October 03, 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

Gardener David Brown trimming the largest wall of Boston Ivy in the UK at St John’s College Cambridge.
CREDIT: GEOFF ROBINSON

The Royal Air force Aerobatic Team, The Red Arrows flypast the Golden Gate Bridge, San Francisco. The Red Arrows are currently deployed on Exercise, it is the first time they have been to North America since 2008 and the deployment will be the most ambitious tour of Canada and the United States ever undertaken by the team.
CREDIT: SGT ASHLEY KEATES- RAF

A woman in yukata (casual summer kimono) poses for a photo at Fushimi Inari Taisha in Kyoto, Japan.
CREDIT: MATTHEW CHILDS/REUTERS

Market Closes for October 03^rd, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2008, in the depths of the financial crisis, President Bush signed into law a $700 billion plan to rescue the U.S. financial system after the House reversed itself and voted to pass the legislation.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities gained Thursday after falling for the past four sessions. The S&P/TSX Composite rose 0.4% to 16,369.03 in Toronto. Marijuana-exposed stocks rebounded while Shopify Inc. led information technology shares higher. Eight of the 11 main sectors gained. Linamar Corp. lost 10% after flagging softening conditions in key markets. CIBC downgraded the stock while BMO defended the auto-parts firm.
Commodities
* Western Canada Select crude oil traded at a $14.35 discount to WTI
* Gold spot price rose 0.4% to $1,505.90 per ounce
FX/Bonds
* The Canadian dollar remained flat at C$1.3335 per U.S. dollar
* The Canada 10-year government bond yield fell 6 basis points to 1.246%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — U.S. stocks advanced as investors ramped up bets that the Federal Reserve will cut rates this month to shore up an economy showing increasing signs of weakness. Treasuries rallied. The S&P 500 rose the  most in a month after roaring back from a drop of more than 1% sparked by the weakest reading on the services sector in three years. Odds the Federal Reserve cuts at its next meeting spiked as the data came just after the worst factory numbers in a decade. Investors are also finding their footing after the benchmark fell around 3% over the last two sessions, with one of the hardest hit sectors, tech, pacing gains. The yield on 10-year Treasurie dropped for the sixth straight day, while the dollar fell for a third time in a row.
     “This downturn is starting to spread and that means the tea leaf readers at the Fed are going to be teeing up a third rate cut this year when they next meet again at the end of this month,” said Chris Rupkey, chief financial economist at MUFG Union Bank. “Policymakers are going to need a bigger gun to stop this avalanche of bad news from dragging down business and consumer confidence even further. Rate cuts are coming. Lots of them. Bet on it.” This week’s march of weak data confirmed investor concerns that the global economy is struggling for traction, and may be seeping from the manufacturing sector into consumer sentiment, as the U.S.-China trade war churns in the background. That’s also driving bets that the Fed will pump more stimulus into the economy this year. Focus now turns to the nonfarm payrolls figure on Friday, when Federal Reserve Chairman Jerome Powell will also speak. Elsewhere, the yen continued to strengthen along with gold. West Texas crude fell below $53 a barrel.
Here are some key events coming up this week:
* The monthly “nonfarm” jobs report is due on Friday.
* Federal Reserve Chairman Jerome Powell is set to speak Friday.
* The Reserve Bank of India sets policy on Friday.

Here are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.8%, the most since Sept. 5, at 4 p.m. New York time.
* The Nasdaq Composite Index gained 1.1%, while the Dow Jones Industrial Average added 0.5%.
* The Stoxx Europe 600 Index was little changed.
* FTSE 100 Index dropped 0.6%.
* The MSCI Emerging Market Index increased 0.3%.
Currencies
* The Bloomberg Dollar Spot Index declined 0.2%.
* The euro rose 0.1% at $1.0970.
* The British pound climbed 0.3% to $1.2343.
* The Japanese yen rose 0.3% to 106.88 per dollar.
Bonds
* The yield on 10-year Treasuries dipped six basis points to 1.53%.
* The yield on two-year Treasuries fell nine basis points to 1.39%.
* Germany’s 10-year yield sank five basis points to -0.60%.
* Britain’s 10-year yield decreased four basis points to 0.458%.
Commodities
* West Texas Intermediate crude fell 0.7% to $52.26 a barrel.
* Gold rose 0.2% to $1,511.00 an ounce.

–With assistance from Steve Matthews, Adam Haigh, Todd White
and Molly Smith.

Have a great evening.

Be magnificent!
As ever,

Isabel

I think all great innovation are built on rejections.
                                     – Louise Nevelson, 1899-1988

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
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www.carolannsteinhoff.com