October 27, 2020 Newsletter

Dear Friends,

Tangents:
Theodore Roosevelt, 26^th US President, b.  1858
Marlene Dietrich, b. 19014
Dylan Thomas, poet, b. 1914
Sylvia Plath, poet, b. 1932
Fran Lebowitz, author, b. 1950

October 27^th, 1982: China announces its population has reached 1 billion plus people. Go to article>>

Asteroid Bennu has been hanging out with Earth for over a million years.   It’s been here all this time but has never hung out with us? … Oh, wait. –CNN

PHOTOS OF THE DAY

Surfers and bodyboarders make the most of the huge waves pounding, world renowned surfing beach, El Confital, on Gran Canaria as Atlantic autumn swells roll in.
CREDIT: ALAN DAWSON/ALAMY LIVE NEWS

An agile bird doing the splits on reed stems. This splayed leg pose allows bearded reedlings to look out for potential predators, such as hawks, before eating reed seeds below.
CREDIT: JOHN COBHAM/SOLENT NEWS & PHOTO AGENCY

Francesca Bromham, aged 6, looks up at a 13-foot-high animatronic skeleton which forms part of Halloween display from Samsung to demonstrate the power of their SmartThings technology at The Old Bury in Stevenage, England.
The Old Bury, the oldest house in Stevenage, has been given a modern Halloween style makeover by Samsung using their SmartThings technology. The 300-year-old property has been transformed using projection mapping, a 13-foot-high animatronic skeleton, a live-action dance troupe and a field of smart-tech powered pumpkins.
CREDIT: HANDOUT/GETTY IMAGES FOR THE OLD BURY

Market Closes for October 27th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Since 1928, the market has usually risen in the last full week before a presidential election. The S&P 500 has been up in 70% of those weeks, according to Dow Jones Market Data. The gains are even more frequent if measured from the Tuesday before the election to Election Day. The index has risen in 91% of those instances.

Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets declined for a second day on Tuesday, led lower by financials stocks. The S&P/TSX Composite Index fell 0.4% in Toronto.  The financial and consumer discretionary sectors fell the most, while tech and materials stocks outperformed. Meanwhile, Cenovus Energy is planning to eliminate as much as 25% of its workforce following its acquisition of Husky Energy. Total job cuts would be about 2,150 positions with most taking place in Calgary, Alberta.
Commodities
* Western Canada Select crude oil traded at a $10.60 discount to West Texas Intermediate
* Spot gold rose 0.3% to $1,907.6 an ounce
FX/Bonds
* The Canadian dollar rose 0.3% to C$1.3170 per U.S. dollar
* The 10-year government bond yield fell to 0.599%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.4 percent, or 58.61 to 16,020.94 in Toronto. The index dropped to the lowest closing level since Sept. 24. Royal Bank of Canada contributed the most to the index decline, decreasing 1.7 percent. Aurora Cannabis Inc. had the largest drop, falling 9.5 percent. Today, 121 of 223 shares fell, while 100 rose; 8 of 11 sectors were lower, led by financials stocks.
Insights
* This month, the index fell 0.6 percent
* This year, the index fell 6.1 percent, heading for the worst year since 2018
* The index declined 2.3 percent in the past 52 weeks. The MSCI AC Americas Index gained 12 percent in the same period
* The S&P/TSX Composite is 10.8 percent below its 52-week high on Feb. 20, 2020 and 43.4 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 1.6 percent in the past 5 days and fell 0.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.6 on a trailing basis and 23 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.47t
* 30-day price volatility fell to 13.26 percent compared with 13.32 percent in the previous session and the average of 14.84 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -77.4798| -1.7| 6/20
Energy | -10.2393| -0.6| 7/16
Consumer Discretionary | -9.2112| -1.6| 7/6
Industrials | -6.3311| -0.3| 12/15
Communication Services | -5.0732| -0.6| 1/6
Consumer Staples | -3.2592| -0.5| 4/7
Utilities | -2.9483| -0.3| 5/11
Real Estate | -1.6270| -0.3| 6/21
Health Care | 0.2524| 0.2| 5/4
Materials | 23.1039| 0.9| 41/11
Information Technology | 34.2105| 2.1| 6/4

US
By Vildana Hajric
(Bloomberg) — Tech shares rose after Advanced Micro Devices Inc. announced a $35 billion takeover of another chipmaker, helping to blunt concern about the impact of growing coronavirus infections. Oil climbed. The tech strength wasn’t enough to buoy the S&P 500 Index, which declined for a second straight day. Almost four stocks fell for every one that rose, with banks bearing the brunt of selling. Xilinx Inc. surged after agreeing to be bought by AMD. Megacap tech names including Amazon.com Inc. and Apple Inc. also gained as investors sought out companies that fare well during lockdowns.
The Stoxx Europe 600 Index fell to its lowest since May amid concern about the faster spread of the coronavirus on the continent. BP Plc warned of many challenges ahead as the pace of recovery in oil demand remained uncertain. Stocks have been knocked around in recent weeks by speculation about whether lawmakers will pass a fiscal stimulus package, but with almost no possibility of that happening before Americans vote Nov. 3, investors were looking for fresh insight into corporate America’s health. A U.S. consumer confidence report came in worse than forecast Tuesday as data showed Covid-19 hospitalizations have risen at least 10% in the past week in 32 states and the nation’s capital. “Covid case counts and hospitalizations continue to rise — these will continue to be closely watched as investors gauge the likelihood of more stringent mitigation measures,” said Yousef Abbasi, global market strategist at StoneX.
Elsewhere, the dollar slipped and Treasury yields dipped. Crude oil climbed as U.S. Gulf producers shut production ahead of Tropical Storm Zeta. Bitcoin rose past $13,500, approaching levels not seen since just after the burst of the cryptocurrency market bubble almost three years ago.
These are some events to watch this week:
* The Chinese Communist Party’s Central Committee holds its all- important plenum, where it’s expected to chart the course for the economy’s development for the next 15 years. Through Oct. 29.
* Brexit negotiating teams have started intense daily negotiations, and these are likely to continue as both sides push to finalize a deal by the middle of November.
* Bank of Japan and the European Central Bank have monetary policy decisions Thursday, followed by briefings from Governor Kuroda and President Lagarde.
* The first reading of U.S. 3Q GDP Thursday is anticipated to be the strongest on record following a record dive in the prior quarter as many businesses were shuttered by the pandemic.

Here are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.3% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index decreased 1%.
* The MSCI Asia Pacific Index rose 0.2%.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.1%.
* The British pound rose 0.2% to $1.3055.
* The Japanese yen strengthened 0.3% to 104.49 per dollar.
Bonds
* The yield on 10-year Treasuries dipped three basis points to 0.77%.
* Germany’s 10-year yield decreased four basis points to -0.62%.
* Britain’s 10-year yield fell four basis points to 0.23%.
Commodities
* West Texas Intermediate crude added 2.2% to $39.42 a barrel.
* Gold strengthened 0.3% to $1,908.13 an ounce.
–With assistance from Nancy Moran, Andreea Papuc, David Wilson and Todd White.

Have a great night.

Be magnificent!
As ever,

Carolann

If you want to achieve excellence, you can get there today.  As of this second,
quit doing less-than-excellent work.
                                                 -Thomas J. Watson, 1874-1956

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