June 23, 2023, Newsletter

Dear Friends,

Tangents:

Carolann is away from the office today to the Investment Conference in San Francisco, I will be writing the newsletter on her behalf.

On this day, 1992 John Gotti, convicted of racketeering charges, was sentenced in New York to life in prison. Go to article  

Earth’s thermosphere reaches highest temperature in 20 years after being bombarded by solar storms. The atmospheric temperature spike, which was caused by successive geomagnetic storms, suggests the “solar maximum” is fast approaching. Go to article

Tonga 2022 eruption triggered the most intense lightning storm ever recorded. The plume generated during the 2022 Hunga Tonga-Hunga Ha’apai volcanic eruption in Tonga created the perfect conditions for a “supercharged” lightning storm.

Taylor Swift is an unlikely public transit icon. Public transit systems across the US are getting a much-needed, if temporary, boost from Taylor Swift fans flooding trains, buses and subways to her sold-out Eras Tour.
PHOTOS OF THE DAY

Istanbul, Turkey
A woman poses for a photo with seagulls
Photograph: Anadolu Agency/Getty Images

London, UK
Precious Adams performs Cinderella during a dress rehearsal by the English National Ballet, at the Royal Albert Hall
Photograph: Dylan Martinez/Reuters

Sichuan, China
Wooden houses for practitioners are illuminated around the Larung Gar Buddhist academy at night in Sertar County
Photograph: VCG/Getty Images
Market Closes for June 23^rd, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in in 1912, computing and artificial intelligence pioneer Alan Mathison Turing was born in the Paddington district of London.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the sixth day, dropping 0.8%, or 162.67 to 19,418.23 in Toronto. The index dropped to the lowest closing level since March 17.
Today, financials stocks led the market lower, as 10 of 11 sectors lost; 176 of 229 shares fell, while 49 rose.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.0%. Spartan Delta Corp. had the largest drop, falling 7.8%.

Insights
* This quarter, the index fell 3.4%
* This month, the index fell 0.8%
* So far this week, the index fell 2.8%, heading for the biggest decline since the week ended March 10
* The index advanced 3.7% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is 6.8% below its 52-week high on Feb. 2, 2023 and 8.6% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.7 on a trailing basis and 13.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.1t
* 30-day price volatility rose to 11.28% compared with 11.11% in the previous session and the average of 11.45% over the past month
================================================================
| Index Points | |Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -64.1193| -1.1| 2/27
Energy | -51.9252| -1.6| 3/35
Industrials | -21.5126| -0.8| 3/23
Utilities | -12.0471| -1.4| 1/15
Materials | -10.8423| -0.5| 22/27
Consumer Staples | -5.6189| -0.7| 6/5
Communication Services | -4.7648| -0.6| 0/5
Consumer Discretionary | -3.8824| -0.5| 4/11
Real Estate | -2.1178| -0.5| 3/17
Health Care | -1.0228| -1.6| 1/4
Information Technology | 5.1008| 0.3| 4/7
================================================================
| | |Volume VS| YTD |Index Points| | 20D AVG | Change Top Contributors | Move |% Change | (%) | (%)
================================================================
RBC | -12.5300| -1.0| -13.8| -3.9
Canadian National | -10.1200| -1.5| -16.3| -3.4
TC Energy | -10.0800| -2.7| 11.6| -4.0
Franco-Nevada | 1.9980| 0.8| 57.5| -0.5
ARC Resources | 2.0500| 2.7| 203.4| -1.3
Shopify | 5.3630| 0.8| -29.9| 78.9
US
By Carly Wanna and Isabelle Lee
(Bloomberg) — US stocks notched the worst week since March as anxiety rose that central banks will have to ratchet interest rates higher to tamp down inflation. Bonds rallied on bets that excessive tightening will bring on sharp economic downturns.
The S&P 500 Index ended the shortened holiday week 1.4% lower while the Nasdaq 100 benchmark fell 1.3% as investors took profits from the year’s winning technology names. Chipmakers Marvell Technology Inc. and GlobalFoundries Inc. were among Friday’s laggards while drops in Microsoft Corp. and Nvidia Corp. weighed on the gauges.
The second-quarter stock rally — fueled by the frenzy for growth-oriented artificial intelligence stocks — is fraying under the threat of more rate hikes and fears that the full economic impact of aggressive central bank policy has yet to be felt.
Without the AI narrative, the stock market would have been “a lot rockier,” according to Linda Duessel, senior equity strategist at Federated Hermes. “Underneath the surface, the average stock is only up a couple of percent year-to-date,” she told Bloomberg Television. “Portfolio managers have had a very difficult time beating the S&P this year.”
Federal Reserve Chair Jerome Powell dampened the mood this week when he said the US may need one or two more rate increases in 2023. Other Fed commentators pushed back against investor hopes for a rate cut this year: “I’d be comfortable with the information I have today, staying right where we are and just staying here through the rest of this year and long into next year,” Atlanta Fed President Raphael Bostic said at an event Friday.
Economic data from Germany and France ignited fears of a downturn in Europe, spurring Treasuries to take part in a global bond market rally as investors sought safe havens.
Treasury Secretary Janet Yellen sought to temper concerns over a US recession, she acknowledged the risk and said a consumer-spending slowdown was needed. Meanwhile, the US manufacturing purchasing managers index fell to 46.3 in June from 48.4 the prior period, the lowest reading since December.
“There is consistency throughout the global economy in at least one regard — manufacturing remains in a recessionary mode,” Ian Lyngen at BMO Capital Markets said. “Translating this to US monetary policy is much more challenging than it might be overseas,” he wrote in a note to clients. “We don’t think this data has immediate implications for the FOMC’s July decision — for that we’ll look to NFP and CPI. Nonetheless, it was a disappointing print.”
US Treasuries yields fell Friday, some by as much as 10 basis points. The inverted spread between the two- and 10-year bond widened to more than 1% — such inversions are considered a
recessionary signal.
Scott Ladner, chief investment officer at Horizon Investments, said the bond rally was riven by “growth fears with European flash PMIs coming in soft this morning,” adding that
there’s a bit of “breath-taking after the last few weeks of very strong risk-asset performance.”
Concern about the economic outlook was reflected in a rotation into bonds and out of stocks in weekly flow data. Investors yanked $5 billion from global equity funds in the week
through Wednesday and added $5.4 billion to bonds.  US stocks face more downside than upside over the next two months as banks and property firms “still have bad recession vibes,” according to the note from Bank of America strategists citing EPFR Global data.
The US dollar and gold futures climbed. Bitcoin headlined a rally in cryptocurrencies as it jumped to its highest level in a year.
Some of the main moves in markets:

Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 1%
* The Dow Jones Industrial Average fell 0.6%
* The MSCI World index fell 1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.6% to $1.0891
* The British pound fell 0.2% to $1.2719
* The Japanese yen fell 0.5% to 143.80 per dollar
Cryptocurrencies
* Bitcoin rose 2.5% to $30,904.63
* Ether rose 0.8% to $1,902.27
Bonds
* The yield on 10-year Treasuries declined five basis points to 3.74%
* Germany’s 10-year yield declined 14 basis points to 2.35%
* Britain’s 10-year yield declined five basis points to 4.32%
Commodities
* West Texas Intermediate crude fell 0.3% to $69.30 a barrel
* Gold futures rose 0.3% to $1,929.20 an ounce
This story was produced with the assistance of Bloomberg Automation.

–With assistance from Mark Tannenbaum, Michael Mackenzie, Denitsa Tsekova and Cecile Gutscher.
Have a lovely evening.

Be magnificent!
As ever,

Isabel

A proverb is no proverb to you till your life has illustrated it. -John Keats, 1795-1821

Assistant to Carolann Steinhoff, Registered Representative

Queensbury Securities Inc.,
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Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
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www.carolannsteinhoff.com