December 16, 2020 Newsletter

Dear Friends,

Tangents: Ludwig Von Beethoven, b. 1770.
Noel Coward, playwright, b.1899
Margaret Mead, anthropologist, b. 1901
1773: Boston Tea Party.
1985: Reputed organized-crime chief Paul Castellano was shot to death outside a New York City restaurant. Go to article »

News from AUSTRALIA: Scientists have found a thriving column of coral taller than the Empire State Building – the first new structure of the Great Barrier Reef system discovered in more than 120 years.  Studies show the Great Barrier Reef has lost more than 50% of its coral in recent decades, but this new blade-like outcropping off the coast of North Queensland appears healthy.  Measuring more than 1,690 feet, the reef is teeming with life, including several species of shark and rare fish.
  Remote reefs such as this one are difficult to study, but the deep-sea robots and sonar beams on Falkor, the Schmidt Ocean Institute’s massive research vessel, allowed scientists to create a 3D map of the seabed.  “This powerful combination of mapping data and underwater imagery will be used to understand this new reef and its role within the incredible Great Barrier Reef World Heritage Area,” said Dr. Jjyotika Virmani, the institute’s executive director.  –The NY Times.

9,000: Age of a female skeleton found buried in the Andes highlands of Peru with what archaeologists describe as a big-game hunting kit.  The discovery challenges widely held beliefs about the role of women in ancient hunter-gatherer societies.-Science Advances.

300 MILLION: Habitable exoplanets thought to exist in our galaxy, based on a new analysis of data from NASA’s Kepler spacecraft. –The NY Times.

PHOTOS OF THE DAY

Elsa the Golden Retriever and Dolly the Cocker Spaniel enjoy a morning walk on the beach at Herne Bay, Kent
CREDIT: LIZ GREGG/TRIANGLE NEWS

‘Fishing’ by Shibasish Saha of nets being cast in Garhbeta, West Bengal received an honorable mention in the Photography 4 Humanity Global Contest 2020
CREDIT: MEDIADRUMIMAGES/ SHIBASISH SAHA

Workers take down the iconic jockey statues from the front of the 90-year-old Midtown restaurant the 21 Club in New York City. The 21 Club was one on New York’s oldest and most storied restaurants, having been patronized by famous artists, actors and business leaders among many others over its nearly 100-year history.

The restaurant, which announced that it is permanently shutting down, has been temporarily closed since the city first banned dine-in services at restaurants and bars in March. Hundreds of New York restaurants, bars and cafes have shuttered due to Covid-19
CREDIT: SPENCER PLATT/GETTY IMAGES
Market Closes for December 16^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1835, a disastrous fire raged through Manhattan, destroying the New York Stock & Exchange Building—but Wall Street breathed a sigh of relief anyway. A strongbox of documents showing who stood to gain and lose from the manipulation of stock prices was rescued from the flames by a brave (or desperate) broker. His grateful peers promptly gave him a generous cash reward.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities pared their early gains Wednesday, while copper and gold were higher.
The S&P/TSX Composite Index gained about 0.1%, with materials leading the gainers. Energy and health care lagged.
On the deal front, Tilray Inc. and Aphria Inc. agreed to combine their operations, forming a new giant in the fast-growing cannabis industry. Gold extended its advance off the back of a weaker dollar, as investors awaited the outcome of the Federal Reserve’s final meeting of the year, and weighed the potential for a fiscal stimulus deal.
Sales of sustainable and project bonds in Canada are expected to take off next year after companies issued a record amount of corporate debt in 2020 to bolster cash reserves and push out maturities.
Commodities
* Western Canada Select crude oil traded at a $14.25 discount to West Texas Intermediate
* Spot gold rose 0.2% to $1,855.60 an ounce
FX/Bonds
* The Canadian dollar fell 0.4% to C$1.2751 per U.S. dollar
* The 10-year government bond yield rose 2.4 basis points to 0.750%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.3 percent, or 60.94 to 17,567.42 in Toronto.
Shopify Inc. contributed the most to the index gain and had the largest move, increasing 8.3 percent.
Today, 95 of 222 shares rose, while 123 fell; 3 of 11 sectors were higher, led by information technology stocks.
Insights
* This quarter, the index rose 9 percent
* This year, the index rose 3 percent, poised for the best year since 2019
* The index advanced 3 percent in the past 52 weeks. The MSCI AC  Americas Index gained 17 percent in the same period
* The S&P/TSX Composite is 2.2 percent below its 52-week high on Feb. 20, 2020 and 57.2 percent above its low on March 23, 2020
* The S&P/TSX Composite is little changed in the past 5 days and rose 4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 26.9 on a trailing basis and 23.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.69t
* 30-day price volatility fell to 10.07 percent compared with
11.14 percent in the previous session and the average of 13.94 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 84.8429| 4.9| 3/7
Materials | 32.7105| 1.4| 41/10
Financials | 4.9417| 0.1| 15/10
Communication Services | -0.0573| 0.0| 2/5
Consumer Discretionary | -0.6277| -0.1| 7/6
Health Care | -1.0778| -0.5| 4/6
Real Estate | -1.3533| -0.2| 12/14
Consumer Staples | -3.2946| -0.5| 2/9
Utilities | -8.0222| -0.9| 4/11
Industrials | -12.8145| -0.6| 3/24
Energy | -34.3037| -1.6| 2/21
US
By Rita Nazareth
(Bloomberg) — Stocks rose on speculation that lawmakers are getting closer to a stimulus deal aimed at reviving the world’s largest economy. Treasuries fell as the Federal Reserve disappointed some traders who expected changes to the composition of bond purchases.
The S&P 500 climbed after Senate Majority Leader Mitch McConnell said Congress leaders are still talking about fresh aid and he thinks “we’re gonna get there.” Retailers, technology and financial shares drove the advance in the benchmark gauge of American equities amid thin trading volume. The Nasdaq 100 outperformed, while the Dow Jones Industrial Average dropped.
Treasuries pared some of its losses, with the yield on 10-year notes remaining below 1%. Bitcoin surpassed $20,000 for the first time. Investors awaited developments on stimulus talks after months of deadlock amid signs the economic recovery is faltering. The deal that lawmakers are attempting to wrap up includes payments to individuals and supplemental unemployment insurance, but excludes liability protections and direct aid for state and local governments, according to two people familiar
with the matter. Four people briefed said the virus aid is expected to be less than $900 billion. Fed Chair Jerome Powell said the case for fiscal stimulus is “very, very strong” as the pandemic continues to rage.
“Investors have clearly applauded recent news that legislation is imminent before Congress recesses for the holiday break knowing the Fed will buy every last Treasury that is issued to fund the relief package,” said Danielle DiMartino Booth, chief executive officer of Quill Intelligence in Dallas.
While enthusiasm for individual U.S. stocks is at an extreme among option traders, the same can’t be said for equity indexes. Option-based indicators compiled by Cboe Global Markets show the contrast. The ratio between stock-specific put and call options closed Monday at its lowest level since April 2000, based on 20-day averages. This shows contracts that rise along with specific stocks are much more in demand than usual. Yet the put-call ratio for index options is near a nine-year high, set Nov. 12. Variant Perception Research highlighted the distinction in a Twitter post Tuesday.

Here are some key events coming up:
* Policy decisions from the Bank of England and central banks in Mexico, Switzerland and Indonesia are due Thursday. Japan and Russia announce decisions Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index gained 0.8%.
* The MSCI Asia Pacific Index rose 1%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%.
* The euro increased 0.4% to $1.2197.
* The Japanese yen appreciated 0.2% to 103.44 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 0.92%.
* Germany’s 10-year yield gained four basis points to -0.57%.
* Britain’s 10-year yield climbed one basis point to 0.272%.
Commodities
* The Bloomberg Commodity Index rose 0.4%.
* West Texas Intermediate crude climbed 0.5% to $47.85 a barrel.
* Gold rose 0.5% to $1,863.26 an ounce.

–With assistance from Joanna Ossinger, Albertina Torsoli, Adam Haigh, David Wilson and Lu Wang.
Have a great night.

Be magnificent!
As ever,

Carolann

Truth is confirmed by inspection and delay; falsehood by haste and uncertainty.
                                                                           -Tacitus, 56 AD-120 AD

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