May 28, 2019 Newsletter

Dear Friends,

Tangents:
1892- Sierra Club founded.

May 28, 1970 – Retail – Proprietors and directors of the Hudson’s Bay Company (the oldest continuing incorporated company in the world) vote to transfer the head office to Winnipeg, Manitoba; dining that evening at Nelson’s Tavern in Greenwich, England, from which many of the HBC ships sailed, they are served cuisine consisting of Company favourites over the past 300 years. London, England
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PHOTOS OF THE DAY

A street performer on the Royal Mile entertains members of the public with a mass of bubbles in Edinburgh, Scotland.
CREDIT: JEFF J MITCHELL/GETTY IMAGES

Villagers in the South Downs hamlet of South Harting in West Sussex gather for the Harting Festivities held on this bank holiday date each year. The village is near the National Trust home of Uppark where HG wells often stayed. Look closely you can see the Sleep Dog trials taking place in the field to the right.
CREDIT:CHRIS GORMAN/BIG LADDER

Corgi dogs race during the Southern California “ Corgi Nationals” championship at the Santa Anita Horse Racetrack in Arcadia, California, USA. The event saw hundreds of Corgi dogs compete for the coveted fastest corgi title at the 17 race event.
CREDI: MARK RALSTON/AFP/GETTY IMAGES
Market Closes for May 28^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks dropped Tuesday after two days of gains as the U.S. market resumed trading following the Memorial Day holiday.
     The S&P/TSX Composite Index fell 0.3% to 16,297.46 in Toronto. Real estate, health care, and industrial stocks paced the decline.
     Traders are bracing for the rate decision Wednesday, and analysts surveyed expect Bank of Canada Governor Stephen Poloz will probably keep interest rates unchanged in what looks to be a prolonged hiatus, at least until after elections in October.
In other moves:
Stocks
* TILT Holdings Inc. jumped 21% 
* Osisko Mining Inc. rose 8.4% after the discovery of a new shallow gold bearing zone at its 100% owned Windfall Lake gold project 
* Enerflex Ltd. fell 6.3%, extending Monday’s drop after the CFO departure 
* MEG Energy Corp. fell 5.8%
* MediPharm Labs Corp. dropped 5.2% 
Ratings
* ALO CN: Alio Gold Downgraded to Neutral at PI Financial; PT 85 Cents 
* EDR CN: Endeavour Silver Upgraded to Buy at PI Financial; PT C$3
* WL CN: Westleaf Inc Rated New Buy at Eight Capital; PT C$1.10
* CLIQ CN: Alcanna New Buy at Eight Capital; PT C$9.50 
* FAF CN: Fire & Flower Holdings Rated New Buy at Eight Capital; PT C$2.75 
* SMU-U CN: Summit Industrial Upgraded to Buy at Desjardins; PT C$13.50
Commodities
* Western Canada Select crude oil traded at a $16.75 discount to WTI
* Gold fell 0.3% to $1,284.80 an ounce
FX/Bonds
* The Canadian dollar weakened 0.4% to C$1.3497 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.577%
US
By Vildana Hajric
     (Bloomberg) — U.S. stocks fell to the lowest since March as a rally in 10-year Treasuries rekindled concern that a key recession signal has started to flash warnings amid what could be a protracted trade dispute with China.
     The S&P 500 slumped back toward 2,800, with 10 of 11 main groups lower on the day. Selling accelerated in the afternoon session as the retreat in the 10-year yield pushed it more than 9 basis points below the rate on the three-month bill, further inverting a part of the yield curve watched for its ability to signal a recession. Bonds were in demand after President Donald Trump declared that the U.S. was “not ready” to reach a trade deal with China.
     Stalled talks in the U.S.-China trade war and escalating tensions have soured sentiment for risk assets. That’s driven sovereign bonds higher and pushed global stocks toward their first monthly decline of 2019. With the Federal Reserve reiterating last week that it remains fully in patience mode, investors have little reason to bid stocks higher.
     “Markets are coming to grips with the fact that that’s going to be a story where they won’t get a resolution anytime soon,” Shawn Cruz, manager of trader strategy at TD Ameritrade, said in a phone interview.
     Here are some key events coming up:
* China provides a first peek at its May economic performance on Friday, with economists anticipating the official manufacturing PMI will tick down to 49.9 — a contraction — amid the worsening trade war with the U.S.
* U.S. first-quarter revised GDP data are due Thursday.
     And these are the main moves in markets:
Stocks
* The S&P 500 dropped 0.8% as of 4 p.m. in New York. 
* The Nasdaq 100 Index declined 0.3%.
* The Stoxx Europe 600 Index lost 0.2%. 
* The MSCI Emerging Market Index fell 0.2%. 
* The MSCI Asia Pacific Index climbed 0.3%. 
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%, the biggest advance in a week. 
* The euro fell 0.3% to at $1.1164. 
* The Japanese yen rose 0.1% to 109.361 per dollar. 
Bonds
* The yield on 10-year Treasuries decreased six basis points to 2.26%, the lowest since September 2017. 
* Germany’s 10-year yield fell to -0.16%, the lowest in more than two years.
Commodities
* Gold futures declined 0.4% to $1,284.10 an ounce. 
* West Texas Intermediate crude gained 0.4% to $58.88 a barrel.
–With assistance from Andreea Papuc, Ksenia Galouchko and Namitha Jagadeesh.

Have a great night.

Be magnificent!
As ever,

Carolann

It isn’t where you came form, it’s where you’re going that counts.

                                                     -Ella Fitzgerald, 1917-1996

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