude oil traded at a $14.10 discount to WTI
* Gold rose 0.3% to $1,341.20 an ounce to cap off its best week since March 2018
FX/Bonds
* The Canadian dollar strengthened 0.6% to C$1.3278 per U.S. dollar after the country’s unemployment rate fell to the lowest since at least 1976
* The Canada 10-year government bond yield was little changed at 1.46%
US
By Rita Nazareth and Vildana Hajric
     (Bloomberg) — U.S. stocks rallied for a fourth day after weak jobs data added to bets the Federal Reserve will cut rates. Treasury yields and the dollar fell.
     The S&P 500 Index had its best week since November on speculation the Fed will move to shore up the economy as a report showed employers added the fewest workers in three months and wage gains cooled. Technology shares led the advance in equities, while banks sank. The 10-year bond yield extended its weekly slide. The peso rose after President Donald Trump said there’s a “good chance” the U.S. will reach a deal to avert imposing trade tariffs on Mexico.
     Traders have aggressively increased bets the Fed will cut rates after a string of weak reports on retail sales, factory orders and home purchases indicated the world’s largest economy is slowing. Earlier in the week, Chairman Jerome Powell signaled he’s open to easier policy amid trade tension. Fed funds futures show a quarter-point cut almost fully priced in for July.
     “The days of the ‘Fed Put’ are back, with investors treating bad economic data as good news for stocks,” said Chris Gaffney, president of world markets at TIAA Bank. “The numbers weren’t necessarily bad enough to force a move by the FOMC later this month, but I expect Chairman Powell to continue to sound a more dovish tone. Chances of a rate cut by year-end have increased.”
     On the trade front, the Trump administration said that some Chinese products exported to the U.S. won’t be subject to a tariff increase until June 15. The offshore yuan fell to its weakest since November before paring losses as China’s central bank governor said there’s “tremendous” room to adjust monetary policy if the trade war deepens.
     In company news, Microsoft Corp. climbed back above the coveted $1 trillion level in market value amid a broader rally in technology shares. Beyond Meat Inc. soared to a record after the faux-meat maker’s sales forecast beat estimates. Online fashion retailer Revolve Group Inc. jumped in its trading debut after raising $212 million in an IPO.
Here are some notable events coming up:
* Finance ministers and central bank governors from the G-20 nations gather in Fukuoka, Japan this weekend.
These are some of the main moves in markets:
Stocks
* The S&P 500 Index climbed 1.1% to 2,873.34 as of 4 p.m. New York time, the highest in more than three weeks.
* The Stoxx Europe 600 Index gained 0.9%.
* The MSCI Asia Pacific Index added 0.4%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%.
* The euro climbed 0.5% to $1.1334.
* The Japanese yen rose 0.2% to 108.16 per dollar.
Bonds
* The yield on 10-year Treasuries decreased four basis points to 2.08%.
* Germany’s 10-year yield fell two basis points to -0.26%.
* Britain’s 10-year yield declined one basis point to 0.813%.
Commodities
* The Bloomberg Commodity Index rose 0.1% to 77.15.
* West Texas Intermediate crude jumped 2.7% to $53.99 a barrel.
–With assistance from Cormac Mullen, Adam Haigh, Namitha Jagadeesh, Yakob Peterseil, Sophie Caronello, Andrew Cinko, Sarah Ponczek and Benjamin Purvis.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

He knows not his own strength that hath not met adversity.

                                             -Ben Jonson, 1572-1637

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