July 31, 2019 Newsletter

Dear Friends,

Tangents: Happy Fed Day.
The Federal Reserve has cut its main interest rate by 25 basis points for the first time since the financial crisis and signalled that it was prepared to ease monetary policy further if necessary.

On July 31^st, 1620, Pilgrim Fathers departed Leiden, Netherlands for England on their way to America.
On July 31, 1964, the American space probe Ranger 7 transmitted pictures of the moon’s surface. Go to article »

Sir Francis Drake, having helped to defeat Philip II of Spain’s Armada, to Sir Francis Walsingham, July 31^st, 1588:
I am commanded to send these prisoners ashore by my Lord Admiral; which had, ere this, by me been done, but that I thought their being here might have done something, which is not thought meet now.  Let me beseech your honour, that they may be presented unto her Majesty, either by your honour, or my honourable good Lord my Lord Chancellor, or both of you.  The one, Don Pedro, is a man of great estimation with the King of Spain, and thought next in this army to the Duke of Sidonia.  If they should be given from me unto any other, it would be some grief to my friends.  If her Majesty will have them, God defend, but I should think it happy.
     We have the army of Spain before us, and mind, with the grace of God, to wrestle a pull with him.  There was never any thing pleased better, than the seeing the enemy flying with a southerly wind to the northwards.  –from The Book of Days.

PHOTOS OF THE DAY

A wildlife photographer captured a Scottish hare making a series of hilarious facial expressions including this image of the animal poking it’s tongue out.
CREDIT: KAREN MILLER/ COVER IMAGES

Photographer Wayne Howes captured the incredible moment the International Space station crossed over the Milky Way. Captured in Dungeness, Kent.
CREDIT: WAYNE HOWES/ COVER IMAGES

Wells cathedral guide Maureen Boylan sits inside the ‘Hand of God’ sculpture created by artist Jan Niedojadlo. The installation is interactive and members of the public are invited to explore and climb inside.
CREDIT: JASON BRYANT/APEX

Market Closes for July 31th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The British pound fell against the dollar for the seventh time in eight sessions Tuesday, dropping to its lowest level since January 2017. The currency is down 18% from its pre-Brexit vote level in 2016 on concerns of economic disruption. It is near its lowest value in more than 34 years.  
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks fell but closed well above their session lows after the U.S. Federal Reserve tempered expectations for multiple interest-rate cuts this year. The S&P/TSX Composite Index lost 0.4% to 16,407 after earlier losing as much as 1.1%, which would have been the largest drop since December. Gold miners led the declines, tumbling 4.1% as gold prices slid on Fed Chairman Jerome Powell’s comments. Kirkland Lake Gold Ltd. fell 9.2% and Barrick Gold Corp. lost 4.2%. The energy sector was one of the only bright spots for the Canadian benchmark, rising 0.5%. Oil prices closed at their highest level in more than two weeks before retreating following the Fed decision.
In other moves:

Stocks
* Seven Generations Energy Ltd. gained 13%, the most since 2014, after second-quarter cash flow and production beat analyst estimates
* CannTrust Holdings Inc. rose 8.8%. The beleaguered pot company has hired Greenhill & Co. to explore a sale after a regulatory breach erased about C$500 million in market value
* Genworth MI Canada Inc. added 8.2% to a record high. The mortgage insurance provider’s operating earnings beat the highest analyst estimate
Commodities
* Western Canada Select crude oil traded at a $12.85 discount to WTI, the narrowest gap in two weeks
* Gold fell 1.1% to $1,425.80 an ounce
FX/Bonds
* The Canadian dollar weakened 0.4% to C$1.3203 per U.S. dollar
* The Canada 10-year government bond yield fell 1 basis point to 1.49%
US
By Randall Jensen and Vildana Hajric
(Bloomberg) — U.S. equities fell the most in two months, while two-year Treasury yields rose as Jerome Powell dented hopes that the Federal Reserve is poised to continue easing after delivering the first interest-rate cut in over a decade. The S&P 500 Index fell as much as 1.8% after the Fed chairman said the quarter-point cut amounted to a “mid-term policy adjustment,” fueling speculation the central bank is not necessarily at the start of an easing cycle. The measure rebounded after Powell said the Fed hasn’t ruled out further cuts, closing down 1.1%. President Donald Trump said in a tweet “Powell let us down” with the size of the rate cut. The 10-year yield fell to below 2.01%, while the two-year rate jumped to 1.88%. The dollar advanced to the highest in two months, and gold slid. Fed fund futures showed less easing is now being priced in by markets that had been expecting almost three quarter-point cuts this year prior to the meeting.
The hope for a cycle of cuts had pushed stocks to all-time highs and sent 10-year rates
dipping below 2%. Markets turned volatile as Powell signaled the Fed is in no rush to continue with easing, unless warranted by data. The central bank earlier voted, with two officials dissenting, to cut rates as predicted by most investors and economists. With two of the week’s key events — the Fed and trade talks — over for now, investors still have an ongoing slew of corporate results and Friday’s U.S. jobs data to contend with. American delegates wrapped up negotiations with their Chinese counterparts in Shanghai on Wednesday with little evidence of progress toward ending the year-long trade dispute. Here are some of the key events to watch as the week unfolds:
* The Bank of England policy decision is due Thursday.
* The U.S. July jobs report is due Friday.

Here are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.1%, the most since May 31, as of 4:30 p.m. New York time.
* The Dow Jones Industrial Average lost 1.2% and the Nasdaq 100 Index fell 1.2%.
* Emerging-market equities dropped 0.8%.
* The Stoxx Europe 600 Index gained 0.2%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%.
* The euro decreased 0.7% to $1.1077.
* The British pound was little changed at $1.2158.
* The Japanese yen fell 0.2% at 108.80 per dollar.
Bonds
* The yield on 10-year Treasuries fell four basis points at 2.02%.
* The two-year rate spiked three basis points to 1.88%.
* Germany’s 10-year yield dipped one basis point to -0.41%.
* Britain’s 10-year yield rose less than one basis point to 0.63%.
Commodities
* West Texas Intermediate crude fell 0.1% at $57.99 a barrel.
* Gold fell 1.1% to $1,425.40 an ounce.
* The Bloomberg Commodity Index fell 0.2%.
–With assistance from Robert Brand.
Have a great night.

Be magnificent!
As ever,

Carolann

Study nature, love nature, stay close to nature. 
It will never fail you.
                   -Frank Lloyd Wright, 1867-1959

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
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www.carolannsteinhoff.com