June 18, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday.
Paul McCartney, b. 1942.
Isabella Rossellini, b. 1952.

War of 1812 Declaration.
June 18, 1983~ First US woman in Space, Sally Ride.

1928 Aviator Amelia Earhart became the first woman to fly across the Atlantic Ocean as she completed a flight from Newfoundland to Wales in about 21 hours. Go to article >>

PHOTOS OF THE DAY

Jumping puddles on day four of the Royal Ascot Meeting at Ascot Racecourse, England
CREDIT: PAUL GROVER FOR THE TELEGRAPH

Scotland fans gather near Leicester Square in the West End ahead of the England vs Scotland match for Euro 2020
CREDIT: ROB PINNEY/GETTY IMAGES

Yoga practitioners attend a class on the Edge Observation Deck, billed as the ‘highest outdoor sky deck in the Western Hemisphere’ at 345 meters, and overlooking the Manhattan skyline, in New York
CREDIT: ED JONES/AFP

Market Closes for June 18^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1998, internet stocks got an electrifying boost as Disney agreed to buy 43% of Infoseek for roughly $550 million in cash, stock and warrants. Infoseek stock shot up to $42, then closes at $35.125. By March, 2001, Disney has exchanged the old Infoseek assets for its own shares at an approximate value of only $5 per share.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets fell on Friday, after health care, consumer discretionary and energy stocks underperformed. The S&P/TSX Composite index fell 0.7% in Toronto, marking worst week since April 23. Westshore and Village Farms were the worst performing stocks, both falling more than 4%.  Meanwhile, Acuity Ads and Lightspeed were the best performing companies on Friday. Non-essential travel between the U.S. and Canada will be banned for another month despite mounting pressure from businesses to ease Covid-19 travel restrictions.
Commodities
* Western Canadian Select crude oil traded at a $13.50 discount to West Texas Intermediate
* Spot gold fell 0.6% to $1,762.17 an ounce
FX/Bonds
* The Canadian dollar fell 0.7% to C$1.2442 per U.S. dollar
* The 10-year Canada government bond yield fell about 2 basis points to 1.369%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 0.7 percent, or 146.96 to 19,997.08 in Toronto. The move was the biggest since falling 0.9 percent on May 12. Bank of Nova Scotia contributed the most to the index decline, decreasing 1.8 percent. Westshore Terminals Investment Corp. had the largest drop, falling 7.0 percent. Today, 177 of 229 shares fell, while 49 rose; 8 of 11 sectors were lower, led by financials stocks.

Insights
* This quarter, the index rose 6.9 percent
* So far this week, the index fell 0.7 percent, heading for the biggest decline since the week ended April 23
* The index advanced 29 percent in the past 52 weeks. The MSCI AC Americas Index gained 36 percent in the same period
* The S&P/TSX Composite is 1.5 percent below its 52-week high on June 16, 2021 and 32 percent above its low on June 24, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23 on a trailing basis and 16.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.15t
* 30-day price volatility rose to 8.55 percent compared with 8.53 percent in the previous session and the average of 9.25 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -56.7524| -0.9| 2/24
* Energy | -33.4444| -1.3| 3/20
* Industrials | -23.9708| -1.0| 5/25
* Materials | -22.7926| -1.0| 8/43
* Consumer Discretionary | -12.7350| -1.6| 2/10
* Consumer Staples | -9.2111| -1.3| 2/11
* Communication Services | -6.8209| -0.7| 1/7
* Health Care | -5.3201| -2.0| 1/9
* Real Estate | 2.0528| 0.3| 15/11
* Utilities | 2.1156| 0.2| 6/10
* Information Technology | 22.4353| 1.0| 4/7
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Bank of Nova Scotia | -12.1700| -1.8| 282.2| 15.4
* Royal Bank of Canada | -11.1200| -0.9| 247.9| 20.4
* TC Energy | -8.1140| -1.8| 87.9| 23.6
* Lightspeed POS | 2.3490| 4.0| 42.0| 10.8
* Brookfield | | | |
* Infrastructure | 3.9130| 2.9| 402.4| 8.7
* Shopify | 23.7800| 1.7| 257.3| 26.7
================================================================
| | Index | Volume VS |YTD Change
Biggest Gainers | % Change |Points Move|20D AVG (%)| (%)
================================================================
* AcuityAds | 4.2| 0.1430| 193.6| -14.7
* Lightspeed POS | 4.0| 2.3490| 42.0| 10.8
* Interfor | 3.4| 0.4550| 39.1| 33.8

US
By Claire Ballentine
(Bloomberg) — Stocks fell for a fourth day, wrapping up the worst week for the S&P 500 since February, as the Federal Reserve’s surprise hawkishness upended the reflation trade that has dominated markets this year.  Commodities such as copper slumped while the dollar touched a two-month high. The Dow Jones Industrial Average, a proxy for so-called value shares, fell more than the benchmark index as investors stepped back from trades tied to expectations for hot economic growth and inflation.  Even safe harbor big cash-spewing technology companies such as Apple were lower, pushing the Nasdaq 100 down from a record high.  Yields on shorter-maturity Treasuries jumped after St. Louis Fed President James Bullard said on CNBC that the central bank has started discussing scaling back the pace of pandemic bond-buying. “The reverse rotation is continuing,” said Giorgio Caputo, senior fund manager at J O Hambro Capital Management. “At a certain point, a hawkish Fed isn’t good for anyone, even technology shares.”
Markets that are clearly benefiting from the reopening are seeing a pullback, with copper registering its worst week since the start of the pandemic. Oil posted a fourth straight weekly gain, even after slipping from the highest levels since 2018. An advance in the dollar this week has made commodities that are priced in the U.S. currency more expensive, driving declines across the complex. The Bloomberg Dollar Spot Index rose for a sixth trading session. European shares fell the most in a month, with the longest streak of gains since 1999 brought up short by the Fed’s hawkish tilt at Wednesday’s policy meeting. Elsewhere, some of the biggest gainers in the hottest corner of the cryptocurrency world tumbled back to earth.

These are some of the main moves in financial markets:
Stocks
* The S&P 500 fell 1.3%, more than any closing loss since May 12 as of 4 p.m. New York time
* The Nasdaq 100 fell 0.8%, more than any closing loss since June 3
* The Dow Jones Industrial Average fell 1.6%, falling for the fifth straight day, the longest losing streak since Jan. 27
* The MSCI World index fell 1.3%, more than any closing loss since May 12
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%, climbing for the sixth straight day, the longest winning streak since March 23, 2020
* The euro fell 0.3% to the lowest since April 7
* The British pound slipped 0.8%, more than any closing loss since April 30
* The Japanese yen was little changed at 110.15 per dollar
Bonds
* The yield on 10-year Treasuries declined six basis points to 1.44%
* Germany’s 10-year yield was little changed at -0.20%
* Britain’s 10-year yield declined two basis points to 0.75%
Commodities
* West Texas Intermediate crude rose 0.9% to $71.65 a barrel
* Gold futures fell 0.6% to $1,764.70 an ounce
–With assistance from Nancy Moran.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Historically, the most terrible things – war, genocide, and slavery – have resulted not from disobedience,
but from obedience. –Howard Zinn, 1922-2010.

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