September 10, 2020 Newsletter

Dear Friends,

Tangents:
September 10, 1939: Canada declares war on Germany, joining Britain and France in entering the Second World War. Go to article »

The discovery of rust on the moon shows how much fascination Earth’s closest neighbor still holds. — Stephen Carter, Bloomberg.

World wildlife plummets more than two-thirds in 50 years. -Bloomberg.

La Nina is here, threatening even bigger storms and wildfires. –Bloomberg.

Bloomberg Photos: A preview of the apocalypse as California burns.

PHOTOS OF THE DAY

Flames above vehicles on Highway 162 as the Bear Fire burns in Oroville, California.
CREDIT: AP PHOTO/NOAH BERGER

Andy Lewis walks infront of the moon in Moab Utah, USA.
CREDIT: RENAN OZTURK/CATERS NEWS

Escapees ride during the 11th stage of the 107th edition of the Tour de France cycling race, 167 km between Chatelaillon Plage and Poitiers.
CREDIT: MARCO BERTORELLO/AFP

Market Closes for September 10th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1831, the Madrid Stock Exchange (La Bolsa de Madrid) was established.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities reversed course Thursday after rising in early trading. The S&P/TSX Composite Index dropped 1.2%, with all sectors declining. Energy stocks were among the laggards as oil dipped on growing crude stockpiles. The Bank of Canada plans to maintain extraordinary stimulus for as long as needed to help the nation’s economy fully recover from the crisis, Governor Tiff Macklem said. CI Financial Corp., Canada’s largest independent mutual fund manager by market value, may seek a U.S. listing as it ramps up a strategy of buying smaller wealth management firms.
Commodities
* Western Canada Select crude oil traded at a $7.35 discount to West Texas Intermediate
* Spot gold fell 0.2% to $1,943 an ounce
FX/Bonds
* The Canadian dollar weakened 0.4% to $1.3193 per U.S. dollar
* The 10-year government bond yield fell 3.1 basis points to 0.565%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 1.2 percent at 16,185.32 in Toronto. The move follows the previous session’s increase of 1.8 percent. Shopify Inc. contributed the most to the index decline, decreasing 1.3 percent. Enerplus Corp. had the largest drop, falling 8.5 percent. Today, 178 of 221 shares fell, while 41 rose; all sectors were lower, led by financials stocks.
Insights
* So far this week, the index was little changed
* This quarter, the index rose 4.3 percent
* This year, the index fell 5.1 percent, heading for the worst year since 2018
* The index declined 2.1 percent in the past 52 weeks. The MSCI AC Americas Index gained 12 percent in the same period
* The S&P/TSX Composite is 9.9 percent below its 52-week high on Feb. 20, 2020 and 44.9 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 3.1 percent in the past 5 days and fell 2.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.8 on a trailing basis and 23.5 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$2.49t
* 30-day price volatility rose to 12.97 percent compared with 12.82 percent in the previous session and the average of 10.72 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -54.4430| -1.2| 1/22
Energy | -35.9058| -1.9| 2/22
Materials | -31.7591| -1.2| 14/36
Information Technology | -25.3137| -1.6| 1/9
Utilities | -13.9446| -1.7| 0/16
Consumer Staples | -12.0668| -1.7| 1/10
Communication Services | -9.9786| -1.1| 3/5
Consumer Discretionary | -5.4116| -1.0| 3/10
Real Estate | -4.4652| -0.9| 4/23
Industrials | -3.9865| -0.2| 8/20
Health Care | -0.9996| -0.7| 4/5
US
By Claire Ballentine and Katherine Greifeld
(Bloomberg) — A fresh selloff in mega cap technology shares sent stocks to the fourth loss in five days as investors remain worried that valuations got stretched too far in a five-month rally. Treasuries rose with the dollar. The S&P 500 dropped as much as 2.1%. Volatility has been even more prevalent in the Nasdaq 100, where close-to-close runs have been at least 1% for seven sessions. Energy companies, a small cohort in major averages, plunged as crude dropped back toward $37 a barrel in New York. Treasuries reversed losses as the equity decline picked up speed. Gold turned lower, while copper tumbled. The dollar strengthened versus major peers. Volatility continued to grip American financial markets after a rally that added $7 trillion to U.S. equity values over five months. Reasons for caution were plenty, though no single factor alone set the tone. Signs mounted that the pandemic continues to upend the global economy. In the U.S., data showed cracks in recent labor-market strength, while Europe re-emerged as a virus hot spot. Congress remained far apart on a fresh relief bill.
“We likely have not seen the full correction play out yet,” said Matt Forester, chief investment officer at BNY Mellon Lockwood Advisors. “It’s difficult to point to a specific catalyst, but currency volatility rose today on concerns about a hard Brexit and we’ve seen some worse news about the virus in Europe. In Europe, the pound fell amid renewed Brexit tensions. The euro jumped 0.7% the region’s central bank was said to agree that there’s no reason to overreact to the currency’s strength. BP Plc slipped after making its first venture into offshore wind power with a $1.1 billion purchase of U.S. assets from Norway’s Equinor ASA. After a volatile few days, technology stocks are still front and center with a fragile rally under threat. Yesterday, the S&P 500 rose the most since June overnight and the Nasdaq rebounded following an 11% rout that took the gauge down to its 50-day moving average, a closely-watched technical level. “It is too early to declare that the growth rally has ended, but this week should be a reminder for investors that while the exuberance remains, the storm is never far away,” Geir Lode, head of international global equities at Federated Hermes, wrote in a note to clients.
Here are some key events coming up:
* U.S. CPI data is due Friday, with consumer prices expected to have risen in August.

These are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.8% as of 4 p.m. New York time.
* The Nasdaq 100 lost 2.1%.
* The Stoxx Europe 600 Index declined 0.6%.
* The MSCI Asia Pacific Index advanced 0.7%.
* The MSCI Emerging Market Index increased 0.4%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%.
* The euro gained 0.2% to $1.183.
* The British pound fell 1.6% to $1.2789.
* The Japanese yen rose 0.1% to 106.11 per dollar.
* The offshore yuan was little changed at 6.8315 per dollar.
Bonds
* The yield on 10-year Treasuries fell two basis points to 0.68%.
* The yield on two-year Treasuries fell two basis points to 0.1389%.
* Germany’s 10-year yield jumped one basis point to -0.43%.
* Britain’s 10-year yield gained one basis point to 0.247%.
* Japan’s 10-year yield dipped less than one basis point to 0.028%.
Commodities
* West Texas Intermediate crude dropped 2.5% to $37.08 a barrel.
* Brent crude decreased 2.3% to $39.84 a barrel.
* Gold futures 0.2% to $1,952.10 an ounce.
–With assistance from Anchalee Worrachate and Cecile Gutscher.

Have a great night.

Be magnificent!
As ever,

Carolann

Nothing is improbable until it moves into past tense.
                                     -George Ade, 1866-1944

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
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www.carolannsteinhoff.com