October 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

Hot air balloon fly over Albuquerque, New Mexico at the Albuquerque International Balloon Fiesta.
CREDIT: JERRY LARSON/AP

A rainbow appears over the Baltic Sea in Timmerndorfer Strand, northern Germany.
CREDIT: AP/MICHAEL PROBST

Vinatge cars race down the beach during The Race of Gentlemen in Wildwood, New Jersey, USA.
CREDIT: JOSE F. MORENO/ THE PHILADELPHIA INQUIRER

Market Closes for October 07^th, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.2 percent at 16,421.82 in Toronto. The move follows the previous session’s increase of 0.5 percent. Royal Bank of Canada contributed the most to the index decline, decreasing 0.3 percent. Hexo Corp. had the largest drop, falling 6.6 percent. Today, 127 of 233 shares fell, while 103 rose; 9 of 11 sectors were lower, led by materials stocks.
Insights
* This year, the index rose 15 percent, heading for the best year since 2016
* The index advanced 3 percent in the past 52 weeks. The MSCI AC Americas Index gained 1.7 percent in the same period
* The S&P/TSX Composite is 3.1 percent below its 52-week high on Sept. 20, 2019 and 19.2 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is down 1.4 percent in the past 5 days and fell 0.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.7 on a trailing basis and 15.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12- month basis
* S&P/TSX Composite’s members have a total market capitalizationof C$2.53 trillion
* 30-day price volatility fell to 7.58 percent compared with7.60 percent in the previous session and the average of 9.59 percent over the past month
US
By Brendan Walsh and Vildana Hajric
(Bloomberg) — U.S. equities declined as investors tried to gauge the outlook for a trade deal between China and the Trump administration. Treasuries slipped and the dollar gained. The S&P 500 Index ended the day about half a percentage point lower after bouncing between small gains and small losses in light volume. Sentiment got a boost on speculation that China is ready to do a deal, while pessimists focused on a report that senior Chinese officials have indicated the range of topics they’re willing to discuss at upcoming talks has narrowed considerably. After the close of New York markets, the U.S. placed eight Chinese technology companies on a blacklist because of alleged human-rights violations, a move that may add to tensions between the countries. In the wake of a slew of weak data and with protectionism portrayed as the main impediment to global growth, investor focus will return to foreign trade this week as Chinese Vice Premier Liu He and an entourage of officials head to Washington to resume talks with their U.S. counterparts. As economic indicators flash warnings, traders have ramped up bets for further Federal Reserve rate cuts. They’ll search for new clues on the policy path when minutes from the latest Fed meeting are released in coming days.
“Given the high level of uncertainty that’s out there and the cross-currents — the cross-currents being escalating geopolitical risks on the one hand and increased monetary easing on the part of the world’s global central banks — it’s really difficult at this point to determine which force is going to gain the upper hand,” said Ed Campbell, a portfolio manager and managing director at QMA. The Stoxx Europe 600 index climbed as foodmaker and telecom companies advanced. The pound dipped as European leaders cast doubt on reaching a Brexit agreement in time for the U.K.’s Oct.31 deadline. The dollar strengthened. Japanese equities closed little changed, while Shanghai markets are yet to re-open after holidays. Hong Kong was also shuttered for a holiday, leaving traders with limited options to respond — or not — to escalating violence in the city, where protesters set fires and vandalized train stations and banks over the weekend. The yuan dropped in offshore trading by the most since late September. Elsewhere, West Texas-grade oil steadied following its
biggest weekly decline since July.
Here are some key events coming up this week:
* Chinese Vice Premier Liu He visits Washington for trade talks with his U.S. counterparts.
* Fed Chair Jerome Powell speaks Tuesday on the final day of NABE’s annual conference in Denver; on the following day, minutes are released on the last policy meeting of the Fed’s rate-setting committee.
* Chinese President Xi Jinping and Indian Prime Minister Narendra Modi reportedly will meet at an unofficial summit.
* The U.S. releases a key measure of inflation on Thursday.

Here are the main moves in markets:
Stocks
* The S&P 500 Index slipped 0.5% at the close of trade in New York.
* The Stoxx Europe 600 Index climbed 0.7%.
* Japan’s Topix index was little changed.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%.
* The pound slipped 0.3% to $1.2296.
* The euro was little changed at $1.0975.
* The Japanese yen slipped 0.3% to 107.27 per dollar.
* The offshore yuan weakened 0.3% to 7.1312 per dollar.
Bonds
* The yield on 10-year Treasuries rose three basis points to1.56%.
* Germany’s 10-year yield rose one basis point to -0.58%.
* The U.K.’s 10-year yield rose one basis point to 0.45%.
Commodities
* West Texas Intermediate crude rose 0.2% to $52.92 a barrel.
* Gold fell 0.8% to $1,492.09 an ounce.
* Copper gained 0.5% to $2.574 a pound.

–With assistance from David Wilson, Cormac Mullen and Todd
White.

Have a great evening.

Be magnificent!
As ever,

Isabel

Don’t be seduced onto thinking that which does not make a profit is without value.
                                                           – Arthur Miller, 1915-2005

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