November 04, 2019

Dear Friends,

Tangents:

Carolann is out of the office today, I will be writing the Newsletter on her behalf.

PHOTOS OF THE DAY

Cher Green-Hawt tries on a hat at the Breeders’ Cup horse races at Santa Anita Park.
CREDIT: AP PHOTO/GREGORY BULL

Two jousting competitors come together during the inaugural “Ashes” jousting tournament between Australia and England at the Kryal Castle in Leigh Creek, some 100 kms west of Melbourne. Australia and England took their storied sports rivalry to another level, and another century, this weekend as the two nations faced off in a jousting tournament, won by The Australian side.
CREDIT: WILLIAM WEST/ AFP

A canoeist makes their way along the Basingstoke canal near to Dogmersfield in Hampshire.
CREDIT: ANDREW MATTHEWS/PA

Market Closes for November 04^th, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1929, in an attempt to calm panicking investors, the New York Stock Exchange announced that it would be open for trading only three hours a day that week. The investing public took no comfort, trading an astounding 6 million shares in just 180 minutes—more than twice the level of a normal full day’s trading just weeks earlier. The Dow Jones Industrial Average dropped 5.8% to finish the day at 257.68—down 32.4% in two months.
Canada
By Aoyon Ashraf and Bloomberg Automation
(Bloomberg) — Canadian stocks gained on Monday as oil hit a one-week high and investors studied signals that a U.S.-China trade deal is imminent. Industrial stocks were the second best sector, while consumer staples underperformed. The S&P/TSX Composite rose for a second day, climbing 0.5%, or 75.74 to 16,669.81 in Toronto. The index advanced to the highest closing level since Sept. 27. Canadian National Railway Co. contributed the most to the index gain, increasing 1.5%. Gran Tierra Energy Inc. had the largest  percentage increase,rising 9.6%. Canadian consumer sentiment worsened through October amid rising uncertainty about the economic outlook, and as westerners came to grips with an election that handed a second term to Justin Trudeau’s Liberals, a result perceived as potentially bad for the energy industry.
Commodities
* Western Canada Select crude oil traded at a $22.10 discount to WTI
* Spot gold fell 0.3% to 1,510.33 an ounce
FX/Bonds
* The Canadian dollar weakened slightly to C$1.3150 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.528%
Insights
* This year, the index rose 16%, heading for the best year since 2016
* The index advanced 10% in the past 52 weeks. The MSCI AC Americas Index gained 13% in the same period
* The S&P/TSX Composite is 1.6% below its 52-week high on Sept. 20, 2019 and 21% above its low on Dec. 24, 2018
* The S&P/TSX Composite is up 1.7 % in the past 5 days and rose 1.3% in the past 30 days

US
By Sarah Ponczek
(Bloomberg) — U.S. stock benchmarks climbed to all-time highs, while Treasuries tumbled as trade optimism fueled demand for risk assets. The Dow Jones Industrial Average climbed Monday to claim its first record since July. The S&P 500 and Nasdaq indexes also hit new highs after a report that the U.S. and China are closing in on a partial trade deal and the Federal Reserve cut interest rates last week. The 10-year Treasury yield rose to 1.78% and the dollar advanced versus major peers. In company news, McDonald’s Corp. fell after firing its chief executive and Under Armour Inc. sank after disclosing an accounting probe — both declines weighing heavily on consumer shares. Banks and industrial firms led the Stoxx Europe 600 Index toward a four-year high after the U.S. commerce secretary said tariffs on importing vehicles into the American market might be unnecessary. All major Asian markets advanced. A gauge of emerging-market stocks was set for its biggest gain in three weeks. Investors are trying to push up stocks for a fifth successive week and add to the 18% gain this year already notched by a global gauge of equities. Earnings continue to roll in around the world, with Uber Technologies Inc. and Marriott International Inc. still due Monday. In China, trade data at the end of this week will give details for October against a backdrop of easing tensions on negotiations with U.S. counterparts.
“The earnings season primarily has been so much better than we expected it to be,” JJ Kinahan, chief market strategist at TD Ameritrade, said by phone. “Not that it’s an unbelievable earnings season, but it’s been so much above expectations. The rhetoric on tariffs has been mostly positive and we continue to see positive numbers out of particularly employment, but really in general about the economy.”Commerce Secretary Wilbur Ross expressed optimism the U.S. would reach a “phase one” trade deal with China this month and said licenses would be coming “very shortly” for American companies to sell components to Huawei Technologies Co. President Donald Trump told reporters Sunday that a trade deal, if completed, will be signed somewhere in the U.S. Elsewhere, crude-oil futures climbed. The initial public offering process for Saudi Aramco officially started on Sunday, with the stock likely to begin trading in Riyadh next month. Valuations vary widely. These are the main moves in markets:

Stocks
* The S&P 500 Index rose 0.4% as of 4 p.m. New York time; the Dow Jones Industrial Average climbed 0.4%.
* The Stoxx Europe 600 Index jumped 1% to a four-year high.
* Germany’s DAX Index surged 1.4% to a 17-month high.
* The MSCI Emerging Markets Index rose 1.3% to the highest in
more than four months.
Currencies
* The Bloomberg Dollar Spot Index increased 0.3%, the biggest gain in five weeks.
* The euro fell 0.4% to $1.1127.
* The British pound fell 0.5% to $1.2884.
* The Japanese yen weakened 0.4% to 108.62 per dollar.
Bonds
* The yield on 10-year Treasuries rose seven basis points to 1.78%.
* The two-year rate added four basis points to 1.59%.
* Germany’s 10-year yield rose three basis points to -0.35%.
* Britain’s 10-year yield climbed six basis points to 0.725%.
Commodities
* The Bloomberg Commodity Index jumped 0.5% to a seven-week high.
* West Texas Intermediate crude increased 0.6% to $56.52 a barrel.
* Gold weakened 0.4% to $1,508.53 an ounce.

–With assistance from Haidi Lun, Ravil Shirodkar and Adam
Haigh.
Have a great evening.

Be magnificent!
As ever,

Isabel

The best time to make friends is before you need them.

• Ethel Barrymore, 1909–1923

Isabel Luo,
Assistant to Carolann Steinhoff

Queensbury Securities Inc.,
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