June 26, 2019 Newsletter

Dear Friends,

Tangents:
On the lighter side of the conversation, here’s a few stories in Bloomberg Opinion today:
The science of making perfect chocolate-chip cookies.
These are the world’s most expensive cities for expats in 2019.
A colonial quirk gives some Hong Kong men houses on the cheap.
7-Eleven to wrap 2 billion rice balls in plant-based plastic.

                                                –from Bloomberg Opinion.

Abner Doubleday, invented baseball, b. June 26, 1819

June 26,1948:The Berlin Airlift began in earnest as the United States, Britain and France began ferrying supplies to the isolated western sector of Berlin after the Soviet Union cut off land and water routes. Go to article »
PHOTOS OF THE DAY

An aerial view of the unique pattern of the Herb Garden at RHS Wisley Garden
CREDIT: CHRIS GORMAN/BIG LADDER

The sun rises over a poppy field in the Worcestershire countryside
CREDIT: VERUTY MILLIGAN / SWNS

Alicante’s Townhall bonfire, one of the 180 bonfires placed in the town, burns during the ‘Nit de la Crema’ to close the Bonfire Fiestas in Alicante, eastern Spain
CREDIT: MANUEL LORENZO/ EPA-EFE/REX

People cool off in the Trocadero fountains across from the Eiffel Tower in Paris as a heatwave hit much of the country, France
CREDIT: REUTERS/CHARLES PLATIAU
Market Closes for June 26th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1950, one day after North Korea invaded the South and set off the Korean War, the Dow fell more than 10 points, or 4.7%, to close at 213.91. Panicky investors redeemed nearly one-eighth of all mutual-fund assets by year-end. Those who sold missed out on one of the best stretches in stock-market history, as the S&P 500 rose 19.4% annually during the decade.
Canada
By Michael Bellusci
     (Bloomberg) — Canadian equities fell for a fourth day despite a rally in crude oil prices.
     The S&P/TSX Composite Index lost 0.4% to 16,312. Real estate led the declines as yields on 10-year treasuries rose. Energy and health care were the only two groups to advance.
     Meanwhile, The Trump administration is throwing a lifeline to the massive Pebble Mine planned near Alaska’s Bristol Bay. Separately, Pieridae Energy Ltd. will buy Shell’s southern Alberta assets as part of plan to build a $10-billion LNG plant in Nova Scotia.
In other moves:
Stocks
* Tervita Corp. jumped 10.8%, the most on record 
* Paramount Resources Ltd. rose 6.1% 
* BlackBerry Ltd. fell 9.1% as an earnings update disappointed investors
* TransAlta Corp. lost 4.4%, most since Dec. 24 
* Kinaxis Inc. dropped 3.3% 
Ratings
* CG CN: Centerra Gold Upgraded to Sector Perform at RBC; PT C$9.50
* ELD CN: Eldorado Gold Upgraded to Neutral at JPMorgan 
* RX CN: Biosyent Cut to Market Perform at Raymond James; PT C$7.50
Commodities
* Western Canada Select crude oil traded at a $12.75 discount toWTI
* Gold spot price fell 1% to $1,409.25 an ounce
FX/Bonds
* The Canadian dollar rose 0.4% to C$1.3119 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.501%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — Most U.S. stocks fell as trade concerns countered strength in the tech sector. Treasuries declined with gold after investors eased back bets on a deep cut to interest rates next month.
     The S&P 500 dropped for a fourth-straight day, with three stocks retreating for every two that rose. The benchmark swung between gains and losses for most of the afternoon session as investors weighed mixed messages on trade heading into this weekend’s highly-anticipated meeting between Presidents Donald Trump and Xi Jinping.
     The Nasdaq indexes advanced, even as Facebook Inc. and Google fell after Trump said the U.S. “perhaps” will sue the two companies. Micron Technologies Inc.’s profit topped estimates, spurring the Philadelphia Semiconductor Index to the highest level in more than a month. Ten-year Treasury yields pushed back above 2%, and gold retreated as investors continued to digest rate-cut comments Tuesday by Federal Reserve officials that didn’t match market expectations. The dollar was little changed versus major peers, while West Texas crude rose toward $60 a barrel.
     “There are two things we’re focusing on: the G-20 meeting this week in Osaka, and the second one is the Fed and the potential for monetary easing, not only at the Fed but also at a lot of these major central banks,” Jack Janasiewicz, a portfolio strategist at Natixis Investment Managers, said in an interview. “Both of those are giving quite a few different cross-currents which could have pretty significant implications for how the market will react going forward.”
     The trade spat between the U.S. and China is looming large for investors ahead of this weekend’s meeting at the Group of 20 conference. Trump once again threatened Wednesday substantial additional tariffs if a deal can’t be reached. Meanwhile, many traders hope the Federal Reserve will counter any headwinds to global growth with deep interest-rate cuts, though Fed member James Bullard made clear Tuesday that’s not a given.
     Elsewhere, Bitcoin surged above $13,000 to the highest since January 2018. New Zealand’s dollar strengthened after its central bank left rates unchanged. U.S. futures spiked higher overnight after a CNBC report that Treasury Secretary Steven Mnuchin said a trade deal was 90% done. The report was corrected to indicate that the comments referred to May.
Here are some key events coming up:
* The Group of 20 summit is in Osaka, Japan, on Friday and Saturday.

These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.1% as of 4 p.m. New York time.
* The Nasdaq composite gained 0.3%, while the Nasdaq 100 advanced 0.5%.
* The Stoxx Europe 600 Index declined 0.3%.
* The MSCI Emerging Market Index increased 0.3%.
* The MSCI Asia Pacific Index sank 0.3% to the lowest in a week.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro rose 0.1% to $1.1376.
* The British pound fell 0.1% $1.2677.
* The Japanese yen dipped 0.4% to 107.67 per dollar, the weakest in a week.
Bonds
* The yield on 10-year Treasuries advanced six basis points to 2.05%.
* Germany’s 10-year yield gained two basis points to -0.301%.
* Britain’s 10-year yield increased three basis points to 0.819%.
Commodities
* West Texas Intermediate crude gained 2.3% to $59.17 a barrel, the highest in more than four weeks.
* Gold fell 0.4% to $1,413.40 an ounce, the first retreat in more than a week.
–With assistance from Ksenia Galouchko, Robert Brand and Laura Curtis.

Have a great night.

Be magnificent!
As ever,

Carolann

Through the unknown, we’ll find the new.

           -Charles Baudelaire, 1821-1867

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