June 23, 2020 Newsletter

Dear Friends,

Tangents:
1868: Typewriter patented.
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 »
PHOTOS OF THE DAY

The very beautiful yet peculiar looking Lichen Katydid in Costa Rica. The camouflage of Lichen Katydid has evolved over time to mimic it’s natural habitat, which in this case is the Beard Lichen, a type of lichen that grows on tree branches.
CREDIT: DAVID WEILLER/WENN

Blenheim Palace as you’ve never seen it before These stunning aerial pictures give garden fans a bird’s eye view of one of Britain’s most remarkable landscaped gardens. The detailed shots were captured by a drone at Blenheim Palace, the birthplace of Sir Winston Churchill. They show the palace’s incredible Italian Garden and Water Terraces from a very different viewpoint than visitors are used to. The stunning Water Terraces, built between 1925 and 1930, are widely regarded as among the most remarkable garden landscaping achievements of the 20^th century and have been compared to the Parterre d’Eau at the Palace of Versailles.
CREDIT: BNPS

The Sheep watch the sunset from the top of Cleeve Hill, Cheltenham, UK.
CREDIT: JACK BOSKETT
Market Closes for June 23^rd, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1836, with the U.S. national debt eliminated in 1835 and the federal budget running a huge surplus, President Andrew Jackson’s plan to distribute the surplus to the states was enacted. Jackson repeatedly declared that with no more national debt, the U.S. would “always” have a budget surplus. But tellingly, by the time the distribution was actually paid out in 1837, it had already shrunk below $37.5 million—25% less than the government’s original estimate of $50 million.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose for a second straight session while U.S. shares also gained on speculation Congress will seek additional stimulus to combat the economic effects of the pandemic.
The S&P/TSX Composite Index advanced 0.3% as materials posted another strong session. Eight of eleven sectors rose. Gold futures closed at a seven-year high as a resurgence in coronavirus cases bolstered demand for the metal as a haven.
Enbridge Inc.’s yearlong battle with Michigan officials over a pipeline that runs through the Great Lakes is flaring up again after damage to a support structure prompted the state to try to shut down the conduit.
Oil slipped from a three-month high before a U.S. government report expected to show another increase in inventories, signaling the market still has its work cut out to clear a massive supply glut.
Shopify Inc. Chief Executive Officer Tobias Lutke is touting Canada as a relocation option after President Donald
Trump temporarily suspended several employment-based visas.
Commodities
* Western Canada Select crude oil traded at a $8.75 discount to West Texas Intermediate
* Spot gold rose 0.9% to $1,769.90 an ounce
FX/Bonds
* The Canadian dollar fell 0.3% to $1.3556 per U.S. dollar
* The 10-year government bond yield rose slightly to 0.547%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.3 percent, or 47.85 to 15,564.75 in Toronto. The index advanced to the highest closing level since June 10.
Shopify Inc. contributed the most to the index gain, increasing 0.7 percent. Ero Copper Corp. had the largest increase, rising 11.4 percent.
Today, 141 of 222 shares rose, while 78 fell; 8 of 11 sectors were higher, led by materials stocks.
Insights
* This quarter, the index rose 16 percent, heading for the biggest advance in at least 10 years
* This month, the index rose 2.4 percent
* The index declined 5.8 percent in the past 52 weeks. The MSCI AC Americas Index gained 5.2 percent in the same period
* The S&P/TSX Composite is 13.4 percent below its 52-week high on Feb. 20, 2020 and 39.3 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 0.3 percent in the past 5 days and rose 4.4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 25 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.36t
* 30-day price volatility fell to 20.16 percent compared with 20.73 percent in the previous session and the average of 21.46 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 24.7498| 1.1| 46/5
Energy | 17.4060| 0.9| 16/8
Financials | 14.8255| 0.3| 15/9
Information Technology | 4.0650| 0.3| 4/5
Utilities | 2.7187| 0.3| 9/7
Consumer Discretionary | 1.9161| 0.4| 11/1
Real Estate | 0.7668| 0.2| 19/8
Health Care | 0.1209| 0.1| 5/4
Industrials | -3.5158| -0.2| 11/17
Communication Services | -6.9333| -0.8| 2/6
Consumer Staples | -8.2899| -1.3| 3/8
US
By Sarah Ponczek
(Bloomberg) — U.S. stocks rose for a second day, but faded into the close as concern mounted that a spike in virus cases in some states could curtail economic activity.    Gold rallied to its best level since 2012.
The S&P 500 jumped as much as 1.2% before paring the gain by two-thirds on reports that spiking cases in several hotspots in the South and Southwest threatened to derail plans to ramp up reopening. The Nasdaq Composite hit an all-time high, with investors keying on signs of continued economic growth and the idea that any setback will be met with increased government spending and Federal Reserve moves.
Stimulus “puts the bottom on bad news,” said Nela Richardson, an investment strategist at Edward Jones. “Bad news isn’t so bad if we think that that means more stimulus. The markets are responding also to the quick action, quickest in any recession going back to the Great Depression, of the Federal government and monetary authorities, not just in the United States, but around the world.” Apple, Amazon and Facebook jumped at least 2%. Mohawk Industries, which provides home flooring, Darden Restaurants and Live Nation were among leaders in the S&P 500.
Treasuries were little changed, with the 10-year yielding around 0.71%, while the dollar dropped for a second day.
Equities rose in Europe and in Asia. Gold pushed to its highest level since 2012, and oil topped $41 a barrel in New York. Carmakers and banks led a broad advance in the Stoxx Europe 600 index after positive economic data in the euro area. The euro strengthened and yields ticked higher on core European bonds. Investors are betting that trillions of dollars in stimulus by central banks and governments around the globe will shield economies from a resurgence in virus breakouts. PMIs for June, showed business activity in the world’s largest economy continuing a rebound that started in May.
While euro-area PMI gauges earlier fueled a risk-on mood, they also underlined some of the pressures that a long and slow recovery would impose on companies struggling with weak demand.
Anthony Fauci, the U.S.’s top infectious-disease doctor, warned Tuesday that the coronavirus isn’t taking a summer break, judging from its persistent spread in the U.S. Sun Belt. A German state locked down a municipality where 1,553 workers tested positive at a single meat factory.
Here are some key events coming up:
* The IMF will release new 2020 growth projections on Wednesday.
* U.S. jobless claims, durable goods and GDP data are due Thursday.
* A rebalance of Russell indexes is due on Friday.

These are the main moves in markets:
Stocks
*The S&P 500 Index rose 0.4% as of 4 p.m. New York time.
*The Dow Jones Industrial Average rose 0.5% to 26,194.
*The Nasdaq Composite Index gained 0.8%, hitting the highest on record with its eighth consecutive advance and the largest advance in a week.
Currencies
*The Bloomberg Dollar Spot Index fell 0.3% to the lowest in almost two weeks.
*The euro climbed 0.4% to $1.1304, the strongest in more than a week.
*The Japanese yen appreciated 0.4% to 106.54 per dollar, the strongest in almost seven weeks on the biggest increase in almost two weeks.
Bonds
*The yield on 10-year Treasuries rose less than one basis point to 0.71%.The two-year yield slipped to 0.19%
*Britain’s 10-year yield rose two basis points to 0.211%.
*Germany’s 10-year yield climbed three basis points to -0.41%.
Commodities
*West Texas Intermediate crude fell 1.2% to $40.24 a barrel.
*Gold futures strengthened 1.1% to $1,785 an ounce, the highest in almost eight years.
–With assistance from Robert Brand and Christopher Anstey.

Have a great night.

Be magnificent!
As ever,

Carolann

Be your friend’s true friend.
                -The Havamal

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