July 16, 2019 Newsletter

Dear Friends,

Tangents: Full moon tonight!
On July 16, 1918, Russia’s Czar Nicholas II, his wife and their five children were executed by the Bolsheviks.  Go to article »

I am almost finished reading a terrific novel that takes place in Russia just after the revolution.  It is entitled “A Gentleman in Moscow”  and is written by Amor Towles.   I began reading it this past weekend and am unable to put it down.  I hope to finish it tonight, but based on the 300 or so pages I’ve read thus far, I can highly recommend it with confidence.  I hope you enjoy it as much as I have – fascinating times.
PHOTOS OF THE DAY

The Fireworks of the Champ de Mars on the occasion of the National Day in Paris, France.
CREDIT: BACKGRID

A man dressed in regalia is seen during the 32nd annual Squamish Nation Youth Pow Wow at Capilano Reserve Park in west Vancouver, Cabnada, July 14, 2019. First Nations people from Canada and the U.S. took part in the 32nd Annual Squamish Nation Youth Pow Wow in celebration of indigenous cultures. Pow Wow is an indigenous cultural activity in which people socialize together via different activities like dancing, singing, and honouring the traditions of their ancestors.
CREDIT: XINHUA / BARCROFT MEDIA

Trevor the peacock, whose lovelorn mating calls left residents in Burnopfield, County Durham, sleep deprived when he escaped from his home in search of a partner, has now became a dad-of-three after finding love with Poppy the peahen at Leazes Hall care home.
CREDIT: WILL WALKER / NORTH NEWS
Market Closes for July 16^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Amazon.com: The e-commerce giant’s annual Prime Day featuring discounts and deals on its site for members ends today.   Amazon’s Prime service penetrates 30% of U.S. households and less than 5% of international markets, according to Jeffries.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks were little changed Tuesday, while U.S. shares fell from a record high as President Donald Trump said he could impose more tariffs on China. The S&P/TSX Composite Index fell less than 0.1% to 16,502. Industrial stocks advanced, led by Canadian Pacific Railway Ltd. after the company beat second-quarter earnings estimates and closed at a record high. Meanwhile, the Bank of Canada is taking over a new risk- free overnight rate that could become the dominant benchmark for the country’s C$12 trillion ($9.2 trillion) market for loans and derivatives.
In other moves:
Stocks
* Fortuna Silver Mines gained 15%, most since November 2014
* Organigram rose 11%; see outlook here
* Richelieu Hardware advanced 5.3%
* Turquoise Hill Resources plunged 43% after saying its development capex may increase by $1.2-$1.9 billion from its previously disclosed $5.3 billion at its Oyu Tolgoi mine
* CannTrust Holdings fell 9.6%
* NFI Group lost 10% after 2Q deliveries, backlog update
Ratings
* ABX CN: Barrick Gold Downgraded to Equal-weight at Barclays
* BTE CN: Baytex Among Favorites in Credit Suisse’s Canada E&P Initiation
* BYD-U CN: Boyd Group Downgraded to Hold at Desjardins; PT C$190
* CAS CN: Cascades Downgraded to Hold at TD; Price Target C$13.50
* FTT CN: Finning International Downgraded to Neutral at CIBC; PT C$27
* MEG CN: MEG Energy Rated New Neutral at Credit Suisse
* NVA CN: NuVista Energy Rated New Outperform at Credit Suisse
* POU CN: Paramount Resources Rated New Underperform at Credit Suisse
* TRQ CN: Turquoise Hill Downgraded to Neutral at Eight Capital; PT C$3
* VET CN: Vermilion Energy Rated New Neutral at Credit Suisse
* WEF CN: Western Forest Products Cut to Market Perform at Raymond James
* WPM CN: Wheaton Precious Metals Upgraded to Overweight at Barclays
Commodities
* Western Canada Select crude oil traded at a $9.20 discount to WTI
* Gold spot price fell 0.6% to $1,405.50 an ounce
FX/Bonds
* The Canadian dollar dropped 0.3% to C$1.3086 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.588%
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — U.S. stocks fell from a record high as President Donald Trump said he could impose more tariffs on China, reminding investors that the trade spat remains unresolved. Treasuries dropped and the dollar rose. The S&P 500 Index halted a five-day rally, with energy producers joining an oil sell-off and technology giants facing an antitrust showdown with Congress. Goldman Sachs Group Inc. jumped on better-than-estimated results in its trading unit, and JPMorgan Chase & Co. rebounded from losses triggered by a disappointing lending outlook. Benchmark 10-year yields climbed on solid data, then pared their surge after Federal Reserve Chairman Jerome Powell said the central bank “will act as appropriate” amid increased uncertainties.
Investors remained locked into the notion of a Fed rate cut this month even after strong retail sales, factory output and housing data. While Powell’s remarks resembled his July 10-11 testimony to U.S. lawmakers, they continued to support the case for monetary easing amid risks stemming from Trump’s trade policies and slower global growth. “Trade’s a big, big issue,” said Dave Campbell, a principal at San Francisco-based BOS, which manages about $4.5 billion.“There’s a lot of uncertainties — all of these are weighing on people’s minds right now.”
Elsewhere, Bitcoin slid below $10,000 just three weeks after surging above it for the first time in more than a year as U.S. legislators expressed deep skepticism about the viabilityof cryptocurrencies. The euro slipped as investor confidence in Germany’s economic outlook fell. The pound slumped as the market once again reckoned with no-deal Brexit risk after the contenders to be U.K. prime minister toughened their rhetoric.
Here are some key events coming up:
* Bank of America Corp. and Taiwan Semiconductor are among
companies due to report results this week.
* Monetary policy decisions are due in Indonesia, South Korea
and South Africa on Thursday.

These are the main moves in markets:
Stocks
* The S&P 500 dipped 0.3% to 3,004.04 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index added 0.4%.
* The MSCI Asia Pacific Index decreased 0.2%.
Currencies
* The Bloomberg Dollar Spot Index increased 0.4%.
* The euro declined 0.4% to $1.1209.
* The British pound decreased 0.9% to $1.2408.
* The Japanese yen dipped 0.3% to 108.28 per dollar.
Bonds
* The yield on 10-year Treasuries gained three basis points to 2.11%.
* Germany’s 10-year yield climbed one basis point to -0.24%.
* Britain’s 10-year yield increased two basis points to 0.821%.
Commodities
* The Bloomberg Commodity Index slid 1.1%.
* West Texas Intermediate crude sank to $57.62 a barrel.
–With assistance from Adam Haigh, Samuel Potter, Laura Curtis and Yakob Peterseil.

Have a great night.

Be magnificent!

As ever,

Carolann

Penguins mate for life.  Which doesn’t surprise me that much,
because they all look alike – it’s not like they’re gonna
l meet a better-looking penguin one day.
                                             -Ellen Degeneres, b. 1958

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