March 28, 2023 Newsletter

Dear Friends,

Tangents:
On March 28, 1979, America’s worst commercial nuclear accident occurred inside the Unit Two reactor at the Three Mile Island plant near Middletown, Pa. Go to article >  

Dusty old painting turns out to be Brueghel ‘masterpiece’.  This 17th-century painting was hiding in a family home for years. It’s expected to fetch up to 800,000 euros ($865,000!) at a Paris auction today.

Was Stonehenge an ancient calendar? A new study says no.
Stonehenge wasn’t a prehistoric solar calendar but served mainly as a memorial to the dead, according to new research by scientists who study ancient astronomy.  Full Story: Live Science (3/28)

Mysterious aurora-like phenomenon ‘STEVE’ appears during strongest solar storm for more than half a decade.
A bizarre, aurora-like phenomenon known as STEVE made several appearances across the United States and parts of the United Kingdom last week, after a powerful solar storm slammed into Earth without warning.
Full Story: Live Science (3/28)

PHOTOS OF THE DAY

Kyiv, Ukraine
Members of the Berehynia Kyiv Academic Theatre of Ukrainian Folklore perform their Vidrodzennia (Renaissance) concert during an award ceremony
Photograph: Ukrinform/REX /Shutterstock

Suqian, China
Crowds gather on a bridge to see the blossoming pear flowers
Photograph: AFP/Getty Images

Beijing, China
A model for the Dieyingchongchong collections by designer Dong Yaer has final makeup applied backstage during the China Fashion Week
Photograph: Andy Wong/AP
Market Closes for March 28^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1979, a minor malfunction occurred in a cooling mechanism at a power plant in Pennsylvania. One technical error followed another until the malfunction escalated into a “meltdown.” Three Mile Island became synonymous with troubles in American nuclear power, which once held out the promise of cheap, safe, clean energy for all.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.2%, or 32.79 to 19,657.53 in Toronto.
The index advanced to the highest closing level since March 14.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 1.7%.
Spartan Delta Corp. had the largest increase, rising 7.2%.
Today, 122 of 234 shares rose, while 110 fell; 6 of 11 sectors were higher, led by energy stocks.
Insights
* This quarter, the index rose 1.4%
* This month, the index fell 2.8%
* The index declined 11% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 11.5% below its 52-week high on April 5, 2022 and 10% above its low on Oct. 13, 2022
* The S&P/TSX Composite is unchanged in the past 5 days and fell 2.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.7 on a trailing basis and 12.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% 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 rose to 12.09% compared with 12.06% in the previous session and the average of 10.15% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 26.4330| 0.8| 29/10
Materials | 23.0422| 0.9| 41/10
Consumer Staples | 5.9132| 0.7| 9/2
Consumer Discretionary | 2.8286| 0.4| 8/7
Industrials | 1.5308| 0.1| 10/17
Utilities | 1.1451| 0.1| 10/6
Communication Services | -0.6245| -0.1| 4/2
Health Care | -1.2506| -1.9| 0/6
Real Estate | -5.1268| -1.1| 2/19
Financials | -5.3990| -0.1| 7/21
Information Technology | -15.7069| -1.2| 2/10
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Canadian Natural Resources | 9.0990| 1.7| -55.2| -2.7
TD Bank | 9.0570| 0.9| -32.6| -8.9
Cenovus Energy | 5.4380| 2.6| -40.5| -13.3
Enbridge | -4.4740| -0.6| -49.4| -5.6
RBC | -6.0280| -0.5| 3.7| -0.1
Shopify | -10.9800| -2.2| -14.3| 28.2
US
By Emily Graffeo and Isabelle Lee
(Bloomberg) — A slide in technology shares halted a three-day advance in US stocks as investors continued to recalibrate bets on the Federal Reserve’s path forward on interest rates.
Treasuries drifted lower.
The Nasdaq 100 slumped 0.5% — paring a March advance to 4.7% — with tech stalwarts from Apple Inc. to Alphabet Inc. among the biggest drags.
Tech stocks had found favor in recent weeks with the rotation out of financials following the collapse of three US banks.
However, the trade has started to unwind with increased speculation turbulence in the banking sector will be contained.
Two-year Treasury yields edged to just above 4%, while a gauge of the dollar notched its lowest close in eight weeks.
“Part of the giant bid in Treasuries last week was fear of contagion in financials,” said Tom Hearden, senior trader at Skylands Capital LLC.
“That’s abated so far this week” with thin markets, off side positioning, and a financial contagion bid.
The moves come as investors prepare for a raft of data on the American economy this week, including the central bank’s preferred measure of inflation, which is likely to factor into the Fed’s next rate decision.
St. Louis Fed President James Bullard said “appropriate monetary policy can continue to put downward pressure on inflation” despite the turmoil in banking.
Meanwhile, US consumers appear to have shrugged off the bank failures, with the latest consumer confidence figures unexpectedly higher in March.
Swaps traders have priced in more than a 50% probability the Fed will lift rates by a quarter point at its next meeting, with plans to ease then sharply thereafter.
However, several strategists have joined BlackRock Investment Institute in saying markets are wrong in expecting imminent rate cuts.
“Recent events in the US and European banking sectors have not altered our macroeconomic views,” wrote Joe Davis, chief global economist at Vanguard, in a note. “The Federal Reserve still has work to do to bring down inflation — a task that was always going to be a challenge, likely to entail higher unemployment and tighten credit and financial conditions.”
In Europe, stocks fell after French prosecutors said banks including Societe Generale SA and BNP Paribas SA face collective fines of more than 1 billion euros ($1.1 billion) as part of a probe into tax fraud and money laundering.
Elsewhere, oil was higher after a clash between Iraq and its Kurdish region curtailed exports.
Gold gained and Bitcoin traded around $27,400.
Key events this week:
* EIA Crude Oil Inventory Report, Wednesday
* Eurozone economic confidence, consumer confidence, Thursday
* US GDP, initial jobless claims, Thursday
* Boston Fed President Susan Collins and Richmond Fed President Thomas Barkin speaks at event. Treasury Secretary Janet Yellen also speaks, Thursday
* China PMI, Friday
* Eurozone CPI, unemployment, Friday
* US consumer income, PCE deflator, University of Michigan consumer sentiment, Friday
* ECB President Christine Lagarde speaks, Friday
* New York Fed President John Williams speaks, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.5%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.5% to $1.0847
* The British pound rose 0.5% to $1.2343
* The Japanese yen rose 0.6% to 130.80 per dollar
Cryptocurrencies
* Bitcoin rose 1.4% to $27,436.29
* Ether rose 4.7% to $1,787.59
Bonds
* The yield on 10-year Treasuries advanced two basis points to 3.55%
* Germany’s 10-year yield advanced six basis points to 2.29%
* Britain’s 10-year yield advanced nine basis points to 3.46%
Commodities
* West Texas Intermediate crude rose 0.8% to $73.40 a barrel
* Gold futures rose 1.1% to $1,992.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric and Namitha Jagadeesh.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

Sometimes it is not enough to do our best; we must do what is required. –Winston Churchill, 1874-1965.

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