November 07, 2019 Newsletter

Dear Friends,

Tangents:

Carolann is out of the office today, I will be writing the Newsletter on her behalf.

PHOTOS OF THE DAY

Visitors snap photos of a floating carpet of ribbons hanging in an installation by artist Patrick Shearn of the California-based artist group Poetic Kinetics during events celebrating the 30^th anniversary of the fall of the Berlin Wall on November 06, 2019 in Berlin, Germany.
CREDIT: SEAN GALLUP/GETTY IMAGES

Young women wearing the traditional costumes of the region sit in a horse-drawn carriage during the traditional Leonhardi pilgrimage in Bad Toelz, Germany.
CREDIT: AP PHOTO/MATTHIAS SCHRADER

A girl feeds seagull as the sun sets along Lions Park Beach in St. Joseph, Michigan.
CREDIT: DON CAMPBELL/THE HERALD-PALLADIUM VIA AP

Market Closes for November 07^th, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2008, in the grip of the financial crisis, the Labor Department said the U.S. jobless rate jumped to a 14-year high of 6.5% in October of that year.
Canada
By Aoyon Ashraf and Bloomberg Automation
(Bloomberg) — Canadian equities gained Thursday as traders assessed a slew of earnings and trade-talk signals. Energy was the best performing sector, while materials stocks fell. The S&P/TSX Composite Index rose for a fifth day, climbing 0.4%, or 60.11, to 16,805.75 in Toronto. The index advanced to the highest closing level since Sept. 23. Canadian Natural Resources Ltd. contributed the most to the index gain, rising 8.3%. Stantec Inc. had the largest increase, rising 16%.
Commodities
* Western Canada Select crude oil traded at a $22.85 discount to WTI
* Spot gold fell 1.5% to 1,467.70 an ounce
FX/Bonds
* The Canadian dollar was flat around C$1.3175 per U.S. dollar
* The Canada 10-year government bond yield rose 5 basis points to 1.616%
US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — U.S. stocks sputtered late in the session Thursday but still managed to close at a record high as traders were whipsawed by conflicting headlines on the progress of trade talks with China. Early reports that the U.S. and China were prepared to exchange tariff rollbacks pushed the S&P 500 Index higher throughout the day, but the rally lost some steam after Reuters said the plan was meeting resistance in the White House. White House economic adviser Larry Kudlow later told Bloomberg, “If there’s a phase one trade deal, there are going to be tariff agreements and concessions.” Before the Reuters report, haven assets from gold to sovereign bonds had been sinking — along with defensive stocks like utilities and real estate — as a risk-on mood gripped markets. Copper and crude jumped at least 2% before paring gains. Sovereign bonds plunged around the world on the earlier positive trade news, with the 30-year Treasury yield hitting its highest since August. Ten year French and Belgian bond yields climbed back above 0% for the first time in months, while the German equivalent surged 10 basis points. Yields remain elevated, even after the latest trade wrinkle.
Gold fell nearly $30 an ounce at one point, only recover some of that loss, but still hit a three-month low. Risk appetite had been picking up as news of progress on trade helped counter earlier reports that a preliminary accord may not happen this month as the two sides continued to wrangle over a location to sign it. But the latest headlines have left traders to wait for the next bit of news. “Until it gets signed, I think markets are going to stay cautious, which means you’re not going to price in the best-case scenario,” Chris Gaffney, president of world markets at TIAA, said by phone. West Texas crude futures traded near $57 a barrel in New York. The pound weakened after two Bank of England policy makers unexpectedly voted for an interest-rate cut.

These are the main moves in markets:
Stocks
* The S&P 500 Index gained 0.3% to 3,085.37 as of 4:00 p.m. New York time, the highest on record.
* The Stoxx Europe 600 Index advanced 0.4% to 406.56, reaching the highest in more than four years on its fifth consecutive advance.
* Germany’s DAX Index increased 0.8% to 13,289.46, hitting the highest in more than 21 months with its fifth consecutive advance.
* The MSCI Emerging Market Index climbed 0.5% to 1,074.08, the highest in about six months.
Currencies
* The Bloomberg Dollar Spot Index gained 0.1% to 1,202.08, the highest in more than three weeks.
* The euro fell 0.2% to $1.1048, the weakest in more than three weeks.
* The British pound dipped 0.3% to $1.2815, the weakest in more than three weeks.
* The Japanese yen depreciated 0.3% to 109.27 per dollar, the weakest in more than five months.
* The offshore yuan appreciated 0.6% to 6.9682 per dollar, the strongest in 14 weeks on the largest increase in more than 12 weeks.
Bonds
* The yield on 10-year Treasuries gained nine basis points to 1.92%, the highest in 14 weeks on the biggest climb in six weeks.
* The yield on two-year Treasuries advanced six basis points to 1.67%, the highest in six weeks on the largest rise in four weeks.
* Germany’s 10-year yield climbed 10 basis points to -0.23%, the highest in almost four months on the biggest surge in more than 17 months.
* Britain’s 10-year yield gained eight basis points to 0.793%, the highest in more than 16 weeks on the largest gain in almost four weeks.
Commodities
* West Texas Intermediate crude gained 1% to $56.91 a barrel.
* Gold depreciated 1.5% to $1,468.09 an ounce, the weakest in more than three months.

–With assistance from Adam Haigh, Andreea Papuc, Elena Popina,
Cecile Vannucci and Todd White.

Have a great evening.

Be magnificent!
As ever,

Isabel

Failure is not fatal, but failure to change might be.
                                                 – John Robert Wooden, 1910-2010

Isabel Luo,
Assistant to Carolann Steinhoff

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
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www.carolannsteinhoff.com