October 28, 2020 Newsletter

Dear Friends,

Tangents:
Bill Gates, Microsoft founder, b. 1955
Julia Roberts, actress, b. 1967.

1636- Harvard University founded.
October 28, 1904: St. Louis police try a new investigation method – fingerprints.
On Oct. 28, 1886, the Statue of Liberty, a gift from the people of France, was dedicated in New York Harbor by President Grover Cleveland. Go to article »

Weekly Dives to the Titanic Will Begin in May.

The expeditions will be the first in 15 years to take guests to the famous wreck.

PHOTOS OF THE DAY

Kashmiri farmers pluck saffron flowers from a saffron field in Pampore, the summer capital of Indian Kashmir. The saffron growers said this year the yield has been low so far due to less rainfall. Pampore is famous for its high quality saffron and Kashmir is the only place in India and one of the few places in the world, where the world’s most expensive spice grows.
CREDIT: FAROOQ KHAN/EPA-EFE/SHUTTERSTOCK

A nursery assistant at Arden Lea Nurseries, Hesketh Bank, Lancashire, inspects the cyclamen which will be shortly leaving the Nursery and heading for the Christmas market. They bloom continuously throughout the winter months.
CREDIT: LORNE CAMPBELL/GUZELIAN

Residents are silhouetted as they watch the Blue Ridge Fire burning in Yorba Linda, California, U.S.
CREDIT: RINGO CHIU/REUTERS

Market Closes for October 28th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The yuan stabilized on Wednesday in both the onshore market and in freer offshore markets in Hong Kong and elsewhere, after having surged in recent months. China is giving investors more power in setting the value of the yuan, a move analysts said was likely intended to boost the currency’s international appeal rather than to drive it lower.

Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks fell with global markets as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic. The S&P/TSX Composite Index fell 2.7%, the most since June 11, and dipped below its 200-day moving average for the first time since Sept. 23. All 11 main industry groups were in the red, with materials, tech and energy leading the way lower. Gold fell to a three-week low as the U.S. dollar rose on haven demand amid escalating concern about the European virus spike. Oil also plunged with rising U.S. stockpiles adding to virus woes. Meanwhile, The Bank of Canada reinforced its commitment to keeping interest rates at historical lows over the next few years to support an economic recovery that’s being hampered by a second wave of Covid-19 cases.
Commodities
* Western Canada Select crude oil traded at a $10.35 discount to West Texas Intermediate
* Spot gold fell 1.7% to $1,876 an ounce
FX/Bonds
* The Canadian dollar fell about 1% to C$1.3314 per U.S. dollar
* The 10-year government bond yield fell slightly to 0.592%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 2.7 percent, or 434.37 to 15,586.57 in Toronto. The move was the biggest since falling 4.1 percent on June 11. Today, materials stocks led the market lower, as all sectors lost; 216 of 223 shares fell, while 7 rose. Shopify Inc. contributed the most to the index decline, decreasing 4.0 percent. Silvercorp Metals Inc. had the largest drop, falling 11.1 percent.
Insights
* In the past year, the index had a similar or greater loss 12 times. The next day, it advanced 10 times for an average 4.1 percent and declined twice for an average 6.7 percent
* This month, the index fell 3.3 percent
* This year, the index fell 8.7 percent, heading for the worst year since 2018
* The index declined 4.9 percent in the past 52 weeks. The MSCI AC Americas Index gained 7.7 percent in the same period
* The S&P/TSX Composite is 13.3 percent below its 52-week high on Feb. 20, 2020 and 39.5 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 4 percent in the past 5 days and fell 4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24 on a trailing basis and 22.3 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$2.46t
* 30-day price volatility rose to 15.34 percent compared with 13.26 percent in the previous session and the average of 14.87 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -112.1088| -4.5| 1/51
Financials | -106.7500| -2.4| 0/26
Information Technology| -62.2407| -3.7| 0/10
Energy | -47.8623| -2.8| 0/23
Industrials | -31.9911| -1.6| 1/27
Communication Services| -21.6721| -2.6| 0/7
Utilities | -17.1325| -2.0| 0/16
Consumer Discretionary| -14.5327| -2.5| 0/13
Consumer Staples | -8.6708| -1.3| 1/10
Real Estate | -7.1589| -1.4| 3/24
Health Care | -4.2663| -2.6| 1/9

US
By Sarah Ponczek and Claire Ballentine
(Bloomberg) — Stocks tumbled in the U.S. and Europe as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic. The S&P 500 Index fell 3.5%, the biggest drop since June, amid a surge in Covid-19 hospitalizations, especially in the Midwest. Energy shares sank with oil prices, and technology stocks were also among the worst performers, with Microsoft Corp. down after a disappointing forecast. The VIX Index, a measure of expected U.S. equity volatility, climbed to the highest level since June. The U.S. and European stock benchmarks are both down more than 5% this week as virus cases surge and after American lawmakers failed to agree on an economic aid package before the Nov. 3 election. Analysts are also warning about increased volatility ahead of the presidential vote and in its aftermath, with some saying that a contested outcome is still a worrisome possibility.
“We’ve obviously got the election hanging over our heads. Then obviously Covid accelerating to the degree that it has both here in the U.S. as well as in Europe,” said Lori Heinel, deputy global chief investment officer at State Street Global Advisors. “And then you’ve got the lack of stimulus, which in our estimation is still necessary to get us through this period until we get an ultimate medical solution. It’s the triple whammy right now.” The Stoxx Europe 600 Index fell to a five-month low, losing 3% as German Chancellor Angela Merkel reached a deal for a one- month partial lockdown to curb the spread of the virus. After the market closed, France imposed a new nationwide lockdown.
Elsewhere, oil fell sharply on concern raging infections will sap demand. The dollar jumped and gold slumped. An exchange-traded fund tracking junk-rated corporate bonds fell to a one-month low. Bitcoin headed to its biggest drop in a month. In Asia, stocks fared better. The MSCI Asia Pacific Index edged lower, and markets in South Korea and Shanghai posted modest gains. In China, indicators tracked by Bloomberg showed the recovery continued to display mixed signals while remaining broadly steady in October.
These are some events to watch this week:
* Bank of Japan and the European Central Bank have monetary policy decisions Thursday, followed by briefings from Governor Haruhiko Kuroda and President Christine Lagarde.
* The Chinese Communist Party’s Central Committee holds its plenum through Friday, where it’s expected to chart the course for the economy’s development for the next 15 years.
* Brexit negotiating teams have started intense daily talks, and these are likely to continue as both sides push to finalize a deal by the middle of November.
* The first reading of U.S. third-quarter 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 dropped 2.8% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index decreased 3%.
* The MSCI Asia Pacific Index fell 0.5%.
Currencies
* The Bloomberg Dollar Spot Index increased 0.6%.
* The British pound declined 0.5% to $1.2981.
* The Japanese yen gained 0.1% to 104.35 per dollar.
Bonds
* The yield on 10-year Treasuries was little changed at 0.77%.
* Germany’s 10-year yield fell one basis point to -0.63%.
* Britain’s 10-year yield decreased two basis points to 0.21%.
Commodities
* West Texas Intermediate crude sank 5.6% to $37.36 a barrel.
* Gold weakened 1.6% to $1,878.26 an ounce.
–With assistance from Adam Haigh, Greg Ritchie, Todd White and Sophie Caronello.

Have a great night.

Be magnificent!
As ever,

Carolann

There is no traffic jam along the extra mile.
                       -Roger Staubach, b.1942

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