August 14, 2019 Newsletter

Dear Friends,

Tangents:
On Aug. 14, 1945, President Truman announced that Japan had surrendered unconditionally, ending World War II.  Go to article »
 

PHOTOS OF THE DAY

Light installation the Sziget (Island) Festival on Shipyard Island, Northern Budapest, Hungary
CREDIT: TAMAS SOKI/EPA-EFE/REX

A green light trail created by long exposures in the form of bug. The creative photographer creates some amazing long exposures as he is capturing the view while rock climbing.
CREDIT: LUKE RASMUSSEN/ CATERS NEWS

A long exposure shows stars behind a tree during the annual Perseid meteor shower near the town of Mitzpe Ramon, southern Israel
CREDIT: REURERS/AMIR COHEN
Market Closes for August 14th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks tumbled most in almost a year alongside U.S. stocks as mounting signs of a globaleconomic slowdown stoked fears of an economic recession. The
sell-off saw almost C$47 billion wiped-off the S&P/TSX in just one trading session, according to Bloomberg data
The S&P/TSX Composite Index fell about 1.9%, the most since Oct. 24, 2018 on Wednesday to 16,045.94. The index seems to have found some support around 16,000, a level previously seen in around June this year, from which the index rebounded to record levels.
All 11 sectors within the index fell, with health care the worst performer and utilities posting the smallest decline. The few stocks that were positive today were mostly found among gold and silver miners, with some outliers such as Chemtrade Logistics Income Fund.
In other moves:
Stocks
* Gold stocks such as Eldorado, Novagold, Detour Gold were among the best performers as prices climbed
* Chemtrade Logistics rose after 2Q adjusted Ebitda beat estimates and said it’s set plans to sell two specialty chemical businesses
* CAE slumped 4.6% after reporting a first quarter adjusted EPS that missed the lowest estimate
* Pot companies fell alongside Tilray after its earnings loss; CannTrust Holdings declined 4.4% and Canopy Growth retreated 5.8%
* Canada Goose fell 6.7% after guidance was unchanged amid a revenue surge for the firm
Ratings
* ABT CN: Absolute Software Upgraded to Buy at Canaccord; PT C$9.25
* BABA: Canada Goose Keeps View; RealReal Tops: N.A. Consumer Pre-Market
* CG CN: Centerra Gold Raised to Outperform at National Bank; PT C$13.50
* LTG LN: Learning Tech Rated New Outperform at Macquarie; PT 1.55 Pounds
* NUAG CN: New Pacific Holdings Rated New Speculative Outperform at BMO
* SYZ CN: Sylogist Downgraded to Buy at Cormark Securities; PT C$15
* TOT CN: Total Energy Services Cut to Sector Perform at Alta Corp
Commodities
* Western Canada Select crude oil traded at a $11.15 discount to WTI
* Gold spot price rose 0.8% to $1,513.78 an ounce
FX/Bonds
* The Canadian dollar retreated 0.7% to C$1.3315 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.
US
By Jeremy Herron and Sarah Ponczek
(Bloomberg) — U.S. stocks suffered one of the deepest sell-offs of the year and Treasuries surged as mounting signs of a global economic slowdown stoked fears of an economic
recession.
The S&P 500 sank almost 3% and the Dow Jones Industrial Average plunged 800 points in its worst rout of the year, sparked when the 10-year Treasury rate slid below the two-year for the first time since 2007. The 30-year yield fell to the lowest on record. Financial shares plunged 3.5% led by a 4.2% rout in Goldman Sachs Group Inc. All of the 30 Dow components retreated.
Volatility has gripped the S&P 500 since President Donald Trump rekindled the trade war at the start of August. The index has swung at least 1% intraday for 11 straight sessions and is
now down 6.1% from its July record. Oil sank 3.5%, gold rallied and the dollar rose.
“With U.S.-China trade uncertainty lingering, investors are increasingly selling first and asking questions later,” Said Alec Young, managing director for global markets research at FTSE Russell. “The only thing seemingly capable of reversing the volatility is credible evidence global growth is bottoming out. That seems too much to hope for right now.”
European shares lost more than 1.5% after Germany’s economy contracted in the second quarter, adding to angst fueled by weak Chinese retail and industrial numbers. The British yield curve also inverted for the first time since the financial crisis and the pound edged higher after inflation unexpectedly rose. Government bonds rallied across Europe, with the yield on benchmark bunds sliding to another record.
The warning emanating from bond markets spooked investors already seeking shelter from the fraught geopolitical climate and the impact of the global trade war just a day after equities rallied on a tariff reprieve from President Donald Trump. While curve inversions normally precede economic downturns, they do not necessarily signal imminent doom. “This is not a positive sign for the market,” Jonathan Golub, chief U.S. equity strategist at Credit Suisse, said on Bloomberg TV. “The Fed is totally empowered to change this dynamic and the market is saying they have to.”
Meanwhile, Hong Kong’s airport resumed normal operations after a chaotic night of protest in which demonstrators beat and detained two suspected infiltrators and Trump warned of Chinese troops massing on the border.
Here are the main moves in markets:
Stocks
* The S&P 500 Index fell 2.9% as of 4 p.m. New York time.
* The Dow Jones Industrial Average lost 3.1% and the Nasdaq 100 fell 3.1%.
* The Stoxx Europe 600 Index fell 1.7%.
* Germany’s DAX Index sank 2%.
* The MSCI Emerging Market Index rose 0.2%.
* The MSCI Asia Pacific Index jumped 0.9%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%.
* The euro increased 0.3% to $1.1143.
* The British pound climbed 0.1% to $1.2073.
* The Japanese yen jumped 0.7% to 106.01 per dollar.
Bonds
* The yield on 10-year Treasuries sank 12 basis points to 1.59%.
* The yield on two-year Treasuries declined nine basis points to 1.58%.
* The 30-year rate fell to 2.034%.
* Germany’s 10-year yield declined four basis points to -0.65%.
Commodities
* Gold futures rose 0.8% to $1,526.60 an ounce.
* West Texas Intermediate crude decreased 3.5% to $55.11 a barrel.
–With assistance from Adam Haigh, John Ainger and Laura Curtis.

Have a great night.

Be magnificent!
As ever,

Carolann

We are all in the gutter, but some of us are looking at the stars.
                                                      -Oscar Wilde, 1854-1900

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