March 26, 2020 Newsletter

Dear Friends,

Tangents:

Sent to me from one of my clients last night:
https://www.youtube.com/watch?v=qgylp3Td1Bw

On March 26, 1979, the Camp David peace treaty was signed by Israeli Prime Minister Menachem Begin and Egyptian President Anwar Sadat at the White House. Go to article »

Robert Frost, poet, b. 1874.
Happiness makes up for in height for what it lacks in length, –Robert Frost, 1874-1963.
PHOTOS OF THE DAY

A couple do a handstand among the daffodils in Sefton Park in Liverpool, UK
CREDIT: IAIN WATTS/MERCURY PRESS

Tourists dance in a rape field in Chongqing, China
CREDIT: BARCROFT MEDIA

A Thai Buddhist monk prepares to take part in a televised anti-coronavirus prayer at Wat Traimit Temple
CREDIT: MLADEN ANTONOV/ AFP

The Milky Way glows brightly in the clear night sky above the obelisk at Portland Bill in Dorset
CREDIT: GRAHAM HUNT/ ALAMY LIVE NEWS
Market Closes for March 26^th ,2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1979, meeting in Geneva, the Organization of the Petroleum Exporting Countries declared that its members would raise the price of crude oil from $13.34 to $14.55, igniting another round of global inflation.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose for a third session but fell just short of a bull market as an early rally cooled off.
The S&P/TSX Composite Index gained 1.8% to 13,371.17 in Toronto, with materials the only sector to close in the red. Marijuana stocks were among standouts as several jurisdictions allowed dispensaries to remain open during stay-at-home orders.
Elsewhere among equity gainers, Winnipeg-based bus maker NFI Group Inc. surged 33%, the most on record. The company temporarily cut its dividend earlier this week while laying off staff. Canada’s government and central bank are gearing up to acquire hundreds of billions of dollars in assets from the financial system in coming weeks in order to keep markets running smoothly during the pandemic-induced economic shutdown.
Oil posted an ugly session after the head of the International Energy Agency warned global demand was in “free fall” as coronavirus lockdowns wreak havoc on consumption. Futures in New York tumbled 7.7%. Meanwhile, Canadian heavy crude has become so cheap that the cost of shipping it to refineries exceeds the value of the oil itself, a situation that may result in even more oil-sands producers shutting operations. Western Canadian Select crude in Alberta dropped $2.84 to a record low of $6.45 a barrel on Thursday, according to Bloomberg data going back to 2008.
As investors digest stimulus packages along with social- distancing efforts, “fear is part of the cure,” Eddie Perkin, chief equity investment officer at Boston-based Eaton Vance Management, said on BNN Bloomberg. Eaton Vance isn’t looking to make a “big cyclical recovery bet,” but said maintaining a balanced portfolio is key. Opportunities exist to deploy capital in the current market, though keeping some dry powder is crucial, Perkin added.
Commodities
* Western Canada Select crude oil traded at a $16.40 discount to West Texas Intermediate
* Spot gold rose about 1% to $1,633.82 an ounce
FX/Bonds
* The Canadian dollar strengthened 1% to C$1.4057 per U.S. dollar
* The 10-year government bond yield fell 5 basis points to 0.85%
–With assistance from Divya Balji.
From Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 1.8 percent, or 231.94 to 13,371.17 in Toronto.
The index advanced to the highest closing level since March 13. Enbridge Inc. contributed the most to the index gain, increasing 3.4 percent. Hexo Corp. had the largest increase, rising 34.9 percent.
Today, 153 of 230 shares rose, while 73 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* In the past year, the index had a similar or greater gain eight times. The next day, it declined six times for an average 4.5 percent and advanced twice for an average 3.1 percent
* So far this week, the index rose 13 percent, heading for the biggest advance in at least 10 years
* This quarter, the index fell 22 percent, heading for the biggest decline in at least 10 years
* This month, the index fell 18 percent, heading for the biggest decline in at least 10 years
* The index declined 17 percent in the past 52 weeks. The MSCI AC Americas Index lost 8.3 percent in the same period
* The S&P/TSX Composite is 25.6 percent below its 52-week high on Feb. 20, 2020 and 19.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 9.9 percent in the past 5 days and fell 22 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.4 on a trailing basis and 13.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.9 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2t
* 30-day price volatility rose to 85.77 percent compared with 85.40 percent in the previous session and the average of 47.38 percent over the past month
=======================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
=======================================
Financials | 72.1072| 1.7| 24/1
Industrials | 50.5915| 3.3| 25/6
Utilities | 23.0741| 3.2| 14/2
Information Technology | 19.8673| 2.1| 9/1
Communication Services | 18.5426| 2.3| 6/2
Energy | 18.2963| 1.1| 13/17
Consumer Staples | 16.3470| 2.8| 11/0
Real Estate | 6.6507| 1.6| 14/9
Consumer Discretionary | 4.4249| 0.9| 13/3
Health Care | 4.3093| 3.1| 7/3
Materials | -2.2563| -0.1| 17/29
US
By Vildana Hajric
(Bloomberg) — U.S. stocks rallied again as investors speculated that the $2 trillion rescue package poised to pass Congress will blunt the coronavirus pandemic’s toll on the economy. Treasuries held gains and the dollar fell.
The S&P 500 closed near session highs, posting its first three-day rally since February. The Dow Jones Industrial Average saw its biggest three-day gain since 1931 — and is now 21% above its March 23 trough — buoyed by another big advance in Boeing Co. Jobless claims surged to a record 3.28 million Americans last week as businesses shut down to help prevent the spread of the virus. While the reading exceeded estimates, aid from the U.S. government my help offset the damage to workers and businesses. Federal Reserve Chairman Jerome Powell also sought to assure the public that the central bank wouldn’t run out of crisis-fighting ammunition.
“Now that the stimulus bill is moving through, that’s a countervailing force to the rising jobless claims,” said Brian Nick, chief investment strategist at Nuveen. “Hopefully, if all works as intended, businesses should be able to get loans relatively quickly, cease their layoffs and potentially – if they want to get the full benefits of the loans — bring people back that they already laid off.”
The jobless number is one of the first major data points to show the extent of the impact on the American economy since states around the country began widespread business shutdowns aimed at preventing the coronavirus from spreading. European stocks moved higher, and sovereign debt rose after the region’s central bank announced it will scrap limits on bond purchases for its emergency program, a landmark decision that gives it almost unlimited power to fight the economic fallout from the virus. The euro strengthened while a gauge of the dollar headed for a third down day.
While rescue measures across major economies are unprecedented, traders remain cognizant of the virus’s escalating toll. The world’s cases now top 451,000, with more than 20,000 deaths. The U.S. death toll has topped 1,000. “Investors need to remain vigilant about how the growth rate of new cases develops and how governments respond going forward,” said Oliver Blackbourn, a multi-asset portfolio manager at Janus Henderson Investors. “The support package should help to assuage the fears about the worst possible economic outcomes for individuals and companies.”
Elsewhere, crude declined after three days of gains. The head of the International Energy Agency said global oil demand is in free fall because of the pandemic, made worse by the price war between Saudi Arabia and Russia. Emerging-market shares and currencies climbed.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 6.1% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index rose 2.6%.
* The MSCI Asia Pacific Index advanced 0.9%.
Currencies
* The Bloomberg Dollar Spot Index decreased 1.9%.
* The euro advanced 1.6% to $1.1055.
* The British pound increased 2.9% to $1.2224.
* The Japanese yen advanced 1.6% to 109.42 per dollar.
Bonds
* The yield on 10-year Treasuries dipped five basis points to 0.82%.
* Germany’s 10-year yield decreased 10 basis points to -0.36%.
* Britain’s 10-year yield fell five basis points to 0.4%.
Commodities
* Gold rose 1% to $1,632.66 an ounce.
* WTI crude decreased 5.1% to $23.23 a barrel.
–With assistance from Andreea Papuc, Adam Haigh, Nancy Moran and Sophie Caronello.
Have a great night.

Be magnificent!
As ever,

Carolann

People will forget what you said, people will forget what you did,
but people will never forget how you made them feel.
                                                  -Maya Angelou, 1928-2014

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
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