March 04th, 2020 Newsletter

Dear Friends,

Tangents:
1675 – Antonio Vivaldi, composer, was born.
1789- US Constitution went into effect.
1861 – Abraham Lincoln is inaugurated as the 16th US President  Go to article »

Lost holiday. Half of the world’s beaches could vanish by 2100 due to climate change, scientists say, with 12% of shores facing severe erosion by 2050 that “will substantially impact the shape of the world’s coastline.” –Bloomberg.

A large asteroid will come extremely close to Earth next month, but NASA says it won’t hit us 
Gee, thanks for the reassurance. -CNN.

PHOTOS OF THE DAY

A dog wearing a face mask is seen in Shanghai, China.
CREDIT: ALY SONG/REUTERS

A weather front passes over St. George’s church at Cullercoats, near Tynemouth, on the north east coast of England.
CREDIT: OWEN HUMPHREYS/PA

A model presents a creation for Chanel during the Women’s Fall-Winter 2020-2021 Ready to Wear collection fashion show in Paris.
CREDIT: CHRISTOPHE ARCHAMBAULT/AFP

Market Closes for March 4^th ,2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1472, the world’s oldest continually operating bank, the Monte della Pieta (now known as the Monte dei Paschi di Siena), was founded in Siena, Italy to lend money to “poor or wretched or needy persons” at 7.5% annual interest. Today the Monte dei Paschi, still headquartered in the same building, is one of the largest banks in Italy.
Canada
By Michael Bellusci and Bloomberg Automation
(Bloomberg) — Canadian stocks rallied Wednesday after the Bank of Canada cut half a percentage point from its benchmark interest rate. The S&P/TSX Composite rose 2.2% at 16,779.53 in Toronto, the biggest one-day gain since December 2018. All sectors advanced; 197 of 230 shares rose, while 29 fell. The central bank reduced interest rates Wednesday to cushion the nation’s economy from the fallout of the coronavirus and said it is prepared to go further if necessary. However, economists say there are limits to what monetary policy can achieve, and the situation is dire enough to warrant additional help from Trudeau’s government.
Commodities
* Western Canada Select crude oil traded at a $14.75 discount to
West Texas Intermediate
* Spot gold slid 0.3% to $1,636.72 an ounce
FX/Bonds
* The Canadian dollar weakened 0.1% to C$1.3395 per U.S. dollar
* The 10-year government bond yield rose 3.3 basis points to 0.994%
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 84.2169| 1.6| 24/1
Information Technology | 50.5896| 4.9| 8/2
Industrials | 49.0505| 2.6| 24/7
Energy | 44.7754| 1.8| 21/7
Utilities | 26.7160| 3.0| 16/0
Communication Services | 26.6031| 2.9| 7/1
Materials | 22.2472| 1.2| 36/10
Real Estate | 19.5785| 3.2| 25/0
Consumer Staples | 17.8260| 2.7| 11/0
Consumer Discretionary | 9.4471| 1.5| 15/1
Health Care | 4.8458| 2.7| 10/0

US
By Randall Jensen and Claire Ballentine
(Bloomberg) — U.S. stocks surged to the second 4% rally in three days after Congress authorized nearly $8 billion for virus prevention and investors warmed to Joe Biden’s ascendant candidacy. Treasuries fell for just the second time in 10 days. The S&P 500 surged into the close, nearly matching Monday’s rally that was the best in 14 months. Health-care firms led the spike, rising the most since November 2008 as the weak performance in Tuesday’s primaries by Bernie Sanders dented the threat of policies that would upend the industry. “It looks like a combination of two things: Biden’s showing on Super Tuesday is really an unexpected surprise, a positive surprise to the markets because markets always prefer a more moderate centrist Democratic nominee,” Deepak Puri, Americas CIO at Deutsche Bank Wealth Management, said by phone.
     “The other is the G-7 coordinated fiscal and monetary policy easing, which is on top of the 50 basis-point rate cut by the Fed announced yesterday.” Stocks opened higher on speculation other central banks and governments would provide stimulus as the outbreak claimed more lives and new cases piled up. New York reported five new cases Wednesday and California had its first related death. The S&P 500 has now surged more than 6% this week, a rebound that began Friday when the Fed pledged support. The S&P 500 is still more than 7% below its February record. Ten-year Treasury yields pushed back above 1%, while two- year dropped to 0.66%. The low rates also helped breathe new life into corporate bond deals after a days-long hiatus. Investors are anxious for promised action by the Group of Seven to confront the virus while they’re buying risk assets on dips and watching the world’s biggest bond market move closer to negative yields. The Democratic contest posed a fresh challenge to Trump as nine states went to Biden, who’s positioned as a moderate against a more progressive Sanders in the race for the party’s nomination to take on Trump in November.
These are the main moves in markets:
Stocks
* The S&P 500 Index advanced 4.2% as of 4 p.m. New York time.
* The Dow Jones Industrial Average gained 4.5%.
* The Stoxx Europe 600 Index rose 1.4%.
* The U.K.’s FTSE 100 Index added 1.5%.
* The MSCI Asia Pacific Index climbed 0.4%.
Currencies
* The Bloomberg Dollar Spot Index increased 0.2%.
* The euro decreased 0.6%.
* The British pound rose 0.1%.
* The Japanese yen weakened 0.2%.
Bonds
* The yield on 10-year Treasuries rose three basis points to 1.03%.
* The yield on two-year Treasuries fell three basis points to 0.67%.
* Germany’s 10-year yield fell one basis point to -0.63%.
Commodities
* West Texas Intermediate crude fell 0.2% at $47.07 a barrel.
* Gold fell 0.2% to $1,637.47 an ounce.
–With assistance from Elena Popina, Katherine Greifeld, Nancy Moran, Todd White and Vildana Hajric.
Have  a great night.

Be magnificent!
As ever,

Carolann

One day, in retrospect, the years of struggle will strike you as the most beautiful.
                                                                     -Sigmund Freud, 1856-1939

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