July 30, 2019 Newsletter

Dear Friends,

Tangents:
On July 30, 1869, the Charles, considered the world’s first “oil tanker”, departed from the US heading for Europe with a bulk capacity of 7,000 barrels of oil.
July 30, 1935: Paperback books introduced.
On July 30, 1945, the USS Indianapolis, which had just delivered key components of the Hiroshima atomic bomb to the Pacific island of Tinian, was torpedoed by a Japanese submarine. Only 316 out of 1,196 men survived the sinking and shark-infested waters. Go to article »

“This is the season for picnics, when the weather is set fair and the ground quite dry; little rain has fallen with us for weeks.  It is perfect to spread out the rug on a newly-mown field and to sit back for a while and feel you are part of the countryside, smelling the grass and the hedgerows and listening to the sounds of he insects around you.
  You may find yourself sharing a hamper full of exotic food and sparkling champagne in the peace and beauty of the Glyndbourne garden, the music of the first act still ringing in your ears.  It matters not that you are surrounded by other picnickers, for they are integrated into the garden, hidden by hedges and borders and experiencing the same pleasures.  This is the grandest kind of picnic, when the tablecloth is laid with silver spoons and crystal goblets; it is an evening to remember for its 18^th century touch.  In contrast, when the spirit moves you, at a moment’s notice you may gather up a slice of bread, wash a lettuce, hard-boil an egg, fill a bottle with newly-made elderflower cordial and settle at the end of your own garden or somebody else’s – unpack your basket and enjoy the solitude of the countryside where you cannot hear the telephone ringing…” -from A Countrywoman’s Notes, July, by Rosemary Verey.

PHOTOS OF THE DAY

‘Unari’, women in white clothes carrying meals for gods, march among rice paddy during the Onda Festival at Aso Shrine in Aso, Kumamoto, Japan. The festival is a ritual that god inspect the growth of rice.
CREDIT: THE ASAHI SHIMBUN VIA GETTY IMAGES

Indian Kanwariyas, Hindu devotees of the Hindu deity Shiva, carry water from the Narmada river for their ritual walk during the holy month of Shravan in Jabalpur in Madhya Pradesh state – Kanwariyas take part in a journey on foot to carry holy water from holy rivers to temples in their home towns in an effort to fulfil wishes and endear them to Hindu deity Shiva.
CREDIT: UMA SHANKAR MISHRA/AFP/GETTY IMAGES

The world’s highest pedestrian bridge in Zhangjiajie, China Original description: An aerial photo shows the Zhangjiajie grand canyon glass bridge, the world’s highest pedestrian bridge, in Zhangjiajie, hunan province, China.
CREDIT: COSTFOTO/ BARCROFT MEDIA
Market Closes for July 30th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1914, stock exchanges in Berlin, Rome and Vienna shut down as Austria declared war on Serbia. Investors panicked in New York: General Motors plunged 34% and Bethlehem Steel dropped 14%. The Dow Jones Industrial Average tumbled 6.9% to 71.42, on immense volume of 1,307,000 shares.
Canada:
By Kristine Owram
(Bloomberg) — Canadian stocks fell for a second day as a mixed bag of earnings offset strong gains in the energy sector. The S&P/TSX Composite Index lost 0.2% to 16,466.05, the lowest in three weeks. Waste Connections Inc. was the biggest drag on the benchmark after lowering its full-year Ebitda outlook because of commodity-price headwinds. Energy stocks rose 0.7% as crude prices jumped 2.1%, their fourth straight daily gain amid expectations for a U.S. interest-rate cut. MEG Energy Corp. added 5.2% ahead of its quarterly earnings report.
In other moves:
Stocks
* Nutrien Ltd. rose 7.1%, the most ever, after second-quarter earnings beat estimates and the crop-nutrient supplier said it plans to invest $1 billion in Brazil
* Air Canada gained 3.6% to a record high. The airline’s earnings beat estimates by a wide margin, but it warned that the grounding of the Boeing 737 Max will curb earnings growth in the third quarter
* TMX Group Ltd. added 1.1% to a record high. Rival stock- exchange operator London Stock Exchange Group Plc is in talks to buy financial data and trading platform provider Refinitiv
Commodities
* Western Canada Select crude oil traded at a $14.25 discount to WTI
* Gold rose 0.7% to $1,429.70 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.1% to C$1.3148 per U.S. dollar
* The Canada 10-year government bond yield rose 2 basis points to 1.49%

US
By Randall Jensen and Vildana Hajric
(Bloomberg) — U.S. stocks fell amid a mixed bag of corporate earnings and growing speculation a trade deal with China remains elusive. Treasuries edged lower as the Federal Reserve began deliberating on the path for interest rates. The S&P 500 Index declined for a second day after President Donald Trump criticized China just as his negotiators start talks in Shanghai. Though, Trump boosted sentiment late in the session when he said he had recently spoken with his Chinese counterpart. Tech shares led losses. In earnings news, retailer Under Armour tumbled after warning about weak sales, while Procter & Gamble and Merck gained on strong results.
The 10-year Treasury yield traded around 2.05% as investors awaited the Fed’s anticipated rate cut Wednesday. The dollar held near a two-month high, while the pound continued its decline amid concerns about a no-deal Brexit. West Texas crude rose above $58 a barrel. Trump redirected investor angst toward tariffs on China, lashing out at the nation for continuing to “rip off” the U.S. The trade dispute ranks high among the reasons global growth has been flagging enough to prompt the Fed to consider rate cuts. Stocks rose to records just last week as corporate profits came in higher than expected and data showed steady economic growth.
“Trade is the big question mark,” Doug Peta, chief U.S. investment strategist at BCA, said in an interview at Bloomberg’s New York headquarters. “If the tensions were to worsen, if trade were to slow even more, I’d think that that sharp manufacturing slowdown could easily become a manufacturing recession and if it were to spread to the services part of the global economy then it could easily induce a global recession.” Investors have a lot to digest this week with trade talks, the Federal Reserve, corporate earnings and U.S. jobs data all on their plates. Chinese and American negotiators are kicking off two days of talks in Shanghai on Tuesday, and on Wednesday the Fed is widely anticipated to cut rates. Chairman Jerome Powell’s post-meeting press conference will be scoured for clues on the policy path as signs of slowing growth put pressure on central banks around the world.
Meanwhile, as corporate reporting season rolls on in the U.S., Europe and Asia, traders will be looking for evidence of a slowdown. The latest economic data provide food for thought, showing Japan’s factory output fell more than expected in June and the French economy slowed in the second quarter.
Here are some of the key events to watch as the week unfolds:
* Earnings include: Qualcomm, AMD, Credit Suisse, Nomura, Toyota, Honda, Ferrari, GM, BMW, Rio Tinto, ConocoPhillips, Shell, Vale, GE, Altria.
* Fed officials begin their two-day meeting on monetary policy in Washington Tuesday. Chairman Jerome Powell will hold a press conference following the FOMC’s decision Wednesday.
* The Bank of England policy decision is due Thursday.
* The U.S. July jobs report is due Friday.

Here are the main moves in markets:

Stocks
* The S&P 500 Index fell 0.3% as of 4 p.m. New York time.
* The Dow Jones Industrial Average slid 0.1%.
* The Stoxx Europe 600 Index decreased 1.5%, the biggest declinein three months.
* The U.K.’s FTSE 100 Index declined 0.5%.
* The MSCI Asia Pacific Index advanced 0.1%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro gained 0.1% at $1.1152.
* The British pound decreased 0.4% to $1.2166, the weakest in more than two years.
* The Japanese yen increased 0.1% to 108.62 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 2.06%.
* Germany’s 10-year yield dipped one basis point to -0.40%.
* Britain’s 10-year yield declined one basis point to 0.64%, the lowest in about three years.
Commodities
* West Texas Intermediate crude advanced 2.4% to $58.24 a barrel, the highest in two weeks.
* Gold rose 0.3% at $1,430.75 an ounce.
–With assistance from Andreea Papuc, Laura Curtis, Robert Brand and Sarah Ponczek.
Have a great night.

Be magnificent.

As ever,

Carolann

Throughout the centuries there were men who took first steps
down new roads armed with nothing but their own vision.
                                                     -Ayn Rand, 1905-1982           

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