October 9, 2020 Newsletter

Dear Friends,

Tangents: Happy Friday.
John Lennon, b. 1940.

The world’s first 3D-printed boat debuted in Italy. The 6.5-meter, 800-kilogram MAMBO watercraft, made of ultra-durable fiberglass by a robotic algorithm, was a highlight of the Genoa International Boat Show. –Bloomberg.

On Oct. 9, 1967, Latin American guerrilla leader Che Guevara was executed in Bolivia while attempting to incite revolution. Go to article »

The World Food Program wins 2020 Nobel Peace Prize. 

Handwriting may engage the brain more than typing. 
PHOTOS OF THE DAY

Matthew Ball and Mayara Magri perform Carousel, If I Loved You, pas de deux by Kenneth MacMillan during the “The Royal Ballet: Back on Stage” photocall at The Royal Opera House in London
CREDIT: ALASTAIR MUIR FOR THE TELEGRAPH

People take part in a yoga class at Ocean Park’s aquarium, as a new activity to attract visitors amid a drop in tourists due to the coronavirus disease outbreak, in Hong Kong, China
CREDIT: TYRONE SIU/ REUTERS

Market Closes for October 9^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1953, trading on the New York Stock Exchange totaled just 900,000 shares, the last day (so far, at least) on which total daily trading volume was less than one million shares.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose for the second week in a row alongside U.S. stocks.
The S&P/TSX Composite Index gained 0.2% Friday to the highest level since Sept. 2, bringing its weekly gain to 2.2%.
Materials and tech shares led the way while eight of 11 sectors retreated.
     School re-openings across Canada allowed a torrent of parents to return to work, the strongest evidence yet of how critical childcare will be to a successful economic recovery.
Prime Minister Justin Trudeau unveiled a new plan Friday to help businesses pay rent amid a second wave of coronavirus in Canada.
Commodities
* Western Canada Select crude oil traded at a $9 discount to West Texas Intermediate
* Spot gold rose 1.8% to $1,928.74 an ounce
FX/Bonds
* The Canadian dollar rose 0.6% to C$1.3118 per U.S. dollar
* The 10-year government bond yield edged higher to 0.628%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.2 percent, or 28.27 to 16,562.81 in Toronto. The index advanced to the highest closing level since Sept. 2.
Shopify Inc. contributed the most to the index gain, increasing 1.9 percent. Eldorado Gold Corp. had the largest increase, rising 10.1 percent.
Today, 91 of 223 shares rose, while 123 fell; 3 of 11 sectors were higher, led by materials stocks.
Insights
* So far this week, the index rose 2.2 percent, heading for the biggest advance since the week ended Aug. 7
* This year, the index fell 2.9 percent, heading for the worst year since 2018
* The index advanced 1.1 percent in the past 52 weeks. The MSCI AC Americas Index gained 19 percent in the same period
* The S&P/TSX Composite is 7.8 percent below its 52-week high on Feb. 20, 2020 and 48.2 percent above its low on March 23, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 25.4 on a trailing basis and 23.6 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 capitalization of C$2.53t
* 30-day price volatility little changed to 16.07 percent compared with 16.06 percent in the previous session and the average of 14.22 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 80.0022| 3.2| 38/13
Information Technology | 20.8534| 1.2| 5/5
Industrials | 5.2657| 0.3| 12/16
Consumer Discretionary | -1.0526| -0.2| 7/5
Health Care | -1.5691| -0.9| 5/5
Real Estate | -1.6934| -0.3| 5/20
Utilities | -3.1483| -0.4| 6/8
Consumer Staples | -3.6531| -0.5| 3/8
Communication Services | -5.0609| -0.6| 1/6
Energy | -25.7365| -1.4| 2/18
Financials | -35.9362| -0.8| 7/19
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks rallied, with the S&P 500 posting its biggest weekly increase since July, as traders bet lawmakers are moving closer to providing more fiscal stimulus.
Treasury yields were mostly flat and the dollar slipped.
The benchmark equity gauge rose for a third day with President Donald Trump saying he now wants an even bigger package than what Democrats offered. For the week, the index finished up 3.8%. The tech-heavy Nasdaq 100 jumped 1.5% on Friday, with chip maker Xilinx Inc. leaping on a report it’s in advanced talks for a $30 billion takeover by rival Advanced Micro Devices Inc.
“We’ve had this whipsaw around wondering if there will be more fiscal stimulus, which I think we desperately need to keep the economy rolling,” said Ron Temple, head of U.S. equity at Lazard Asset Management LLC.
European stocks rose as a host of companies raised outlooks, from Denmark’s drug maker Novo Nordisk A/S to German online clothing retailer Zalando SE. Stocks fell in Spain, where the government’s cabinet met to declare a state of emergency for Madrid to control Covid-19. Italy’s 10-year bond yield fell a record low. Investors ended a volatile week with a risk-on attitude.
With Trump recuperating from Covid-19 in the final stretch of the election campaign, they’re increasingly betting a Joe Biden victory is likely. Speculation is moving now to whether Democrats will sweep Congress too and then enact massive stimulus. “There’s also the possibly you could see a Democratic sweep
in the election and that raises the prospects for higher taxes, which would be a negative, but also for really pronounced stimulus and that could take some of the more extreme risks off the table,” said Giorgio Caputo, senior fund manager at J O Hambro Capital Management Treasury Secretary Steven Mnuchin headed into talks with
House Speaker Nancy Pelosi on Friday carrying a White House offer of $1.8 trillion for economic stimulus, according to people familiar with the matter. Senate Majority Leader Mitch McConnell said earlier it was unlikely an agreement could be reached in Congress before the election.
Elsewhere, Vanguard Group Inc. returned about $21 billion in managed assets to government clients in China as part of a global shift to focus on low-cost funds for individual investors, according to people familiar with the matter.
Oil in New York edged lower with Hurricane Delta’s top sustained winds weakening as the storm approached the U.S. Gulf Coast.
These are some of the main moves in global markets:
Stocks
* The S&P 500 Index climbed 0.9% to 3,477.10 as of 4:01 p.m. New York time, the highest in more than five weeks.
* The Dow Jones Industrial Average rose 0.6% to 28,586.97, the highest in more than five weeks.
* The Nasdaq Composite Index increased 1.4% to 11,579.95, the highest in more than five weeks.
* The Nasdaq 100 Index jumped 1.5% to 11,725.85, the highest in five weeks.
* The Stoxx Europe 600 Index gained 0.6% to 370.35, the highest in more than three weeks.
Currencies
* The Bloomberg Dollar Spot Index declined 0.7% to 1,162.56, the lowest in more than three weeks on the biggest drop in six weeks.
* The euro rose 0.6% to $1.1824, the strongest in three weeks.
* The Japanese yen appreciated 0.4% to 105.61 per dollar, the strongest in a week on the biggest advance in more than three weeks.
Bonds
* The yield on 10-year Treasuries decreased one basis point to 0.77%.
* The yield on 30-year Treasuries dipped two basis points to 1.57%.
* Germany’s 10-year yield declined less than one basis point to -0.53%, the lowest in a week.
* Britain’s 10-year yield fell one basis point to 0.28%, the lowest in a week.
Commodities
* West Texas Intermediate crude decreased 1.6% to $40.54 a barrel.
* Gold strengthened 1.8% to $1,928.68 an ounce, the highest in three weeks on the biggest climb in more than seven weeks.
* Copper gained 1.2% to $3.08 a pound, the highest in three weeks.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

From that hour Siddhartha ceased to fight against his destiny.  There shone in his face the serenity of knowledge,
of one who is no longer confronted with conflict of desires, who has found salvation, who is in harmony with the
stream of events, with the stream of life, full of sympathy and compassion, surrendering himself to the stream,
belonging to the unity of all things.                                                – Hermann Hesse, 1877-1962, Siddhartha

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