June 9, 2021 Newsletter

Dear Friends,

Tangents:
Donald Duck, cartoon, b. 1934.
Cole Porter, composer, b. 1891.
Johnny Depp, actor, b. 1963.

1898~ China leases Hong Kong’s new territories to the United Kingdom for 99 years by signing the Convention for the Extension of Hong Kong Territory.  The contract was signed to give the British full jurisdiction of the newly acquired land that was necessary to ensure proper military defence of the colony around the island to maintain the balance of power with other European powers in the region.

1986~The Rogers Commission released its report on the Challenger disaster, criticizing NASA and rocket-builder Morton Thiokol for management problems leading to the explosion that claimed the lives of seven astronauts.  Go to article »

Sun’s out: Dig out those eclipse glasses for tomorrow’s sunrise.

These are the world’s most livable cities.  Now feels like a good time to relocate to New Zealand, Japan or Australia.

Millions of people can’t stop watching a pack of wandering elephants.  There’s just something compelling about watching these adorable creatures try to find their way in the world.

PHOTOS OF THE DAY

Royal Navy patrol ship HMS Tyne dwarfs St Ives ahead of the G7 summit.
CREDIT: GREG MARTIN/CORNWALLLIVE

People in boats enjoy the warm weather on the River Cam in Cambridge 
CREDIT: DAVID ROSE FOR THE TELEGRAPH

People stop for a coffee inside Liverpool Cathedral as the strong evening light casts shadows. 
CREDIT: PETER BURNE/PA

Market Closes for June 9^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1943, federal income tax withholding was implemented for the first time. Originally proposed by Beardsley Ruml, an executive at Macy’s department store who has encouraged shoppers to buy on the installment plan, withholding was cleverly called “pay as you go” and was coupled with an amnesty for the previous year’s taxes. The public backed it eagerly, forever after giving the federal government interest-free financing.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities fell Wednesday as traders assessed the economic and monetary outlook. The S&P/TSX Composite Index fell 0.3%, the most since May 31 with eight of 11 sectors dropping. Health-care companies, including marijuana shares, managed to rally. The Bank of Canada left its key interest rate at a historic low and maintained its current pace of bond purchases in a placeholder decision that should keep expectations intact for another reduction in emergency stimulus next month.
Commodities
* Western Canadian Select crude oil traded at a $13.75 discount to West Texas Intermediate
* Spot gold fell 0.2% to $1,889.03 an ounce
FX/Bonds
* The Canadian dollar fell 0.02% to C$1.2113 per U.S. dollar
* The 10-year Canada government bond yield fell 3.9 basis points to 1.412%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite fell 0.3 percent at 20,002.27 in Toronto. The move was the biggest since falling 0.6 percent on May 31 and follows the previous session’s increase of 0.2 percent. Shopify Inc. contributed the most to the index decline, decreasing 1.1 percent. Denison Mines Corp. had the largest drop, falling 5.9 percent. Today, 123 of 229 shares fell, while 101 rose; 8 of 11 sectors were lower, led by financials stocks.
Insights
* This quarter, the index rose 7 percent
* The index advanced 26 percent in the past 52 weeks. The MSCI AC Americas Index gained 33 percent in the same period
* The S&P/TSX Composite is 0.5 percent below its 52-week high on June 8, 2021 and 33.9 percent above its low on June 15, 2020
* The S&P/TSX Composite is little changed in the past 5 days and rose 2.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23 on a trailing basis and 16.8 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$3.15t
* 30-day price volatility fell to 9.21 percent compared with 9.43 percent in the previous session and the average of 9.46 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -37.6376| -0.6| 4/23
* Information Technology | -14.8507| -0.8| 5/5
* Communication Services | -8.4886| -0.9| 1/7
* Industrials | -7.4939| -0.3| 10/20
* Consumer Discretionary | -3.3079| -0.4| 7/5
* Consumer Staples | -2.8534| -0.4| 2/11
* Energy | -2.5519| -0.1| 14/8
* Real Estate | -1.0386| -0.2| 11/15
* Utilities | 3.0339| 0.3| 9/6
* Health Care | 5.6651| 2.0| 7/3
* Materials | 5.8695| 0.2| 31/20
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -12.7400| -1.1| -61.9| 2.4
* TD Bank | -7.8600| -0.7| -1.9| 21.5
* Royal Bank of | | | |
* Canada | -7.5470| -0.6| 14.4| 19.4
* Enbridge | 2.5420| 0.4| -68.6| 18.4
* Nutrien | 2.7390| 0.9| -48.7| 28.8
* Tilray | 4.3440| 6.1| 221.6|n/a

US
By Vildana Hajric
(Bloomberg) — U.S. stocks closed lower while bonds held gains as investors braced for a key inflation report that could provide clues on the direction of monetary policy. The S&P 500 ended the session with a 0.2% decline after earlier climbing above its May 7 record closing level.  Large banks were among the biggest drags on the index, offset in part by megcap technology and biotech stocks. The 10-year Treasury yield fell below 1.5% after an auction of the notes. Equities have been trading in a tight range and Treasury yields have been easing in recent weeks as investors who believe accelerating inflation will be short-lived clash with those who bet it will prove persistent enough to warrant tightening.  For now, the Fed’s dovish stance is calming the markets. “Even if inflation comes out a little higher than Street expectations tomorrow, the Fed isn’t going to change its path,” said Esty Dwek, head of global market strategy at Natixis Investment Managers,  said in a Bloomberg TV interview. “There’s a lot of wait-and-see going on and really just thinking it would take a lot to really surprise markets.” Seven of the main 11 S&P 500 industry groups declined, with financials underperforming and health-care stocks rising the most.  JPMorgan Chase & Co. and Bank of America Corp. each dropped 1.3%. United Parcel Service Inc. tumbled the most in seven months after its profit-margin outlook disappointed investors.
Biogen Inc. resumed a rally two days after getting regulatory approval for its Alzheimer’s drug. Johnson & Johnson Co., Merck & Co. Inc., Pfizer Inc. and Eli Lily & Co. were also standout gainers on Wednesday. The 10-year U.S. Treasury yield declined as much as 6.3 basis points to 1.471%. The yield held below 1.5% after an auction of $38 billion of the notes Wednesday afternoon.  The 30-year bond’s yield touched 2.148%, last seen March 1. Meanwhile, a rally in commodities has stalled with global recovery remaining patchy, especially with the pandemic still spreading in the developing world.  The Bloomberg Commodity Index, which shows returns on a basket of raw materials, was little changed. Shares edged up in China, where a measure of producer prices for May was at the highest since 2008 but consumer-price gains remained subdued.  The nation is also considering imposing a cap on the price of thermal coal to contain high energy costs. The Stoxx 600 Europe Index increased 0.1%, closing at a record high as investors awaited key economic data and the European Central Bank policy meeting on Thursday for signs of whether the recovery is becoming overheated.

Here are key events to watch this week:
* U.S. consumer price index on Thursday.
* Apple holds its annual Worldwide Developers Conference through June 11.
* European Central Bank decision on Thursday and press conference with President Christine Lagarde.
* Iran nuclear deal talks reconvene in Vienna Thursday.
* Group of Seven leaders’ summit starts in Cornwall, England Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4:04 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average fell 0.4%
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro was little changed at $1.2176
* The British pound fell 0.3% to $1.4111
* The Japanese yen fell 0.1% to 109.63 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 1.49%
* Germany’s 10-year yield declined two basis points to -0.24%
* Britain’s 10-year yield declined four basis points to 0.73%
Commodities
* West Texas Intermediate crude fell 0.5% to $70 a barrel
* Gold futures fell 0.2% to $1,892 an ounce
–With assistance from Claire Ballentine, Nancy Moran and Andreea Papuc.
Have a wonderful evening.

Be magnificent!
As ever,

Carolann

And the trouble is, if you don’t risk anything, you risk even more. –Erica Jong, b. 1942.

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