Dear Friends,
Tangents:
Carolann is away from the office for a few days this week, attending an investment conference in NYC.
May 12, 1926 – General Strike in the UK Ends- General Strike of 1926 – Britannica
May 12, 1937 – Coronation of King George VI- Coronation of George VI – Britannica
May 12, 1965 – Soviet Lunar Mission Fails- Luna 5 – Britannica
May 12, 1965 – West Germany and Israel established diplomatic relations. On this day
Katharine Hepburn, actress, b. 1907.
Abraham Maslow, psychologist, b. 1908.
Burt Bacharach, composer, b. 1928.
Steve Winwood, musician, b. 1948.
The sun has erupted with a moderate M5.7 solar flare and a coronal mass ejection that could trigger northern lights display.
The universe may not be perfectly uniform after all, a new series of papers hints. If confirmed, this could upend a nearly 100-year-old model of cosmology.
Dozens of scientists have banded together to pen scathing research letters to the journal Science about the publication of a study claiming the 14,500-year-old Monte Verde archaeological site in Chile is much younger than shown.
Climate scientists have discovered that microplastics and nanoplastics are helping to drive global warming by absorbing sunlight and radiation in the atmosphere.
Robots and ramyeon🍜: Inside South Korea’s largest instant noodle factory
On the floor of Nongshim’s noodle factory in the city of Gumi, there’s an industrial symphony playing out: the grinding of wheat flour and rattle of rollers gives way to the rhythmic swish of blades on dough; ribbons of fresh noodles are steamed with a hiss, flash-fried with a crackle, then whisked away in the blink of an eye on an ever-humming conveyor belt, and packaged into crinkling plastic.
DNA reveals identities of 4 sailors from doomed 1845 Franklin expedition
Researchers have identified the remains of four members of a doomed 19th century expedition in the Arctic by matching DNA to the sailors’ living descendants — and solved a case of mistaken identity along the way.
PHOTOS OF THE DAY
Winzlar, Germany
‘Our apricot tree in the back garden, just coming into bloom. Every spring it draws in all kinds of visitors and the blue tits are always among the first to arrive.
’Photograph: Isabel Motzkeit
Suffolk, UK
‘A view through Barbara Hepworth’s The Family of Man sculptures at Snape Maltings.
’Photograph: Danielle Melling
Macau, China
A robot croupier is displayed at the Global Gaming Expo Asia exhibition
Photograph: Eduardo Leal/AFP/Getty Images
Market Closes for May 12th, 2026
| Market Index |
Close | Change |
| Dow Jones |
49760.56 | +56.09 |
| +0.11% | ||
| S&P 500 | 7400.96 | -11.88 |
| -0.16% | ||
| NASDAQ | 26088.20 | -185.93 |
| -0.71% | ||
| TSX | 34290.73 | +151.85 |
| +0.44% |
International Markets
| Market Index |
Close | Change |
| NIKKEI | 62742.57 | +324.69 |
| +0.52% | ||
| HANG SENG |
26347.91 | -58.93 |
| -0.22% | ||
| SEN SEX | 74559.24 | -1456.04 |
| -1.92% | ||
| FTSE 100* | 10265.32 | -4.11 |
| -0.04% |
Bonds
| Bonds | % Yield | Previous % Yield |
| CND. 10 Year Bond |
3.593 | 3.538 |
| CND. 30 Year Bond |
3.941 | 3.904 |
| U.S. 10 Year Bond |
4.4630 | 4.4155 |
| U.S. 30 Year Bond |
5.0242 | 4.9866 |
| BOC Close | Today | Previous |
| Canadian $ | 0.7300 | 0.7308 |
| US $ |
1.3697 | 1.3682 |
| Euro Rate 1 Euro= |
Inverse | |
| Canadian $ | 0.6218 | 1.6080 |
| US $ |
0.8518 | 1.1740 |
Commodities
| Gold | Close | Previous |
| London Gold Fix |
4729.15 | 4741.40 |
| Oil | ||
| WTI Crude Future | 98.07 | 98.07 |
Market Commentary:
On this day in 1927, with the German stock market up more than 160% over the previous 17 months, central banker Hjalmar Schacht was worried about irrational exuberance. He pressured Berlin’s biggest banks to issue a joint statement restricting margin loans, which enable speculators to trade stocks with borrowed money. The next day, “Black Friday,” German stocks crashed 11%.
🍒Canada🍓
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.4%, or 151.85 to 34,290.73 in Toronto.
The index advanced to the highest closing level since April 20.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 4.1%.
Ero Copper Corp. had the largest increase, rising 10.3%.
Today, 113 of 220 shares rose, while 104 fell; 8 of 11 sectors were higher, led by energy stocks.
Insights
* The index advanced 34% in the past 52 weeks. The MSCI AC Americas Index gained 27% in the same period
* The S&P/TSX Composite is 0.7% below its 52-week high on March 2, 2026 and 34.8% above its low on May 12, 2025
* The S&P/TSX Composite is up 2.2% in the past 5 days and rose 1.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 22.3 on a trailing basis and 16.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$5.39t
* 30-day price volatility fell to 11.42% compared with 13.51% in the previous session and the average of 15.76% over the past month
Index Points
Energy | 85.6381| 1.4| 28/9
Materials | 50.9713| 0.8| 40/19
Financials | 42.7301| 0.4| 14/9
Consumer Staples | 11.3501| 1.1| 7/3
Industrials | 7.0082| 0.2| 12/17
Utilities | 2.5746| 0.2| 6/7
Communication Services | 1.6564| 0.3| 2/3
Consumer Discretionary | 0.6781| 0.1| 3/6
Health Care | -1.4052| -1.5| 1/3
Real Estate | -4.1045| -0.9| 0/19
Information Technology | -45.2515| -2.0| 0/9
Canadian Natural Resources | 36.5900| 4.1| -37.2| 38.2
RBC | 24.4700| 1.0| -15.1| 6.8
Suncor | 17.2500| 2.3| 52.2| 49.6
Cameco | -13.6000| -2.7| 38.9| 27.4
Barrick Mining | -18.5400| -2.5| 42.8| 5.1
Shopify | -29.2800| -2.4| 16.3| -38.1
MT Newswires:
The Toronto Stock Exchange closed higher for a third-straight session on Tuesday, closing in on its March 2 record high as investors see strong fundamentals in equity markets, despite ongoing uncertainties around what impact the ongoing Iran war will have on the global economy and the outlook for interest rates everywhere.
The S&P/TSX Composite Index closed up 151.85 points to 34,290.73 as most sectors rallied to gains.
The Battery Metals Index was up near 2.8%, Energy up 2.4% and Base Metals up 2.5%.
In contrast, Info Tech was down about 1.7% and Health Care down 1.5%.
According to FactSet the TSX going into today’s session had been up 282.26 points or 0.83% over the prior two trading days, leaving it 1.16% off its record close of 34,541.27 on March 2.
Going in to today, month-to-date the index was up 0.51% and year-to-date was up 2,426.12 points or 7.65%.
Despite a ceasefire being in place for over a month, the U.S.-Iran conflict remains unresolved, noted National Bank in its Monthly Fixed Income Monitor for May.
"For now, all we can say with certainty is that the Strait of Hormuz remains effectively shuttered, keeping oil prices elevated," the bank said, before adding this oil supply shock only adds to an inflation backdrop that was growing problematic before the war even began.
Meanwhile, downside employment risks continue to moderate, as the labor market appears to be strengthening, National Bank said.
"As recently as March, a majority of the FOMC anticipated delivering further rate cuts this year but this position is becoming increasingly difficult to defend.
Markets have already stripped out all the easing that was once anticipated and now see the central bank on hold all year.
We concur and expect that a June dot plot will show the same.
While not our base case, we must acknowledge that near-term hikes are a greater risk than near-term cuts," the bank added.
In Canada, data has continued to disappoint in 2026, National Bank noted.
It said the recovery seen briefly late last year is now a distant memory.
"Back then," the bank added, "expectations for tighter policy were justified by a recovering jobs market, resilient growth and warm core inflation.
Today’s hike expectations have more to do with oil-driven price pressures than underlying economic strength.
Despite markets flagging the risk of near-term hikes, we continue to judge that relatively well-contained inflation and lingering economic slack will allow the Bank to look through the shock, pushing an eventual return to neutral into 2027."
Of commodities, West Texas Intermediate crude oil closed higher a third session on the faltering ceasefire between the U.S. and Iran, which continues the largest-ever energy supply shock.
WTI oil for June delivery closed up $4.11 to settle at US$102.18 per barrel, while July Brent oil was up $3.60 to US$107.81.
But gold had moved lower by midafternoon Tuesday, dropping for a second day as the dollar and yields rose after the U.S. reported inflation continued to surge last month on higher energy prices that followed the war on Iran.
Gold for June delivery was down $43.50 to US$4,685.20 an ounce.
US
By Rita Nazareth
(Bloomberg) — A selloff in high-flying chipmakers drove stocks lower, with the market also falling alongside bonds after inflation data showed the impacts of energy disruptions stemming from the war in Iran.
The faster-than-estimated core consumer price index halted a rally in equities, with the S&P 500 dropping from a record.
The Nasdaq 100 slid almost 1%.
A gauge of semiconductor firms sank 3%.
Renewed inflation worries spurred an increase in Treasury yields, with traders boosting bets on a Federal Reserve interest-rate hike in 2027. US crude topped $102.
A blistering run in stocks from war-driven lows started showing signs of overheating, particularly in the group of tech companies that had powered gains.
The nearly 70% surge in chipmakers in just six weeks had spurred calls for a break at a time when the Iran conflict threatens to slow growth and fan inflation.
“After such a powerful earnings-driven rally, equities may simply need a breather,” said Bret Kenwell at eToro.
“While the labor market and broader economy still look stable — if not exactly robust — a disjointed Fed and rising inflation complicate matters.”
US inflation accelerated in April on rising gasoline and grocery costs, exceeding wage growth in a double whammy for already strained consumers.
The CPI rose 3.8% from a year earlier, the most since 2023.
The core gauge, which excludes food and energy, increased 2.8%.
“Inflation is roaring back — largely driven by stubbornly high oil prices — which will dominate the inflation story for the rest of the year as the conflict continues to unfold in the Middle East,” said Skyler Weinand at Regan Capital.
Given that inflation is heading in the wrong direction and the labor market is holding up, it’s very unlikely that the Fed will be able to lower rates any time soon, according to Chris Zaccarelli at Northlight Asset Management.
“The increase in the core CPI suggests high energy prices are making themselves felt throughout the economy,” said Ellen Zentner at Morgan Stanley Wealth Management.
“It doesn’t mean the Fed will pivot to rate hikes, but it does reinforce the reality that new Fed leadership won’t result in an immediate dovish shift.”
The flip side is that markets had already priced out rate cuts for 2026 heading into the report, noted Tim Urbanowicz at Innovator ETFs from Goldman Sachs Asset Management.
As long as the 10-year Treasury yield remains contained below 4.5%, it shouldn’t be a meaningful headwind for equities, he added.
On the geopolitical front, President Donald Trump said he would prioritize trade discussions during his summit with Chinese counterpart Xi Jinping this week and downplayed the amount of attention they would devote to the Iran war.
Elsewhere, UK bonds tumbled amid a political drama that’s adding pressure to a market already battered by the country’s fiscal issues.
Prime Minister Keir Starmer survived in post into Tuesday evening despite a slew of ministerial resignations which have so far failed to force his downfall.
Corporate Highlights:
* Biotech companies climbed as President Donald Trump told US Food and Drug Administration Commissioner Marty Makary is resigning.
* Alphabet Inc.’s Google is in talks with Elon Musk’s SpaceX to launch the search company’s orbital data centers, the Wall Street Journal reported.
* Wendy’s Co. jumped after the Financial Times reported that Nelson Peltz’s Trian Fund Management is seeking investor backing for a bid to take the firm private.
* Under Armour Inc. sank as its guidance for this year missed Wall Street projections, weighed down by exiting a partnership with NBA star Stephen Curry and a financial hit from the conflict in the Middle East.
* Hims & Hers Health Inc. reported a first-quarter loss and sales that missed Wall Street estimates as it faces higher costs associated with its strategic pivot to branded weight-loss medications.
What Bloomberg strategists say…
“With consumers losing their discretionary firepower as well as their confidence, optimistic earnings projections for the remainder of the year will come into question.”
—Tatiana Darie, Macro Strategist, Markets Live.
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 0.9%
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World Index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.4% to $1.1740
* The British pound fell 0.5% to $1.3539
* The Japanese yen fell 0.3% to 157.64 per dollar
Cryptocurrencies
* Bitcoin fell 1.2% to $80,821.23
* Ether fell 2.2% to $2,285.05
Bonds
* The yield on 10-year Treasuries advanced five basis points to 4.46%
* Germany’s 10-year yield advanced six basis points to 3.10%
* Britain’s 10-year yield advanced 10 basis points to 5.10%
Commodities
* West Texas Intermediate crude rose 4.4% to $102.35 a barrel
* Spot gold fell 0.4% to $4,717.38 an ounce
Have a wonderful evening everyone.
Be magnificent!
As ever,
Shima
"The fuel of our lives is the journey itself."– Bruce Springsteen-B.1949
Shima Zangeneh
Assistant to Carolann Steinhoff
Queensbury Securities Inc.
340A – 730 View Street
Victoria BC V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828