August 21, 2019 Newsletter

Dear Friends,

Tangents:
1991 – A hard-line coup against Soviet President Mikhail S. Gorbachev collapsed in the face of a popular uprising led by Russian federation President Boris Yeltsin.  Go to article>>

Birthday: Aubrey Beardsley, August 21, 1872.
Aubrey Vincent Beardsley (1872-1898), English artist in black and white, was born in Brighton on this day.  In 1891, he took up art as a profession and from 1893 until his death in 1898, his work came continually before the public, arousing a storm of criticism and much hostile feeling.  They felt that Beardsley had an unswerving tendency towards the fantastic art of the gloomier and unwholesome sort.  For more information on Aubrey Beardsley, see www.victorianweb.org.

When you have only two pennies left in the world, buy a loaf of bread with one, and a lily with the other. –Chinese Proverb.
PHOTOS OF THE DAY

A man rides his bike past art installation entitled “Forever Cycles” by Chinese artist Ai Weiwei in Rio de Janeiro, Brazil
CREDIT: CARL DE SOUZA/ AFP/GETTY IMAGES

The sea bridge is illuminated at the Baltic Sea beach in Sellin near Brinz and Baabe on the island of Ruegen, northeastern Germany, as night falls
CREDIT: JENS BUTTNER/ DPA/AFP

Drops of dew sit on a spider web in the early morning mist in Los Angeles, California, U.S
CREDIT: REUTERS/LUCY NICHOLSON

Artist’s view of the system Pictoris. At least two giant planets, 20 million years old at most, orbit the star(not visable):Pictoris c, the nearest, which has just been discovered, and Pictoris b, further away. The dust and gas disc is visible in the background.
CREDIT: HO /UNIVERSITY OF GRENOBLE-ALPES/AFP
Market Closes for August 21^st , 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
(Bloomberg) — Canada’s equities benchmark gained, propelled by financial stocks, despite an earnings miss by Canada’s largest bank.
The S&P/TSX Composite Index gained 0.6% to 16,309.23. Energy stocks rose 1% after the oil-rich province of Alberta extended its output cuts by a year to December 2020, a move that could help support Canadian crude prices.
Financials also gained, adding 0.6%. Royal Bank of Canada rose 0.6% despite reporting fiscal third-quarter earnings that missed estimates. It did, however, see improvements in expenses and provisions, two areas of concern for investors.
In other moves:
Stocks
* Kinder Morgan Canada Ltd. jumped 32%, the most on record, after Pembina Pipeline Corp. said it will buy the Canadian unit and the U.S. portion of a key Kinder Morgan pipeline for about C$4.35 billion
* CannTrust Holdings Inc. fell 4.6% to C$2.48. That’s below the pot producer’s IPO price of C$2.50 and the lowest close since September 2017
* Bausch Health Cos. gained 5.4%. William Humphries, the company’s president of ortho-dermatologics, bought over $650,000 worth of shares
Commodities
* Western Canada Select crude oil traded at a $12.75 discount to WTI
* Gold was little changed at $1,504.60 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.2% to C$1.3288 per U.S. dollar
* The Canada 10-year government bond yield rose 6 basis points to 1.22%
US
By Rita Nazareth and Sarah Ponczek
(Bloomberg) — U.S. stocks pared gains and Treasuries fell as Federal Reserve minutes fell short of signaling the central bank was ready to cut rates sharply.
The S&P 500 Index moved away from Wednesday’s highs and two-year Treasury yields surged after the minutes indicated the Fed is prepared to ease if economic conditions worsen, while hinting the committee didn’t view the July cut as part of an extended cycle of reductions. The two-year yield was briefly above the 10-year rate, a key signal watched by investors and seen as a harbinger of a recession. The bond market expects almost 65 basis points of interest-rate cuts by the end of the year.
“With hopes for Fed stimulus as the biggest driver of stocks’ buoyancy in the face of trade tensions and weakening global growth, today’s relatively dovish Fed minutes were about in line with investors’ high expectations,” said Alec Young, managing director of global markets research at FTSE Russell.          Stocks already started the day higher after solid results from retailers Target Corp. and Lowe’s Cos. defied recession fears. Traders also assessed the latest developments in the U.S.-China trade spat, with President Donald Trump predicting the U.S. will “probably” make a deal. Trump also said Wednesday that the economy is strong and kept up his relentless attack on the central bank, claiming that “the only problem we have is Jay Powell and the Fed.”
Elsewhere, most European bonds fell after Germany saw anemic demand for a 30-year bond offering zero coupon. The British pound slipped as the possibility of a so-called no-deal Brexit gained momentum. Oil slid as a surprise jump in U.S. diesel and gasoline stockpiles raised concerns about weakening demand.
Here are some notable events coming up:
* Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.
* Flash PMIs are due for the euro area on Thursday.
* Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday. Fed Chairman Jerome Powell will give remarks on Friday.
Here are the main moves in markets:
Stocks
* The S&P 500 rose 0.8% to 2,924.43 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index gained 1.2%.
* The MSCI Asia Pacific Index decreased 0.4%.
Currencies
* The Bloomberg Dollar Spot Index increased 0.1%.
* The euro dipped 0.1% to $1.1085.
* The British pound declined 0.4% to $1.2125.
* The Japanese yen fell 0.3% to 106.60 per dollar.
Bonds
* The yield on 10-year Treasuries rose three basis points to 1.58%.
* Germany’s 10-year yield climbed two basis points to -0.67%.
* Britain’s 10-year yield increased three basis points to 0.479%.
Commodities
* The Bloomberg Commodity Index advanced 0.1%.
* West Texas Intermediate crude declined 0.8% to $55.68 a barrel.
–With assistance from Adam Haigh, Robert Brand, Luke Kawa,
Nancy Moran, Sophie Caronello, Brandon Kochkodin and Laura Curtis.
Have a great night.

Be magnificent!
As ever,

Carolann

I only want people around me who can do the impossible.
                                     -Elizabeth Arden, 1884-1966

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