April 5, 2022 Newsletter

Dear Friends,

Tangents: Tomb sweeping Day, Taiwan.

April 5, 1984: Kareem Abdul-Jabbar became the highest-scoring player in NBA history with 31,421 career points. (He still holds the career record with 38,387 points.)  Go to article »

1994: American grunge rocker Kurt Cobain, leader of the band Nirvana, dies by suicide at the age of 27.

PHOTOS O F THE DAY

An Indigenous woman from the Kayapo tribe surveys the Terra Livre protest camp, which aims to defend Indigenous land and cultural rights threatened by the rightwing government of Brazil’s president, Jair Bolsonaro
CREDIT: Adriano Machado/Reuters

Girls in Han costumes pose for a photo with blooming cherry blossoms at Yuyuantan Park during the Qingming festival holiday
CREDIT: VCG/Getty Images

To mark Sir Paul McCartney’s 80th birthday in June, the National Trust is launching the Forthlin Sessions at his childhood home on Forthlin Road in Allerton, Liverpool, giving unsigned artists the chance to visit, write and play music in the terrace house
CREDIT: Annapurna Mellor/PA

Market Closes for April 5^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1990, the estimated cost of bailing out failed savings & loan companies—pegged just one year earlier at $158 billion—was revised by government forecasters to a minimum of $285 billion to $350 billion. “We all erred dramatically on the side of underestimating the problem,” said U.S. Senator Jake Garn (R., Utah). 
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities snapped two days of gains as materials and cannabis stocks led losses.
The S&P/TSX Composite fell 0.7% at 21,930.83 in Toronto.
The move follows the previous session’s increase of 0.6%.
Shopify Inc. contributed the most to the index decline, decreasing 3.2%. Lithium Americas Corp. had the largest drop, falling 11%.
Today, 178 of 239 shares fell, while 58 rose; 8 of 11 sectors were lower.
Insights
* The index advanced 15% in the past 52 weeks. The MSCI AC Americas Index gained 9.9% in the same period
* The S&P/TSX Composite is 1.3% below its 52-week high on April 5, 2022 and 15.6% above its low on April 20, 2021
* The S&P/TSX Composite is down 0.7% in the past 5 days and rose 2.5% 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 14.1 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$3.53t
* 30-day price volatility fell to 11.79% compared with 11.85% in the previous session and the average of 12.79% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | -72.6633| -2.5| 4/48
* Energy | -33.6142| -0.9| 6/26
* Industrials | -26.0825| -1.0| 5/25
* Information Technology | -24.1704| -1.6| 4/12
* Financials | -10.8226| -0.2| 6/21
* Consumer Discretionary | -5.2000| -0.7| 4/10
* Health Care | -3.6152| -2.4| 2/6
* Real Estate | -3.3519| -0.5| 4/19
* Utilities | 3.8595| 0.4| 12/4
* Consumer Staples | 8.8257| 1.1| 6/5
* Communication Services | 12.0518| 1.1| 5/2
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -22.9900| -3.2| -30.0| -49.6
* Canadian Natural Resources | -14.2900| -2.2| -39.1| 46.3
* First Quantum Minerals | -9.7700| -5.7| 3.1| 40.0
* Intact Financial | 4.5880| 2.1| -36.2| 14.3
* Bank of Nova Scotia| 5.6310| 0.8| 47.5| -0.4
* BCE | 7.8740| 1.8| 2.8| 8.4
US
By Isabelle Lee and Peyton Forte
(Bloomberg) — U.S. equities and bonds fell as traders weighed hawkish Federal Reserve commentary and a new round of potential sanctions on Russia, ratcheting up global tensions over Moscow’s invasion of Ukraine.
The S&P 500 declined, led by losses in technology and consumer discretionary, while Treasuries also retreated amid deepening concern about inflation and the policy response.
Federal Reserve Governor Lael Brainard said the U.S. central bank will continue to tighten policy methodically and shrink its balance sheet at a rapid pace as soon as May.
The 10-year Treasury yield rose for a third day to a three-year high, with the spotlight remaining on inverted yield curves that may signal an economic downturn, should the Fed tighten aggressively to quell price increases.
“There’s lots of uncertainty about what’s going to happen next in a slew of areas pertinent to investing, including whether the U.S. economy is heading for a recession, how high inflation will go and what the Fed will do about it,” Ed Yardeni, president of Yardeni Research, said in a note. “The many unknowns have made for a volatile stock market so far this year.”
Market moves continue to be shaped by the ramifications of tightening monetary policy and the war in Ukraine as raw-material costs stoke inflation.
The U.S., European Union and Group of Seven are expected to announce additional sanction on Russia, including a ban on all new investments in the country.
Additionally, the EU is planning to propose a mandatory phaseout on coal imports from Russia in acdirect response to reports Moscow forces have committed apparent war crimes in Ukraine.
European coal futures rose to a three-week high.
Crude oil fell after the EU was said to be steering clear of sanctioning Russia’s oil and gas for now.
Meanwhile, the Stoxx Europe 600 index inched higher and bond yields across Europe climbed as a report showed input costs for French services firms accelerated to a record.
Up next, traders will be looking for minutes Wednesday from the Federal Reserve’s latest meeting to guide expectations for how rapidly the bank plans to increase rates and reduce its bond holdings.
“This Fed has been clear as a bell about what we should expect from them,” Liz Young, head of investment strategy at SoFi, said on Bloomberg TV. “They did exactly what we expected that first time in March and now they’re being even more clear about 50 in May. So as we move toward May, stocks can get their expectation in line about what we might see.”
Key events to watch this week:
* 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 fell 1.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.2%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 1.1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.6% to $1.0903
* The British pound fell 0.3% to $1.3076
* The Japanese yen fell 0.7% to 123.62 per dollar
Bonds
* The yield on 10-year Treasuries advanced 16 basis points to 2.56%
* Germany’s 10-year yield advanced 11 basis points to 0.61%
* Britain’s 10-year yield advanced 11 basis points to 1.65%
Commodities
* West Texas Intermediate crude fell 2.9% to $100.30 a barrel
* Gold futures fell 0.5% to $1,924 an ounce
–With assistance from Robert Brand, Garfield Reynolds and Sunil Jagtiani.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Deep faith eliminates fear. -Lech Walesa, b. 1943.

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