July 10, 2019 Newsletter

Dear Friends,

Tangents:
July 10, 1985: Rainbow Warrior sunk, Greenpeace.
1871~ Marcel Proust, author, born.
On July 10, 1940, during World War II, the 114-day Battle of Britain began as Nazi forces began attacking southern England by air. By late October, Britain managed to repel the Luftwaffe, which suffered heavy losses.  Go to article »

“Happiness is beneficial for the body, but it is grief that develops the mind.” ~Marcel Proust.

SUMMER AND SALT WATER

Back reaches of some creek
I have no name for

Pale jellies parse
The pulse of summer

A crow comments
On marsh margins

I watch light ripple
Across a flight of swallows.
              –B.R. Strahan

PHOTOS OF THE DAY

Luke Rasmussen climbing a rock tower in Page, Arizona,, USA wearing LED lights as to make a rainbow effect on the side of the rock face. These fascinating images show a climber turning his route into a rainbow as he scales sheer rocks while wearing LED lights. Luke Rasmussen takes to sky-high ridges across the USA under the cover of darkness, tracking his journeys with colorful patterns. He records the routes through a series of long exposure images taken from the foot of each rock face.

CREDIT: LUKE RASMUSSEN/SWNS.COM

Flamingos are seen on Lake Tuz, one of the most important center that flamingos incubate, as the sun sets in Konya province of Turkey.

CREDIT: MURAT ONER TAS/ANADOLU AGENCY/GETTY IMAGES

Horses and Cows stand together in a paddock in the outskirts of Frankfurt, Germany, as the sun rises Tuesday.

CREDIT: AP PHOTO/MICHAEL PROBST

Divers tend to ‘coral nurseries’ where different species are grown before being planted into the wild in a bid to restore dying reefs. Over 900 tree-like structures built underwater on the coast of Bonaire Island in the Caribbean are used to culture different strains of coral. Each 5ft PVC and fibreglass tree has 10 branches, and can hold around 100 of the young organisms. Marine biologist Lorenzo Mittiga, 49, took photographs of the process, before the young corals are planted on a reef.

CREDIT: LORENZO MITTIGA/ SOLENT NEWS & PHOTO AGENCY
Market Closes for July 10^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
T-Mobile US—The telecommunications company will replace Red Hat in the S&P 500 following the completion of IBM’s acquisition of Red Hat, S&P Dow Jones Indices said.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.1 percent, or 18.08 to 16,563.29 in Toronto. Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.7 percent. Crescent Point Energy Corp. had the largest increase, rising 9.3 percent. Today, 147 of 239 shares rose, while 85 fell; 5 of 11 sectors were higher, led by energy stocks.
Insights
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index gained 6.9 percent in the same period
* The S&P/TSX Composite is 0.7 percent below its 52-week high on April 23, 2019 and 20.2 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is little changed 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 17.8 on a trailing basis and 15.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.56 trillion
* 30-day price volatility fell to 6.66 percent compared with 7.45 percent in the previous session and the average of 7.94 percent over the past month
* The benchmark 10-year bond fell and the yield rose 0.3 basis points to 1.586 percent
* The S&P 500 Index advanced 0.5 percent
US
By Vildana Hajric and Jeremy Herron
(Bloomberg) — U.S. stocks rose toward all-time highs, gold rallied and the dollar fell as comments by Jerome Powell cemented market bets for a rate cut this month. Treasuries were mixed.
Equities that had slumped since Friday’s strong jobs report rallied back to intraday records after the Fed chairman signaled a willingness to lower rates, citing a slowing global economy and trade issues. Minutes from the Fed’s June meeting confirmed an inclination among officials to cut rates soon. Gains faded as Powell testified to Congress, with financial shares leading the pullback. The S&P 500 briefly topped 3,000 for the first time.
“Psychologically, when you hit those round numbers you get a little bit of resistance — you hit it and it fails,” said Aaron Clark, portfolio manager at GW&K Investment Management. “The big round numbers, you tend to get a level that’s tough to
power through.”
The yield on 10-year Treasuries fell as low as 2.04% after climbing above 2.10% for the first time in a month before settling around 2.06%. Two-year rates slumped while longer-dated bond yields rose. The dollar weakened versus major peers, gold topped $1,400 again and oil rose above $60 a barrel in New York. “A rate cut in July is now all but certain,” said James McCann, senior global economist at Aberdeen Standard Investments. “The strength of last week’s jobs number did lead some to think that the Fed may pause for thought. It’s clear from this that they won’t.”
Powell’s remarks came ahead of two days of testimony in Congress on the economic and policy outlook. With both equities and bonds sitting on outsize gains since the start of the year, it’s unclear what further impetus they can get given that traders are already discounting a cycle of interest-rate cuts.
In Europe, strong manufacturing data from France and low demand at an auction of German bunds weighed on government debt. The pound halted a drop to a two-year low as data showed the U.K. economy rebounded in May. The trading session in Asia was mixed, with modest gains in Hong Kong and South Korea and slides in Japan and China.
Here are some key events coming up:
* Powell testifies to Senate Banking Committee on Thursday
* ECB minutes are due on Thursday.
* A key measure of U.S. inflation — the core consumer price index, due Thursday — is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged.
* U.S. producer prices are due on Friday.
Here are the main moves in markets:
Stocks
* The S&P 500 rose 0.5% to 2,993 as of 4 p.m. New York time.
* The Dow Jones Industrial Average advanced 0.3%, while the Nasdaq-100 Index gained 1% to a record high.
* The Stoxx Europe 600 Index declined 0.2%.
* The MSCI Asia Pacific Index climbed 0.3%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%.
* The euro climbed 0.4% to $1.125.
* The British pound rose 0.3% to $1.2506.
* The Japanese yen added 0.4% to 108.448 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 2.06%.
* The two-year rate dropped nine basis points to 1.82%.
* Germany’s 10-year yield climbed five basis points to -0.31%.
Commodities
* The Bloomberg Commodity Index climbed 1.8%.
* West Texas Intermediate crude surged 4.4% to $60.35 a barrel.
* Gold futures rose 1.3% to $1,419 an ounce.
–With assistance from Adam Haigh, Sophie Caronello, Laura
Curtis, Rita Nazareth and Colin Beresford.
Have a great night.

Be magnificent!
As ever,

Carolann

You will never win if you never begin.
           -Helen Rowland, 1875-1950

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