December 8, 2020 Newsletter

Dear Friends,

Tangents:
On Dec. 8, 1941, the United States entered World War II as Congress declared war against Japan one day after the attack on Pearl Harbor.  Go to article »

A French man has left money to 50 cats that live in Russia’s Hermitage Museum.  The epitome of life goals

Take a virtual trip to the waters of Lake Victoria, in Kenya, where fishermen attract fish, locally known as omena, with lanterns.

Looking for some historical fiction to transport you? Here are some of the year’s best offerings.

Photographer captures an octopus with a transparent head.

PHOTOS OF THE DAY

A fisherman balances precariously on the edge of his boat on Inle Lake, Myanmar, demonstrating a technique dating back to the 12th century.
CREDIT: ISTVAN KADAR/SOLENT NEWS 

A robin sitting on a rail in Finsbury Park, north London, UK, during foggy weather.
CREDIT: DINENDRA HARIA/LNP

Sunrise over the Wawel Royal Castle, in Krakow, south Poland.
CREDIT: LUKASZ GAGULSKI/PAP/AVALON

A stunning rainbow over Colmer’s Hill in Bridport by the Dorset coast, UK.
CREDIT: JAMES LOVERIDGE/BPNS

Market Closes for December 8^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1941, as the news that the Japanese had bombed Pearl Harbor filtered through the market, the S&P 500 dropped 4.37%, one of its worst one-day declines.

Canada
By Aoyon Ashraf
(Bloomberg) — Canadian shares continued its rally on Tuesday, as broader equity markets rose on U.S. stimulus talks. The S&P/TSX Composite index rose 0.3% to 17,639, nearing its record close of 17,944, reached on Feb. 20. The advance was led by health care and tech stocks, while consumer discretionary companies underperformed. Meanwhile, the Bank of Canada is expected to keep its extremely accommodative policy intact on Wednesday, with an outside chance it will do even more to support the recovery. Economists predict the central bank will restate a pledge to hold its overnight interest rate at 0.25% until at least 2023, while continuing bond purchases at the current pace of C$4 billion ($3.1 billion) per week. The bank releases its December policy decision at 10 a.m. in Ottawa.
Commodities
* Western Canada Select crude oil traded at a $12.15 discount to West Texas Intermediate
* Spot gold rose 0.4% to $1,870.43 an ounce
FX/Bonds
* The Canadian dollar fell 0.2% to C$1.2822 per U.S. dollar
* The 10-year government bond yield fell 2 basis points to 0.742%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the sixth day, climbing 0.3 percent, or 56.65 to 17,639.00 in Toronto. The index advanced to the highest closing level since Feb. 21. Shopify Inc. contributed the most to the index gain, increasing 1.9 percent. Ballard Power Systems Inc. had the largest increase, rising 8.8 percent. Today, 105 of 222 shares rose, while 109 fell; 8 of 11 sectors were higher, led by information technology stocks.
Insights
* This quarter, the index rose 9.4 percent
* This year, the index rose 3.4 percent, poised for the best year since 2019
* The index advanced 3.8 percent in the past 52 weeks. The MSCI AC Americas Index gained 19 percent in the same period
* The S&P/TSX Composite is 1.8 percent below its 52-week high on  Feb. 20, 2020 and 57.9 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 2 percent in the past 5 days and rose 8.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 27 on a trailing basis and 23.5 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$2.7t
* 30-day price volatility fell to 10.96 percent compared with 14.51 percent in the previous session and the average of 15.13 percent over the past month
================================================================
|Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 18.1202| 1.0| 4/5
Financials | 17.6690| 0.3| 13/13
Industrials | 9.7028| 0.5| 14/13
Energy | 8.6031| 0.4| 16/7
Consumer Staples | 2.6899| 0.4| 7/4
Health Care | 2.2401| 1.0| 8/2
Communication Services | 2.0800| 0.2| 3/3
Utilities | 1.9484| 0.2| 9/5
Materials | -0.7942| 0.0| 17/33
Real Estate | -2.0066| -0.4| 9/17
Consumer Discretionary | -3.6120| -0.5| 5/7

US
By Rita Nazareth and Claire Ballentine
(Bloomberg) — Stocks rose to a record as stimulus talks tempered concern about tougher restrictions amid a surge in coronavirus cases. The S&P 500 closed at an all-time high after Senate Majority Leader Mitch McConnell suggested setting aside some issues that have been roadblocks to a relief package – a strategic retreat aimed at striking a deal. The Nasdaq 100 advanced for a 10th straight day, the longest rally in about a year. Pfizer Inc. jumped as U.S. regulators gave early indications they may grant emergency-use authorization to its vaccine. Tesla Inc. erased losses that were driven by plans to raise as much as $5 billion.
Time is running ever shorter on getting fresh stimulus, with lawmakers approaching the year-end break just as U.S. Covid-19 cases surpass 15 million. Democrats have opposed McConnell’s insistence on giving employers a shield from lawsuits, while he has been among Republicans blasting Democratic demands for assistance to state and local authorities as a bailout. The Kentucky Republican said both parties should focus on three areas where they agree help is needed: small business assistance, expanded unemployment insurance and funding for vaccine distribution and other anti-coronavirus efforts. “After months of inaction by leaders in Washington, the market is likely to respond well to any movement towards additional fiscal support,” said Adam Phillips, director of portfolio strategy at EP Wealth Advisors. “However, motion is not the same as action. If these discussions do not lead to results, we could see the market give up some of its recent gains.”A key sentiment indicator for U.S. stocks has reached its most bullish level in two decades. The weekly Cboe ratio of volume traded in puts versus calls fell to the lowest since July 2000 last week. This implies extreme positioning to the upside, as investors look beyond short-term uncertainty toward a continuing global recovery in 2021.
Elsewhere, the pound pared declines after the U.K. dropped controversial parts of an internal bill that would have given it the power to unilaterally override the Brexit divorce treaty. Prime Minister Boris Johnson will hold crisis talks with European Commission President Ursula von der Leyen Wednesday evening as the two sides try to salvage a trade deal by the end of the year.
Here are some key events coming up:
* Thursday brings the European Central Bank policy decision and a press briefing from Christine Lagarde. Economists widely expect the central bank to increase and extend its pandemic bond-buying program.
* The U.S. Food and Drug Administration meets to discuss the vaccine made by Pfizer/BioNTech on Thursday. If the FDA authorizes emergency use, Health & Human Services Secretary Alex Azar said vaccine distribution could begin within 24 hours.

These are some of the main moves in markets:
Stocks
* The S&P 500 increased 0.3% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index climbed 0.2%.
* The MSCI Asia Pacific Index fell 0.1%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro was little changed at $1.2106.
* The British pound declined 0.2% to $1.3351.
* The Japanese yen weakened 0.1% to 104.16 per dollar.
Bonds
* The yield on 10-year Treasuries fell less than one basis point to 0.92%.
* Germany’s 10-year yield decreased three basis points to -0.61%.
* Britain’s 10-year yield dipped three basis points to 0.257%.
Commodities
* West Texas Intermediate crude fell 0.2% to $45.66 a barrel.
* Gold rose 0.5% to $1,871.25 an ounce.
–With assistance from David Finnerty, Andreea Papuc, Yakob Peterseil, Lynn Thomasson, Jan-Patrick Barnert and Kamaron Leach.

Have a great night.

Be magnificent.

As ever,

Carolann

Excellence is not an act but a habit. -Aristotle, 384 BC-322 BC.

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