September 29, 2020 Newsletter

Dear Friends,

Tangents:  Michaelmas – St. Michael’s Day.

Miguel de Cervantes, b. 1547.
Horatio Nelson, b. 1758.
Enrico Fermi, b. 1901

1978 – Pope John Paul I was found dead in his Vatican apartment a little more than one month after becoming head of the Roman Catholic Church. Go to article »

Did the German painter Albrecht Dürer create the selfie five centuries ago? -NY Times

Scientists precisely measure the total amount of matter in the universe. 
Some physicists see signs of cosmic strings from the Big Bang.  –Bloomberg.

PHOTOS OF THE DAY

‘Start Point lighthouse’, by Liam Holley, which has been highly commended in the Coastal Views category of the 2020 Ultimate Sea View photography competition run by national maritime charity, the Shipwrecked Mariners’ Society.
CREDIT: LIAM HOLLEY/PA

The moon rises behind Edinburgh’s Arthur’s Seat silhouetting these walkers from the Edinburgh University student halls of residence which is located at the base of the extinct Scottish volcano. Rather than going to the pub last night these students took to the hill above their student residence.
CREDIT: TOM DUFFIN/SOLENT NEWS & PHOTO AGENCY

A fresh and crisp start to the day as autumn’s chilly fingers grip the town of Malmesbury, Wiltshire.
CREDIT: ROBERT PEEL/SWNS

Market Closes for September 29th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1952, the New York Stock Exchange changed its trading hours so that the market would close at 3:30 p.m. Monday through Friday, instead of 3 p.m., and it would no longer be open at all on Saturday.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets fell on Tuesday, led lower by energy and financial stocks. The S&P/TSX Composite Index declined 0.2% in Toronto. Energy stocks were the worst performers as oil plunged to its lowest in two weeks on growing fears that a sustained recovery in demand is still some way off. Meanwhile, tech stocks were the best performers, led by Shopify’s gains. Canada’s largest commercial landlords are seeing some improvements in rent collection as tenants find ways to normalize their businesses during the pandemic. Allied Properties Real Estate Investment Trust, which operates 200 offices and other properties in Canada’s largest cities, expects to collect about 98% of rent in its third quarter as some deferrals roll off, according to Chief Financial Officer Cecilia Williams.
Commodities
* Western Canada Select crude oil traded at a $10.75 discount to West Texas Intermediate
* Spot gold rose 0.9% to $1,897.95 an ounce
FX/Bonds
* The Canadian dollar fell 0.1% to C$1.3389 per U.S. dollar
* The 10-year government bond yield fell to 0.533%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 0.2 percent at 16,211.52 in Toronto. The move follows the previous session’s increase of 1.1 percent. Royal Bank of Canada contributed the most to the index decline, decreasing 1.7 percent. Crescent Point Energy Corp. had the largest drop, falling 6.4 percent. Today, 122 of 223 shares fell, while 99 rose; 7 of 11 sectors were lower, led by financials stocks.
Insights
* This month, the index fell 1.8 percent
* This quarter, the index rose 4.5 percent
* This year, the index fell 5 percent, heading for the worst year since 2018
* The index declined 2.9 percent in the past 52 weeks. The MSCI AC Americas Index gained 12 percent in the same period
* The S&P/TSX Composite is 9.8 percent below its 52-week high on Feb. 20, 2020 and 45.1 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 0.4 percent in the past 5 days and fell 3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.9 on a trailing basis and 23.3 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$2.48t
* 30-day price volatility little changed to 15.10 percent compared with 15.09 percent in the previous session and the average of 12.74 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -66.1466| -1.4| 2/24
Energy | -42.9275| -2.4| 2/21
Real Estate | -4.0465| -0.8| 8/19
Consumer Discretionary | -3.9954| -0.7| 4/9
Communication Services | -3.3493| -0.4| 2/5
Consumer Staples | -0.8258| -0.1| 4/7
Health Care | -0.4528| -0.3| 4/6
Utilities | 1.9233| 0.2| 8/7
Industrials | 3.6528| 0.2| 18/10
Materials | 23.5306| 0.9| 41/10
Information Technology | 61.3583| 3.8| 6/4
US
By Sarah Ponczek
(Bloomberg) — The end-of-month rebound in global equities faded as investors weighed prospects for fiscal stimulus in the U.S. and the outlook for the coronavirus pandemic. Oil tumbled on concern slow growth will limit demand. The S&P 500 Index slumped, with more than two stocks falling for every one that advanced, after talks on expanding aid ended for the day with plans to resume discussions tomorrow. An exchange-traded fund that tracks the S&P 500 gained 0.2% in after-hours trading after a study showed a Regeneron Pharmaceuticals Inc. antibody cocktail may help treat coronavirus patients outside of the hospital. Oil fell toward $39 a barrel in New York. Treasuries were little changed, while the dollar weakened.
With the pandemic’s global death toll exceeding 1 million and virus cases on the upswing in many locales, investors are pinning hopes on a $2.2 trillion stimulus proposal by Democrats to help support economic growth. End-of-month and end-of-quarter portfolio rebalancing could also be exacerbating market moves as September comes to a close. “A lot of the fiscal stimulus conversation is driving the markets here in the near-term,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. At the same time, there “has been a fear that you’d have a resurgence in cases in the fall and some people have chosen to take their money and sit on the sidelines.”
The negotiations between the Trump administration and congressional Democrats are reaching a critical juncture this week. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke Tuesday morning for 50 minutes and are set to speak again Wednesday. Markets are also girding for the first presidential debate Tuesday, and traders have pushed up overnight implied volatilities on Mexico’s peso in anticipation of price swings.
Elsewhere, Banks led broad-based declines in the Stoxx Europe 600 index. The MSCI AC Asia Pacific Index was little changed as South Korean shares advanced, while Hong Kong stocks fell. Nippon Telegraph & Telephone Corp. announced plans to turn its wireless carrier unit NTT Docomo Inc. into a wholly owned subsidiary in a $40 billion buyout. NTT Docomo shares surged by their limit at the close in Tokyo.
Here are some key events coming up:
* China purchasing manager indexes are due Wednesday, and expected to show September manufacturing improved slightly while non-manufacturing moderated from August’s level.
* The EIA crude oil inventory report comes out Wednesday.
* The September U.S. employment report on Friday will be the last before the November election.

These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.5% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.5%.
* The MSCI Asia Pacific Index was little changed.
Currencies
* The Bloomberg Dollar Spot Index declined 0.3%.
* Sterling rose 0.2% to $1.2866.
* The Japanese yen weakened 0.2% to 105.67 per dollar.
Bonds
* The yield on 10-year Treasuries fell less than one basis point to 0.65%.
* Germany’s 10-year yield dipped two basis points to -0.55%.
* Britain’s 10-year yield decreased two basis points to 0.18%.
* Italy’s 10-year yield declined three basis points to 0.85%.
Commodities
* West Texas Intermediate crude tumbled 3.8% to $39.04 a barrel.
* Gold rose 0.8% to $1,897.22 an ounce.
* Silver rose 2.3% to $24.23 per ounce.
–With assistance from Gregor Stuart Hunter, Ravil Shirodkar, Andreea Papuc, Elena Popina and Todd White.

Have a great night.

Be magnificent!
As ever,

Carolann

Our greatest foes, and whom we must chiefly combat, are within.
                                         -Miguel de Cervantes, 1547-1616

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