August 4, 2020 Newsletter

Dear Friends,

Tangents:
August 4, 1944: Anne Frank arrested in Amsterdam by German Security Police (Grüne Polizei) following a tip-off from an informer who was never identified.

1962-Nelson Mandela arrested.
Louis Armstrong, musician, b. 1900.

Get a glimpse of life within the remote villages of Patagonia. -The New York Times.

Inside undersea rocks, life thrives without sunshine. (h/t Scott Kominers) –Bloomberg.

On Aug. 4, 1914, Britain declared war on Germany while the United States proclaimed its neutrality. Go to article »

PHOTOS OF THE DAY

The moon rises behind the columns if the ancients marble Temple of Poseidon at Cape Sounion, about 70km (45 miles) south of Athens
CREDIT: AP PHOTO/PETROS GIANNAKOURIS

A stunning photo of a bubble of gas that resembles a butterfly has been taken by the European Southern Obsercatory
CREDIT: ESO/COVER IMAGES

The comet, which has been in the solar system for a month or so, is already near the horizon, in sharp contrast to the faint airglow and extreme brightness of the Big Dipper in the sky. Qiqihar, Heilongjiang province, China
CREDIT: COSTFOTO/BARCROFT MEDIA VIA GETTY IMAGES
Market Closes for August 4^th , 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1790, Congress enacted Alexander Hamilton’s plan to fund the public debt, ending years of turmoil and haggling over the junk bonds issued by the federal and state governments during the Revolution, making government spending possible, and giving birth to the American securities markets.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks rose Tuesday after trading was closed for Monday’s Civic Holiday.
The S&P/TSX Composite Index gained 1.2% to the highest since March 5. Energy shares led the way after oil climbed to the highest level in nearly two weeks after an explosion at Lebanon’s main port rocked the capital of Beirut.
Information technology stocks also rallied, with Lighspeed POS up 9.8%, and Kinaxis Inc. advancing 5.8%. Spot gold soared to a record above $2,000 an ounce as investors continue to seek a haven for their assets amid daunting economic and geopolitical risks.
Commodities
* Western Canada Select crude oil traded at a $11.15 discount to West Texas Intermediate
* Spot gold was flat at ~$2,019.23 an ounce
FX/Bonds
* The Canadian dollar weakened 0.1% to C$1.3325 per U.S. dollar
* The 10-year government bond yield fell 3.5 basis points to 0.432%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose 1.2 percent at 16,368.03 in Toronto. The move was the biggest since rising 1.7 percent on July 14 and follows the previous session’s decrease of 0.8 percent.
Shopify Inc. contributed the most to the index gain, increasing 4.8 percent. Lightspeed POS Inc. had the largest increase, rising 9.8 percent.
Today, 146 of 221 shares rose, while 72 fell; 8 of 11 sectors were higher, led by materials stocks.
Insights
* The index advanced 0.6 percent in the past 52 weeks. The MSCI AC Americas Index gained 12 percent in the same period
* The S&P/TSX Composite is 8.9 percent below its 52-week high on Feb. 20, 2020 and 46.5 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.3 percent in the past 5 days and rose 4.9 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 22.6 on a trailing basis and 24.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.46t
* 30-day price volatility rose to 13.74 percent compared with 13.36 percent in the previous session and the average of 17.11 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 67.9995| 2.6| 41/8
Energy | 63.4970| 3.3| 24/0
Information Technology | 54.3912| 3.2| 7/3
Communication Services | 17.2336| 2.0| 8/0
Consumer Discretionary | 6.6733| 1.2| 10/3
Health Care | 5.0674| 3.0| 6/3
Utilities | 2.3363| 0.3| 8/8
Real Estate | 0.1036| 0.0| 11/15
Consumer Staples | -0.5796| -0.1| 8/3
Financials | -4.0159| -0.1| 11/13
Industrials | -13.8824| -0.7| 12/16
US
By Brendan Walsh
(Bloomberg) — U.S. equities eked out a gain as investors tried to gauge the outlook for a stimulus bill to blunt the economic impact of the coronavirus pandemic.
The S&P 500 Index ended 0.4% higher after wavering between small losses and gains throughout the day. Energy companies led the advance as crude climbed.
Financial shares suffered as American International Group Inc. fell after posting a $7.9 billion loss. Treasuries rose. Argentina’s overseas notes rallied after the government reached a $65 billion restructuring deal with creditors.
With the S&P 500 less than 3% off its pre-pandemic high, U.S. equity investors are closely monitoring efforts in Washington to negotiate a new virus relief package that many see as key to keeping the economy afloat. The pressure is building as negotiators seek to shrink the wide gap that remains between Republicans and Democrats.
“We see U.S. stocks at risk of fading fiscal stimulus,” BlackRock Investment Institute strategists led by Mike Pyle wrote in a note. “U.S. employment figures are in focus this week as this fiscal cliff nears and the pandemic’s spread in Sunbelt states is starting to affect economic activity.”
Elsewhere, shares dipped in Europe, with Diageo Plc tumbling after bar closures sapped sales. Major indexes rose more than 1% in Japan and Hong Kong.
West Texas-grade crude oil rose past $41 a barrel after the biggest gain in almost two weeks Monday. Spot gold reached an intraday record.
Here are some key events coming up:
* Euro-zone PMI reports are scheduled for Wednesday.
* Reserve Bank of India and Bank of England rate decisions due Thursday.
* Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.
* July U.S. employment and jobs reports expected Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index rose 0.4% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.1%.
* The MSCI Asia Pacific Index increased 2%.
Currencies
* The Bloomberg Dollar Spot Index slipped 0.2%.
* The euro rose 0.3% to $1.1801.
* The Japanese yen rose 0.3% to 105.67 per dollar.
Bonds
* The yield on 10-year Treasuries decreased five basis points to 0.51%.
* Britain’s 10-year yield fell two basis points to 0.074%.
* Germany’s 10-year yield dipped three basis points to -0.55%.
Commodities
* West Texas Intermediate crude rose 1.5% to $41.61 a barrel.
* Gold rose 1.8% to $2,012.38 an ounce.
* Copper fell 0.5% to $2.8965 per pound.
–With assistance from Nancy Moran, Andreea Papuc, Todd White and Cecile Gutscher.
Have a great night.

Be magnificent!
As ever,

Carolann

Never ruin an apology with an excuse.
        –Benjamin Franklin, 1706-1790

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
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www.carolannsteinhoff.com