June 12, 2023 Newsletter

Dear Friends,

Tangents: Happy Monday.

June 12, 1964: Nelson Mandela is sentenced to life in prison.  The South African anti-apartheid activist spent 27 years in prison.  In 1993, he received the Nobel Peace Prize and one year later he became President of South Africa.
On June 12, 1987, during a visit to the divided German city of Berlin, President Ronald Reagan publicly challenged Soviet leader Mikhail S. Gorbachev to ”tear down this wall.”  Go to article 

Anne Frank, b. 1929.
George H. W. Bush, 41^st US President, b. 1924.

June 12, 1939: National Baseball Hall of Fame opened.
“Baseball is 9% mental, the other half is physical”. –Yogi Berra.

Black bear spotted swimming at crowded Florida beach.  Usually, the only bear you’ll find at the beach is bare feet. But in Florida, a furry black bear was seen walking
out of the ocean. Watch the video here.

Novak Djokovic wins record-breaking 23rd grand slam title.  Djokovic defeated Casper Ruud in the French Open final, setting a new men’s record for the most grand slam titles.

Golden Knights are one win away from clinching first Stanley Cup in franchise history.  Vegas hockey fans are biting their nails ahead of Game 5 on Tuesday.

Stephen Hawking wanted scientists to ‘make black holes’ on Earth. Physics says it’s possible.
When Stephen Hawking and I visited the Large Hadron Collider, he hoped for an unexpected physics breakthrough. His dreams may not be impossible. Read More

Canadian wildfire smoke detected thousands of miles away in Norway
Wildfire smoke from Canada has hit Norway, which is more than 3,000 miles from the North American country. Read More.
PHOTOS OF THE DAY

Peterlee, England
Parkour athletes Craig Cheel, Dan Calvert and Jai Smith during a practice session at the Apollo Pavilion in County Durham.  Photograph: Lee Smith/Reuters

Dover, England
The cruise ship Zuiderdam is shrouded in fog while visiting the Port of Dover.  Photograph: Gareth Fuller/PA

Djokovic’s record-breaking triumph is celebrated in his home city of Belgrade, with an image projected onto the side of the Kula Beograd building.  Photograph: Andrej Isaković/AFP/Getty Images
Market Closes for June 12^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1928, the New York Stock Exchange had its first day on which more than 5 million shares traded hands. Unfortunately, many stocks dropped between $25 and $150 in price, in response to President Calvin Coolidge’s announcement that he wouldn’t run again.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.1% at 19,921.31 in Toronto.
The move follows the previous session’s decrease of 0.3%.
Shopify Inc. contributed the most to the index gain, increasing 6.2%.
Ballard Power Systems Inc. had the largest increase, rising 14.8%.
Today, 102 of 232 shares rose, while 129 fell; 7 of 11 sectors were higher, led by information technology stocks.
Insights
* This quarter, the index fell 0.9%
* The index declined 1.7% in the past 52 weeks. The MSCI AC Americas Index gained 10% in the same period
* The S&P/TSX Composite is 4.4% below its 52-week high on Feb. 2, 2023 and 11.5% above its low on Oct. 13, 2022
* The S&P/TSX Composite is little changed in the past 5 days and fell 2.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.1 on a trailing basis and 13.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.16t
* 30-day price volatility rose to 12.18% compared with 12.15% in the previous session and the average of 10.94% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 55.9893| 3.7| 11/1
Industrials | 10.1952| 0.4| 17/10
Consumer Discretionary | 8.5384| 1.2| 11/4
Financials | 4.9386| 0.1| 16/12
Communication Services | 3.2540| 0.4| 2/3
Materials | 1.9019| 0.1| 23/27
Health Care | 0.7662| 1.2| 4/2
Consumer Staples | -1.0910| -0.1| 5/6
Utilities | -2.1793| -0.2| 4/12
Real Estate | -2.2243| -0.5| 2/19
Energy | -50.8439| -1.5| 7/33
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Shopify | 42.1900| 6.2| 2.3| 85.0
Constellation Software | 7.1500| 1.9| -26.8| 33.0
Brookfield Corp | 5.4560| 1.3| -15.3| 0.4
Enbridge | -7.3130| -1.0| -0.9| -5.3
Cenovus Energy | -8.7320| -3.9| -15.1| -15.1
Canadian Natural Resources | -13.8400| -2.4| 154.1| -2.3
US
By John Viljoen
(Bloomberg) — Stocks crept higher as traders prepared for a week packed with interest-rate decisions from major central banks.
Tesla Inc. was poised for a record winning streak.
The S&P 500 advanced further into bull-market territory amid bets on a Federal Reserve pause after 10 straight rate hikes.
Tesla is on course for a 12th day of gains as its electric-car chargers become the industry standard.
Cruise operator Carnival Corp. rose after an upgrade from JPMorgan Chase & Co.
A busy calendar for investors kicks off with the US consumer price data on Tuesday and the Fed’s latest policy decision the next day.
With the pace of inflation still proving sticky, positioning in rates markets suggests one more hike in July.
“It feels like markets have been underpricing the probability of a June hike,” said Pooja Kumra, senior European rates strategist at Toronto Dominion Bank. “Data is moving in the right direction, but still not where central banks would like inflation to be.”
While the consensus is for the Fed to pause this week, unexpected hikes from the Bank of Canada and the Reserve Bank of Australia have added an extra element of uncertainty to markets.
The European Central Bank is projected to lift its benchmark rate Thursday and the Bank of Japan is expected to stand pat on Friday.
Add to that the concerns over growth in China.
The People’s Bank of China will have an opportunity to add more monetary stimulus on Thursday, although the majority of economists surveyed by Bloomberg predict no change to rates just yet.
Meanwhile in stocks, Wall Street’s top strategists are giving divergent views on what the S&P 500 will likely do next.
Goldman Sachs strategists expect the gains to continue as other sectors catch up with the searing rally for technology shares.
Morgan Stanley’s Michael Wilson, meanwhile, points instead to the example of the bear market of the 1940s, when the S&P 500 rallied 24% before returning to a new low.
Key events this week:
* US CPI, Tuesday
* FOMC begins two-day meeting, Tuesday
* Eurozone industrial production, Wednesday
* US PPI, Wednesday
* FOMC rate decision, Wednesday
* IEA oil market report released, Wednesday
* China central bank meeting to decide on one-year policy loan rate, Thursday
* China property prices, retail sales, industrial production, Thursday
* ECB rate decision, Thursday
* US initial jobless claims, retail sales, empire manufacturing, business inventories, industrial production
* Eurozone CPI, Friday
* Japan BOJ rate decision, Friday
* US University of Michigan consumer sentiment, Friday

Some of the major moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 11:40 a.m. New York time
* The Nasdaq 100 rose 0.8%
* The Dow Jones Industrial Average rose 0.1%
* The Stoxx Europe 600 rose 0.2%
* The MSCI World index rose 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro was little changed at $1.0751
* The British pound fell 0.5% to $1.2503
* The Japanese yen fell 0.1% to 139.57 per dollar
Cryptocurrencies
* Bitcoin fell 1.2% to $25,833.23
* Ether fell 2.1% to $1,733.35
Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.77%
* Germany’s 10-year yield was little changed at 2.38%
* Britain’s 10-year yield advanced 10 basis points to 4.34%
Commodities
* West Texas Intermediate crude fell 3.3% to $67.86 a barrel
* Gold futures fell 0.3% to $1,971.20 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Tassia Sipahutar and Denitsa Tsekova.
Have  a lovely evening.

Be magnificent!
As ever,

Carolann
The supreme quality for leadership is unquestionable integrity.  Without it, no real success is possible. -Dwight D. Eisenhower, 1890-1969.

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