November 3, 2020 Newsletter

Dear Friends,

Tangents:
Visit the drastic cliffs and clear waters of Asturias, a region in Spain nicknamed Natural Paradise.
Asturias boasts a range of biosphere reserves and forests — oak, beech, chestnut, birch — and a mostly unspoiled coastline, with turquoise blue waters surrounded by imposing cliffs and green pastures. Once an industrial and mining powerhouse, a third of the area is now environmentally protected. -NYT

1911 The Chevrolet Motor Car Co. was founded in Detroit by Louis Chevrolet and William C. Durant.  Go to article »
PHOTOS OF THE DAY

Hurricane Eta is seen churning in the Caribbean Sea toward Nicaragua in this satellite image taken over the Gulf of Mexico. U.S. 
CREDIT: NOAA/HANDOUT VIA REUTERS

The whale’s tail of a sculpture caught the front carriage of a metro train as it rammed through the end of an elevated section of rails with the driver escaping injuries in Spijkenisse, near Rotterdam, Netherlands.
CREDIT: AP PHOTO/PETER DEJONG

Autumnal scene as boats float in Killin, Stirlingshire after heavy rains during Storm Aiden, Scotland.
CREDIT: ROBERT PERRY
Market Closes for November 3^rd, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Anxious About Election Day? So Is Everybody Else: Nervous or exhausted, a bipartisan crop of Americans are planning strategies for Tuesday including sorting Legos and anchoring outside of cellphone reach.
With the pandemic pounding the travel industry, major hotel operators such as Marriott International, Hilton Worldwide and Hyatt Hotels are dipping their toes into the personal-office business.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose for a second straight session ahead of results from Tuesday’s U.S. presidential election.
The S&P/TSX Composite Index gained 1.5%, most since September 9. Ten of eleven sectors rallied, with health care being the only laggard. Tech and financials led the way.
Oil rose to the highest in a week alongside a broad market rally, drawing support from signs that OPEC+ may delay a planned output increase as well as a weaker dollar.
Ontario unveiled a new five-color system for deciding when to ramp up or relax Covid-19 restrictions and said it will allow restaurants, gyms and other businesses to reopen in some regions where they’re currently closed.
Commodities
* Western Canada Select crude oil traded at a $9.30 discount to West Texas Intermediate
* Spot gold rose +0.6% to $1,907 an ounce
FX/Bonds
* The Canadian dollar rose 0.5% to C$1.3149 per U.S. dollar
* The 10-year government bond yield rose 5.2 basis points to 0.688%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 1.5 percent, or 242.28 to 15,939.15 in Toronto. The move was the biggest since rising 1.8 percent on Sept. 9.
Today, financials stocks led the market higher, as 10 of 11 sectors gained; 183 of 223 shares rose, while 38 fell. Brookfield Asset Management Inc. contributed the most to the index gain, increasing 5.8 percent. Hudbay Minerals Inc. had the largest increase, rising 7.9 percent.
Insights
* This year, the index fell 6.6 percent, heading for the worst year since 2018
* The index declined 3.9 percent in the past 52 weeks. The MSCI AC Americas Index gained 9.8 percent in the same period
* The S&P/TSX Composite is 11.3 percent below its 52-week high on Feb. 20, 2020 and 42.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 0.5 percent in the past 5 days and fell 1.6 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 25.4 on a trailing basis and 21.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.41t
* 30-day price volatility rose to 15.69 percent compared with 15.27 percent in the previous session and the average of 14.92 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 105.2412| 2.3| 25/1
Information Technology | 38.6519| 2.6| 10/0
Industrials | 33.2768| 1.7| 24/4
Energy | 18.9741| 1.1| 20/2
Consumer Discretionary | 12.2451| 2.2| 11/2
Materials | 11.3981| 0.5| 39/13
Consumer Staples | 9.2953| 1.4| 7/4
Utilities | 9.1087| 1.1| 15/1
Real Estate | 7.0413| 1.4| 22/4
Communication Services | 2.7577| 0.3| 5/2
Health Care | -5.7106| -3.3| 5/5
US
By Claire Ballentine and Kamaron Leach
(Bloomberg) — U.S. stocks capped the biggest two-day rally since September, led by a surge in bank shares as Treasury yields spiked on speculation that Congress will deliver a spending bill once the election is decided. The dollar weakened
and crude oil increased the most in almost a month.
The S&P 500 climbed 1.8%, bringing the two-day increase to 3.2%. Financial firms rallied 2.2%, also the most since September. Democratic nominee Joe Biden leads President Donald Trump in the final polls, with some investors speculating his victory would bring a surge in federal spending.
     Meanwhile, Alibaba Group Holding Ltd.’s U.S.-traded shares tumbled 8.1% after China halted the initial public offering of Ant Group Co., in which Alibaba owns about a one-third stake. Treasuries fell and a gauge of the dollar dropped the most in more than three weeks as a risk-on mood prevailed. Oil extended gains after jumping on Monday on increasing signs OPEC+ will delay a planned easing of output cuts.
“It’s a reflection of the market’s belief there is not going to be a whole lot of uncertainty after election day,” said Matt Stucky, portfolio manager for equities at Northwestern Mutual Wealth Management Co. “The worst outcome for election day is a really uncertain winner scenario where it’s going to take weeks and a lot of legal back and forth before the decision is ultimately made.”
While trades reflecting a Democratic sweep held firm, betting markets aren’t convinced. One gauge slipped to just over 50% odds of the so-called Blue Wave — that Democrats oust President Trump and take Congressional majorities. Traders hedged prospects of post-vote volatility, driving a measure of expected swings in China’s yuan to its highest level in more than nine years. ”The ghost of 2016, from both polling and market expectations, looms large,” Michael Purves, chief executive officer of Tallbacken Capital Advisors, wrote in a note.
Elsewhere, the benchmark credit derivatives index measuring the perceived risk of U.S. high-yield companies gained by the most in almost two months, implying lower probability of default. Markets are reflecting more optimism following weeks of speculation that a contested election outcome may produce no clear winner for some time and roil markets. Polls continue to indicate that Biden is ahead, though the race looks tight in some battleground states, some of which are seeing virus cases soar.
“The market’s upward bias, and underlying leadership of energy, industrials, and materials sectors, imply a Blue wave that incorporates the potential for the passage of stimulus and infrastructure spending bills,” said Sam Stovall, chief investment strategist at CFRA Research.
In Europe, mining shares climbed, helped by the slumping dollar. Banks rallied after BNP Paribas SA joined its European peers in posting lower-than-expected bad-loan provisions from the pandemic.

These are some key events coming up:
* EIA crude oil inventory report on Wednesday.
* Fed policy decision on Thursday.
* The key U.S. non-farm payrolls report is due Friday.
* Earnings are due this week from companies including Alibaba Group Holding Ltd.,  AstraZeneca Plc, Nintendo Co., Macquarie Group Ltd. and Toyota Motor Corp.

These are some of the main moves in financial markets:
Stocks
* The S&P 500 Index jumped 1.8% to 3,369.16 as of 4:05 p.m. New York time, the highest in a week on the largest surge in more than four weeks.
* The Dow Jones Industrial Average surged 2.1% to 27,480.03, the highest in more than a week on the biggest jump in 16 weeks.
* The Nasdaq Composite Index increased 1.9% to 11,160.57, the largest climb in more than three weeks.
* The MSCI All-Country World Index surged 1.8% to 567.82, the highest in a week on the biggest jump in almost four months.
Currencies
* The Bloomberg Dollar Spot Index decreased 0.5% to 1,166.86, hitting the lowest in a week with the first retreat in a week and the largest dip in more than three weeks.
* The euro climbed 0.6% to $1.1713, the first advance in more than a week and the biggest increase in five weeks.
* The Japanese yen strengthened 0.2% to 104.55 per dollar, the largest gain in a week.
Bonds
* The yield on 10-year Treasuries climbed four basis points to 0.89%, the highest in five months.
* The yield on 30-year Treasuries increased five basis points to 1.66%, the highest in more than a week.
* Germany’s 10-year yield gained two basis points to -0.62%, the highest in a week on the biggest rise in more than a week.
Commodities
* West Texas Intermediate crude climbed 2.8% to $37.83 a barrel, the highest in a week.
* Gold strengthened 0.6% to $1,907.13 an ounce, the highest in a week.
–With assistance from Vildana Hajric.

Have a great night.

Be magnificent!
As ever,

Carolann

Generosity is giving more than you can, and pride is taking less than you need.
                                                                       -Kahlil Gibran, 1883-1931

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