June 22, 2021 Newsletter

Dear Friends,

Tangents:
On June 22, 1940, during World War II, Adolf Hitler gained a stunning victory as France was forced to sign an armistice eight days after German forces overran Paris. Go to article »

1870~ US Department of Justice created.
PHOTOS OF THE DAY

A teamLab staff member works inside the “Floating Flower Garden”, which consists of a three-dimensional mass of flowers, at teamLab Planets in Tokyo, Japan
CREDIT: REUTERS/KIM KYUNG-HOON

Alex Zane and actor Isaac Hempstead Wright during the Game Of Thrones Iron Statue unveiling in Leicester Square in London, England. The statue marks the tenth anniversary of Game of Thrones and is the 10th statue unveiled as part of Leicester Square’s “Scenes in the Square”.
CREDIT: GARETH CARRERMOLE/GETTY IMAGES

Shouko Totsuka, a Miko also known as a shrine maiden, poses for a photograph as she stands inside the tunnel of Red Torii Gate at the Hie-Jinja Shinto Shrine in Tokyo, Japan
CREDIT: REUTERS/KIM KYUNG-HOON

This photograph courtesy of Radchadawan Peungprasopporn via her Facebook account on June 22, 2021 shows an elephant searching for food in the kitchen of her home in Pa La-U, Hua Hin.
CREDIT: RADCHADAWAN PEUNGPRASOPPORN/FACEBOOK/AFP-VIA GETTY IMAGES

Market Closes for June 22^nd, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1775, Congress authorized the first issuance of continental currency, or U.S. paper money. Officially known as “Continentals,” the money soon came to be called “shinplasters” as high inflation rendered it nearly worthless.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities advanced Tuesday, extending their strong start to the week. The S&P/TSX Composite Index increased 0.2% as nine of eleven sectors rose. Technology and consumer staples stocks climbed the most. Canada’s Senate passed legislation that will legalize single-event sports betting in the country. Shares of Score Media and Gaming rose 7%. Investors seeking to capitalize on economic reopening should look north of the border for a cheaper alternative to the “frothy” S&P 500, according to strategists at Bank of America Corp.
Commodities
* Western Canadian Select crude oil traded at a $13.35 discount to West Texas Intermediate
* Spot gold fell 0.3% to $1,777.74 an ounce
FX/Bonds
* The Canadian dollar rose 0.5% to C$1.2308 per U.S. dollar
* The 10-year Canada government bond yield fell to 1.405%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.2 percent, or 44.29 to 20,200.65 in Toronto. Shopify Inc. contributed the most to the index gain, increasing 1.5 percent. Canada Goose Holdings Inc. had the largest increase, rising 6.7 percent. Today, 133 of 231 shares rose, while 96 fell; 9 of 11 sectors were higher, led by information technology stocks.
Insights
* This quarter, the index rose 8 percent
* This month, the index rose 2.4 percent
* The index advanced 30 percent in the past 52 weeks. The MSCI AC Americas Index gained 38 percent in the same period
* The S&P/TSX Composite is 0.5 percent below its 52-week high on June 16, 2021 and 33.4 percent above its low on June 24, 2020
* The S&P/TSX Composite is little changed in the past 5 days and rose 3.4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.3 on a trailing basis and 16.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.17t
* 30-day price volatility fell to 8.33 percent compared with 8.53 percent in the previous session and the average of 9.12 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 31.3204| 1.4| 10/2
* Materials | 6.3594| 0.3| 29/24
* Consumer Staples | 4.5520| 0.6| 9/4
* Consumer Discretionary | 4.4501| 0.6| 9/4
* Industrials | 3.8141| 0.2| 21/8
* Utilities | 1.3004| 0.1| 10/6
* Financials | 1.1637| 0.0| 20/8
* Real Estate | 0.5332| 0.1| 11/14
* Communication Services | 0.0979| 0.0| 3/4
* Health Care | -0.4732| -0.2| 4/6
* Energy | -8.8302| -0.3| 7/16
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 20.9300| 1.5| 11.5| 28.7
* Nutrien | 6.9400| 2.4| 56.5| 23.2
* Constellation | | | |
* Software | 4.8210| 1.9| 68.3| 13.8
* Royal Bank of Canada| -4.1610| -0.3| -38.2| 20.3
* TC Energy | -4.4920| -1.0| 115.0| 22.3
* TD Bank | -5.5700| -0.5| 27.8| 21.1

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — Stocks climbed after Federal Reserve Chair Jerome Powell reiterated his views that inflation pressures will be transitory even after a notable increase in recent months. The dollar fell. The S&P 500 extended gains into a second day as the Fed chief said he’s got “a level of confidence” that prices will eventually come down, while noting that it would be “very, very unlikely” to see the kind of 1970s-style inflation.  In a testimony to the House Select Subcommittee Tuesday, Powell also said that a 5% inflation environment wouldn’t be acceptable, and urged patience at evaluating data on prices. “So inflation is larger than they expected,” said Art Hogan, chief strategist at National Securities. “That part is true. But the part about that’s going to force their hand faster than we think is the part that he’s pushing back on. I think markets have calmed down about that.” Earlier Tuesday, New York Fed President John Williams noted that a discussion about raising interest rates is still “way off in the future.”
Meantime, his Cleveland counterpart Loretta Mester said very low rates for a long period of time and unconventional policy tools such as asset purchases can lead to too much risk-taking and financial-stability issues. Elsewhere, Bitcoin rebounded after earlier tumbling below $30,000 for the first time since January. Oil fell with reports that Russia and other OPEC+ nations are considering raising production in the wake of a tightly-supplied global crude market.

Here are some events to watch this week:
* U.S. new home sales, current account balance on Wednesday
* EIA crude oil inventory report due Wednesday
* Bank of England interest rate decision Thursday
* The Fed releases Thursday the results of stress tests on the largest U.S. banks

These are some of the main moves in financial markets:
Stocks
* The S&P 500 rose 0.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.9%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index rose 0.5%
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro rose 0.2% to $1.1940
* The British pound rose 0.1% to $1.3948
* The Japanese yen fell 0.4% to 110.66 per dollar
Bonds
* The yield on 10-year Treasuries declined three basis points to 1.46%
* Germany’s 10-year yield was little changed at -0.16%
* Britain’s 10-year yield advanced one basis point to 0.78%
Commodities
* West Texas Intermediate crude fell 0.3% to $72.87 a barrel
* Gold futures fell 0.3% to $1,777.10 an ounce
–With assistance from Andreea Papuc, Namitha Jagadeesh and Claire Ballentine.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

God breaks the heart again and again until it stays open. –Hazrat Inayat Khan, 1882-1927.

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