January 30, 2020 Newsletter

Dear Friends,

Tangents:
On Jan. 30, 1948, Indian political and spiritual leader Mahatma Gandhi was murdered by a Hindu extremist.   Go to article »

PHOTOS OF THE DAY

The Glenfinnan Viaduct shrouded in snow in the Scottish Highlands.

The viaduct is better known to many as Harry Potters  railway appearing in four of the films. Construction of the extension from Fort Williams to Mallaig began in January 1897 and was completed in 1898.
CREDIT: CHRIS GORMAN/BIG LADDER

A worker hangs brightly coloured threads, made from a lotus stem, over wooden bars while she balances on a narrow wooden boat.

The threads are divided by colour and then put out to dry underneath the hot sun at Inle Lake, Myanmar.
CREDIT: ZAY YAR LIN/SOLENT NEWS

A drone view of visitors trying to find their way through the biggest snow maze in the world, more than 3000 square meters, in Zakopane, Poland.
CREDIT: OMAR MARQUES/ANADOLU AGENCY/GETTY IMAGES

Market Closes for January 30^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2000, as the internet bubble neared its peak, 17 dot-com companies each spent $73,000 per second for network television ads—a total of nearly $38 million—during Super Bowl XXXIV. By the time Super Bowl XXXV rolled around, at least three had gone into Chapter 11, thanks largely to the money they spent promoting themselves during Super Bowl XXXIV.

Canada
By Aoyon Ashraf and Bloomberg Automation
(Bloomberg) — Canadian shares pared early losses on Thursday as investors studied what economic impact might come from the spread of the coronavirus. Industrials were the best performing sector, while healthcare stocks underperformed. The S&P/TSX Composite fell 0.1% to 17,490.56 in Toronto. The move follows the previous session’s increase of 0.1%. Toronto-Dominion Bank contributed the most to the index decline, measured in index points, decreasing 0.3%. Silvercorp Metals Inc. saw the largest percentage decline, falling 6.4%. Meanwhile, Canadian Imperial Bank of Commerce plans to eliminate an unspecified portion of its workforce as part of Chief Executive Officer Victor Dodig’s push to streamline the company, following cost-cutting efforts by Canada’s other lenders.
Commodities
* Western Canada Select crude oil traded at a $21.00 discount to WTI
* Spot gold fell 0.2% to $1,573.75 an ounce
FX/Bonds
* The Canadian dollar was unchanged at C$1.3197 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.333%

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — U.S. stocks rose after the World Health Organization stepped up efforts to combat the coronavirus by declaring a global health emergency. The S&P 500 Index erased losses after WHO said travel and trade restrictions were not necessary, removing at least temporarily a threat to the economy. The organization also commended China’s efforts to contain the disease. Equities have been under pressure since the outbreak last week, while havens from Treasuries to gold have rallied as investors fretted the virus would derail fragile growth around the world. Investors Flee Junk-Bond Funds, Pour Record Cash Into High-Grade While the virus continues to spread and the human toll mounts, the WHO comments suggested that efforts to contain the outbreak are robust. For investors worried about the impact on global growth, that was enough to halt a flight from risk assets in the final hour of U.S. equity trading.
“The market maybe doesn’t really know how to process the impact of this particular event,” Kathryn Kaminski, chief research strategist at AlphaSimplex Group, said by phone. “People may be moving on headlines or there may also be general concern about not being sure what this means.” Corporations are grappling with the rapidly spreading of the coronavirus that threatens a key growth market. Tesla Inc. expects a production delay in China, McDonald’s Corp. and Starbucks Corp. closed thousands of stores combined in the country while Apple Inc. is preparing for supply-chain disruptions. The hit to the world’s second-largest economy could exceed that seen during the SARS outbreak of 2003, according to Nomura Holdings Inc. Traders also assessed a flurry of corporate earnings, with a rally in Microsoft Corp., Tesla and Coca-Cola Co. driven by solid results offsetting United Parcel Service Inc. and Facebook Inc.’s declines. Carnival Corp. sank as a cruise ship owned by the company was to remain in an Italian port until Friday, even after tests showed that a passenger who came down with fever and respiratory symptoms didn’t have coronavirus. A key slice of the Treasury yield curve inverted for the first time since October, which may be a signal that traders are concerned about policy makers’ ability to counter headwinds as the coronavirus threatens to disrupt global growth.
     Federal Reserve Chairman Jerome Powell said Wednesday that the viral outbreak will likely hit the Chinese economy and could spill wider, but it was too early to judge what impact it would have on the U.S. Elsewhere, China’s offshore yuan briefly weakened past 7 for the first time this year. Oil slumped on growing alarm that the coronavirus outbreak is crippling fuel demand, prompting OPEC to consider an emergency meeting. Copper tumbled for 12 straight sessions in London, the longest retreat in more than three decades of data. The pound jumped just before the Bank of England surprised the market by voting 7-2 to keep its key rate unchanged.
Here are some events to watch out for this week:
* South Korean chipmaker SK Hynix, Chevron, Caterpillar and Exxon Mobil report earnings on Friday.
* The U.K. is scheduled to leave the European Union Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 advanced 0.3% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index decreased 1%.
* The MSCI Emerging Market Index dipped 2.2%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%.
* The euro advanced 0.2% to $1.1033.
* The Japanese yen appreciated 0.1% to 108.89 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 1.57%.
* Germany’s 10-year yield dipped three basis points to -0.41%.
* Britain’s 10-year yield climbed three basis points to 0.542%.
Commodities
* The Bloomberg Commodity Index dipped 0.9%.
* West Texas Intermediate crude sank to $52.14 a barrel.
* Gold advanced 0.8% to $1,589.20 an ounce.

–With assistance from Andreea Papuc, Adam Haigh, Sam Potter, Vildana Hajric, Katherine Greifeld, Anchalee Worrachate, Liz Capo McCormick and Yakob Peterseil.

Have a great night.

Be magnificent!

As ever,

Carolann

Change your life today.  Don’t gamble on the future, act now, without delay.
                                                                 -Simone de Beauvoir, 1908-1986

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