April 4, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.
On April 3, 1948, President Truman signed the Marshall Plan, which allocated more than $5 billion in aid for 16 European countries. Go to article »

1949: The North Atlantic Treaty Organization (NATO) is formed, the founding member nations of this military alliance being Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, The United Kingdom, and the United States.

On this day in 1964, The Beatles held the first five places in the US singles chart with these songs: Can’t Buy Me Love, Twist And Shout, She Loves You, I Want To Hold Your Hand and Please, Please Me.

NASA’s Artemis I mission to the moon will resume preparation today.  Greetings fellow space nerds. The next unmanned moon mission may happen in just two months if all goes well with this dress rehearsal launch. So exciting!

America’s oldest national park ranger retires at age 100.  Well, loving your job will definitely help you age gracefully like this!
 
How to find the good photos on your phone.

PHOTOS OF THE DAY

Water is sprayed in a vineyard to protect buds and flowers from frost. Plunging April temperatures are threatening crops in France
CREDIT: Thibault Camus/AP

Gloriana, The Queen’s rowbarge, which is a legacy of the Queen’s diamond jubilee in 2012, navigates past Fulham football club’s Craven Cottage ground and towards the start of the 167th annual women and men’s boat race between Oxford and Cambridge universities on the River Thames
CREDIT: Adrian Dennis/AFP/Getty Images

The sun rises above the Florida Keys Overseas Highway as a field of 1,500 runners competes in the Seven Mile Bridge Run near Marathon, Florida. Holly Smith, of Marathon, won the women’s division with a time of 00:43:23,while Collin Wainwright, of Springfield, Pennsylvannia, captured the overall men’s division in 00:38:06
CREDIT: Andy Newman/Florida Keys News Bureau/AFP/Getty Images

Market Closes for April 4^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1808, U.S. Secretary of the Treasury Albert Gallatin submitted his “Report on Roads and Canals” to Congress. In it he argued that the federal government should give financial support to the creation of a nationwide network of “artificial roads” and canals. Although Mr. Gallatin’s recommendations were only partially followed, they set the precedent for massive government funding of canals and railroads over the coming decades.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities rose for the second day as companies in the technology and energy sectors climbed.
The S&P/TSX Composite rose 0.6% to 22,085.60 in Toronto.
The move was the biggest since March 21.
Shopify Inc. contributed the most to the index gain, increasing 4.9%.
Ballard Power Systems Inc. had the largest increase, rising 7.3%.
Seven of 11 sectors were higher, led by information technology stocks.
Insights
* The index advanced 16% in the past 52 weeks. The MSCI AC Americas Index gained 13% in the same period
* The S&P/TSX Composite is 0.4% below its 52-week high on March 31, 2022 and 17.6% above its low on April 1, 2021
* The S&P/TSX Composite is up 0.5% 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 18.7 on a trailing basis and 14.2 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$3.51t
* 30-day price volatility fell to 11.85% compared with 11.94% in the previous session and the average of 12.84% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 53.0744| 3.6| 12/4
* Financials | 39.2725| 0.6| 16/11
* Energy | 30.0019| 0.8| 26/7
* Industrials | 18.9720| 0.7| 22/8
* Consumer Staples | 8.1887| 1.0| 8/2
* Consumer Discretionary | 5.7097| 0.8| 9/5
* Health Care | 2.5769| 1.7| 6/2
* Utilities | -1.4205| -0.1| 7/9
* Communication Services | -2.1392| -0.2| 3/4
* Real Estate | -7.0136| -1.1| 3/20
* Materials | -14.5652| -0.5| 19/32
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 33.0000| 4.9| -41.9| -47.9
* Brookfield Asset Management | 16.7600| 2.3| -46.4| -4.2
* TD Bank | 12.8000| 1.0| 253.4| 3.6
* TFI International | -2.9940| -4.3| 121.6| -15.3
* Nutrien | -5.5720| -1.1| -49.0| 35.0
* Teck Resources | -5.6690| -3.3| 27.2| 41.6

US
By Vildana Hajric and Isabelle Lee
(Bloomberg) — Financial markets began the week with modest moves across assets as investors assessed the latest central bank commentary and developments in Ukraine.
Tech shares drove gains in American stocks, powered by Twitter Inc.
The social media company surged as much as 31% after Tesla Inc. Chief Executive Elon Musk took a 9.2% stake in the company.
Starbucks Corp. declined after founder Howard Schultz suspended a share-buyback plan.
Meanwhile, U.S.-listed shares of Chinese stocks like Baidu Inc. and Tencent Holdings Ltd. rose after China removed a key hurdle to allow the U.S. full access to audits.
“As the first quarter starts to grow distant in the rear view mirror, investors will focus on the early tranche of Q1 S&P 500 results this week ahead of the unofficial start of earnings season,” wrote John Stoltzfus, chief investment strategist at Oppenheimer.
The second quarter kicked off slowly, with investors awaiting Federal Reserve meeting minutes Wednesday and the start of corporate earnings season next week.
The yield on the 10-year Treasury gained and the dollar was stronger against peers.
WTI crude oil rose above $103 a barrel as traders weighed China’s Covid outbreak and moves to tap strategic reserves.
The Stoxx Europe 600 index fluctuated before ending higher.
Consumer-discretionary shares helped lead the gains, with Delivery Hero SE jumping after a profit forecast.
Health stocks were also higher as Roche Holding AG climbed after U.S. regulators granted a priority review for its Covid-19 drug Roactemra.
Russian and Ukrainian negotiators are set to resume video talks on Monday, after the European Union condemned Russia for atrocities by its military in several Ukrainian towns and President Joe Biden said Vladimir Putin could face a war crimes trial.
That’s dimming hopes of an imminent breakthrough in peace negotiations.
“We’re left hoping that talks continue to make progress toward a ceasefire and exit of Russian troops but if the process so far is anything to go by, that may not happen soon,” said Craig Erlam, senior markets analyst at Oanda Europe Ltd. “While progress has been positive for risk assets so far, they remain vulnerable to setbacks in talks which continue to take place against the backdrop of ongoing attacks.”
The Treasury yield curve is flashing more warnings that economic growth will slow as the Federal Reserve raises rates to tame inflation stoked in part by commodities.
The two-year U.S. yield has exceeded the 30-year for the first time since 2007, joining inversions on other parts of the curve.
The Fed minutes later this week will shape views on the odds of a half percentage-point rate increase in May and provide key details on how the central bank will shrink its balance sheet.
“Global equity investors started 2022 with the primary concern being aggressive central banks. However, the brutal Russia/Ukraine war delivered the final punch that sent many global indexes near bear market territory,” Megan Horneman, chief investment officer at Verdence Capital Advisors, said in a note. “Bond investors felt the pain of the end of the Fed’s easy monetary policy as the Fed raised rates for the first time since 2018. Equity investors were whipsawed with many indexes in contraction territory.”
Key events to watch this week:
* Reserve Bank of Australia rate decision, Tuesday
* Fed Governor Lael Brainard speaks, Tuesday
* Federal Reserve minutes, Wednesday
* China Caixin composite and services PMI, Wednesday
* EIA crude oil inventory report, Wednesday
* Philadelphia Fed President Patrick Harker speaks, Wednesday
* St. Louis Fed’s James Bullard, Atlanta Fed’s Raphael Bostic, Chicago Fed’s Charles Evans speak at separate events, Thursday
* Reserve Bank of India rate decision, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.8% as of 4 p.m. New York time
* The Nasdaq 100 rose 2%
* The Dow Jones Industrial Average rose 0.3%
* The MSCI World index rose 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.7% to $1.0970
* The British pound was unchanged at $1.3114
* The Japanese yen fell 0.2% to 122.76 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 2.40%
* Germany’s 10-year yield declined five basis points to 0.51%
* Britain’s 10-year yield declined six basis points to 1.55%
Commodities
* West Texas Intermediate crude rose 4.4% to $103.60 a barrel
* Gold futures rose 0.7% to $1,936.70 an ounce
–With assistance from Robert Brand, Andreea Papuc and Nathan Hager.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Civilization is the lamb’s skin in which barbarism masquerades. -Thomas Bailey Aldrich, 1836-1907.

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