July 2, 2019 Newsletter

Dear Friends,

Tangents:
On July 2, 1937, aviator Amelia Earhart and navigator Fred Noonan disappeared over the Pacific Ocean while attempting to make the first round-the-world flight at the equator.  Go to article »

Scientists search for a mirror universe.

Good Company
The evening closes in on a warm summer’s day.
The wine is coursing through you and through your friends but not down into the tributary of political discourse that can end up in an almighty row, but down the waterfalls of laughing memory.
Long forgotten stories and cackles emerge of times past while grand plans are made for the future still to be lived.
Sharing bread, barbeques and those generous anecdotes –
the simple gentleness of caring for the people you love.
–Dan Kieran, The book of Idle Pleasures
PHOTOS OF THE DAY

The Olga bulk carrier sits off the coast near Tynemouth, UK, just before sunrise.
CREDIT: OWEN HUMPHREYS/PA WIRE

A loon internet balloon, carrying solar powered mobile networking equipment flies over rugged terrain in New Zealand.
CREDIT: REUTERS

Aerial view of the anti government protester’s front line and the police cordon seen during the standoff between the police and demonstrators. Thousands of anti government protesters faced off with riot police and occupy major roads around the Hong Kong government complex during the 22^ndanniversary of Hong Kong return to Chinese rule.
CREDIT: ZUMA PRESS INC/ALAMY LIVE NEWS
Market Closes for July 2^nd, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2008, the Dow industrials entered a bear market when they fell 1.5% to 11215.51 as the financial crisis gained momentum. The blue-chip index is up nearly 140% since then, after closing at 26717.43 on Monday.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks rose after a long weekend as Shopify Inc. led technology to outperform, while a decline in oil prices led to underperformance for energy stocks.
     The S&P/TSX Composite Index rose 0.5% to 16,471 in Toronto. Tech stocks, communications and industrials were the top three outperformers, while pot stocks and energy lagged the most.
     Meanwhile, Canada’s export financing agency lifted its suspension on Saudi Arabian-related activity, citing an improving environment for the nation’s businesses since a diplomatic blowout with the kingdom last summer.
In other moves:
Stocks
* Eldorado Gold gained 7.8% as gold prices rallied
* Cascades Inc. rose 7.8%, after saying it will buy Orchids Paper Products assets for $207m
* Dollarama Inc. gained 7.7% to the highest in nearly 10 months. The retailer is buying a majority stake in Latin American firm Dollarcity
* Crescent Point, Ensign Energy and Gran Tierra among energy stocks fell after crude oil declined
Commodities
* Western Canada Select crude oil traded at a $13.50 discount to WTI
* Gold spot price rose 2.2% to $1,414.17 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.2% to C$1.3111 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.470%
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks edged higher to a fresh record, while haven assets from Treasuries to gold resumed rallies as investors awaited a slew of economic data around the Fourth of July holiday. The euro erased gains after Christine Lagarde was nominated to lead the European Central Bank.
     The S&P 500 swung between gains and losses before rising into the close for a second straight all-time high. The 10-year Treasury yield slumped to 1.98% and gold surged back above $1,400 an ounce. Demand for riskier assets ebbed after a Federal Reserve official said she’s not ready to support a rate cut and news broke that House Democrats are stepping up their investigation into the president’s taxes.
      U.S. markets close early tomorrow and are shut Thursday for the Fourth of July holiday. Data on private hiring, factory orders and the services sector are due Wednesday, with June’s government jobs report coming the final day of the week. The Japanese yen climbed and crude plunged more than 4% in New York.
      “Everything’s two-fold oriented: what’s the Fed going to do in July with interest rates and then everything geopolitical is basically an everyday headline,” said Bob Phillips, managing principal at Spectrum Management Group. “Every time the market stalls, anxiety skyrockets and goes through the roof. There’s just a lot of fear out there.”
     The Stoxx Europe 600 Index extended a modest advance while U.K. shares climbed to the highest in nine months. U.K. gilts rallied as construction data disappointed. The euro edged higher after Bloomberg reported ECB policy makers don’t see a need to rush into a rate cut this month. U.S. notes nudged up with most government bonds in Europe, where the yield on two-year Italian debt briefly dipped below zero.
      In Asia, shares rallied in Hong Kong and its dollar strengthened as the market reopened after a holiday to catch up with Monday’s move — despite violent local protests overnight. Chinese stocks were steady.
Here are some key events coming up:
* U.S. equity markets close at 1 p.m. Wednesday and all day Thursday for the Independence Day holiday. The bond markets close early Wednesday.
* The U.S. jobs report is due Friday and is projected to show non-farm payrolls rose by 164,000 in June, rebounding from 75,000 the month prior.
And here are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.3% at 4 p.m. New York time.
* The Nasdaq 100 Index added 0.4% and the Dow Jones Industrial Average gained 0.3%.
* The Stoxx Europe 600 Index climbed 0.4% to the highest in two months.
* The MSCI Asia Pacific Index increased 0.4% to the highest in two months.
* The MSCI Emerging Market Index fell 0.1%, the largest fall in a week.
Currencies
* The euro was flat at $1.1284.
* The Japanese yen strengthened 0.5% to 107.887 per dollar, the biggest increase in more than a week.
* The Australian dollar advanced 0.4% to 0.699 per dollar, the largest rise in more than a week.
Bonds
* The yield on 10-year Treasuries declined four basis points to 1.98%.
* The two-year rate lost three basis points to 1.75%
* Germany’s 10-year yield fell one basis point to -0.367%.
Commodities
* Gold futures gained 1.5% to $1,409.30 an ounce, the largest rise in more than a week.
* West Texas Intermediate crude fell 3.4% to $57.12 a barrel.
–With assistance from Paul Allen and Laura Curtis.

Have a great night.

Be magnificent!
As ever,

Carolann

Although the world is full of suffering, it is also full of the overcoming of it.

                                                                   -Helen Keller, 1880-1968

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