August 15, 2019 Newsletter

Dear Friends,

Tangents: Full Moon Tonight!
2001 Astronomers announced the discovery of the first solar system outside our own – two planets orbiting a star in the Big Dipper.  Go to article »

Napoleon Bonaparte, born 1769.
Sir Walter Scott, born 1771.
T.E. Lawrence,  born 1888.
Julia Child, born 1912.

Portland, Maine: An Incomparable Insider’s Guide:  James Beard award-winning restaurants line cobblestone streets, breweries turn out serious suds and the lobster roll is in a constant state of upscale reinvention. Portland, Maine, is a food-lover’s fantasyland, but the culture goes well beyond the plate.– from The Wall Street Journal.

Your next San Francisco salad may have been raised entirely by robots. (h/t James Greiff) –Bloomberg.
PHOTOS OF THE DAY
Artist of the Tbilisi Opera And Ballet theater perform during dress rehearsal of the spectacle ‘Un Ballo Maschera’ in Tbilisi, Georgia
CREDIT: ZURAB KURTSIKIDZE/EPA -EFE/REX

Flames rise from a forest fire near the village of Makrimalli on the island of Evia, northeast of Athens
CREDIT: ANGELLOS TZORTZINIS / AFP

Swedish activist Greta waves to well-wishers while leaving Plymouth, Britain, 14 August 2019. GretaThunberg is making her way from Plymouth to New York aboard the Malizia II to attend the climate change conference in September. Swedish activist Greta Thunberg press conference in Plymouth ahead of trip to New York aboard the Malizia II, United Kingdom
CREDIT: ANDY RAIN/EPA -EFE/REX
The moon appears to be hanging from a crane as it rises up last night. Tom Duffin photographed the moment close to Waverly Station, Edinburgh, Scotland. Mr Duffin photographed the moon, ‘hanging’ from the crane, which will be at it’s full tonight.
CREDIT: TOM DUFFIN/SOLENT NEWS
Market Closes for August 15th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The yield on the 30-year U.S. Treasury note—the longest type of U.S. government debt and one of the most sensitive to changes in expectations for long-term growth and inflation—fell to a record low of 2.038% Wednesday. Yields fall as prices rise and have slid on fears about slowing growth recently. 
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks fell after a brief intraday recovery as volatile trading whipsawed financial markets. The biggest loser was the health-care sector, which was mainly hurt by Canopy Growth’s surprise revenue decline.
The S&P/TSX tried to make a comeback after Wednesday’s massive sell-off that saw Canadian stocks tumble the most in nearly a year amid mounting signs of a global economic slowdown. That rout wiped off almost C$47 billion from the S&P/TSX in just one trading session, according to data compiled by Bloomberg.
However, the index fell 0.2% on Thursday in Toronto to 16,012.53, as health-care stocks sank 6.3%. Consumer staples and materials were the best-performing sectors. The turbulence in markets globally has had equity traders sitting on the edge of their seats all summer long. In Canada, volatility has risen to its highest in seven months amid a fraught geopolitical backdrop, escalating U.S.-China trade tensions and global recession concerns.
In other moves:
Stocks
* Just Energy tumbled 40% after cutting its year Ebitda guidance. Canaccord said the company’s “house cleaning” signals intent to sell
* Canopy Growth fell 15% on a surprise revenue decline. Other pot stocks such as Cronos, Aphria and Hexo also tumbled
* Birchcliff Energy fell 9.1% despite having boosted its net average production forecast for the full year
* Boardwalk REIT was among the best performing stocks, up 4.4%, after it raised its annual FFO per share guidance
* Hudbay Minerals rose 3.8% after falling 8.2% yesterday
* Stars Group rose 1.7% after news activist ValueAct built a new stake in the company during the second quarter
Ratings
* BHC CN: Bausch Health Upgraded to Buy at TD
* CAR-U CN: Canadian Apartment Raised to Outperform at National Bank
* FTT CN: Finning International Rated New Equal-weight at Stephens
* GFI SJ: Asanko Gold Targets 8-10 Years of Remaining Life in Asanko Mine
* MTL CN: Mullen Group Cut to Sector Perform at National Bank; PT C$11
* PL CN: Pinnacle Renewable Energy Resumed at GMP With Buy; PT C$14
* SPB CN: Superior Plus Raised to Strong Buy at Industrial Alliance
* TD CN: TD Bank Downgraded to Neutral at BofAML; PT C$77
* TVE CN: Tamarack Valley Energy Rated New Sector Perform at RBC
Commodities
* Western Canada Select crude oil traded at a $11 discount to WTI
* Gold spot price rose 0.4% to $15,22.29 an ounce
FX/Bonds
* The Canadian dollar was little changed at C$1.3316 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.081%
US
By Sarah Ponczek
(Bloomberg) — U.S. stocks finished the day higher after getting whipsawed throughout the session as Treasury yields plummeted to levels unseen in years amid concerns about the prospect of a global recession.
The S&P 500 swung more than 1% from its high to low for a 12th straight day in volume more than a third above its 30-day average before finally ending the day up. Treasuries also
suffered whiplash. The 10-year Treasury yield slid below 1.5% for the first time in three years, while the 30-year dropped under 2% for the first time. Trade headlines set investors on
edge, though volatility has gripped markets for most of August since Donald Trump escalated his spat with China. Walmart’s strong results and retail sales that topped estimates did give bulls ammunition. But big declines weighed on indexes as Tapestry Inc. tumbled more than 20% on poor sales and General Electric sank more than 10% on accusations of financial fraud. Cisco Systems fell the most in two years after blaming a slowing global economy for a weak outlook.
The trade war still hung over markets, with discordant headlines sending risk assets on a wild ride throughout the day. Stocks sold off after China said it would retaliate against
fresh tariffs before bouncing back after official comments struck a more conciliatory tone. President Donald Trump added to concern by saying any deal with China must be “on our terms.”
“We’re getting a lot of mixed signals on the trade war. There are messages from both the U.S. and China, sometimes they’re tougher messages and sometimes they’re less tough
messages. It’s hard to sort out,” said Janet Johnston, portfolio manager at TrimTabs Asset Management. European assets took a jolt when a top official at the European Central Bank said stimulus measures would exceed investor expectations next month, according to a Dow Jones report. The common currency turned lower against the dollar and stocks erased losses before finishing lower.
The morning volatility continued a bout of turmoil sparked two weeks ago when Trump escalated his trade war with China. The uncertainty the rising tensions caused and growing signs of a slowing global economy inverted a key version of the U.S. Treasury yield curve for the first time in 12 years, exacerbating the flight from risk assets. “It’s a tough week with markets as volatile as they are,” said John Roe, the head of multi-asset funds at Legal & General. “Fundamentals are playing a central role but it’s not helped by trade war politics. Markets seemed calmer today after Trump’s more positive tone yesterday, but now China’s upping the rhetoric and it’s becoming a case of he said-Xi said.”
Here are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.3% at 4 p.m. New York time.
* The Dow Jones Industrial Average rose 0.5%.
* The Nasdaq 100 was little changed.
* The Stoxx Europe 600 Index dropped 0.3%.
* The MSCI Asia Pacific Index declined 0.7%.
Currencies
* The Bloomberg Dollar Spot Index was steady.
* The euro fell 0.2% to $1.1112.
* The British pound gained 0.4% to $1.2110.
* The Japanese yen fell 0.1% to 106.00 per dollar.
Bonds
* The yield on 10-year Treasuries decreased seven basis points to 1.51%.
* The two-year yield fell 10 basis points to 1.48%.
* Germany’s 10-year yield dipped six basis points to -0.713%.
Commodities
* Gold futures rose 0.4% at $1,533.20 an ounce.
* West Texas Intermediate crude declined 1.1% to $54.64 a barrel.
–With assistance from Adam Haigh, Joanna Ossinger, Ksenia
Galouchko, Laura Curtis and Jeremy Herron.

Have a great night.

Be magnificent!
As ever,

Carolann

You grow up the day you have your first real laugh  –  at yourself.
                                                -Ethel Barrymore, 1879-1959

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