June 14, 2019 Newsletter

Dear Friends,

Tangents: HAPPY FIRDAY!
Royal Ascot Horse Races
Centennial of the first Transatlantic Flight
June 14, 1919 – Aviation – British Army Captain John Alcock and Lt. Arthur Brown take off in their Vickers Vimy bomber, a two-motor biplane, to make the first nonstop transatlantic flight.
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PHOTOS OF THE DAY

An English tapestry made for King Charles I between 1620 and 1625. One of the first to be woven at the Royal Mortlake Tapestry factory, near Barnes, West London it was originally part if a set of none tapestries based on the story of Vulcan and Venus from Homer’s Odyssey. During the reign of Queen Victoria William Morris cut up most of them to create the Tapestry Room in St James Palace.
CREDIT: HEATCLIFF O’MALLEY FOR THE TELEGRAPH

Fireworks illuminate the sky over Central Park. New York, US, after a concert by the New York Philharmonic orchestra.
CREDIT: ENRIQUES SHORE/ ALAMY LIVE NEWS

Pictured: The climbers can be seen on the dunes A team of climbers take on the highest sand dune in the world at sunset. A thin pathway formed by previous climbers is the only way to scale the steep dune, which stands a staggering 1,200ft high. White marks across the dune are traces of a river which dried up hundreds of years ago. The Sossusvlei dunes in Namibia’s Namib desert are the world’s tallest. The most famous is nicknamed the “Big Daddy’, with a 380 metres high peak.
–FROM TELEGRAPH JUNE 14, 2019

This is the incredibly rare moment an ice cave glows gold – as the sum sits perfectly in the line with its glistening walls. The amazing images were taken at the exact minute the sun set over the entrance to the glacier in Iceland, a phenomenon only possible once or twice in a year. As a result, the walls looked as if they were on fire as they were bathed in the golden light.
CREDIT: SARAHEA / SWNS.COM
Market Closes for June 14th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2000, the SEC, the FBI and the U.S. attorney for the Southern District of New York cracked down on more than 100 alleged mobsters and their cronies, claiming that the Mafia—in cahoots with brokers, investment bankers, a money manager and a retired New York City cop—manipulated the prices of 19 stocks, defrauding thousands of investors out of an estimated $50 million. Much of the alleged fraud occurred in dotcom stocks and prosecutors suggested that the Mob—shut out of gambling, drugs, and prostitution—had moved into the hottest new vice: trading internet stocks.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian equities pared earlier losses, following U.S. stocks higher. Financials were the best performing stocks, while marijuana stocks lagged as the government released rules on edibles and extracts.
     The S&P/TSX Composite Index closed Friday’s session up 0.4%. Cronos Group Inc. was the worst performing stock in the index, with a two-day loss of 8.7%. Panel board maker Norbord Inc.’s shares were the best performing, after BMO upgraded the stock due to a better market outlook.
     Meanwhile, edibles and other new pot products will hit Canadian shelves a few days before Christmas but will be governed by strict rules that don’t make them too intoxicating or appeal to children, according to new federal regulations. Canada will add a host of new formats including edibles, beverages, vape pens and topicals to its list of legal cannabis products beginning Oct. 17, the government said.
In other moves:
Stocks
* Norbord rallied 9.2% after being upgraded to outperform from market perform by BMO
* North West Company climbed 4.8%, recovering from Industrial Alliance’s downgrade Thursday, spurred by mixed results, which led to a 2.1% decline
* Encana fell 5%, paring yesterday 3.3% gain
* Hexo dropped 3.7% as cannabis stocks underperformed
Ratings
* DOL CN: Dollarama Downgraded to Hold at Desjardins; PT C$49
* OSB CN: Norbord Upgraded to Outperform at BMO
Commodities
* Western Canada Select crude oil traded at a $10.75 discount to WTI
* Gold spot price was flat at $1,341.04 an ounce
FX/Bonds
* The Canadian dollar fell -0.6% to C$1.3411 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.441%

US
By Vildana Hajric
     (Bloomberg) — U.S. tech shares fell on concern a global trade war could sap profit. The dollar strengthened after data showing broad gains in retail sales suggested the economy is healthy enough to go without an interest-rate cut.
     Chipmakers tumbled the most in almost a month, weighing on the S&P 500 Index after Broadcom Inc. cut its sales forecast, citing trade war concerns. The benchmark U.S. stock gauge erased losses in afternoon trading amid speculation the Justice Department was close to approving T-Mobile’s merger with Sprint, and headed for a 0.6% weekly gain. Treasury yields pared declines after May’s retail sales data was seen as undermining the case for a dovish turn by the Federal Reserve.
     With heightened U.S.-China trade tensions threatening to weaken already fragile global economic growth and geopolitical concerns ratcheting up in the Middle East, equity investors had been banking on more support from central banks. The outlook for the Fed was in focus, with BMO strategists saying the odds of a cut next week are higher than many expect, while DoubleLine Capital’s Jeffrey Gundlach said he expects no reductions this month. “Investors face a steepening wall of worry as geopolitical risk now joins lingering trade and Fed policy uncertainty as sources of anxiety,” said Alec Young, the managing director of global markets research at FTSE Russell.
     Elsewhere, gold temporarily topped $1,350 an ounce, a level last seen in April 2018. The Stoxx Europe 600 Index fell the most in two weeks after a mixed session in Asia. The yuan was steady after Chinese industrial production in May missed estimates. Oil was still on course for a weekly drop as investors monitored developments in the Middle East, with the U.S. blaming Iran for Thursday’s suspected tanker attacks.
These are the main moves in markets:
Stocks
* The S&P 500 Index was little changed as of 3:17 p.m. New York time.
* The Stoxx Europe 600 Index decreased 0.4%. 
* The MSCI Emerging Market Index fell 0.8% to the lowest in a week. 
* The MSCI Asia Pacific Index dipped 0.3%. 
Currencies
* The Bloomberg Dollar Spot Index gained 0.4%. 
* The euro declined 0.6% to $1.1208, the weakest in more than a week. 
* The British pound decreased 0.7% to $1.2588. 
* The Japanese yen slipped 0.2% to 108.56 per dollar. 
Bonds
* The yield on 10-year Treasuries was little changed at 2.09%. 
* Britain’s 10-year yield rose one basis point to 0.84%. 
* Germany’s 10-year yield fell one basis point to -0.26%. 
Commodities
* Gold fell 0.2% to $1,339.79 an ounce. 
* West Texas Intermediate crude rose 0.4% to $52.51 a barrel.
–With assistance from Ksenia Galouchko, Adam Haigh, Ranjeetha Pakiam, Namitha Jagadeesh and Yakob Peterseil.

Have a wonderful weekend.

Be magnificent!
As ever,

Carolann

Never be afraid to sit awhile and think.

       -Lorraine Hansberry, 1930-1965

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