February 19, 2020 Newsletter

Dear Friends,

Tangents:
On Feb. 19, 1945, during World War II, some 30,000 United States Marines landed on the Western Pacific island of Iwo Jima, where they encountered ferocious resistance from Japanese forces. The Americans
took control of the strategically important island after a month-long battle.  Go to article »

February 19, 1821, Lord Byron, Ravenna Journal:

Come home solus -very high wind – lightning – moonshine – solitary stragglers muffled in cloaks – women in mask – white houses – clouds hurrying over the sky, like spilt milk blown out of the pail – altogether very poetical.  It is still blowing hard – the tiles are flying, and the house rocking – rain splashing – lightning flashing – quite a fine Swiss Alpine evening, and the sea roaring in the distance.

PHOTOS OF THE DAY

People walk by a poster by Italian urban artist Salvatore Benintende aka “TVBOY” depicting Leonardo da Vinci’s Mona Lisa wearing a protective facemask and holding a mobile phone reading “Mobile World Virus” in a street of Barcelona.
CREDIT: PAU BARRENA/AFP

These incredible photos show the latest stunt from the world famous acrobatic team the Dunking Devils, as they perform spine tingling trampoline manoeuvres in a Slovenian Railways container transport terminal.
CREDIT: DOMEN ROZMAN/SWNS.COM

The humanoid robot Sophia, developed by Hong Kong based company Hanson Robotics, appears in stage in front of students and other professionals during a meeting session organised about artificial intelligence in Kolkata.
CREDIT: DIBYANGSHU SARKAR/AFP

Market Closes for February 19^th , 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1878, Thomas Edison received a patent for his “tin-foil talking phonograph,” ancestor of the modern record player and the first device to make sound recording practical.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian shares advanced as energy and mining stocks led the rally, while health care fell. The S&P/TSX Composite rose for a third day, climbing 0.4% to 17,925.36 in Toronto to close at its fifth record in six days.
* Canadian Natural Resources Ltd. contributed the most to the index gain measured in points, advancing 3.3%.
* Ballard Power Systems Inc. had the largest percentage increase, rising 13%.

Meanwhile, consumer price inflation in Canada ticked up in January, while the average of the central bank’s core measures slowed down. The overall consumer price index was up 2.4% from a year earlier, after a 2.2% gain in December. That beat economist expectations for a 2.3% increase. Excluding gasoline, inflation rose 2% in January. On a monthly basis, inflation rose 0.3%.
Insights
* The index advanced 12 percent in the past 52 weeks. The MSCI AC Americas Index gained 21 percent in the same period
* The S&P/TSX Composite is 0 percent below its 52-week high on Feb. 19, 2020 and 13.2 percent above its low on Feb. 19, 2019
* The S&P/TSX Composite is up 0.8 percent in the past 5 days and rose 2.1 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.1 on a trailing basis and 16.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.74t
* 30-day price volatility rose to 6.53 percent compared with 6.50 percent in the previous session and the average of 5.46 percent over the past month
Commodities
* Western Canada Select crude oil traded at a $17.00 discount to West Texas Intermediate prices
* Spot gold rose 0.6% to $1,611.53 an ounce
FX/Bonds
* The Canadian dollar rose 0.3% to C$1.3224 per U.S. dollar
* The 10-year government bond yield rose 2.3 basis points to 1.36%
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 38.0414| 1.3| 25/5
Materials | 21.3479| 1.1| 35/12
Financials | 9.1231| 0.2| 9/17
Consumer Discretionary | 2.8194| 0.4| 8/7
Information Technology | 2.3792| 0.2| 2/8
Utilities | 1.4150| 0.2| 8/8
Industrials | 1.3798| 0.1| 17/12
Consumer Staples | -0.0618| 0.0| 3/8
Real Estate | -2.0612| -0.3| 4/20
Communication Services | -2.2833| -0.2| 4/4
Health Care | -5.0815| -2.4| 2/6

US
By Vildana Hajric
(Bloomberg) — Equities advanced on signs that China may be planning further measures to support its economy as it reels from a virus-induced slowdown and after Federal Reserve officials signaled they aren’t anxious to raise interest rates anytime soon. Gains for chipmakers and banks led the S&P 500 Index and Nasdaq Composite to record highs after Bloomberg News reported that China’s latest moves to aid growth include possible bailouts for hard-hit industries. The dollar climbed to the strongest since October after data on housing starts and building permits exceeded analysts’ estimates. Treasuries held steady after minutes showed Federal Reserve officials viewed monetary policy as appropriate “for a time.” The Stoxx Europe 600 Index reached new highs, and shares rose in Tokyo, Hong Kong and Sydney. The yen fell to a nine- month low on concern Japan’s economy may slip into a recession.
     Oil gained as U.S. sanctions on Russia’s largest producer and conflict in Libya put the focus on supply threats. Investors appear relatively confident in the ability of policy makers to contain fallout from the deadly coronavirus, even after Apple Inc. spooked markets earlier this week by warning of a slowdown in sales. Data released Wednesday showed the housing market remains a bright spot for the U.S. economy amid sluggish business investment. “Housing is an economic bellwether and seeing data like this gives investors a lot of reasons to be optimistic, at least for the U.S. market,” said Mike Loewengart, vice president of investment strategy at E* Trade Financial. Elsewhere, gold traded near its highest level since 2013, while palladium extended its record-breaking rally on forecasts for a widening supply deficit.
Here are some key events coming up:
* Earnings season rolls on, with results from Deere & Co. set for Friday.
* Indonesia is expected to cut interest rates on Thursday, following emerging-market peers that have already moved.
* Group of 20 finance ministers and central bank chiefs are scheduled to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.

These are the main moves in markets:
Stocks
* The S&P 500 Index advanced 0.5% at the close of trading in New York.
* The Stoxx Europe 600 Index jumped 0.8%.
* The MSCI Asia Pacific Index fell 0.1%.
* The MSCI Emerging Market Index advanced 0.7%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%.
* The euro rose 0.2% to $1.0808.
* The British pound fell 0.6% to $1.2924.
* The Japanese yen weakened 1.3% to 111.28 per dollar.
Bonds
* The yield on 10-year Treasuries was little changed at 1.56%.
* Germany’s 10-year yield fell one basis point to -0.42%.
* Britain’s 10-year yield fell one basis point to 0.6%.
* Japan’s 10-year yield rose one basis point to -0.05%.
Commodities
* West Texas Intermediate crude advanced 2.4% to $53.28 a barrel.
* Gold strengthened 0.6% to $1,611.87 an ounce.
–With assistance from Christopher Anstey, Cormac Mullen, Sid Verma, Adam Haigh, Yakob Peterseil and Todd White.

Have a great night.

Be magnificent!
As ever,

Carolann

Prosperity is not without many fears and distastes, and adversity is not without comforts and hopes.
                                                                            -Francis Bacon, 1561-1626

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