August 11, 2021 Newsletter

Dear Friends,

Tangents: Night of the shooting Stars ~Perseid Meteor Showers.

1965~Watts Riot, Los Angeles:
On Aug. 11, 1965, deadly rioting and looting broke out in the predominantly black Watts section of Los Angeles.  Go to article »

Alex Haley, author, b. 1921.

PHOTOS OF THE DAY

A lightning bolt strikes One World Trade Center as a thunderstorm passes through lower Manhattan in New York City, USA. The 546m skyscraper is one of the tallest buildings in the world, with 104 floors.
CREDIT: GARY HERHORN/ GETTY IMAGES

Gardeners tend to two phone boxes which have been turned into a very English hanging garden at Poole Park in Dorset. The phone boxes, believed to be the only remaining standing pair in the south, had seen better days before the team stepped in earlier this year. They were given a fresh coat of red paint before nine hanging baskets were added to each phone box
CREDIT: CORN MESSER/BNPS

European ground squirrels nibble on a poppy in a meadow in the Kiskunsag National Park, Hungary
CREDIT: THOMAS HINSCHE/SOLENT NEWS

An osprey catches a fish in Aviemore, Highlands. The bird of prey was snapped around 5:30am by amateur wildlife photographer Keith Cochrane, 55. Dad-of-two Keith was on holiday at a hide in Aviemore, Scottish Highlands, When he saw the male bird of prey swoop down and catch the trout. It then flew directly towards him.
CREDIT: KEITH COCHRANE/ SWNS

Tika the Labrador gun dog, excited and ready for work in Lammermuirs Scottish Borders as the grouse season begins on Thursday, the Glorious Twelfth
CREDIT: PHIL WILKINSON

Market Closes for August 11^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1928, accepting the Republican presidential nomination, Herbert Hoover said, “We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us.” Just over one year later, the Great Depression arrived.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose for a second session as value sectors including materials, real estate, and financials rose. The S&P/TSX Composite Index gained 0.3%, with 7 of eleven sectors higher. Gold rose the most in three months as the dollar fell after data showed U.S. inflation moderated, easing fears that the Federal Reserve may soon pare back stimulus. Canada Goose Holdings, in the midst of a move away from third-party retailers, says its strategy is working and the payoff is coming soon.  Wall Street, however, remains skeptical.
Commodities:
* Western Canadian Select crude oil traded at a $13.15 discount to West Texas Intermediate
* Spot gold rose 1.4% to $1,752.55 an ounce
FX/Bonds:
* The Canadian dollar rose 0.1% to C$1.2505 per U.S. dollar
* The 10-year Canada government bond yield fell 1.1 basis points to 1.260%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.3 percent, or 58.27 to 20,554.01 in Toronto. Toronto-Dominion Bank contributed the most to the index gain, increasing 0.9 percent. ATS Automation Tooling Systems Inc. had the largest increase, rising 12.0 percent. Today, 155 of 229 shares rose, while 71 fell; 7 of 11 sectors were higher, led by financials stocks.
Insights
* The index advanced 25 percent in the past 52 weeks. The MSCI AC Americas Index gained 35 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on Aug. 11, 2021 and 33.3 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 1.1 percent in the past 5 days and rose 1.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20 on a trailing basis and 16.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.22t
* 30-day price volatility rose to 8.86 percent compared with 8.84 percent in the previous session and the average of 8.62 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 38.9242| 0.6| 24/4
* Materials | 29.4387| 1.3| 44/8
* Industrials | 17.7872| 0.7| 19/11
* Energy | 10.4791| 0.4| 15/7
* Real Estate | 5.7431| 0.9| 20/5
* Utilities | 2.5238| 0.3| 7/8
* Communication Services | 1.8175| 0.2| 6/1
* Consumer Discretionary | -0.3405| 0.0| 9/4
* Consumer Staples | -2.1728| -0.3| 5/8
* Health Care | -4.6907| -2.0| 2/7
* Information Technology | -41.2523| -1.7| 4/8
================================================================
| | | | YTD
|Index Points| | Volume VS | Change
Top Contributors | Move |% Change |20D AVG (%)| (%)
================================================================
* TD Bank | 9.8960| 0.9| -41.1| 20.3
* Enbridge | 6.9180| 1.0| 115.6| 23.6
* Barrick Gold | 6.6930| 2.2| 3.9| -11.9
* CAE | -2.4540| -3.0| -55.1| 9.2
* Canada Goose | -3.0200| -13.1| 1,216.9| 27.9
* Shopify | -43.2200| -2.9| -48.7| 29.2

US
By Elaine Chen and Natalia Kniazhevich
(Bloomberg) — U.S. stocks rose to record highs and bonds rallied after a report showing inflation moderated reduced concern about the urgency for the easing of the stimulus that helped the economy recover from the Covid pandemic. The S&P 500 and Dow Jones Industrial Average indexes climbed to fresh records after data showed CPI rose 0.5% in July after rising 0.9% in June. The S&P has almost doubled from its low reached in March last year. The tech-heavy Nasdaq 100 declined as investors rotated to cyclical shares from traditional growth favorites such as Amazon.com. Treasuries extended gains after the government’s auction of 10-year notes was met with strong demand. Investor had focused on U.S. price data as Federal Reserve Chair Jerome Powell and other officials discuss the prospects of unwinding stimulus. Kansas City Fed President Esther George said the central bank needs to move ahead with reducing monetary stimulus, citing expectations for continued labor-market gains. “The Fed should find comfort in this report, but the Fed’s taper announcement in September is not a done deal,” said Anastasia Amoroso, iCapital Network’s chief investment strategist. “Policy makers should be focused on how the delta variant is impacting leisure and hospitality sector.
Possibly we’ll see lower activity in August due Covid-19.” While the CPI figures were in line with estimates, it could take several more months of data to settle the debate over whether inflation proves transitory or not. Year-over-year CPI rose 5.4%, compared with an estimate of 5.3%.“Today’s softer-than expected readings in the CPI core seem to validate the views of Powell, Williams and some of the other more moderate Fed members who are focusing on a slower path to normalization,” said Giorgio Caputo, senior portfolio manager at J O Hambro Capital Management.  Elsewhere, crude oil rose as the dollar weakened after earlier falling in the wake of a report that the U.S. will urge OPEC to revive production more quickly. The Stoxx Europe 600 Index edged higher amid strong earnings from the likes of ABN Amro Bank NV and Stop & Shop owner Royal Ahold Delhaize NV. Bitcoin rose back above $46,000 even as the Senate passed an infrastructure bill containing broad oversight of virtual currencies. Palm oil posted its biggest daily advance since 2009 after a report showed stockpiles contracting.   
Here are some key events to watch out for this week:
* OPEC Monthly Oil Market Report due Thursday

These are the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 0.2%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.1742
* The British pound rose 0.2% to $1.3870
* The Japanese yen rose 0.1% to 110.41 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 1.33%
* Germany’s 10-year yield was little changed at -0.46%
* Britain’s 10-year yield declined two basis points to 0.57%
Commodities
* West Texas Intermediate crude rose 1.5% to $69.33 a barrel
* Gold futures rose 1.3% to $1,754.20 an ounce
–With assistance from Stephen Spratt.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

You can discover what your enemy fears most by observing the means he uses to frighten you. -Eric Hoffer, 1902-1983.

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