August 29, 2019 Newsletter

Dear Friends,

Tangents:
On Aug. 29, 1991, the Supreme Soviet, the parliament of the U.S.S.R., suspended all activities of the Communist Party, bringing an end to the institution.  Go to article »

John Locke, philosopher, b. 1632

The actions of men are the best interpreters of their thoughts. -John Locke, 1632-1704.

It rained so much in California that this year’s lemons are gigantic.

PHOTOS OF THE DAY

A handout released via NASA Worldview shows a satellite image of earth, the red dots indicate fires around the globe on 27 August 2019. The fires raging in the Amazon rainforest are the ones being most reported on in August 2019. However, satellite imagery shows that the amount of rainforest fires around the world is much bigger.
CREDIT: NASA

The new Barbie edition that will be launched to commemorate the Mexican Day of the Dead. The doll’s makeup is based in the traditional Catrina, traditional Mexican icon of the Day of the Dead created by cartoonist Jose Guadalupe Posada back in 1912. Mexico celebrates the Day of the Dead, Dia de Muertos, on 02 November.
CREDIT: PAUL JORDAN/ HANDOUT/EPA-EFE/REX

Lightning strikes above Humber bridge near Kingston upon Hull, East Riding of Yorkshire. The UK had a flurry of storms last night with the lightning strikes and rain.
CREDIT: CALVIN TAYLOR LEE/ SWNS.COM

Market Closes for August 29th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2000, OM Group of Sweden launched the world’s first hostile takeover bid for a stock exchange when it offered 822 million pounds sterling (then valued at $1.2 billion) to buy the London Stock Exchange. The hostile bid was eventually rebuffed by LSE shareholders.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks rose for a fourth day, the longest advance in almost two months, as markets rallied on optimism that the U.S. and China may avoid the worst threats to their hundreds of billions in annual trade. The S&P/TSX Composite Index climbed 0.7% on Thursday in Toronto to 16,384.49. Nine of the 11 sectors gained, as energy, industrials and financials rallied the most. Materials and real estate were the worst performing sectors. Meanwhile, Canada in the second quarter recorded its largest inflow of foreign direct investment in four years, another sign global trade tensions haven’t reduced the appetite for investing in the Canadian economy. Direct investment from abroad rose to C$18.7 billion ($14 billion), Statistics Canada reported Thursday.
In other moves:
Stocks
* BRP gained 16% after second quarter revenue beat the highest estimate
* Ensign Energy rose 12%, after reaching a 52-week low on Aug. 27; other energy stocks, such as MEG Energy and Precision Drilling, also rose as crude advanced a 3rd day
* Gold miners such as Detour Gold, Alamos Gold, Centerra Gold fell as bullion declined
Commodities
* Western Canada Select crude oil traded at a $11.50 discount to WTI
* Gold spot price fell 0.7% to $1,528.63 an ounce
FX/Bonds
* The Canadian dollar rose 0.1% to C$1.3296 per U.S. dollar
* The Canada 10-year government bond yield climbed to 1.149%
US
By Vildana Hajric
(Bloomberg) — U.S. equities rallied Thursday after China indicated it wouldn’t immediately retaliate against the latest American tariff increase. Treasuries edged down, while a dollar gauge hit a two-year high. The S&P 500 Index rose for the second straight day after a spokesman for China’s commerce ministry said that escalating the trade war won’t benefit either side and that it was more important to discuss removing the extra duties. Stocks across Asia trimmed declines on the remarks, while the Stoxx Europe 600 Index closed higher. Market sentiment remains delicate after President Donald Trump’s recent pronouncements on trade and as investors await resolution. Trump said Thursday that the U.S. and China are scheduled to have a conversation about trade today. U.S. economic growth slowed in the second quarter by more than initially reported, on weaker readings for categories including exports and inventories. Still, consumer spending remained robust, topping forecasts.
“Positive news on trade has investors looking to move back into some of the equity markets and maybe a little more risk on,” Chris Gaffney, president of world markets at TIAA, said by phone. “The GDP number — while there was a slight pullback in second-quarter estimates, consumers still are looking strong. That’s the key. The earnings component was very good — corporate profits are looking robust.” Meanwhile, the bond rally paused for breath after the yield on 30-year U.S. Treasuries sank to a record low of 1.90% Wednesday. Treasury Secretary Steven Mnuchin said issuing ultra- long U.S. bonds is “under very serious consideration,” possiblysetting up a move that would mark a historic revamp of the $16 trillion Treasuries market. Gold turned lower, while West Texas crude held at about $56 a barrel.
In Europe, Italy’s bonds jumped and its equities outperformed as the country moved toward forming a new government. The pound declined on the increasing risk of a no-deal Brexit. The euro touched a session high after a European Central Bank policy maker said the region’s economy isn’t weak enough to warrant the resumption of bond purchases. The Chinese mainland yuan strengthened for the first time in 11 sessions.
Events to keep an eye on this week:
* Bank of Korea policy decision and briefing is on Friday.
* Euro-zone CPI data for August is also due Friday.

Here are the main moves in markets:
Stocks
* The S&P 500 Index increased 1.3% as of 2:58 p.m. New York time.
* The Stoxx Europe 600 Index increased 1% to near a four-week high.
* The U.K.’s FTSE 100 Index rose 1%.
* The MSCI Emerging Market Index increased 0.6%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2% to the highest in almost two years.
* The euro declined 0.2% to $1.1057.
* The British pound fell 0.3% to $1.218.
* The Japanese yen fell 0.4% to 106.50 per dollar.
Bonds
* The yield on 10-year Treasuries gained two basis points to 1.49%.
* The yield on two-year Treasuries advanced three basis points to 1.53%.
* Germany’s 10-year yield increased two basis points to -0.69%.
* Britain’s 10-year yield fell one basis point to 0.436%.
Commodities
* West Texas Intermediate crude increased 1.4% to $56.57 a barrel.
* Gold fell 0.6% to $1,529.21 an ounce.
–With assistance from Min Jeong Lee, Andreea Papuc and Yakob Peterseil.
Have a great night.

Be magnificent!
As ever,

Carolann

Reputation is what other people know about you.  Honor is what you know about yourself.
                                                                                   -Lois McMaster Bujold, b.1949

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
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