May 19, 2020 Newsletter

Dear Friends,

Tangents:
May 19, 1536: Anne Boleyn, second wife of King Henry VIII, is beheaded at the Tower of London on charges of adultery, incest and treason.
On May 19, 1935, T.E. Lawrence, also known as “Lawrence of Arabia,” died in England from injuries sustained in a motorcycle crash. Go to article »
May 19, 1936, Gone with the Wind  is published.

Bill Gates has chosen his five favorite books for summer reading. The annual list includes something for all tastes.-The Seattle Times.
Today in History: from The Seattle Times

In 1792, a British ship drops anchor between Bainbridge and Blake islands, and Capt. George Vancouver begins surveying the area. The expedition charts and names landmarks, including Mount Rainier, Whidbey Island, Hood Canal and Puget Sound. Legend has it that a young Chief Seattle witnesses the ship’s arrival. Vancouver is seeking to discover the fabled Northwest Passage linking the Pacific and Atlantic oceans, and he shows no interest in the area containing the future city of Seattle.

A priest used a squirt gun to fire holy water at congregants. Now, he’s a meme
Strange times call for strange measures. -CNN.

PHOTOS OF THE DAY

Bogart the bulldog, who loves watching the street through a hole in the fence, went viral after his owners painted costumes around the hole and posted the video online.
CREDIT: JAME PRESS

Two frogs on a lotus leaf in the morning, Ningbo City, Zhejiang Province, China.
CREDIT: COSTFOTO/BARCROFT MEDIA VIA GETTY IMAGES

Rose breeder Philip Harkness prunes his “Wonderful World” a new variety of climbing Rose that was due to be unveiled at The Chelsea Flower Show. It is the only rose of its kind with dusky chocolate orange petals that has taken Philip eight years to develop as a variety at Harkess Roses in Hitchen, Hertfordshire, UK.
CREDIT: DAVID ROSE FOR THE TELEGRAPH

Market Closes for May 19^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1553, one of the earliest business ventures financed by selling stock to the public was launched, as three ships—the Bona Speranza, the Edward Bonaventure, and the Bona Confidentia—set out from Gravesend in England seeking “discoverie of new trades northe warde” in Russia. The Russia Company, or Muscovy Company, had raised 6,000 pounds from more than 200 investors at 25 pounds per share. But the company earned no money for at least three decades, and many of its investors died without ever receiving a dividend.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose after Monday’s Victoria Day Holiday closure while U.S. stocks fell for the first time in four sessions after reports circulated that Moderna Inc.’s vaccine study, which was credited in part for Monday’s rally, didn’t produce enough critical data to assess its success. The S&P/TSX Composite Index gained 1.7%, with 10 of eleven sectors rising. Health-care shares rallied while real estate also posted a strong session. Information technology was the only laggard. Oil gained in a day of choppy trading as investors weighed supply cuts and a demand rebound against an ominous economic outlook from the Federal Reserve. Gold and most industrial metals held gains as investors digested U.S. congressional testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin. The U.S. and Canada will keep their border shut to non- essential travel for an additional month as efforts to prevent the spread of Covid-19 are extended. Ontario will keep public schools closed through the end of the academic year in June.
Commodities
* Western Canada Select crude oil traded at a $8.75 discount to West Texas Intermediate.
* Spot gold rose 0.8% to about $1,746 an ounce.
FX/Bonds
* The Canadian dollar rose 0.01% to C$1.3935 per U.S. dollar.
* The 10-year government bond yield rose 5.5 basis points to 0.598%

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 1.7 percent, or 246.58 to 14,885.48 in Toronto. The move was the biggest since rising 2.9 percent on April 29. Today, financials stocks led the market higher, as 10 of 11 sectors gained; 199 of 229 shares rose, while 30 fell. Canadian National Railway Co. contributed the most to the index gain, increasing 3.1 percent. Aurora Cannabis Inc. had the largest increase, rising 32.9 percent.
Insights
* In the past year, the index had a similar or greater gain 18 times. The next day, it declined 12 times for an average 3.4 percent and advanced six times for an average 1.8 percent
* The index declined 9.2 percent in the past 52 weeks. The MSCI AC Americas Index gained 1 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 down 1.4 percent in the past 5 days and rose 3.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.6 on a trailing basis and 22.9 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$2.22t
* 30-day price volatility fell to 26.73 percent compared with 29.87 percent in the previous session and the average of 50.32 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 75.9619| 1.9| 22/4
Industrials | 49.7248| 3.0| 30/1
Energy | 46.2722| 2.3| 27/3
Utilities | 16.7765| 2.2| 15/1
Consumer Discretionary | 14.7024| 3.1| 13/1
Materials | 14.3649| 0.6| 38/9
Consumer Staples | 14.3589| 2.2| 10/1
Real Estate | 14.2655| 3.3| 24/2
Health Care | 14.2371| 10.0| 8/2
Communication Services | 4.3369| 0.5| 5/3
Information Technology | -18.4095| -1.3| 7/3
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks fell for the first time in four sessions after reports circulated that Moderna Inc.’s vaccine study, which was credited in part for Monday’s rally, didn’t produce enough critical data to assess its success. Crude oil and Treasuries gained. The S&P 500 and Nasdaq Composite turned negative in the last hour of trading, while the Dow Jones Industrial Average extended its losses. Equities had fluctuated much of the day after optimism over the drug as a potential coronavirus vaccine sent the S&P up the most Monday in almost six weeks. Crude oil rose for a fourth day. “We’re going to continue to see volatility because every day the market’s taking any little piece of information it has about things and prices it in,” said Peter Mallouk, president and chief investment officer of Creative Planning. “Every day it’s taking every little piece of information and it’s instantly pricing it in. Everything else is a derivative of Covid-19 now.” Earlier, Federal Reserve Chairman Jerome Powell reiterated during a Senate hearing that the central bank is ready to use all the weapons in its arsenal to help the U.S. economy endure the coronavirus pandemic. The Stoxx Europe 600 Index retreated as investors showed little reaction to both news of a $546 billion recovery fund for the region and a surprise jump in German investor confidence. European government bonds were mixed. Sterling strengthened after the U.K. announced plans for 30 billion pounds ($37
billion) in tariff cuts after Brexit.
Riskier assets had started the week on the front foot after the Moderna news fueled hopes for a coronavirus vaccine, but investors are struggling to maintain the optimism as they continue to monitor efforts to both contain the pandemic and restart economies. “A vaccine would be a bullish game changer, and stocks reacted accordingly,” Tom Essaye, author of “The Sevens Report” newsletter, wrote in a note. “But one day doesn’t make a sustainable move.” Headwinds remain for stocks, not least a deteriorating U.S.-China relationship. In a further sign of tightening scrutiny on capital flows to the Asian nation, Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange. Asian equities rallied, tracking the big gains on Wall Street from a day earlier.
These are some of the main moves in markets:
Stocks
The S&P 500 Index dipped 1% to 2,922.94 as of 4:01 p.m. New York time.
The Dow Jones Industrial Average sank 1.6% to 24,206.86.
The Nasdaq Composite Index fell 0.5% to 9,185.11.
The Stoxx Europe 600 Index decreased 0.6% to 339.49.
The MSCI All-Country World Index declined 0.2% to 490.82.
Currencies
The Bloomberg Dollar Spot Index was little changed at 1,247.67, the lowest in more than a week.
The euro advanced 0.1% to $1.0924, the strongest in more than two weeks.
The Japanese yen depreciated 0.4% to 107.73 per dollar, the weakest in almost four weeks on the biggest decrease in more than a week.
The British pound increased 0.5% to $1.2253, the strongest in a week.
Bonds
The yield on two-year Treasuries declined one basis point to 0.17%, the biggest fall in a week.
The yield on 10-year Treasuries fell four basis points to 0.69%, the largest fall in a week.
Germany’s 10-year yield gained less than one basis point to -0.46%, the highest in more than three weeks.
Britain’s 10-year yield decreased one basis point to 0.245%.
Commodities
West Texas Intermediate crude advanced 2.1% to $32.50 a barrel, the highest in more than two months.
Gold strengthened 0.8% to $1,746.21 an ounce, the highest in more than seven years.

Have a great night.

Be magnificent!

As ever,

Carolann

Tact is the knack of making a point without making an enemy.
                                         -Sir Isaac Newton, 1643-1727

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