November 10, 2020 Newsletter

Dear Friends,

Tangents:
1871- Stanley finds Livingstone.
1925, Richard Burton, actor, b.
1928 – Hirohito was enthroned as Emperor of Japan.  Go to article »
1951- area codes introduced.
1983- Microsoft releases Window.

A military carrier pigeon message turned up 110 years after it was sent.  Better late than never, as they say. -CNN

This Italian town was known for its old folks. Then they vanished.  The town is now picture-perfect, but its residents have been driven away -CNN

PHOTOS OF THE DAY

A person walks their dog in the morning mist at sunrise in Greenwich Park in south London, UK.
CREDIT: DANIEL LEAL-OLIVAS/AFP

Can we help moo? A lost calf is tended to by some inquisitive horses in this hear-warming scene. The adorable images were captured by professional equine photographer Sandy Sharkey in countryside near Ottowa, Canada. Sandy said “I was driving when I noticed three horses in a shady area way off in the distance. They caught my eye because they were all gathered around something on the ground. Through my telephoto lens, I could see the focus of their attention: a newborn baby calf. There were cows in the same field, but not close by and no obvious mother for this little calf.” “I watched as the horses gently licked and nudged the baby until he finally struggled to stand. The mother cow then appeared from behind some trees and began to bond with her hours-old calf. The unfolding of this little story made my day”.
CREDIT: SOLENT NEWS & PHOTO AGENCY

Aerial photo of a large chrysanthemum base in Ninghai County, Zhejiang Province, China.
CREDIT: COSTFOTO/BARCROFT MEDIA VIA GETTY IMAGES

Market Closes for November 10^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Corporate balance sheets and income statements can trace their heritage to this day in 1494, as the first edition of Luca Pacioli’s “Summa de Arithmetica, Geometria, Proportioni et Proportionalita” was printed in Venice. The book contained 36 brief chapters on accounting and, for the first time, popularized the concept of double-entry bookkeeping, which offsets assets against liabilities and revenues against expenses.

Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equities rose for a second day, led by cyclical stocks such as energy and financials. The S&P/TSX Composite index gained 0.9% on Tuesday, after rising 1.2% yesterday. The gauge closed at the highest since Sept. 2. Energy, financials and communication services were the best performers, while materials and tech stocks were the worst. In Canadian company news, Brookfield Asset Management Inc. is embarking on an aggressive move into the secondary market for private assets, the first step in what Chief Executive Officer Bruce Flatt says could become a $50 billion business.
Commodities
* Western Canada Select crude oil traded at a $9.85 discount to West Texas Intermediate
* Spot gold rose 0.6% to $1,873.33 an ounce
FX/Bonds
* The Canadian dollar weakened 0.2% to C$1.3038 per U.S. dollar
* The 10-year government bond yield rose 3 basis points to 0.776%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.8 percent, or 139.51 to 16,615.37 in Toronto. The index advanced to the highest closing level since Sept. 2. Enbridge Inc. contributed the most to the index gain, increasing 4.8 percent. Enerplus Corp. had the largest increase, rising 11.6 percent. Today, 127 of 222 shares rose, while 94 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index fell 2.6 percent, heading for the worst year since 2018
* The index declined 1.6 percent in the past 52 weeks. The MSCI AC Americas Index gained 15 percent in the same period
* The S&P/TSX Composite is 7.5 percent below its 52-week high on Feb. 20, 2020 and 48.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 4.2 percent in the past 5 days and rose 0.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 26.3 on a trailing basis and 22.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.53t
* 30-day price volatility rose to 15.34 percent compared with 15.18 percent in the previous session and the average of 14.73 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 115.7772| 2.4| 17/9
Energy | 71.3119| 4.0| 22/1
Communication Services | 18.6998| 2.2| 7/0
Industrials | 9.8843| 0.5| 13/15
Real Estate | 5.8230| 1.1| 20/6
Consumer Discretionary | 5.1197| 0.8| 11/2
Utilities | 3.2413| 0.4| 9/7
Consumer Staples | 3.0312| 0.4| 6/5
Health Care | -3.3931| -1.7| 5/5
Information Technology | -28.2822| -1.9| 3/7
Materials | -61.6893| -2.5| 14/37

US
By Rita Nazareth and Kamaron Leach
(Bloomberg) — Stocks dropped amid a selloff in big tech and speculation that this month’s rally has outpaced prospects for an economic rebound as coronavirus cases surge. Treasuries fell. The S&P 500 retreated from a two-month high as the slide in technology shares outweighed gains in industrial and energy companies. The Nasdaq 100 slumped as much as 2.7% on Tuesday. Amazon.com Inc. sank as the online-retail giant faced an antitrust complaint from the European Union, while American depositary receipts of Alibaba Group Holding Ltd. tumbled after China tightened the scrutiny over internet behemoths. Meanwhile, the Dow Jones Industrial Average outperformed as Boeing Co. extended its November rally to more than 30% on news that regulators could lift the 737 Max grounding as soon as next week. The Russell 2000 Index of small caps climbed to the highest since August 2018.
After all the enthusiasm that lifted global equities and sent havens into a tailspin, some analysts said the moves may have gone too far. The coronavirus shot still has several hurdles to clear, there’s concern over fiscal stimulus, the transition of power to President-elect Joe Biden and a virus resurgence. The U.S. reported a record 142,907 new infections on Monday, and Governor Phil Murphy said New Jersey’s jump in cases is “devastating.” Despite the uncertainties, the S&P 500’s valuations are near the highest levels since the dot-com era. “You still have a tremendous amount of uncertainty out there, and while equities may continue to climb a wall of worry, the stock market is still subject to the rules of gravity,” said Jonathan Boyar, managing director at Boyar Value Group.
With the Nasdaq Composite Index down for a second straight session, an ominous double-top pattern is forming. That should put all eyes on the 50- and 100-day moving averages as the first and second line of support for the tech-heavy gauge. Megacaps extended the slide that accompanied Monday’s rotation out of pandemic favorites and into value stocks, and potentially setting up a test of the 11,000 level around the 100-day line.
Meanwhile, China unveiled regulations to root out monopolistic practices in the internet industry, seeking to curtail the growing influence of corporations like Alibaba and Tencent Holdings Ltd. The rules, which sent both stocks tumbling and sparked a wider selloff in the nation’s equities, landed about a week after new restrictions on the finance sector that triggered the shock suspension of Ant Group Co.’s $35 billion initial public offering.
These are some key events coming up:
* Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last year.
* European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Federal Reserve Chairman Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World.”
* U.S. CPI data for October is due on Thursday.
* Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index dropped 0.2% at 4 p.m. New York time.
* The Stoxx Europe 600 Index increased 0.9%.
* The MSCI Asia Pacific Index decreased 0.1%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro was little changed at $1.1811.
* The Japanese yen strengthened 0.1% to 105.30 per dollar.
Bonds
* The yield on 10-year Treasuries gained three basis points to 0.96%.
* Germany’s 10-year yield rose two basis points to -0.49%.
* Britain’s 10-year yield climbed three basis points to 0.401%.
Commodities
* The Bloomberg Commodity Index gained 1.7%.
* West Texas Intermediate crude increased 2.7% to $41.39 a barrel.
* Gold strengthened 0.8% to $1,877.15 an ounce.
–With assistance from Cormac Mullen, Andreea Papuc, Todd White, Cecile Gutscher, Lynn Thomasson, Lu Wang, Vildana Hajric, Sophie Caronello, Nancy Moran and Claire Ballentine.

Have a great night.

Be magnificent!
As ever,

Carolann

The quality of mercy is not strain’d.
It droppeth as the gentle rain from heaven
Upon the place beneath:  it is twice blest;
It blesseth him that gives and him that takes.
               -William Shakespeare,  1564-1616, The Merchant of Venice.

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