May 27, 2020 Newsletter

Dear Friends,

Tangents:
1930: Scotch Tape patented.
1937: Golden Gate Bridge opened, San Francisco.
1940: British and Allied forces begin the evacuation of Dunkirk (Operation Dynamo) during WWII.

Isadora Duncan, b. 1878.
Rachel Carson, b. 1907.
Hubert Humphries, b. 1911.

A century ago, the photographer Eugène Atget captured haunting images of empty Paris streets. Mauricio Lima has followed in his footsteps, shooting images of the same scenes, now deserted because of the pandemic. –The New York Times.

From CNN:
Why oranges are sold in red-mesh bags.
Supposedly blank Dead Sea scrolls actually have text, scientists discover. (h/t Scott Kominers for the first two kickers)
Blue bee thought to be extinct had just retired to Florida.
Roman mosaic floor found under Italian vineyard.

PHOTOS OF THE DAY

Sun Bingyin took this photo, Cinammon Rolls Cloud, showing a windy evening in Iceland.
CREDIT: SUN BINGYIN/RMETS/BAV MEDIA

Punk-haired Mary River turtle, found in Queensland, Australia
CREDIT: CHRIS VAN WYK/ZSL/PA WIRE

This morning sunrise at Glastonbury Tor in Somerset an eerie mixture of warming sunshine and chilling mist. Portending well for the continued spell of fine weather enjoyed across the country.
CREDIT: JASON BRYANT/APEX

Sunrise over the Blackmore Vale from Cadbury Castle, South Cadbury, Somerset
CREDIR: THE TELEGRAPH MAY 27^TH, 2O2O
Market Closes for May 27th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1933, President Franklin D. Roosevelt signed into law the Securities Act of 1933, requiring all issuers of stocks and bonds to publish a prospectus disclosing risks, conflicts of interest, and ownership positions. Mr. Roosevelt said, “The Act is thus intended to correct some of the evils which have been so glaringly revealed in the private exploitation of the public’s money.” 
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose Wednesday, rebounding from a late morning selloff as financials and consumer discretionary shares posted a strong session.
The S&P/TSX Composite Index gained 0.8%. Five sectors advanced, while information technology stocks fell, with Shopify Inc. losing 2.4%.
Oil fell from a nearly three-month high as investors weighed whether or not Russia would agree to extend output curbs when OPEC+ meets in two weeks.
Ontario is taking over temporary management of five more long-term care homes in the wake of a report that raised serious concerns on their handling of Covid-19 outbreaks. Extendicare Inc. fell 4.1% while Sienna Senior Living Inc. lost 5%. Royal Bank of Canada and Bank of Montreal joined their Canadian peers in setting aside record provisions for loan losses as they brace for the economic fallout from the coronavirus pandemic.
Commodities
* Western Canada Select crude oil traded at a $7.75 discount to West Texas Intermediate
* Spot gold rose 0.2% to $1,713.78 an ounce
FX/Bonds
* The Canadian dollar gained 0.1% C$1.3759 per U.S. dollar
* The 10-year government bond yield fell to 0.543%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 0.8 percent, or 123.91 to 15,272.03 in Toronto.
The index advanced to the highest closing level since March 6. Royal Bank of Canada contributed the most to the index gain, increasing 4.8 percent. Home Capital Group Inc. had the largest increase, rising 10.7 percent.
Today, 136 of 229 shares rose, while 89 fell; 5 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index rose 3.3 percent
* The index declined 6.6 percent in the past 52 weeks. The MSCI AC Americas Index gained 6.2 percent in the same period
* The S&P/TSX Composite is 15 percent below its 52-week high on Feb. 20, 2020 and 36.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.8 percent in the past 5 days and rose 4.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.2 on a trailing basis and 24.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4 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 24.67 percent compared with 25.66 percent in the previous session and the average of 37.07 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 140.8834| 3.2| 25/1
Energy | 16.4885| 0.8| 19/8
Consumer Discretionary | 13.1726| 2.5| 14/0
Communication Services | 7.4507| 0.9| 6/2
Industrials | 3.5815| 0.2| 16/15
Health Care | -1.0433| -0.6| 2/8
Consumer Staples | -1.1670| -0.2| 5/6
Utilities | -2.0230| -0.3| 9/6
Real Estate | -2.6533| -0.6| 11/15
Materials | -17.8690| -0.8| 26/21
Information Technology | -32.9217| -2.3| 3/7
US
By Katherine Greifeld
(Bloomberg) — U.S. stocks advanced for a third day on rising optimism the pandemic’s damage to the economy has peaked.
Treasuries rose and oil slipped.
The S&P 500 climbed to an 11-week high, holding above 3,000 points and its average price for the past 200 days, technical levels considered key by chart watchers. For a second day, stocks most punished by the effects of the economy shutting, from Carnival Corp. to United Airlines, performed best as
investors anticipate a sharp uptick in spending on non-essential goods and services. Stay-at-home beneficiaries from Peloton Interactive to Zoom Video Communications fell.
The Nasdaq indexes turned positive late in the session after Micron Technologies forecast earnings that were ahead of estimates, lifting chipmakers. The Russell 200 jumped more than 3%, and the Dow Jones Industrial Average surged 2.2%, led by American Express and Goldman Sachs.
The recent equity rally “is an indication that investors are getting optimistic about the reopening of the economy and the drug-treatment development,” Katerina Simonetti, senior portfolio manager at UBS Private Wealth, said on Bloomberg TV.
“We hope that it will eventually lead to a normalization in the market, but we have to keep an eye on the re-emergence of virus cases.” Rising tensions with China continued occupy part of investors’ minds. Secretary of State Mike Pompeo said the U.S. has certified that Hong Kong is no longer politically autonomous from China, a move that could have far-reaching consequences on its special trading status. On Tuesday, reports indicated the U.S. was considering sanctions over Beijing’s crackdown in the former British colony. Futures on the Hang Seng index fell.
The Stoxx Europe 600 Index ended higher and Italy’s government bonds rose after details emerged of Europe’s package of grants and loans for up to 750 billion euros ($823 billion) to overcome the region’s deepest recession in living memory. The euro gained.
Investors are closely watching the new U.S.-China friction — including possible sanctions over Beijing’s crackdown in Hong Kong — as global stocks trade near levels not seen since early March on hopes that economies are beginning to recuperate after a deep downturn. The Federal Reserve’s “Beige Book” survey due for release later Wednesday may provide clues on the inflection point for the economy and near-term outlook for jobs.
Here are some key events coming up:
* Thursday brings the U.S. jobless claims reading for the week ended May 23.
* Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.
* Euro-area data due Friday is forecast to show consumer inflation fell to 0.1% on May from 0.4% the previous month.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1.5% as of 4 p.m. New York time.
* The Nasdaq 100 climbed 0.6% and the Russell 2000 added 3.1%.
* The Stoxx Europe 600 Index advanced0.2%.
* The MSCI Asia Pacific Index was little changed.
Currencies
* The Bloomberg Dollar Spot Index increased 0.2%.
* The euro increased 0.2% to $1.0998.
* The Japanese yen weakened 0.2% to 107.77 per dollar.
* The British pound declined 0.6% to $1.226.
Bonds
* The yield on 10-year Treasuries fell three basis points to 0.67%.
* Germany’s 10-year yield rose one basis point to -0.42%.
* Britain’s 10-year yield decreased two basis points to 0.19%.
Commodities
* West Texas Intermediate crude dipped 5.7% to $32.40 a barrel.
* Gold weakened 1% to $1,711.20 an ounce.
–With assistance from Michael Msika and David Wilson.
Have a  great night.

Be magnificent!
As ever,

Carolann

It does not require many words to speak the truth.
                               -Chief Joseph, 1840-1904

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