April 14, 2022 Newsletter

Dear Friends,

Tangents:

Happy Easter!

Carolann is away from office this afternoon, I’ll be writing the newsletter on behalf of her.

PHOTOS OF THE DAY

Bolivian squirrel monkeys enjoy some Easter enrichment at the Chessington World of Adventures zoo.
CREDIT: Mark Field/PinPep/Rex/Shutterstock

Mist hangs over St Mary and All Saints church in the Northamptonshire village.
CREDIT: Joe Giddens/PA

Three-time WSL champion Mick Fanning of Australia surfs in heat nine of the round of 32 at the Rip Curl Pro Bells Beach event.
CREDIT: Ed Sloane/World Surf League/Getty Images

Market Closes for April 14^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1720, the first great secondary offering of stock took place, as the South Sea Co. opened its subscription books in London, hoping to raise 2 million pounds sterling. The company raised half that amount by 10 a.m., as mobs of eager buyers poured into South Sea’s headquarters. With ladies pawning jewelry and farmers selling livestock to raise the cash to buy shares, the offering was oversubscribed by more than 10%.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities advanced as surging commodity prices lifted energy and materials stocks. The S&P/TSX Composite advanced slightly to 21,855.70 in Toronto.
Nutrien Ltd. contributed the most to the index gain, increasing 2.5%. Baytex Energy Corp. had the largest percentage increase, rising 8.9%.
Today, 109 of 239 shares rose, while 123 fell; 5 of 11 sectors were higher, led by energy stocks.
Insights
* So far this week, the index was little changed
* The index advanced 14% in the past 52 weeks. The MSCI AC Americas Index gained 5.3% in the same period
* The S&P/TSX Composite is 1.6% below its 52-week high on April 5, 2022 and 15.2% above its low on April 20, 2021
* The S&P/TSX Composite is little changed in the past 5 days and rose 3.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.5 on a trailing basis and 13.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.49t
* 30-day price volatility fell to 10.55% compared with 10.73% in the previous session and the average of 12.20% over the past month
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| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 20.1333| 0.5| 23/9
* Materials | 16.1868| 0.5| 34/15
* Industrials | 13.8468| 0.6| 14/16
* Financials | 11.9929| 0.2| 13/14
* Communication Services | 8.4015| 0.7| 5/2
* Real Estate | -1.6671| -0.3| 8/15
* Consumer Discretionary | -2.0327| -0.3| 2/12
* Health Care | -2.3134| -1.6| 0/7
* Utilities | -4.5891| -0.4| 7/9
* Consumer Staples | -5.0617| -0.6| 2/9
* Information Technology | -37.2128| -2.7| 1/15
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| | |Volume VS| YTD |Index Points| | 20D AVG | Change Top Contributors | Move |% Change | (%) | (%)
================================================================
* Nutrien | 12.9600| 2.5| -27.2| 48.7
* Canadian National | 10.0800| 1.5| -38.3| 3.3
* Canadian Pacific | 9.1390| 1.5| -47.6| 5.9
* Barrick Gold | -4.2810| -1.1| -18.6| 32.2
* Constellation | Software | -6.7970| -2.3| -45.3| -7.1
* Shopify | -21.3500| -3.6| -38.2| -58.0
US
By Rita Nazareth
(Bloomberg) — Stocks fell as Treasury yields climbed on speculation the Federal Reserve will boost rates aggressively to contend with decades-high inflation. The expiration of options estimated at over $2 trillion potentially amplified equity- market moves.
Twitter Inc. whipsawed as Elon Musk expressed doubt about whether he’ll succeed with his offer to buy the social-media giant, while citing a “Plan B” if the bid isn’t accepted. The specter of higher borrowing costs sank rate-sensitive technology companies, which led S&P 500 losses. Treasury 10-year yields topped 2.8% and the dollar rose as New York Fed President John Williams said that speeding up the pace of tightening to include hikes in increments of a half-percentage point is a “reasonable option.”
The upward shift in bond yields marked a reversal from the past two days, when traders dialed back expectations of Fed tightening after evidence that inflation was poised to moderate. That support withered in pre-holiday trading amid data showing import prices jumped more than economists anticipated. U.S. central bankers face a delicate balancing act in tightening to curb inflation without killing the economic recovery.
“It’s a tough environment,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “Inflation numbers are going to stay very high and haven’t peaked yet, and we’re also going to start to see a deteriorating outlook for economic growth — not a recession, but significantly slower economic growth than certainly we’d anticipated as the year began.”
U.S. consumer sentiment unexpectedly rose to a three-month high in early April amid optimism about job growth and wage expectations. Separate data showed retail sales picked up in March, helped by a surge in gas station receipts that masked mixed results in other large spending categories. Initial jobless claims rose slightly last week, but remained at a historically low level.
Traders at Wall Street’s biggest investment banks had a better-than-expected quarter as the war in Ukraine compounded volatility already simmering on inflation concerns and a lingering pandemic. But as fears of recession creep in, questions are emerging about future earnings growth. Goldman Sachs Group Inc. and Morgan Stanley posted surprise increases in trading revenue while Citigroup Inc. and JPMorgan Chase & Co. also surpassed analysts’ expectations for first-quarter results.
European Central Bank policy makers are forming a consensus around increasing interest rates in the third quarter to tackle record inflation, according to people familiar with the matter.
The first hike in borrowing costs in more than a decade is expected to be by 25 basis points, the people said, asking not to be identified because the deliberations are private. An ECB spokesperson declined to comment.
Stocks
* The S&P 500 fell 0.8% as of 3:04 p.m. New York time
* The Nasdaq 100 fell 1.9%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.5% to $1.0834
* The British pound fell 0.3% to $1.3080
* The Japanese yen fell 0.3% to 125.97 per dollar
Bonds
* The yield on 10-year Treasuries advanced 13 basis points to 2.83%
* Germany’s 10-year yield advanced eight basis points to 0.84%
* Britain’s 10-year yield advanced nine basis points to 1.89%
Commodities
* West Texas Intermediate crude rose 2.1% to $106.39 a barrel
* Gold futures fell 0.5% to $1,974.10 an ounce
–With assistance from Andreea Papuc, Abigail Moses and Vildana Hajric.

Have a wonderful long weekend.

Be magnificent!

As ever,

Isabel

Do not go where the path may lead, go instead where there is no path and leave a trail.– Ralph Waldo Emerson, 1803 –1882

Assistant to Carolann Steinhoff,

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