July 5, 2019 Newsletter

Dear Friends,

Tangents:  Happy Friday! 
Tynwald Day: Viking Mid-summer Day

July 5, 1946:First bikini swimsuit modelled at Piscine Molitor, Paris, France.
On July 5, 1975, Arthur Ashe became the first black man to win a Wimbledon singles title as he defeated Jimmy Connors. Go to article »
 

A SYMBOL OF LONDON, –from The New York Times:

PHOTOS OF THE DAY

A man walks on a slackline during the 7^th edition of the European ‘Marmotte Highline Project’ (MHP) festival in Lans-en-Vercors, near Grenoble, eastern Gremoble, eastern France.
CREDIT: PHILIPPE DESMAZES/AFP/IMAGES

Seabirds fly among breaking waves at sunrise on Saltburn beach on in Saltburn-By-The-Sea, England.
CREDIT: IAN FORSYTH/GETTY IMAGES

London Children’s Ballet-Baller Shoes Choreography by Ruth Brill a ballet based on a novel by Noel Streatfeild at the Peacock Theatre, London. It will be brought to life by the company’s talented cast comprising 56 young dancers aged 9-16. With specially commissioned choreography, sets, costumes and scores and a live orchestra accompanying each performance.
CREDIT: ELLIOTT FRANKS
Market Closes for July 5^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Net futures bets on a higher dollar fell to $20.3 billion last week, the lowest level in a year, according to data from Scotiabank and the Commodity Futures Trading Commission, another sign that investors believe rate cuts are on the way.  
Canada
By Aoyon Ashraf
      (Bloomberg) — Canadian stocks fell the most in seven sessions as strong U.S. jobs data raised investor fears that the Federal Reserve will have less reason to lower interest rates. Canada’s labor market, meanwhile, shed jobs in June.
      The S&P/TSX Composite Index lost 0.3% to 16,541.99 in Toronto. Metals and mining stocks were the worst performers as prices for most metals slid. Communication services, financials and utilities were the only sectors that were positive.
In other moves:
Stocks
* Chemtrade Logistics rose 4.7%, extending a 9% gain in last three days
* OceanaGold gained 2.1% after falling the last two days on Didipio operations restraint
* Peyto Exploration & Development rose 2.1% after crude rebounded as the U.S. payrolls surge eased economic jitter
* First Quantum, Lundin Mining, Teck Resources were among industrial metal miners that fell on copper price declines
Commodities
* Western Canada Select crude oil traded at a $13.10 discount to WTI
* Gold spot price fell -1.3% to $1,402.70 an ounce
FX/Bonds
* The Canadian dollar fell 0.2% to C$1.3075 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.568%
US
By Olivia Rinaldi and Vildana Hajric
      (Bloomberg) — U.S. stocks fell from all-time highs, Treasuries tumbled and the dollar rallied after a strong jobs report clouded the Federal Reserve’s rate plans. Gold retreated.
     The S&P 500 Index fell in thin post-holiday trading to pare a weekly advance to 1.7%. The measure slumped as much as 0.9% after the jobs data signaled a vibrant labor market, but ground higher in the afternoon. Banks led the recovery after the 10- year Treasury yield retook 2% and two-year rates hit 1.85%. The dollar surged versus major peers. Gold fell toward $1,400 an ounce.
      The latest labor report delivered signs that the economy remains on track, countering some recent data that showed weakness in manufacturing. Stocks had rallied to records and bonds surged on market expectations that the central bank will lower interest rates by at least a quarter percentage point at its July meeting, though fed fund futures showed traders trimming the amount of easing they expect.
      “The positive numbers for the labor markets have given investors a bit of a conundrum as continuing strength in employment should support earnings while at the same time they make a FOMC cut less likely,” said Chris Gaffney, president of world markets at TIAA Bank. “Very thin markets due to the holiday weekend have also contributed to some of the volatility.”
     Elsewhere, the euro declined after German factory orders came in far weaker than expected, with most European bonds edging down. Earlier, equity benchmarks in Japan, China and South Korea rose along with Australian stocks. Iron-ore prices tumbled after China’s largest steel-industry group urged officials to maintain order after the commodity’s recent surge to a five-year high.
Here are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.2% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index sank 0.7%, the biggest dip in more than a month.
* The MSCI Asia Pacific Index declined 0.1%.
* The MSCI Emerging Market Index decreased 0.5%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.4%.
* The euro decreased 0.5% to $1.1225, the weakest in two weeks.
* The British pound fell 0.4% to $1.2526.
* The Japanese yen dipped 0.7% to 108.507 per dollar.
Bonds
* The yield on 10-year Treasuries climbed nine basis points to 2.04%.
* The two-year rate jumped 11 basis points to 1.87%.
* Germany’s 10-year yield rose four basis points to -0.363%.
Commodities
* Gold futures fell 1.3% to $1,402.90 an ounce.
* West Texas Intermediate crude fell 0.3% to $57.51 a barrel.
* Iron ore sank 5.8% to $107.70 per metric ton, the largest tumble in more than two years.
–With assistance from Yakob Peterseil and Laura Curtis.

Have a wonderful weekend everyone.

Be magnificent!
As  ever,

Carolann

The important thing is not to stop questioning.  Curiosity has its own reason for existing.
                                                                                    -Albert Einstein, 1879-1955

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