February 21, 2020 Newsletter

Dear Friends,

Tangents: Happy Friday!

February 21, 1916 – Battle of Verdun: Over 1 million men killed, France.
1925 – New Yorker Magazine debuts.

On Feb. 21, 1965, former Black Muslim leader Malcolm X was shot and killed by assassins identified as Black Muslims as he was about to address a rally in New York City; he was 39. Go to article »

The creator of cut, copy and paste has died.  RIP to a true revolutionary. We owe him so much. -CNN

PHOTOS OF THE DAY

A man snowboards down a slope overlooking Mount Yotei at a ski resort in Niseko, Hokkaido, Japan.
CREDIT: JAE C. HONG/AP PHOTO

Police officers ride their horses through the snow to visit residents in remote parts of china’s Xinjiang region, to promote awareness of coronavirus.
CREDIT: STR/AFP/GETTY IMAGES

Sadhus, who are considered holy, sit around the Pashupathinath Temple in Kathmandu, Nepal.

With only a few days left for the Maha Shivaratri festival Sadhus from all over India and Nepal have gradually started to arrive at the temple for the celebration.
CREDIT: SKANDA GAUTAM/ZUMA WIRE ZUMA/EYEVINE

Market Closes for February 21^st, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1947, Edwin H. Land, founder of Polaroid, demonstrated the instant camera to 650 scientists assembled at the annual meeting of the Optical Society of America. Never before had it been possible to develop a snapshot within a single minute. The Land Instant Camera sold at an initial price of $89.75, and though Polaroid lost money on it at first, it went on to make the company one of the great growth stocks of postwar America.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian shares declined on Friday, halting a four-day rally, amid renewed concerns over the impact of the coronavirus. Gold continued its surge to seven-year high, as investors sought safe havens. The S&P/TSX Composite Index fell 0.6% to 17,843.53. The move is the biggest since falling 0.6% on Feb. 7. The MSCI AC Americas Index declined 1%. Information Technology stocks led the market lower, while materials was the only sector that rose.
* Shopify contributed the most to the index decline measured in index points, decreasing 3.4%.
* CCL Industries had the largest percentage decline, falling 17%.
* Royal Bank of Canada provided the biggest boost to the index in points, advancing 1.1%.
* Eldorado Gold had the biggest percentage gain, rising 31% on positive Turkey update, 5-year guidance.

Meanwhile, Royal Bank of Canada’s deal making division is back to proving its worth. The RBC Capital Markets unit had record earnings in the fiscal first quarter, helping Canada’s largest lender post results that beat analysts’ estimates. Fees from investment banking jumped 82% from a year earlier amid a better deal making environment, and fixed-income trading more than doubled.
Commodities
* Western Canada Select crude oil traded at a $16.75 discount to West Texas Intermediate prices
* Spot gold rose 1.5% to $1,643.59 an ounce
FX/Bonds
* The Canadian dollar rose 0.3% to C$1.3218 per U.S. dollar
* The 10-year government bond yield fell 2.2 basis points to 1.280%

US
By Vildana Hajric
(Bloomberg) — U.S. stocks sank, gold surged and Treasury yields tumbled as investors took a defensive stance amid renewed concern about the economic impact of the coronavirus as it spreads outside of China. Tech companies were particularly hard hit, sending the Nasdaq 100 down almost 2%. The S&P 500 Index posted its first weekly decline since January. The yield on 30-year Treasuries fell to a record low amid data showing U.S. business activity shrank for the first time since 2013 as the virus hit supply chains. Investors were put on alert this week by a spike in infections outside China and a slew of fresh warnings by companies over the potential impact the deadly respiratory virus may have on business. The growing concerns reignited appetite for assets seen as havens from the turmoil and reversed stock gains that had sent the S&P 500 Index to a record high Wednesday.
“Investors have suddenly got cold feet and are running for the exits,” said Chris Rupkey, chief financial economist for MUFG Union Bank. “Bond yields and stock prices are back in sync today as the plunging markets mean the economic outlook is not looking as good this year as many thought.” The Stoxx Europe 600 Index slumped, with automakers among the worst performers, after equities in Korea and Hong Kong dropped more than 1%. Crude oil fell after hitting the highest in almost four weeks. Elsewhere, the yen strengthened, recouping some if its biggest two-day decline since 2017. The dollar slumped after a four-day winning streak. The euro strengthened after data showed economic activity in the common-currency area sped up unexpectedly.
Here are some key events coming up:
* Group of 20 finance ministers and central bank chiefs are due 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 dropped 1.1% at the close of trading in New York, leaving it down 1.3% this week.
* The Nasdaq 100 fell 1.9% Friday and 1.8% for the week.
* The Stoxx Europe 600 Index fell 0.5%.
* The MSCI Asia Pacific Index fell 0.5%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%.
* The euro rose 0.6% to $1.0848.
* The British pound advanced 0.6% to $1.296.
* The Japanese yen strengthened 0.5% to 111.59 per dollar.
Bonds
* The yield on 10-year Treasuries declined five basis points to 1.47%.
* The yield on 30-year Treasuries fell five basis points to 1.91%
* Germany’s 10-year yield rose one basis point to -0.43%.
* Britain’s 10-year yield was little changed at 0.57%.
Commodities
* West Texas Intermediate crude sank 0.8% to $53.34 a barrel.
* Gold strengthened 1.5% to $1,644.38 an ounce.

–With assistance from Michael G. Wilson, Robert Brand, Constantine Courcoulas and Todd White.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

A fool is known by his speech and a wise man by his silence.
                                     -Pythagoras, 569 BC-c. 500 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