May 12, 2020 Newsletters

Dear Friends,

Tangents: Limerick Day

Edward Lear, limericist, b. 1812.

There was a Young Lady whose eyes,
Were unique as to colour and size;
When she opened them wide,
People all turned aside,
And started away in surprise.
                    -Edward Lear

On May 12, 1943, during World War II, Axis forces in North Africa surrendered. Go to article »

These are the emojis we’re using most during the pandemic
No, it’s not just the screaming one over and over.-CNN.
 
Here are all the entertainment livestreams to keep you, well, entertained this week
The hottest club in your city is the couch, and it’s always open. –CNN.

Astronomers are cautiously optimistic of a big show in the night sky from Comet SWAN.
The newly discovered comet makes its closest approach to our planet today and then is expected to round the sun on May 27. Those living in the Southern Hemisphere will have their first look at the comet. Those of us up north will get another crack at seeing it later this month and into June. Here’s how to see it.-The NY Times.

PHOTOS OF THE DAY

Two adult Mediterranean mantises throwing shapes on a thin branch as if it were a choreographed dance routine in the village if Balikesir, Cyprus.
CREDIT: MEDIADRUMIMAGES/HASANBAGLAR

A statue entitled “The Workers’ which is covered in personal protection equipment (PPE), is erected on a traffic island during the pandemic lockdown in Haslingden, United Kingdom. The Prime Minister announced the general contour of a phased exit from the current lockdown, adopted nearly two months ago in an effort curb the spread of Covid-19.
CREDIT: CHRISTOPHER FURLONG/GETTY IMAGES

Four baby caoybaras have been born at Exmoor Zoo in Devon. The babies, dubbed ‘minibara’ by staff, are currently about the size if a guinea pig but will grow quickly.
CREDIT: EXMOOR ZOO/PA WIRE
Market Closes for May 12^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1927, with the German stock market up more than 160% in the previous 17 months, central banker Hjalmar Schacht was worried about irrational exuberance. He pressured Berlin’s biggest banks to issue a joint statement in which they announced that margin loans (which enable speculators to trade stocks with borrowed money) would be restricted. The next day, “Black Friday,” German stocks crashed 11%, helping to trigger the early onset of economic depression
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks snapped their winning streak Tuesday as Anthony Fauci warned against a premature reopening of the economy amid the coronavirus pandemic.
The S&P/TSX Composite Index fell 1.5%. All eleven sectors retreated, with real estate being the worst-performing group. JPMorgan Chase & Co. cut its forecast for Canadian economic growth because of gradual and uncoordinated efforts across provinces to reopen. GDP will shrink by 45% annualized in the second-quarter, more than an earlier forecast of 30%, the bank said.
Oil climbed to the highest level since early April after the U.S. government lowered its output forecast for the year. WTI Crude futures in New York gained 6.6% Tuesday.
Commodities
* Western Canada Select crude oil traded at a $2.75 discount to West Texas Intermediate.
* Spot gold rose 0.2% to about $1,702 an ounce.
FX/Bonds
* The Canadian dollar fell 0.4% to C$1.4059 per U.S. dollar.
* The 10-year government bond yield fell 4.1 basis points to 0.550%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 1.5 percent at 14,881.16 in Toronto. The move was the biggest since falling 2.9 percent on April 30 and follows the previous session’s increase of 0.9 percent.
Royal Bank of Canada contributed the most to the index decline, decreasing 2.0 percent. Aurora Cannabis Inc. had thelargest drop, falling 13.1 percent.
Today, 177 of 229 shares fell, while 49 rose; all sectors were lower, led by financials stocks.
Insights
* In the past year, the index had a similar or greater loss 18 times. The next day, it declined nine times for an average 3.9 percent and advanced nine times for an average 4.4 percent
* The index declined 8.7 percent in the past 52 weeks. The MSCI AC Americas Index lost 1.6 percent in the same period
* The S&P/TSX Composite is 17.2 percent below its 52-week high on Feb. 20, 2020 and 33.2 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 0.5 percent in the past 5 days and rose 5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.8 on a trailing basis and 22.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.29t
* 30-day price volatility fell to 31.82 percent compared with 31.96 percent in the previous session and the average of 63.29 percent over the past month
======================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
======================================================
Financials | -86.7384| -2.0| 0/26
Industrials | -25.3323| -1.4| 4/27
Utilities | -17.9552| -2.2| 2/14
Communication Services | -16.7153| -1.9| 0/8
Energy | -15.5878| -0.8| 15/13
Real Estate | -14.3930| -3.2| 1/25
Materials | -12.0351| -0.6| 21/25
Consumer Discretionary | -11.3934| -2.3| 1/13
Consumer Staples | -10.9721| -1.6| 2/9
Information Technology | -9.3214| -0.7| 2/8
Health Care | -1.6194| -1.2| 1/9
US
By Rita Nazareth
(Bloomberg) — Stocks tumbled after a U.S. health official warned against a premature reopening of the economy and as traders assessed a dire outlook from Federal Reserve regional chiefs. Treasuries and the dollar climbed.
The S&P 500 extended losses as Anthony Fauci, the nation’s top infectious disease official, said states reopening too quickly could “set you back on the road on trying to get economic recovery.” Meanwhile, some central bank officials said the virus outbreak and a partial shutdown would risk massive bankruptcies that could create a lasting scar. The Fed could curtail Wall Street banks’ ability to pay dividends by cranking up the amount of capital they need to maintain due to the coronavirus crisis, Governor Randal Quarles said Tuesday. “You will get business failures on a grand scale and you will be taking risks that you would go into depression” if shutdowns persist, Federal Reserve Bank of St. Louis President James Bullard said in a video speech from that city Tuesday.
Minneapolis Fed President Neel Kashkari warned of a “gradual, muted recovery” from the outbreak, while Dallas Fed President Robert Kaplan said the economy will need more fiscal stimulus if the jobless rate continues to rise.
The disastrous fallout of business closures and stay-at- home orders caused an unprecedented 20.5 million job losses in April, tripling the unemployment rate to 14.7%, the highest since the Great Depression era of the 1930s. A key measure of U.S. consumer prices declined last month by the most on record.
A sustained trend of declining prices would spur worries about deflation, exacerbating concern that the recovery from the deep
economic downturn will be very slow.
Buyers of U.S. stocks after the economy shrank in the first quarter have history on their side, according to Keith Lerner, chief market strategist at SunTrust Private Wealth Management.
Gross domestic product contracted at an annual rate of 4.8%, marking the 13th quarterly decline of more than 4% since 1949, according to data compiled by Bloomberg. After each previous instance, the S&P 500 gained more than 10% during the next 12 months.
Here are some key events coming up:
* OPEC gives its monthly oil market report on Wednesday.
* U.S. weekly jobless claims data is due Thursday.
* China on Friday releases industrial production and retail sales data for April.

These are some of the main moves in markets:
Stocks
* The S&P 500 decreased 2.1% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index rose 0.3%.
* The MSCI Asia Pacific Index dipped 0.7%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%.
* The euro climbed 0.4% to $1.0849.
* The Japanese yen strengthened 0.4% to 107.19 per dollar.
Bonds
* The yield on 10-year Treasuries declined five basis points to 0.66%.
* Germany’s 10-year yield rose one basis point to -0.51%.
* Britain’s 10-year yield declined two basis points to 0.249%.
Commodities
* The Bloomberg Commodity Index fell 0.4%.
* West Texas Intermediate crude rose 6.4% to $25.69 a barrel.
* Gold climbed 0.5% to $1,705.80 an ounce.

–With assistance from Winnie Zhu, Andreea Papuc, Michael Hunter, Sam Potter and David Wilson.
Have a great night.

Be magnificent!
As ever,

Carolann

Every great dream begins with a dreamer.  Always remember, you have within you the strength,
the patience, and the passion to reach for the stars and change the world.
                                                            -Harriet Tubman, c.1822-1913

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