October 19, 2020 Newsletter

Dear Friends,

Tangents:
John Le Carre, b. 1931

Physicists keep trying to break relativity and keep failing. 

Obscure Automaker Has the World’s Fastest Car
The world has a new fastest car. On Oct. 10, the reptilian SSC Tuatara hypercar posted an average speed of 316.11 mph (508.73 km/h) while driving on a seven-mile stretch of two-lane Highway 160 outside Las Vegas. 

On Oct. 19, 1987, the stock market crashed as the Dow Jones Industrial Average plunged 508 points, or 22.6 percent in value – its second biggest percentage drop. Go to article »

PHOTOS OF THE DAY

A runner passes trees displaying autumn foliage in Kensington Palace Gardens, in central London.
CREDIT: DOMINIC LIPINSKI/PA WIRE

The weather this weekend had the odd spell of sunshine, but was otherwise cold but dry, so people were out on walks taking in the autumn colour as they walked through a tunnel of trees at Halnaker near Chichester, West Sussex.
CREDIT: SIMON CZAPP/SOLENT NEWS & PHOTO AGENCY

The playful Ring-Tailed Lemurs have been given pumpkins for the autumn season ahead of Halloween. Not only can the lemurs eat the pumpkins, they are also great for enrichment. Running up to Halloween the farm will be hosting a number of spooky themed events for children and some of the animals.
CREDIT: OLIVER DIXON

Market Closes for October 19^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1885, Charles Merrill was born in Green Grove Springs, Fla., the son of a family doctor. With Edmund C. Lynch, he founded Merrill, Lynch & Co. in 1914 to “bring Wall Street to Main Street.”
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks reversed an early gain Monday, while U.S. shares fell to the lowest in almost two weeks as a stalemate over coronavirus relief legislation continued. The S&P/TSX Composite Index fell 1%, the most since Oct. 6, with 10 of 11 sectors losing. Health care was the lone gainer, with pot companies including Aurora Cannabis Inc. and Canopy Growth Corp. both rising over 10%. Business sentiment in Canada improved over the summer but remains near historical lows as uncertainty around the path of the virus curbs demand and sales prospects, according to the Bank of Canada. Brookfield Asset Management will buy an Indian developer’s commercial properties for $2 billion, the biggest real estate deal in the South Asian nation. Altice USA Inc. raised its bid for Cogeco Inc. and Cogeco Communications Inc. to $8.4 billion, but the offer was quickly turned down by the Canadian cable firm’s controlling shareholder. Citi sees low odds of a deal occurring.
Commodities
* Western Canada Select crude oil traded at a $9.25 discount to West Texas Intermediate
* Spot gold rose 0.2% to $1,902 an ounce
FX/Bonds
* The Canadian dollar was flat at C$1.3189 per U.S. dollar
* The 10-year government bond yield rose 1.0 basis points to 0.585%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 1 percent, or 164.68 to 16,274.07 in Toronto. The move was the biggest since falling 1.1 percent on Oct. 6. Toronto-Dominion Bank contributed the most to the index decline, decreasing 1.8 percent. Silvercorp Metals Inc. had the largest drop, falling 5.1 percent. Today, 168 of 223 shares fell, while 53 rose; 10 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index fell 4.6 percent, heading for the worst year since 2018
* The index declined 0.6 percent in the past 52 weeks. The MSCI  AC Americas Index gained 15 percent in the same period
* The S&P/TSX Composite is 9.4 percent below its 52-week high on Feb. 20, 2020 and 45.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 1.7 percent in the past 5 days and rose 0.5 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 23.2 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$2.52t
* 30-day price volatility fell to 14.60 percent compared with 14.91 percent in the previous session and the average of 15.08 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -51.2989| -1.1| 2/24
Materials | -43.6090| -1.7| 8/44
Energy | -20.5593| -1.2| 3/19
Industrials | -16.3788| -0.8| 9/19
Communication Services | -12.1730| -1.4| 0/7
Utilities | -10.3272| -1.2| 2/14
Information Technology | -7.1530| -0.4| 6/4
Consumer Staples | -5.6316| -0.8| 2/9
Consumer Discretionary | -1.5633| -0.3| 7/6
Real Estate | -1.5312| -0.3| 7/19
Health Care | 5.5295| 3.4| 7/3
US
By Vildana Hajric
(Bloomberg) — U.S. stocks fell to the lowest in almost two weeks as Congress remained apart on a fresh government spending deal, denting hopes for a breakthrough before the election.  Treasuries slipped with the dollar. The S&P 500 Index fell more than 1.5% as opposition to a sizable aid package hardened in the Republican-controlled Senate and House Speaker told her caucus negotiators are still trying to reach a deal. Data showed key parts of the American economy are slowing two weeks ahead of the vote, while Federal Reserve officials warn the growth will slow without additional federal spending. Futures had advanced overnight on signs of progress toward a deal and the latest data from China showing its economy continues to rebound. The 10-year Treasury yield rose above 0.76% and the dollar weakened versus major peers.
“As the hope for stimulus before the election fades, the market kind of fades with it,” said Christopher Grisanti, chief equity strategist at MAI Capital Management. “The market was pricing in some kind of stimulus and without it there’s disappointment.” In Europe, stock slumped while the pound jumped by the most since August as British officials signalled they were ready to water down controversial lawbreaking Brexit legislation, a move which could reopen talks with the European Union over future trading relationships. Elsewhere, oil dropped before an OPEC+ meeting to assess the state of the market as demand comes under pressure from the threat of new virus restrictions.

Here are some key events this week:
* Brexit trade talks are likely to continue at least into next week if the U.K. and EU fail to reach an agreement.
* Australia central bank minutes are out Tuesday.
* The final presidential debate before the U.S. election, between President Donald Trump and former Vice President Joe Biden, will be live from Nashville, Tennessee on Thursday.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index slipped 1.6% at 4 p.m. in New York.
* The Nasdaq 100 lost 1.8% while the Dow Jones Industrial Average fell 1.4%.
* The Stoxx Europe 600 Index lost 0.3%.
* The MSCI Asia Pacific Index rose 0.8%.
* The MSCI Emerging Market Index rose 0.5%.
Currencies
* The Bloomberg Dollar Spot Index decreased 0.1%.
* The euro climbed 0.4% to $1.1769.
* The British pound increased 0.2% to $1.2942.
* The onshore yuan strengthened 0.2% to 6.685 per dollar.
* The Japanese yen was flat at 105.42 per dollar.
Bonds
* The yield on 10-year Treasuries climbed one basis point to 0.76%.
* The yield on two-year Treasuries climbed one basis point to 0.145%.
* Germany’s 10-year yield gained one basis point to -0.61%.
* Japan’s 10-year yield jumped less than one basis point to 0.026%.
* Britain’s 10-year yield climbed two basis points to 0.201%.
Commodities
* West Texas Intermediate crude fell 0.7% to $40.59 a barrel.
* Brent crude dropped 1.1% to $42.43 a barrel.
* Gold futures slipped 0.1% to $1,904.20 an ounce.
–With assistance from Claire Ballentine and Andreea Papuc.

Have a great night.

Be magnificent!

As ever,

Carolann

Carry out a random act of kindness, with no expectation of reward,
safe in the knowledge that one day someone might do the same for you.
                                                            -Diana Spencer, 1961-1997

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