July 9,2019 Newsletter

Dear Friends,

Tangents:
July 9, 1893: first successful open heart surgery.
July 9, 1944 – World War II – Canadians and British capture Caen after massive bombardment by 467 planes from Bomber Command; urban area north of Orne River secured by nightfall by two British Divisions and the 3rd Canadian Division; the Stormont, Dundas and Glengarry Highlanders and the Sherbrooke Fusilier tanks are the First into the ruined city, although the famous Abbaye-aux-Hommes, 1000 years old, is untouched; 1,194 Canadian casualties after a month of fighting, 334 are fatal. Caen, France

PAMPLONA BULL RUNNING FESTIVAL
The Festival of San Fermin is better known as the Pamplona Bull Running Festival where its original essence as a religious celebration of the feast of San Fermin has been lost through the ages. In its stead are the week long festivities of music, drinking, dancing, street theatre and bullfighting. Wear a red scarf or shawl and you’ll blend well in the throng of people this side of historic Spain.
Just what is the significance of the color red in the San Fermin Festival other than it being particularly attractive to the eyes of the bull? The truth is, there is clearly no explanation as to why majority of the revelers in the San Fermin festivities wear red clothing or have red fashion accessories worn around their bodies.
Perhaps it has something to do with what the color red conveys. Red is well known as the most emotionally intense color as it is often associated with faster heart beats as well as breathing. It is a very powerful magnet for the eyes to behold, often making the wearer look a lot heavier. These characteristics of the color red make it a perfect choice in sheer festive atmospheres.
Bull fighting has nothing to do with the color red, however. Contrary to popular belief, bulls – and all animals for that matter – are color-blind. So it does not actually matter whether you are wearing a red colored shawl or a gray or black one. Chances are, the bull will only see shades of gray cloth. What matters more are the agitated movements you’ll make as you run from them.
The Pamplona Bull Running Festival was not at all an original July festival but rather an October event. More specifically it coincided with the Feast of San Fermin on the 10th of October, a celebration which began as early as the thirteenth century. However, because of the growing number of varied festivities aside from the usual religious undertones, the festival was essentially moved to the more weather-friendly month of July.
Article Source: http://EzineArticles.com/4062468

PHOTOS OF THE DAY
Revellers run next to fighting bulls from Cebada Gago ranch during the running of the bulls at the San Fermin Festival, in Pamplona, northern Spain.
CREDIT: ALVARO BARRIENTOS/AP

Cars pile up in a crash at Daytona International Speedway in Florida, USA. The eventual winner, Justin Haley, was 27^th when the 17 car crash took out half of the field.
CREDIT: DAVID GRAHAM/AP

People jump into the Mediterranean Sea on  the French Riviera city of Nice.
CREDIT: VALERY HACHE/AFP/GETTYIMAGES

Market Closes for July 9^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, the S&P 500 closed above 1400 for the first time, less than four months after breaking the 1300 barrier. The index, which finished the day at 1403.28, had doubled in less than three years. The broad equity gauge closed Monday at 2975.95 and has closed in on 3000 recently with its rally to record highs. 

Canada
By Kristine Owram
(Bloomberg) — Canadian stocks rose, outpacing gains in
their U.S. counterparts as Canadian crude prices rose to their
highest level versus the U.S. benchmark in nearly four weeks.
The S&P/TSX Composite Index added 0.5% to 16,545.21. Energy
stocks gained 1.6%, the most in three months, as the discount
for Western Canada Select crude narrowed even as U.S. oil prices
rose. Canadian Natural Resources Ltd. added 3.2% after it said
it’s looking at transporting crude by rail.
Health-care stocks were little changed as CannTrust
Holdings Inc. fell 5.4%, bringing the pot stock’s two-day
decline to 27%. Regulators have put a hold on a majority of the
company’s inventory after they found it grew cannabis in unlicensed rooms.

In other moves:

Stocks
* First Quantum Minerals Ltd. lost 6.5%. Macquarie said the
company is highly leveraged and exposed to political risks
* West Fraser Timber Co. fell 6%, the most since December, after
RBC Capital Markets cut estimates for most lumber stocks, citing
lower-than-expected prices
* Open Text Corp. gained 1.8% to a record high. The software
company announced an expanded partnership with Google’s cloud division

Commodities
* Western Canada Select crude oil traded at an $11.75 discount to WTI
* Gold was little changed at $1,400.50 an ounce

FX/Bonds
* The Canadian dollar weakened 0.3% to C$1.3129 per U.S. dollar
* The Canada 10-year government bond yield was little changed at 1.58%

US
By Vildana Hajric
(Bloomberg) — U.S. stocks closed a whisker higher after
treading water for most of the session as markets braced for an
onslaught of central bank news this week. The dollar
strengthened to its highest level since mid-June and Treasuries slipped.
The S&P 500 Index perked up just before the close Tuesday,
with gains in technology shares helping to offset a slump in
materials and consumer staples. So-called FAANG shares —
including Amazon.com Inc. and Facebook Inc. — led advancers in
the equity benchmark.
Trading may stay choppy ahead of key testimony this week
from Federal Reserve Chair Jerome Powell as observers assess
prospects for easing following conflicting signals on the global
economy. Stock and bond investors are struggling to find fresh
reasons to chase this year’s rallies, but an interest rate cut
by the Fed this month is already priced and recent economic data
has been mixed, making the path for future policy less clear.

“Powell is likely to walk a fine line between the hawks and
doves in his testimony — giving a nod to the underlying
strength in the domestic economy on the one hand, while also
acknowledging the persistently subdued inflation backdrop and
global uncertainties on the other,” said Candice Bangsund, vice
president and portfolio manager at Fiera Capital Corp.

The Stoxx Europe 600 Index closed lower after the world’s
largest chemical company, BASF, slashed its 2019 earnings
forecast, blaming global trade conflicts. Stocks reversed gains
in Japan, fluctuated in South Korea and saw modest slides in
Hong Kong and China.
Italian bonds rose as the country tookadvantage of low borrowing costs to sell 50-year bonds. The Mexican peso slid after the country’s finance minister announced his resignation.

Elsewhere, West Texas intermediate crude gained following a
report that Russian output declined. Bitcoin extended Monday’s
11% jump. The pound weakened as economists predicted the U.K.
economy likely shrank for the first time since 2012 in the second quarter.

Hong Kong’s dollar dipped as the city’s leader Carrie Lam
said a controversial bill that would allow extraditions to China
was “dead,” but stopped short of saying she’d withdraw the
legislation after weeks of protests.

Here are some key events coming up:

* Powell testifies before Congress on monetary policy and the
state of the U.S. economy on Wednesday (the House of
Representatives) and Thursday (the Senate).
* Fed minutes are due on Wednesday, ECB minutes 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 Index gained 0.1% as of 4:01 p.m. New York time.
* The Stoxx Europe 600 Index sank 0.5% to the lowest in more than a week.
* The U.K.’s FTSE 100 Index decreased 0.2%.
* Germany’s DAX Index slid 0.9%, the biggest decrease in more than five weeks.
* The MSCI Emerging Market Index fell 0.4%.

Currencies
* The Bloomberg Dollar Spot Index rose 0.2% to its highest in three weeks.
* The British pound fell 0.4% to $1.2464, the weakest in more than two years.
* The euro decreased 0.1% to $1.1207, the lowest in three weeks.
* The Japanese yen weakened 0.2% to 108.89 per dollar.
* The Mexican peso dropped 1.1% to 19.1273 per dollar, the
biggest tumble in over five weeks.

Bonds
* The yield on 10-year Treasuries rose one basis point to 2.06%,
a three-week high.
* Germany’s 10-year yield increased one basis point to -0.35%,
the highest in more than a week.
* Britain’s 10-year yield rose one basis point to 0.72%.

Commodities
* West Texas Intermediate crude gained 0.6% to $58.02 a barrel.
* Gold rose 0.1% to $1,396.76 an ounce.
–With assistance from Laura Curtis.

Have a great night.

Be magnificent!
As ever,
Change is inevitable.  Change is constant.
            -Benjamin Disraeli, 1804-1881

Carolann

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