December 23, 2019 Newsletter

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

An actor performs near Red Square decorated for the New Year and Christmas holidays in the center of Moscow, Russia.
CREDIT: YURI KOCHETKOV/EPA

Hundreds gather at Stonehenge for the sunrise on the Winter Solstice.
CREDIT: ROB WELHAM

CREDIT: BETHANY CLARKE FOR THE TELEGRAPH

Market Closes for December 23^rd, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1913, the Federal Reserve Act, authorizing the creation of the Federal Reserve System to monitor the nation’s banks and modulate the money supply, was signed into law by President Woodrow Wilson.
Canada
By Aoyon Ashraf and Bloomberg Automation
(Bloomberg) — Canadian equities continued its record- setting rally to start the holiday week with the mining sector leading the rally as gold and silver prices outperformed. The S&P/TSX Composite Index was slightly higher, up 0.06% to 17,128.71. Baytex Energy had the largest gain, rising 9.4% as oil service stocks advanced on 2020 optimism. Elsewhere, Aurora Cannabis Inc. fell 10% after its chief corporate officer stepped down and MKM cut the pot firm’s price target. In economic data, Canada’s economy contracted in October for the first time in eight months after the United Auto Workers strike in the U.S. weighed on plant production.
Commodities
* Western Canada Select crude oil traded at a $21.75 discount to WTI
* Spot gold price was flat around $1,485.39 an ounce
FX/Bonds
* The Canadian dollar was flat at C$1.3152 per U.S. dollar
* The 10-year government bond yield rose to 1.632%
Insights
* This month, the index rose 0.5%
* This quarter, the index rose 2.8%
* This year, the index rose 20%, heading for the best year in at least 10 years
* The index advanced 23% in the past 52 weeks. The MSCI AC Americas Index gained 33% in the same period
* The Canada S&P/TSX is 0.2% below its 52-week high on Dec. 23, 2019 and 24% above its low on Dec. 24, 2018
* The Canada S&P/TSX is up 0.4% in the past 5 days and rose 1%
in the past 30 days
US
By Randall Jensen and Vildana Hajric
(Bloomberg) — U.S. stocks edged to fresh record highs in light trading as investors chased gains that have added more than $5 trillion to valuations this year. Treasuries declined. The S&P 500 gained for the eighth time in nine sessions, notching another all-time high after China said it cut tariffs on a wide range of goods. The holiday week took a toll on the benchmark’s volume, which was more than 20% below its 100-day average for most of the day. The Dow Jones Industrial Average paced indexes as Boeing Co. surged after the company ousted Chief Executive Officer Dennis Muilenburg. Ten-year Treasury yields rose to around 1.93%, 16 basis points higher than where it started the month. The dollar headed for only its fourth monthly decline of the year, while the pound padded its worst week in more than two years amid Brexit fears.
“It’s a combination of low volume but also the fact that you’ve seen some progress with China, and it’s really causing the bulls to jump in here,” Dunkin Allison, director of portfolio management at Delegate Advisors, said by phone. “Wedon’t see a lot of selling pressure today.” Major asset classes are collectively on track for the best returns in a decade in 2019 after central banks around the world eased monetary policy. Trade tensions have also eased ahead of the year-end, calming investors’ nerves. The signing of the first-phase of the U.S.-China trade deal is set for January. Meanwhile, Chinese shares dropped after a state-backed fund said it would pare its stakes in some tech companies.
Here are some events to watch for this week:
* Chinese Premier Li Keqiang hosts a summit with Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-in Tuesday in Chengdu, focused on trade.
* Most stock markets close Wednesday for Christmas. Australia, Canada, Germany and U.K. markets also shut on Dec. 26.
* U.S. jobless claims on Thursday.
* Japan retail sales and industrial production are scheduled for Friday.
* China industrial profits also on Friday.

These are the main moves in markets:
Stocks
* The S&P 500 Index gained 0.1% as of 4 p.m. in New York.
* The Stoxx Europe 600 Index was little changed.
* The U.K.‘s FTSE 100 Index advanced 0.5%.
* The MSCI Emerging Market Index increased 0.3%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro increased 0.1% to $1.1092.
* The British pound declined 0.4% to $1.2944.
* The Japanese yen rose 0.1% to 109.36 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 1.93%.
* Germany’s 10-year yield gained less than one basis point to -0.24%.
* Britain’s 10-year yield sank one basis point to 0.771%.
Commodities
* West Texas Intermediate crude rose 0.5% at $60.73 a barrel.
* Gold added 0.6% to $1,489.30 an ounce.

–With assistance from Todd White and Robert Brand.
Have a great evening.

Be magnificent!
As ever,

Isabel

He who awaits much can expect little.
                                                      -Gabriel Garcia Marquez,1927-2014

Isabel Luo,
Assistant to Carolann Steinhoff

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
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www.carolannsteinhoff.com