June 1, 2020 Newsletter

Dear Friends,

Tangents:
The works of Christo, in photos. -Bloomberg.

Unsold  truffles tell tale of broken $3.4 trillion food chain. –Bloomberg.

The pandemic isn’t the only thing that’s shaken the world this year
We’re only halfway through 2020, but it feels like about 10 years’ worth of stuff has happened. Here’s a recap –CNN.

A 103-year-old woman beat Covid-19, and had an ice cold beer to celebrate
When you’re 103 and kick Covid to the curb, you can drink whatever you want –CNN.

On June 1, 1968, author-lecturer Helen Keller, who earned a college degree despite being blind and deaf most of her life, died in Westport, Conn. Go to article »
PHOTOS OF THE DAY

Queen Elizabeth II rides Balmoral Fern, a 14-year-old Fell Pony, in Windsor Home Park. This is the first time the Queen has been seen since the beginning of Lockdown.
CREDIT: STEVE PARSONS/PA

People in pedalo’s go through the Olympic Park in Stratford in London, England.
CREDIT: ALEX PANTLING/GETTY IMAGES

A rainbow appears on the horizon after a brief spell of rain on the outskirts of New Delhi, India
CREDIT: AP PHOTO/ALTAF QADRI
Market Closes for June 1^st, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1932, Benjamin Graham published the first of a three-part series of articles in Forbes Magazine in which he pointed out that “a great number of American businesses are quoted in the market for much less than their liquidating value; that in the best judgment of Wall Street, these businesses are worth more dead than alive.” On the very same day, the Standard & Poor’s 500-stock index (measured retroactively) hit its all-time low of 4.40.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian shares climbed on Monday, led by consumer discretionary stocks, with investors focused on signs of economic recovery.
The S&P/TSX Composite index rose 0.3% in Toronto. Royal Bank of Canada contributed the most to the index advance, increasing 2.2%, while Alaris Royalty had the largest gain, rising percentage 9.8%. Canopy Growth had the biggest drop, falling 8.1%.
BlackBerry shares gained after Street Insider reported that Fairfax Financial recently held talks to buy the remaining shares it didn’t already own. Street Insider, citing an unidentified source, said BlackBerry has formed a special committee and hired bankers to assist in the matter. Prime Minister Justin Trudeau unveiled C$2.2 billion ($1.6 billion) in financial support for Canadian municipalities whose revenues have plunged because of Covid-19 lockdowns.
Commodities
* Western Canada Select crude oil traded at a $6.50 discount to West Texas Intermediate
* Spot gold rose 0.5% to $1,739.23 an ounce
FX/Bonds
* The Canadian dollar rose 1.6% to C$1.3568 per U.S. dollar
* The 10-year government bond yield rose slightly to 0.535%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose 0.3 percent at 15,236.21 in Toronto. The move follows the previous session’s decrease of 0.5 percent. Royal Bank of Canada contributed the most to the index gain, increasing 2.2 percent. Alaris Royalty Corp. had the largest increase, rising 9.8 percent.
Today, 131 of 229 shares rose, while 96 fell; 4 of 11 sectors were higher, led by financials stocks.
Insights
* This quarter, the index rose 14 percent, heading for the biggest advance in at least 10 years
* The index declined 5 percent in the past 52 weeks. The MSCI AC Americas Index gained 9.7 percent in the same period
* The S&P/TSX Composite is 15.2 percent below its 52-week high on Feb. 20, 2020 and 36.4 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.1 percent in the past 5 days and rose 4.2 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19 on a trailing basis and 24.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.3t
* 30-day price volatility little changed to 22.93 percent compared with 22.93 percent in the previous session and the average of 31.28 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 63.7906| 1.5| 19/7
Materials | 18.4698| 0.9| 33/13
Consumer Discretionary | 11.0287| 2.1| 12/2
Energy | 3.0037| 0.1| 23/7
Real Estate | -1.2103| -0.3| 10/16
Health Care | -1.2374| -0.8| 5/5
Utilities | -3.2690| -0.4| 6/9
Communication Services | -4.5707| -0.5| 2/6
Industrials | -11.1158| -0.6| 16/15
Consumer Staples | -14.8066| -2.2| 1/10
Information Technology | -16.7135| -1.2| 4/6
US
By Vildana Hajric
(Bloomberg) — U.S. stocks rose as investors focused on signs of economic recovery amid further tension with China, lackluster virus drug-test results and spreading protests over the killing of George Floyd, an unarmed black man, by police.
The dollar slumped.
The tech-heavy Nasdaq Composite outperformed as a closely watched measure of U.S. manufacturing rose in May for the first time in four months, suggesting stabilization after a pandemic-driven plunge. Gunmakers rallied in the aftermath as the protests were marred by violence. Gilead Sciences Inc. fell after its drug remdesivir showed only a limited benefit in a large trial.
Risk assets showed signs of resilience Monday after stocks had dipped earlier in the day following reports that Chinese officials had told agricultural companies to pause purchases of some U.S. farm goods, threatening a hard-won trade deal. Metals and emerging-market equities advanced along with shares in Europe and Asia.
Investors mostly looked past the weekend of sometimes violent demonstrations across U.S. cities, highlighting what many see as the disconnect between Wall Street and Main Street. Stocks are near a three-month high as businesses reopen following shutdowns caused by the coronavirus, even with 40 million Americans having filed for unemployment benefits.
“Progress on the road to an economic recovery could help offset pressure on the equity market from near-term challenges stemming from geopolitical, health, and societal risks,” John Stoltzfus, chief investment strategist at Oppenheimer, wrote to clients.
Goldman Sachs Group Inc. said the U.S. labor market is showing the earliest signs of rebounding. China’s Caixin purchasing managers’ index for manufacturing rose above 50 May, indicating an expansion. Euro-area data on Monday also signaled factories have started down their long road to recovery.
Here are some key events coming up:
* In Europe, the ECB is expected to top up its rescue program with an additional 500 billion euros of asset purchases at a meeting on Thursday. Anything less than an expansion would be a big shock, Bloomberg Economics said.
* The U.S. labor market report on Friday will probably show American unemployment soared to 19.6% in May, the highest since the 1930s.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.4% at the close of trading in New York.
* The Stoxx Europe 600 Index climbed 1.1%.
* Hong Kong’s Hang Seng Index increased 3.4%.
* The MSCI Asia Pacific Index increased 1.8%.
Currencies
* The Bloomberg Dollar Spot Index declined 0.7%.
* The euro rose 0.3% to $1.1133.
* The British pound gained 1.3% to $1.2503.
* The Japanese yen strengthened 0.2% to 107.6 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 0.66%.
* Germany’s 10-year yield increased four basis points to -0.41%.
* Britain’s 10-year yield climbed five basis points to 0.23%.
Commodities
* West Texas Intermediate crude rose 0.3% to $35.59 a barrel.
* Gold strengthened 0.6% to $1,740.17 an ounce.
–With assistance from Joanna Ossinger, Gregor Stuart Hunter, Adam Haigh, Anchalee Worrachate and Todd White.
Have a great night.

Be magnificent!
As ever,

Carolann

Efforts and courage are not enough without purpose and direction.
                                                -John F. Kennedy, 1917-1963

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