May 22, 2019 Newsletter

Dear Friends,

Tangents:
Just returned from an investment conference in NYC – lots of good ideas were circulating.  I did have  a couple of hours kill time, so I hopped in an Uber and went down to check out the new Hudson Yards development which recently opened.  It’s very impressive, quite a breeze that blows off the Hudson River, creating a very different climate from midtown Manhattan just a few streets away.  There will be an observation deck opening soon, though it hasn’t yet.   The Shed is a fabulous concept, intended to inject the scene with culture, attracting artists from every conceivable artistic venue.   Check it out at https://theshed.org/

Sir Arthur Conan Doyle, writer, b. 1859~”How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth?” –Sir Arthur Conan Doyle.

ICYMI
Steve Cohen was the ultimate buyer of that $91 million Koons bunny.

On this day in 1867 –

Queen Victoria decrees that Canada should come into being July 1.  Go to article »
PHOTOS OF THE DAY

A construction worker cycles to head for working in Samroang village outside Phnom Penh, Cambodia
CREDIT: AP PHOTO/HENG SINITH

A Kashmiri man removes weed from the Dal Lake early in the morning in Srinagar, Indian controlled Kashmir
CREDIT: PHOTO/MUKHTAR KHAN

An alleged work by British street artist Banksy depicting a migrant child wearing a lifejacket holding a pink flare, is painted on the outer wall of a house overlooking the canal Rio de ca Foscari, in Venice
CREDIT: MARCO SABADIN/AFP
Market Closes for May 22^nd, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1928, Thomas Boone Pickens was born in Holdenville, Okla. He later headed Mesa Petroleum, setting off the hostile takeover wars of the 1980s with an unsolicited bid to buy Cities Service Co. in 1982. In January 2018, Mr. Pickens closed the energy-focused hedge fund he ran for two decades.
Canada
By Kristine Owram
      (Bloomberg) — Canadian stocks bounced off their session lows but still closed at the lowest level in a week as a disappointing start to bank earnings season and trade tensions weighed on the benchmark.
     The S&P/TSX Composite Index lost 0.6% to 16,327.35, the biggest drop in six sessions. Materials slid 2% and energy stocks fell 1.6% following news that the White House is targeting more Chinese technology firms, which hit commodity prices.
     Financials lost 0.7% as Canadian Imperial Bank of Commerce fell about 4.3%, the most since 2011. The bank kicked off the sector’s second-quarter earnings season with a miss amid shrinking domestic mortgages and net interest income.
     In other moves:
Stocks
* First Quantum Minerals Ltd. slid 11% to the lowest since January amid escalating tensions in Zambia
* Barrick Gold Corp. fell 1.5%. The miner plans to buy the shares of Acacia Mining Plc is doesn’t already own for $285 million
* Canopy Growth Corp. gained 2.5%. The cannabis company is buying British skin-care brand This Works for 43 million pounds
Commodities
* Western Canada Select crude oil traded at a $15.50 discount to WTI
* Gold rose 0.1% to $1,274.20 an ounce
FX/Bonds
* The Canadian dollar weakened 0.2% to C$1.3430 per U.S. dollar
* The Canada 10-year government bond yield fell 4 basis points to 1.72%
US
By Vildana Hajric and Elena Popina
     (Bloomberg) — U.S. stocks fell Wednesday as trade tensions simmered, with the White House said to be preparing to blacklist more Chinese technology companies. The dollar and Treasuries held their ground after the release of meeting minutes from the Federal Reserve, which stressed a patient approach to interest- rate changes.
     The S&P 500 Index fell for the third session in four, with tech shares under pressure amid the latest developments in the trade war with China. Markets continue to run hot and cold as investors react to the near-daily salvos in the conflict, trying to size up how much damage they will bring to growth and supply chains. The Fed minutes put a damper on prospects for lower rates this year, weighing slightly on equity markets as fed funds futures showed a slight drop in the odds for a rate cut.
     “It’s kind of like a doctor — the first thing you do is do no harm,” Michael Kushma, chief investment officer of global fixed income at Morgan Stanley Investment Management, said after the minutes came out. “So if you don’t know exactly what to do, don’t do anything. Don’t give medicine if you don’t know what the implications will be. So I think it’s easy for them to justify doing nothing for an extended period of time absent some major change in fiscal policy, trade policy.”
     Energy shares slid along with crude futures after an unexpected buildup in U.S. oil and gasoline stockpiles, while retail stocks declined on disappointing earnings from Lowe’s Cos. and Nordstrom Inc.
     Retail and real estate shares led a decline in the Stoxx Europe 600 gauge. Russia’s 10-year bond yields fell to their lowest level since the emerging-market currency crisis last August, after the Finance Ministry said it would consider returning to limited bond auctions. The pound extended a decline and gilts jumped as Prime Minister Theresa May faced pressure to quit within days.
     Here are some notable events coming up:
* Counting of votes from the Indian general elections takes place Thursday as Prime Minister Narendra Modi attempts to secure a second term.
* The European Parliament holds continent-wide elections May 23-26.
* On Thursday, the ECB publishes its account of the April monetary policy decision.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.3% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.1%.
* The U.K.’s FTSE 100 Index rose 0.1%
* The MSCI Emerging Market Index fell 0.1%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.1% to a five-month high.
* The euro fell 0.1% to $1.1153.
* The British pound dipped 0.3% to $1.266.
* The Japanese yen advanced 0.1% to 110.34 per dollar.
Bonds
* The yield on 10-year Treasuries fell four basis points to 2.39%.
* Germany’s 10-year yield declined two basis points to -0.09%.
* Britain’s 10-year yield sank seven basis points to 1.015%, the biggest drop in two months.
Commodities
* West Texas Intermediate crude sank 2.9% to $61.28 a barrel.
* Gold gained 0.1% to $1,273.88 an ounce.
–With assistance from April Ma, Adam Haigh and Todd White.

Have  a great night!

Be magnificent!
As ever,

Carolann

There was another life that I might have had, but I am having this one.

                                                                -Kazuo Ishiguro, b. 1954

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