November 22, 2021 Newsletter

Dear Friends,

Tangents:
November 22, 1972: The United States ends the 22 year travel restriction to China.

2010: Debt-struck Ireland applied for a massive EU-IMF loan to stem the flight of capital from its banks. Go to article »
1963-John F. Kennedy assassinated.
1859-charles Darwin publishes On The Origin Of Species.

Charles DeGaulle, French leader, b.  1890.
George Eliot, author, b. 1819.
Hoagie Carmichael, composer, b. 1899.
Jamie Lee Curtis, actor, b. 1958.
Scarlett Johansson, actor, b. 1984.

Here, watch some soothing live video of bald eagles on Hilton Head Island. (h/t Alistair Lowe)

PHOTOS OF THE DAY
Sustainable Christmas trees are harvested for rental by a tree grower in De Glind. The trees are planted back after Christmas in January and grown without fertilisers or chemical pesticides
CREDIT: Koen van Weel/EPA
A winter swimming enthusiast makes their way through a partly frozen lake during snowfall at a park in Liaoning province
CREDIT: AFP/Getty Images
Polar bears spar near the Hudson Bay community in Manitoba
CREDIT: Carlos Osorio/Reuters

Market Closes for November 22^nd, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1937, the law committee of the New York Stock Exchange delivered a harshly-worded letter to William O. Douglas, chairman of the U.S. Securities and Exchange Commission, declaring that the NYSE’s leaders would refuse to appoint an independent president or even to apologize for claiming that the SEC has contributed to the stock-market crash. In response, Mr. Douglas growled, “All right, then, we’ll take the Exchange over.” It marked the end of Wall Street’s days as an unsupervised private club.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities dropped for the fourth consecutive day as technology stocks tumbled.  The S&P/TSX Composite fell 0.6 percent, or 134.26 to 21,420.77 in Toronto. Shopify Inc. contributed the most to the index decline, decreasing 4.9 percent. Docebo Inc. had the largest drop, falling 7.0 percent. In midday trading, 142 of 233 shares fell, while 86 rose; 9 of 11 sectors were lower, led by information technology stocks.
Insights
* This year, the index rose 23 percent, heading for the best year in at least 10 years
* This month, the index rose 2.2 percent
* The index advanced 26 percent in the past 52 weeks. The MSCI AC Americas Index gained 32 percent in the same period
* The S&P/TSX Composite is 1.4 percent below its 52-week high on Nov. 16, 2021 and 27.3 percent above its low on Nov. 20, 2020
* The S&P/TSX Composite is down 0.9 percent in the past 5 days and rose 1.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 16.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.4 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.4t
* 30-day price volatility rose to 9.11 percent compared with 9.00 percent in the previous session and the average of 9.84 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -91.0200| -3.4| 2/13
* Consumer Staples | -7.1588| -0.9| 2/10
* Industrials | -4.1175| -0.2| 10/19
* Health Care | -3.6342| -1.9| 1/8
* Utilities | -2.7279| -0.3| 6/10
* Real Estate | -2.1734| -0.3| 5/19
* Materials | -1.7315| -0.1| 22/30
* Consumer Discretionary | -1.0110| -0.1| 4/9
* Communication Services | 4.3204| 0.4| 4/3
* Energy | 11.3851| 0.4| 13/10
* Financials | 38.1913| 0.6| 17/11
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -82.0700| -4.9| 24.8| 41.6
* Barrick Gold | -5.3090| -1.7| 25.4| -12.0
* Brookfield Asset Management | -3.4430| -0.5| 10.2| 43.7
* Canadian Natural Resources | 6.1760| 1.5| 49.5| 69.3
* Nutrien | 8.1610| 2.4| 2.7| 43.6
* TD Bank | 18.8400| 1.6| 97.1| 29.8

US
By Vildana Hajric and Srinivasan Sivabalan
(Bloomberg) — Stocks erased gains while Treasury yields rose following President Joe Biden’s nomination of Jerome Powell to head the Federal Reserve for a second term. The dollar climbed. U.S. stocks tumbled into the close, with the S&P 500 falling more than 40 points in the final 45 minutes of trading. The index had spent all of the session higher before a sell-off in tech shares dragged it lower for the day. The Nasdaq 100 fell more than 1%, with Peloton Interactive Inc. and Docusign Inc. sliding at least 5.5%. The U.S. swaps market is now pricing in a full 25 basis point rate hike into the June Fed meeting, with a second increase seen for next November. The dollar climbed, while gold slumped more than 2% and oil gained. Biden had been considering between Powell and Lael Brainard, who he nominated to move up to Vice Chair. The Powell choice comes amid growing concern the U.S. central bank may fall behind the curve in combating sticky inflation. Consumer-price growth is surging at the fastest pace in decades and expectations for price growth are at the highest since 2013. “The whole point is it doesn’t change anything — the same issues are on his plate now, which is are they going to be right that the pop in inflation is going to be transitory and if not, what do they do about it?” David Donabedian, chief investment officer of CIBC Private Wealth Management, said by phone. “The choice about Powell’s renomination is all about continuity.”
Shares got a lift overnight from a flurry of potential deals. Vonage Holdings Corp. jumped more than 20% as Ericsson agreed to buy it.  Telecom Italia SpA surged 30% in Europe after KKR & Co. bid for it. “We’re kicking off a busier-than-you-may-think Thanksgiving week in rebound mode,” said Chris Larkin, managing director of trading at E*Trade Financial. “And while the short trading week historically is considered sleepier than others, keep in mind that over the past 15 years the U.S. stock market has tended to gain more ground the month after Thanksgiving than the month before it. So coupled with a busy economic calendar and more retail earnings, traders may have good reason to stay tuned in to the market this week.” U.S. stocks are trading at record levels, outpacing the rest of the world, as investors see few alternatives amid rising inflation and a persistent pandemic that undermines global recovery. Concerns about high valuations and the potential for the economy to run too hot on the back of loose monetary and fiscal policies have interrupted, but not stopped the rally. Oil kept gains on speculation that OPEC and its allies may adjust plans to raise production if the U.S. releases crude reserves in coordination with other nations. Delegates said that even the modest output increase they have penciled in may now be re-evaluated when the group meets next week.

Here are some key events this week:
* Eurozone, U.S. PMI data Tuesday
* Reserve Bank of New Zealand rate decision Wednesday
* U.S. FOMC minutes, consumer income, wholesale inventories, new home sales, GDP, initial jobless claims, U.S. durable goods, University of Michigan consumer sentiment. All Wednesday
* Bank of Korea policy decision Thursday
* U.S. Thanksgiving Day: U.S. equity, bond markets closed Thursday
* Bank of England Governor Andrew Bailey speaks with Mohamed El Erian at a Cambridge Union event. Thursday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4:03 p.m. New York time
* The Nasdaq 100 fell 1.2%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.5% to $1.1236
* The British pound fell 0.5% to $1.3389
* The Japanese yen fell 0.8% to 114.86 per dollar
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 1.62%
* Germany’s 10-year yield advanced four basis points to -0.30%
* Britain’s 10-year yield advanced five basis points to 0.93%
Commodities
* West Texas Intermediate crude rose 0.5% to $76.31 a barrel
* Gold futures fell 2.5% to $1,807.90 an ounce
–With assistance from Andreea Papuc, Edward Bolingbroke, Joanna Ossinger and Emily Graffeo.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

It isn’t the mountains ahead to climb that wear you out; it’s the pebble in your shoe.  –Muhammad Ali, 1942-2016.

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