August 26, 2019 Newsletter

Dear Friends,

Tangents:
Christopher Columbus, b. 1451.
Ben Bradlee, journalist, editor, b. 1921
August 26, 1883- Krakatoa erupts, killing 36,000.

Also on Aug. 26, 1920, the 19th Amendment to the U.S. Constitution, guaranteeing women the right to vote, was declared in effect.  Go to article »

MR. FEAR
He follows us, he keeps track.
Each day his lists are longer.
Here, death. And here,
something like it.

Mr. Fear, we say in our dreams,
what do you have for me tonight?
And he looks through his sack,
his black sack of troubles.

Maybe he smiles when he finds
the right one. Maybe he’s sorry.
Tell me, Mr. Fear,
what must I carry

away from your dream?
Make it small, please.
Let it fit in my pocket,
let it fall through

the hole in my pocket.
Fear, let me have
a small brown bat
and a purse of crickets

like the ones I heard
singing last night
out there in the stubbly field
before I slept, and met you.
               -Lawrence Raab

Our greatest foes, and whom we must chiefly combat, are within. -Cervantes, 1547-1616.

PHOTOS OF THE DAY

An aerial picture shows the G7 leaders at a round table during the G7 summit.
Credit: G7

Animals and competitors at the Annual Agricultural Show at Masham, North Yorkshire.
Credit: Charlotte  Graham/ Mercury Press

Credits: Chris Gorman/ Big Ladder

Market Closes for August 26th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Germany in uproar as negative rates threaten savings obsession.-Bloomberg

Federal-funds futures show nearly 90% of investors expect the Federal Reserve bank to cut rates at least two more times this year, CME Group data show. That’s up from about 57% a month ago.

Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks closed higher, following U.S. shares up after optimistic remarks from French and U.S. leaders about developments in the Sino-American trade war. The S&P/TSX Composite Index climbed 0.4% to 16,098.79. Shopify Inc. advanced 3.1%, leading information technology stocks higher. Consumer discretionary and staples also rose. On the commodities front, gold erased gains after U.S. President Donald Trump said China wants to make a deal on trade, while oil dropped amid conflicting signals about the prospect for a thaw in trade talks.
In other moves:
Stocks
* Cresco Labs rose 10.8%
* Bombardier gained 5.7%
* Gran Tierra Energy advanced 2.5%
* CES Energy Solutions lost 7.5%
* Baytex Energy dropped 6.4%
* Cascades fell 4.2%
Ratings
* SMF CN: Semafo Downgraded to Hold at Desjardins; PT C$6
* RX CN: Biosyent Upgraded to Buy at Bloom Burton & Co; PT C$9
Commodities
* Western Canada Select crude oil traded at a $12.85 discount to WTI
* Gold spot price gained 0.1% to $1,528.82 an ounce
FX/Bonds
* The Canadian dollar climbed 0.2% to C$1.3257 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.215%
US
By Vildana Hajric
(Bloomberg) — Stocks rallied after optimistic remarks from French and U.S. leaders about developments in the Sino-American trade war. The dollar strengthened while 10-year Treasury yields were little changed. All three main U.S. equity indexes recovered some ground following Friday’s swoon after President Donald Trump said prospects for a trade deal were better now than at any time since talks began last year. France’s Emmanuel Macron said things were moving forward between the U.S. and China. The S&P 500 Index closed near session highs in broad-based rally led by tech companies, but volume was thin — almost 20% below average. Addressing reporters at the end of the Group of 7 meetings in France, Trump said the Chinese “want to make a deal very badly.
” The American president also said he’s not looking into auto tariffs for Japan right now. The trade war’s latest twists and turns punctuated an already tumultuous August, with markets buffeted by signs of slowing global economic growth and violent protests in Hong Kong. Regardless of Monday’s developments, the risk of recession may have crept higher as protectionism escalated Friday, when Trump announced fresh levies on Chinese imports and called for American companies to pull out of Asia’s largest economy after China said it would impose retaliatory tariffs on U.S. goods.“In the short term, it’s definitely difficult to navigate the trading environment,” Candice Bangsund, portfolio manager of global asset allocation at Fiera Capital, said in an interview at Bloomberg’s New York headquarters. “It’s a case of near-term fear, elevated volatility, very fragile investor sentiment. Investors are watching the headlines and trading on the headlines and that’s obviously created even more volatility in
the marketplace.”
The Euro Stoxx 50 Index gained after Trump’s China comments. The euro slipped as German business confidence fell to the lowest in almost seven years. Asia stocks fell broadly, led by Hong Kong, in trading that had mostly closed before Trump’s remarks. The onshore yuan weakened for an eighth straight session. Britain’s markets were closed for a holiday. Elsewhere, oil gave up earlier gains as traders digested the latest news on tariffs. The yen gave back some of its 1% increase from the previous session.
Here are the main moves in markets:
Stocks
* The S&P 500 Index increased 1.1% as of 4 p.m. New York time.
* The Dow Jones Industrial Average rose 1.1%
* Europe’s Stoxx 50 Index gained 0.4%.
* Germany’s DAX Index increased 0.4%.
* The MSCI emerging Market Index sank 1.3% to near an eight-month low.
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%, the biggest gain in a week.
* The euro declined 0.4% to $1.1095.
* The Japanese yen weakened 0.7% to 106.16 per dollar, the biggest drop in almost two weeks.
Bonds
* The yield on 10-year Treasuries climbed less than one basis point to 1.54%.
* The yield on two-year Treasuries rose one basis point to 1.54%.
* Germany’s 10-year yield climbed one basis point to -0.67%.
Commodities
* Gold climbed 0.1% to $1,528.96 an ounce.
* West Texas Intermediate crude fell 0.6% to $53.82 a barrel, a two-week low.
–With assistance from Andreea Papuc, Adam Haigh and Todd White.
Have  a great night.

Be magnificent!

As ever,

Carolann

Great things are done by a series of small things brought together.
                                               -Vincent Van Gogh, 1853-1890

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