June 3, 2020 Newsletter

Dear Friends,

Tangents:
On June 3, 1965, astronaut Edward White became the first American to “walk” in space, during the flight of Gemini 4. Go to article »

Take it from Yo-Yo Ma and Andrew Lloyd Webber — five minutes is all you need to fall in love with the cello. -The New York Times.

My nephew just graduated from Harvard University and of course  this graduating class was practicing social distancing.  However, they all still manage to dress up in black tie affair and for their graduation celebration and  Yo-Yo Ma played virtually for them at their graduation ceremony.  How cool is that!

A photo is crashing Android phones. –Bloomberg.

This man can draw entire detailed cityscapes — from memory 
Some people’s minds — and the art they produce — are truly incredible. (Click here to view.)  -CNN.
PHOTOS OF THE DAY

The sun rises at Bodiam Castle, East Sussex
CREDIT: OLIVER DIXON

Customers wearing face shield hats in “Café de Flore’ in the Latin Quarter district as bars and restaurants reopen in Paris, Frances
CREDIT: CHRISTOPHE PETIT TESSON/EPA -EFE/SHUTTERSTOCK

View of a group of ostriches, in the gardens of the Palacio do Alvorada, in Brasilia, Brazil.
CREDIT: JOESON ALVES/EPA-EFE/SHUTTERSTOCK
Market Closes for June 3^rd, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1880, wireless telecommunication began when Alexander Graham Bell transmitted the first message on his new “photophone,” which bounced sound off a mirror and used a beam of sunlight to project the mirror’s vibrations onto a photosensitive receiver. Although Bell was never able to commercialize his photophone, modern fiber optics, which support things like high-speed trading and Netflix, work on the same basic principle
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian shares continued their march upward as investors turned to buying riskier assets amid optimism for a quick economic recovery from Covid-19.
The S&P/TSX Composite index rose 1.2% in Toronto. The real estate, financials and industrials sectors outperformed, while materials and tech stocks fell. Gold miners took a hit as gold futures fell. Investors turned away from havens after data on U.S. private payrolls showed fewer job losses than forecast.
The Bank of Canada also said that the country’s economy appears to have avoided the worst-case scenario, prompting policy makers to wind down some market operations and pare back estimates of the downturn.
Meanwhile, Canada Goose Holdings Inc. was the best- performing stock on Wednesday, after reporting a smaller-than- expected revenue decline last quarter. Even so, the luxury parka maker sees “negligible” sales this quarter as consumers prioritize staples and food over discretionary merchandise.
On the automotive news, Martinrea International Inc.’s Chairman said that auto sales in the U.S. were “shockingly high.” He also called markets in China “relatively healthy,” while Europe is experiencing a “slow restart.”
Commodities
* Western Canada Select crude oil traded at a $8.60 discount to West Texas Intermediate
* Spot gold fell about 1.7% to $1,697.93 an ounce
FX/Bonds
* The Canadian dollar rose about 0.2% to C$1.3494 per U.S. dollar
* The 10-year government bond yield surged to 0.621%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 1.2 percent, or 180.75 to 15,575.11 in Toronto.
The move was the biggest since rising 1.7 percent on May 19.
Today, financials stocks led the market higher, as 9 of 11 sectors gained; 170 of 229 shares rose, while 58 fell. Brookfield Asset Management Inc. contributed the most to
the index gain, increasing 6.2 percent. Canada Goose Holdings Inc. had the largest increase, rising 17.5 percent.
Insights
* This quarter, the index rose 16 percent, heading for the biggest advance in at least 10 years
* The index declined 2.8 percent in the past 52 weeks. The MSCI AC Americas Index gained 13 percent in the same period
* The S&P/TSX Composite is 13.3 percent below its 52-week high on Feb. 20, 2020 and 39.4 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 2 percent in the past 5 days and rose 6.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.4 on a trailing basis and 25.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.33t
* 30-day price volatility fell to 19.64 percent compared with 20.54 percent in the previous session and the average of 29.23 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 133.1603| 3.0| 23/3
Industrials | 36.1619| 2.0| 26/5
Real Estate | 17.1644| 3.8| 25/1
Communication Services | 14.4502| 1.6| 8/0
Utilities | 13.6403| 1.7| 16/0
Energy | 12.3835| 0.6| 23/7
Consumer Staples | 11.3674| 1.7| 8/3
Consumer Discretionary | 9.1968| 1.7| 12/2
Health Care | 2.0412| 1.3| 7/3
Information Technology | -12.4791| -0.9| 8/2
Materials | -56.3164| -2.7| 14/32
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — Global stocks extended their rally into an eighth straight day as investors clung to optimism for a quick economic recovery from the pandemic.
The Nasdaq 100 briefly surpassed its February closing record. Banks led the S&P 500 Index toward a three-month high, with four stocks gaining for every one that fell. The dollar dropped to its weakest since early March. Gold and Treasuries also slumped as investors turned away from havens after U.S. private payrolls showed fewer job losses than forecast in May.
European stocks jumped the most in two weeks, led by automakers and insurers. The euro strengthened for a seventh session as data showed the region’s economic activity increased in May to the highest in three months after an easing of lockdowns. Amid the exuberance, a popular technical momentum indicator is close to flashing a warning sign for the S&P 500 and valuations for global stocks have climbed to their highest level versus estimated earnings since the early 2000s.
The rally has surprised some analysts who predict a long road back to normalcy following the pandemic. They also point to risks including tense U.S.-China relations, the possibility for a second wave of infections and the uprisings in U.S. cities against police brutality.
“The market is climbing the wall of worry right now and it is very, very uncomfortable for many investors,” said Gerald Sparrow, chief investment officer of the Sparrow Growth Fund, which has outperformed 95% of its peers this year.
But the reopening of global economies has turned into a tailwind for stocks, and a flattening virus curve and Federal Reserve stimulus are also helping gains. Wednesday’s advance was driven by financial companies, auto manufacturers and makers of durable goods, while big tech shares lagged behind, indicating the rally is broadening out.
“With many businesses across the country reopening, labor watchers may optimistically be thinking that the worst is behind us,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial.
Elsewhere, shares in South Korea led Asian equities higher after the country detailed a third round of fiscal stimulus, while Singapore’s benchmark entered a bull market. MSCI’s gauge of emerging-market stocks climbed close a three-month high.
Here are some key events coming up:
* The European Central Bank is expected to top up its rescue program with an additional 500 billion euros of asset purchases at a meeting on Thursday. Anything less than an expansion would be a big shock, Bloomberg Economics said.
* The U.S. labor market report on Friday will probably show American unemployment soared to 19.5% in May, the highest since the 1930s.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1.4% at the close of trading in New York.
* The Nasdaq 100 Index added 0.5%.
* The Stoxx Europe 600 Index gained 2.5%.
* The MSCI All-Country World Index climbed 1.7%.
Currencies
* The Bloomberg Dollar Spot Index slid 0.4%.
* The euro gained 0.7% to $1.1243.
* The British pound increased 0.3% to $1.2587.
* The Japanese yen slipped 0.2% to 108.93 per dollar.
Bonds
* The yield on 10-year Treasuries rose seven basis points to 0.76%.
* Germany’s 10-year yield climbed six basis points to -0.36%.
* Britain’s 10-year yield increased five basis points to 0.27%.
* Australia’s 10-year yield rose six basis points to 0.96%.
Commodities
* WTI crude rose 0.1% to $36.84 a barrel.
* Gold weakened 1.7% to $1,698.53 an ounce.
* The Bloomberg Commodity Index rose 0.2%.
–With assistance from Moxy Ying and Adam Haigh.

Have a great night.

Be magnificent!
As ever,

Carolann

The secret of success is constancy of purpose.
                    -Benjamin Disraeli, 1804-1881

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