August 06, 2019 Newsletter

Dear Friends,
Tangents:
August 6, 1958 ~ Egypt and Syria united and renamed as the United Arab Republic.
On Aug. 6, 1945, the United States dropped an atomic bomb on Hiroshima, Japan, that instantly killed an estimated 66,000 people in the first use of a nuclear weapon in warfare. Go to article »

If I had only known, I would have been a locksmith. -Albert Einstein.

R.I.P., Toni Morrison.

How to spend $100,000 on a car in line at the grocery store. 

PHOTOS OF THE DAY

A Great Grey Owl utilising its amazing camouflage when hunting or sleeping in a tree. The playful owl camouflaged itself so well, making it impossible to spot between the trees, close to the rocky mountains, in Alberta, Canada.
CREDIT: ROB BROVOSKY / CATER NEWS

Shaolin boys practice kung fu in the sweltering heat during the zen shaolin music ceremony at a shaolin temple in Dengfeng, Henan province, China. These shaolin unique skills include: shaolin arhat formation, tiebushan, three gun sashimi, shaolin stick, shaolin stone lock skill, iron hand splitting bricks, water training, fist and foot sparring.
CREDIIT: ZUMA PRESS, INC / ALAMY LIVE NEWS

Lightning above South Shields in the North East if England as more as more storms are forecast for the UK this week.
CREDIT: ALEC JONES/ BAV MEDIA

Market Closes for August 6th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Carolina Wilson
(Bloomberg) — Canadian stocks played catch up with a global rout following Monday’s holiday, with the nation’s benchmark falling the most this year before paring losses. The S&P/TSX Composite Index fell 0.8% on Tuesday, extending its slump for a sixth straight session — its longest losing streak since Sept. 10. Energy stocks were the biggest decliners on the benchmark as the price of oil continued to slide despite China’s move to stabilize the yuan. Gold miners soared following the precious metal’s rise to near $1,500 per ounce on Monday.
Consumer discretionary and financials also fell. Materials and health care stocks led to the upside. Separately, troubled construction firm SNC-Lavalin Group Inc. plunged 8.1% to a 15-year low after company’s top shareholder Caisse de Depot et Placement du Quebec said Monday SNC must build a culture of execution and take a “major step up in discipline” to implement new strategy.
In other moves:
Stocks
* Gold miners: Eldorado Gold gained 5.6%, Yamana Gold jumped 9%
* Aurora Cannabis rose 8.2% after saying it’s on track for positive adj. Ebitda
* Just Energy Group plunged 10.5% after CEO change amid strategic review
* Peyto Exploration & Development dropped 6.2%
* Gran Tierra Energy fell 5.4%
Commodities
* Western Canada Select crude oil traded at a $12.85 discount to WTI
* Spot gold rose 0.6% to $1,485.70 an ounce
FX/Bonds
* The Canadian dollar retreated 0.5% to C$1.3275 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.23%
US
By Brendan Walsh and Olivia Rinaldi
(Bloomberg) — U.S. shares clawed back some of their recent losses after China’s move to stabilize its currency fueled speculation cooler heads will prevent a full-blown trade war. The S&P 500 Index rose 1.3%, though it remained well off the record high it reached just a bit more than a week ago. The dollar steadied and gold held near a six-year high after China fixed the yuan at stronger than 7 per dollar, the level that spurred a global sell-off Monday. Treasuries gave back some of yesterday’s surge, which had created the most extreme yield-curve inversion since the lead-up to the 2008 financial crisis. China’s move to stabilize the yuan offered some reassurance that the trade conflict between the world’s two largest economies might be contained. But it came hours after the U.S. had designated the country a currency “manipulator,” a move that could open the door to new penalties on top of the tariff hikes already imposed on Chinese goods. For its part, China said the recent yuan depreciation was decided by the market, not Beijing,
and denied the Trump administration’s accusation.
“It was encouraging to see China walk in and support the currency overnight,” said Ed Keon, a managing director and portfolio manager at QMA. “But there’s still a long way to go and it feels as if this has entered a new, and perhaps more dangerous, phase.” Meanwhile, White House Chief Economic Adviser Larry Kudlow said the U.S. expects China to visit for more trade talks in September. Bloomberg reported the People’s Bank of China reassured a number of foreign exporters the yuan won’t continue to weaken significantly and the companies’ ability to buy and sell dollars would remain normal. Brent oil slid into bear-market territory as investors speculated a slowing economy could sap demand.The Stoxx Europe 600 erased gains and dropped for a third straight day. The yen slipped from its strongest closing level in more than a year.The benchmark gauge for Asian stocks fell for a fifth session.
Elsewhere, Bitcoin broke above $12,000 for the first time in three weeks before pulling back. The pound strengthened as opponents of a no-deal Brexit hardened their plans to stop Prime Minister Boris Johnson from possibly trying to leave the European Union with no agreement.
These are some key events to watch out for this week:
* Earnings from financial giants include: UniCredit, AIG, ABN Amro Bank, Standard Bank, Japan Post Bank.
* Central banks with rate decisions Wednesday include India and New Zealand.
* A string of Fed policy makers speak this week, including Chicago’s Charles Evans on Wednesday.

Here are the main moves in markets (all sizes and scopes are on a closing basis):
Stocks
* The S&P 500 Index rose 1.3% at the close of trading in New York.
* The Stoxx Europe 600 Index fell 0.5%.
* The MSCI Asia Pacific Index declined 0.8%, hitting the lowest in almost seven months.
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%.
* The euro was little changed at $1.1197.
* The British pound gained 0.2% to $1.2161.
* The Japanese yen sank 0.5% to 106.52 per dollar.
* The onshore yuan jumped 0.4% to 7.0198 per dollar, the biggest increase in six weeks.
Bonds
* The yield on 10-year Treasuries increased one basis point to1.72%, the first advance in more than a week.
* Britain’s 10-year yield was little changed at 0.51%.
* Germany’s 10-year yield decreased two basis points to -0.54%, hitting the lowest on record with its eighth straight decline.
Commodities
* Gold rose 0.6% to $1,472.63 an ounce, the highest in more than six years.
* West Texas Intermediate crude fell 1.9% to $53.68 a barrel.
–With assistance from David Ingles, Cormac Mullen, Andreea
Papuc and Laura Curtis.
Have  a great night.

Be magnificent!
As ever,

Carolann

Every noble work is at first impossible.
          -Thomas Carlyle, 1795-1881

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