July 14, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
Bastille Day, France:
Bastille stormed by Paris mob – on this day in 1789, a mob advanced on the Bastille in Paris, demanding the arms and munitions stored there, but, when the guards resisted, the crowd captured the prison, an act that
Symbolized the end of the ancien régime.  Go to article »

55,000 beluga whales are on the move, and you can watch their migration live:  Is the summer heat getting you down? Cool off with a virtual dip into icy Arctic waters and watch as tens of thousands of beluga whales frolic in the frigid sea. Starting Friday (July 15), the research vessel Delphi will broadcast a beluga whale livestream, direct from the Churchill River estuary where the river flows into Hudson Bay in northeastern Canada.   The livestream, produced in a partnership between Arctic conservation non-profit Polar Bears International and explore.org, is in celebration of Arctic Sea Ice Day on July 15. The goal is to raise public interest in sea ice and increase awareness of its importance to the Arctic ecosystem.  Full Story: Live Science (7/14) 

Van Gogh self-portrait found hidden behind another painting. 

Swedish tree is nearly 10,000 years old.

Finnish baseball park has a river in the outfield and a camera in the river.

NASA released more images of stars, galaxies and an exoplanet.  After decades of waiting, the world is finally able to see the deepest and sharpest images of our universe taken by the James Webb Space Telescope.

Ryan Gosling is bringing major ‘Ken-ergy’ to the upcoming ‘Barbie’ film.   The highly anticipated “Barbie” movie won’t be released until next year, but fans are already swooning over Gosling’s “Ken doll” character.

PHOTOS OF THE DAY

A full moon rises over the Hagia Sophia Grand Mosque and Blue Mosque in Istanbul
CREDIT: Anadolu Agency/Getty Images

French divers from the minelaying cruiser Pluton retrieve ammunition during a joint operation with Albanian divers to clean the bed of the Adriatic Sea of second world war ammunitions
CREDIT: AFP/Getty Images

Young seals wait to be fed in a pool at the Friedrichskoog Seal Station
CREDIT: Christian Charisius/AP

Market Closes for July 14^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1862, Congress established the first U.S. pension allowance, paying up to $8 a month to injured or disabled Union soldiers or their heirs.
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian equities fell Thursday, driven by the country’s biggest banks, as they fell alongside their US peers amid growing recession concerns.
The S&P/TSX Composite led losses for the fifth day, dropping 1.5%, or 286.13 to 18,329.06 in Toronto.
The move was the biggest in nearly one month since falling 3.1% on June 16.
Today, 8 of 11 sectors lost; 182 of 238 shares fell, while 56 rose.
Royal Bank of Canada contributed the most to the index decline, decreasing 5.6%.
First Quantum Minerals Ltd. had the largest percentage drop, falling 8.2%.
Insights
* In the past year, the index had a similar or greater loss 12 times. The next day, it declined nine times for an average 0.7% and advanced three times for an average 0.3%
* So far this week, the index fell 3.6%
* The index declined 9% in the past 52 weeks. The MSCI AC Americas Index lost 15% in the same period
* The S&P/TSX Composite is at its 52-week low and 17.5% below its high on April 5, 2022
* The S&P/TSX Composite is down 3.9% in the past 5 days and fell 6.2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.3 on a trailing basis and 11.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.98t
* 30-day price volatility fell to 18.98% compared with 19.58% in the previous session and the average of 19.89% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -189.5338| -3.2| 1/28
* Materials | -64.9389| -3.1| 4/47
* Energy | -26.6099| -0.8| 8/30
* Real Estate | -10.3754| -2.0| 0/23
* Information Technology| -9.2569| -0.9| 6/8
* Consumer Staples | -6.5859| -0.8| 0/11
* Communication Services| -4.6895| -0.5| 0/7
* Consumer Discretionary| -3.5846| -0.6| 4/9
* Health Care | 2.8641| 3.8| 4/3
* Utilities | 6.4871| 0.7| 15/1
* Industrials | 20.0998| 0.9| 14/15
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Royal Bank of Canada | -69.4200| -5.6| 152.9| -11.2
* TD Bank | -20.9300| -2.1| 60.1| -19.4
* Bank of Nova Scotia| -19.5100| -3.2| 74.9| -19.9
* Waste Connections | 5.2990| 1.9| 52.7| -5.6
* Canadian National | 5.3260| 0.9| 27.3| -6.6
* Ritchie Bros | 7.0440| 11.8| 163.6| 13.1
US
By Rita Nazareth
(Bloomberg) — Stocks closed well off session lows as comments from Federal Reserve officials brought some relief to investors worried that a more aggressive pace of hikes could trigger a recession.
The S&P 500 almost erased a slide that topped 2% as Fed Governor Christopher Waller and Fed Bank of St. Louis President
James Bullard said they would back a 75-basis-point hike in July after a hot inflation print.
The tech-heavy Nasdaq 100 climbed amid gains in giants like Apple Inc. and Intel Corp.
Treasury two-year yields fell as traders shifted their bets away from a full-point hike by the Fed this month.
Markets may have gotten a little ahead of themselves in betting on a move of that magnitude, Waller said.
The Bloomberg Dollar Spot Index pared gains, but still traded at an all-time high.
Investors got a reality check from the corporate side Thursday, with JPMorgan Chase & Co. temporarily halting buybacks as earnings fell short of estimates, and Morgan Stanley announcing a plunge in investment-banking revenues. Still, the chiefs of both banks said they aren’t steering their firms toward shelter even as they see global events denting the economy.
“People are confused as to where the economy is actually heading,” said Victoria Fernandez, chief market strategist at Crossmark Global Investments. “Are we going into recession? Are we not? Is it going to be a short recession? Is it going to be a deep recession? That’s why we’re seeing so much volatility in the market. People just don’t have a clear direction right now.”

Shrinking the Fed’s $8.9 trillion balance sheet will have an effect over time equivalent to no more than three quarter-point interest-rate hikes, according to a new study by a Fed Bank of Atlanta economist.
That suggests the asset reductions will have a relative modest effect compared to rate hikes to counter inflation.
“We remain skeptical that the Fed can pull off simultaneously normalizing its balance sheet, controlling inflation, and avoiding severe market disruptions,” said Richard Saperstein, chief investment officer at Treasury Partners.
“We’re increasingly concerned that investors may be forced to endure more downside volatility in this tricky environment.”
Elsewhere, Bitcoin broke above $20,000, joining gains in tech stocks while investors got more clarity on the bankruptcy of a major digital-assets lender. 
What to watch this week:
* China GDP, Friday
* US business inventories, industrial production, University of Michigan consumer sentiment, Empire manufacturing, retail sales, Friday
* G-20 finance ministers, central bankers meet in Bali, from Friday
* Atlanta Fed President Raphael Bostic speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average fell 0.5%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.4% to $1.0016
* The British pound fell 0.6% to $1.1823
* The Japanese yen fell 1.1% to 138.94 per dollar
Bonds
* The yield on 10-year Treasuries advanced four basis points to 2.97%
* Germany’s 10-year yield advanced three basis points to 1.18%
* Britain’s 10-year yield advanced four basis points to 2.10%
Commodities
* West Texas Intermediate crude fell 0.1% to $96.19 a barrel
* Gold futures fell 1.6% to $1,707.50 an ounce
–With assistance from Sunil Jagtiani, Andreea Papuc, Cecile Gutscher, Robert Brand, Isabelle Lee and Vildana Hajric.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

The most powerful weapon on earth is the human soul on fire. –Ferdinand Foch, 1851-1929.

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