January 14, 2020 Newsletter

Dear Friends,

Tangents:
January 14, 1784: U.S. revolutionary war ends with the US Congress ratifying the Treaty of Paris.

From The New York Times today:
For nearly six years, large piles of 20-pound notes mysteriously appeared in a village in northeastern England. The bundles left in the village, Blackhall Colliery, often amounted to 2,000 pounds (about $2,600) and were left in places where people in need would be likely to find them. The police revealed this week that two people who wished to be known only as good Samaritans had been distributing the money in an effort to “give something back” to the community. The police said one of the Samaritans felt an “emotional connection” to the village after being helped by one of its residents, “so she wanted to repay the kindness received.”

From Bloomberg today:
Scientists use frog cells to make living robots. (h/t Uffe Galsgaard)

Scientists find the oldest material on Earth, and it’s not in my fridge! Seriously, folks.

PHOTOS OF THE DAY

A fork of lighting strikes at the world’s tallest building, the Burj Khalifa, Dubai, UAE.

For seven long years, photographer Zohaib Anjum has spent whole nights camping out with his camera when the rains come to Dubai, UAR, hoping to capture the “bolt from the blue” lightning photo.
CREDIT: ZOHAIB ANJUM/SWNS.COM

All aglow in hazy pink neon, a bus drives in thick fog through a forest in the Taunus mountains near Frankfurt, Germany.
CREDIT: MICHAEL POBST/AP PHOTO

Ice encrusted trees are reflected in a river during a spell of cold weather in the Ovacik district of Tunceli province, Turkey.
CREDIT: SIDAR CAN EREN/ANADOLU AGENCY/GETTY IMAGES

Market Closes for January 14^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1982, in the depths of recession, Ford Motor announced it would skip paying a quarterly dividend for the first time since the company went public in 1956. The move saved Ford $36 million per quarter. Struggling to put a happy face on the news, the Dow Jones Industrial Average squeaked out a two-point gain to close at 842.28.
Canada
By Kristine Owram and Bloomberg Automation
(Bloomberg) — Canadian stocks rose to a second straight record high, shrugging off a report that U.S. tariffs on Chinese goods are likely to stay in place until after the November presidential election. The S&P/TSX Composite Index added 0.3% to 17,352.90. Health-care stocks led the gains amid strength in most cannabis stocks, even as Aphria Inc. tumbled 8.6% following a reduced full-year outlook. Materials were also strong as gold shares rallied. Suncor Energy Inc. contributed the most to the index gain, measured in index points, increasing 1.5%. Ballard Power Systems Inc. had the largest percentage increase, rising 6.4%. Today, 139 of 234 shares rose, while 87 fell; 9 of 11 sectors were higher.
Commodities
* Western Canada Select crude oil traded at a $23.50 discount to WTI
* Spot gold fell 0.3% to $1,546.70 an ounce
FX/Bonds
* The Canadian dollar was little changed at C$1.3061 per U.S. dollar
* The 10-year government bond yield fell 2 basis points to 1.59%
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 20.3361| 1.1| 38/9
Energy | 12.3063| 0.4| 14/15
Industrials | 9.7606| 0.5| 19/11
Consumer Staples | 4.8288| 0.7| 5/6
Financials | 4.2876| 0.1| 16/11
Consumer Discretionary | 4.2216| 0.6| 12/3
Health Care | 4.0371| 1.9| 9/1
Utilities | 3.6279| 0.4| 9/7
Real Estate | 1.4534| 0.2| 13/10
Communication Services | -2.3670| -0.3| 2/6
Information Technology | -2.9795| -0.3| 2/

US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — U.S. stocks retreated from all-time highs after Bloomberg reported that tariffs on billions of dollars of Chinese goods will likely stay in place until after the presidential election. The S&P 500, Nasdaq Composite and Dow Jones Industrial indexes all pulled back from records as the conditions underscored lingering concern about future progress in negotiations. Positive results from big banks had driven prices higher. Treasuries climbed earlier after a gauge of underlying inflation rose less than forecast. “There was a lot of optimism built up and now this just throws a whole new wrench into that optimism,” said Ryan Nauman, a market strategist at Informa Financial Intelligence’s Zephyr. It raises “a lot of questions moving forward.” The two sides have an understanding that no sooner than 10 months after the signing of the agreement at the White House Wednesday, the U.S. will review progress and potentially trim tariffs now in place on $360 billion of imports from China, according to people familiar with the matter. The Stoxx Europe 600 Index closed up for the first time in three sessions. Earlier in Asia, stocks finished slightly higher. The Chinese yuan held most of its surge from Monday, when Washington lifted its designation of the country as a currency cheat. The dollar held its gains after the inflation data, while the pound broke a five-day slide.

Here are some events to watch for this week:
* Phase one of the U.S.-China trade deal is set to be signed on Wednesday in Washington.
* The biggest American financial institutions kick off earnings season, with Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley and BlackRock Inc. next up.
* The Fed’s so-called beige book is due on Wednesday.
* China GDP comes on Friday.

These are the major moves in markets:
Stocks
*The S&P 500 Index decreased 0.2% to 3,282.93 as of 4:01 p.m. New York time.
*The Dow Jones Industrial Average advanced 0.1% to 28,938.66.
*The Nasdaq Composite Index dipped 0.2% to 9,251.33.
*The MSCI All-Country World Index was little changed at 573.45, the highest on record.
*The Stoxx Europe 600 Index jumped 0.3% to 419.59.
Currencies
*The Bloomberg Dollar Spot Index was little changed at 1,193.13.
*The Japanese yen was little changed at 109.96 per dollar, the weakest in about eight months.
*The euro decreased 0.1% to $1.1128.
*The British pound increased 0.3% to $1.3022, the first advance in more than a week.
Bonds
*The yield on two-year Treasuries declined one basis point to 1.57%, the lowest in a week on the biggest drop in more than a week.
*The yield on 10-year Treasuries fell three basis points to 1.81%, the lowest in more than a week on the largest drop in more than a week.
*Germany’s 10-year yield declined one basis point to -0.17%.
*Britain’s 10-year yield decreased three basis points to 0.72%, the lowest in six weeks.
Commodities
*West Texas Intermediate crude advanced 0.5% to $58.38 a barrel, the first advance in more than a week.
*Gold depreciated 0.1% to $1,547.01 an ounce, the weakest in more than a week.
–With assistance from Gregor Stuart Hunter.

Have a great night.

Be magnificent!
As ever,

Carolann

No act of kindness, no matter how small, is ever wasted.
                                                 -Aesop, 620-565 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
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www.carolannsteinhoff.com