June 20, 2019 Newsletter

Dear Friends,

Tangents:
-from CNN today:
If you’ve been pining for a change of scenery, you’re in luck: Astronomers have found two planets that meet pretty much every requirement for supporting life.

Today is World Refugee Day, a day to learn more about and support refugees.  Canada took in more refugees last year than the United States. Canada accepted 28,100 refugees, more than any other nation, a UN report says. The US resettled 22,900 refugees, the second-most.

From Bloomberg today:
A working solar sail may go into orbit next week. (h/t Scott Kominers)
To be more creative, cheer up.
Italians have all the secrets to living well.

U.S. national poet: Joy Harjo has been named the 23rd poet laureate. A member of the Muscogee Creek Nation, she is the first Native American person to be selected for the role. Read her poem “Fall Song.” –NY Times.

On this day, 1997 The tobacco industry agreed to a massive settlement in exchange for relief from mounting lawsuits and legal bills. Go to article »

Advice for life from 103-year old Julia Hawkins:
Julia “Hurricane” Hawkins, who took up running late in life, competes in the 50- and 100-meter events at the National Senior Games. She is believed to be the oldest woman to formally compete on an American track. Two years ago, she set a record: 100 meters in 39.62 seconds.

In a Q. and A., she offered readers some wisdom. Stay in shape, she advised, and keep an eye out for life’s magic moments, “like sunsets and sunrises, rainbows, beautiful birds, music and people’s lovely comments to you.”

PHOTOS OF THE DAY

Olympic House, the new headquarters of the International Olympic Committee, designed by 3XN+IttenBrechbehl, is pictured before its official opening in Lausanne, Switzerland
CREDIT: REUTERS/DENIS BALIBOUSE

A gallery assistant holds the King William & Queen Mary Royal Tompion clock, one of the world’s most valuable clocks, which sold for £1.93M by auction at Bonhams yesterday.
CREDIT: KIRSTY O’CONNOR/PA

Selah Schneiter climbs “The Nose” route on EI Capitan, in Yosemite Park, California. The 10-year-old US girl has made rock climbing history by becoming the youngest person to ever scale Yosemite’s iconic EI Capitan. Selah Schneiter, of Colorado, scaled the nearly 3,000 – foot route with her father, an experienced climber, and a family friend, over five days – and celebrated her feat on June 12 with a pizza.
CREDIT: SCHNEITER FAMILY/REUTERS
Market Closes for June 20th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Federal Reserve officials held their benchmark interest rate steady on Wednesday, but hinted they would cut rates in the months ahead if the economic outlook weakens.
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks gained for a sixth session as commodities including crude oil and gold posted strong rallies.
     The S&P/TSX Composite Index added 0.4% to 16,574.83. Materials led the way, while health care and energy also gained. Horizons Marijuana Life Sciences ETF (HMMJ CN) rose for a fourth-straight session. Canopy Growth Corp. is set to report fourth-quarter earnings tonight.
     Meanwhile, China National Gold Group Corp., the nation’s second-biggest miner of the metal, is studying a bid for a stake in Canada’s Iamgold Corp., people familiar with the matter said. Additionally, Shopify Inc. is now more valuable than Manulife Financial Corp.and Canadian Imperial Bank of Commerce.
In other moves:
Stocks
* Bellus Health Inc. jumped 43.6% after Merck pipeline remark
* Cornerstone Capital Resources Inc. rose 22.5% after Ecuador constitutional court decision
* Crescent Point Energy Corp. jumped 8.7% amid energy stock rally 
* MediPharm Labs Corp. lost 5.6% after being downgraded to market perform at Mackie  
* BlackBerry Ltd. fell 4.3% 
* Dirtt Environmental Solutions dropped 3.6%, most since May 9 
Ratings
* NRTH CN: 48North Cannabis Corp Rated New Buy at Eight Capital; PT C$1.40
* WDO CN: Wesdome Gold Mines Cut to Hold at Canaccord; Price Target C$5.50
* SHOP CN: Shopify Downgraded to Neutral at CIBC
Commodities
* Western Canada Select crude oil traded at a $13.85 discount to WTI
* Gold spot price rose over 2% to $1,389.54 an ounce
FX/Bonds
* The Canadian dollar strengthened about 0.6% to C$1.3197 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.453%
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks rose to a record, while sovereign bonds extended gains and the dollar slumped after central banks around the world continued a shift toward easier monetary policy. Oil surged amid rising tensions with Iran.
     The S&P 500 opened at an all-time high, spurred by speculation the Federal Reserve will cut rates soon enough to avert an economic slump. The benchmark retreated after President Donald Trump hinted at possible retaliation for Iran shooting down a U.S. drone, only to rebound and close above the previous high set on April 30. Energy shares led the gain as crude surged more than 5%. The Cboe Volatility Index rose above 15.
     The geopolitical tensions briefly overshadowed fresh impetus for risk assets from the Fed, Bank of Japan and Bank of England, all of which signaled a readiness to support growth. The 10-year U.S. Treasury note yield dropped below 2% for the first time since November 2016, while the greenback sank the most since January. Gold surged toward $1,400 an ounce.
     “In the big scheme of things, it’s a concern because it creates uncertainty,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. “From a longer-term perspective, we’d think that any issues would get resolved diplomatically.” Traders are now pricing in a virtual certainty the U.S. central bank will cut rates by July, Fed fund futures show. Seven of 17 Fed officials now think it will be appropriate to lower the benchmark overnight rate by a half-percentage point by the end of the year, according to updated projections published Wednesday. Fed Chairman Jerome Powell cited “uncertainties” in the outlook that have increased the case for a rate reduction as officials seek to prolong the near-record American economic expansion.
“The Fed did a great job walking what had to be a pretty fine line between giving the markets what they were wanting, the removal of ‘patience,’ the knowledge that the Fed does stand ready to cut rates, if needed,” Chris Gaffney, president of world markets at TIAA Bank, said in an interview at Bloomberg’s New York headquarters.
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1% to a closing record of 2,954.18 as of 4:06 p.m. New York time. The Nasdaq Composite Index gained 0.8% and the Dow Jones Industrial Average increased 0.94%.
* The Stoxx Europe 600 increased 0.4% to the highest in about seven weeks.
* The MSCI Emerging Market Index surged 1.6% to the highest in more than six weeks.
* The MSCI Asia Pacific Index climbed 1.4% to the highest in more than six weeks. 
Currencies
* The Bloomberg Dollar Spot Index declined 0.6%, to the lowest since January.
* The euro rose 0.5% to $1.1277, the strongest in more than a week. 
* The yen strengthened 0.5% at 107.52 per dollar, the strongest in more than five months.
* The British pound increased 0.5% to $1.2696, the strongest in more than a week.
* The MSCI Emerging Markets Currency Index rose 1%.
Bonds
* The yield on 10-year Treasuries fell 2 basis points to 2%.
* Germany’s 10-year yield eased 3 basis points to -0.32%.
* Britain’s 10-year yield declined 6 basis points to 0.81%, after touching the lowest level in almost three years. 
Commodities
* West Texas Intermediate rose 5.4% to $56.65 a barrel. 
* Gold increased 2.1% to $1,389 an ounce. 
* The Bloomberg Commodity Index jumped 1.8%.

Have  a great night.

Be magnificent!
As ever,

Carolann

 A good stance and posture reflect a proper state of mind.

                                     -Morihei Ueshiba, 1883-1969

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