September 10, 2019 Newsletter

Dear Friends, 
 
Tangents:

September 10, 1000, Leif Ericson discovers “Vinland” (possibly L’Anse aux Meadows, Canada) reputedly becoming first European to reach North America.  Go to article »

Apple on Tuesday unveiled new iPhones, iPads and watch models while announcing pricing for its upcoming streaming service.-BLOOMBERG.

PHOTOS OF THE DAY
Prince Dudeman stands on Ryan Thor’s head at the 14^th annual Helen Woodward Animal Center “Surf-A-Thon” where more than 70 dogs competed in five different weight classes for “Top Surf Dog 2019” in Del Mar, California.
CREDIT: REUTERS/MIKE BLAKE

Dancers perform during the opening ceremony of the 24^th World Energy Congress (WEC) in the UAE Capital Abu Dhabi.
CREDIT: KARIM SAHIB/AFP/GETTY IMAGES

A dancer performs at the World Energy Congress in Abu Dhabi, United Arab Emirates, Monday, Sept. 9, 2019. Saudi Arabia’s new Energy Minister Prince Abdulaziz bin Salman, as well as the CEO’s of Total SA and ENI SpA, were in Abu Dhabi on Monday at the World Energy Congress.
CREDIT: AP PHOTO/JON GAMBRELL

Market Closes for September 10^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1711, the South Sea Company was chartered in London to trade with Latin America, sell annuities
and manage the public debt. It became the heart of the greatest speculative boom Britain had ever seen, as the
stock rose more than 800% in a few months in 1720, only to later lose roughly 80% of its value in a matter of
weeks.
Canada
By Kristine Owram
(Bloomberg) — Canada’s stock benchmark rose as the discount for Canadian crude narrowed, boosting energy stocks, and beleaguered SNC-Lavalin Group Inc. gained the most since 2008. The S&P/TSX Composite rose 0.3% to 16,537.34 in Toronto. The move follows the previous session’s decrease of 0.2%. Royal Bank of Canada contributed the most to the index gain, increasing 1.1%. SNC-Lavalin Group Inc. had the largest increase, rising 12%. The company’s stock is trading close to the value of its concessions segment alone, according to CIBC, which resumed coverage of the stock Tuesday with an outperform rating. Shopify Inc. was the biggest decliner, falling 6.2% after it announced the purchase of 6 River Systems Inc. for $450 million. Meanwhile, the benchmark 10-year bond yield rose 8.4 basis points to the highest since July 31.
Insights
* The S&P/TSX Composite is 0.8% below its 52-week high on April 23 and 20% above its low on Dec. 24
* The S&P/TSX Composite is up 0.8% in the past 5 days and rose1.2% in the past 30 days
================================================================
| Index Points |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials     | 38.2763| 0.7        | 17/9
Energy         | 33.9105| 1.2        | 34/4
Health Care  | 5.0011| 1.9          | 8/3
Industrials    | 3.6475| 0.2          | 18/13
Materials      | 2.8717| 0.2          | 25/21
Communication | -1.7056| -0.3   | 7/17
Services
Real Estate  | -0.0739| 0.0         | 2/5
Consumer Staples | -2.0443| -0.3| 4/6
Utilities       | -4.9482| -0.7         | 5/11
Consumer Discretionary | -5.1496| -0.7| 10/5
Information Technology | -27.5208| -3.0| 4/6

* The benchmark 10-year bond fell and the yield rose 8.2 basispoints to 1.435 percent
* The Canadian dollar strengthened 2% to C$1.3148 per U.S. dollar

US
By Vildana Hajric and Sarah Ponczek
(Bloomberg) — U.S. stocks erased losses in the final moments of trading as investors continued to gravitate to value shares.  Treasury yields rose for a fifth day. The Dow Jones Industrial Average closed positive, while the S&P 500 was little changed and the Nasdaq ended in negative territory. The Dow had briefly turned up midday following a report that China is ready to buy more U.S. agricultural products. “That’s the tug of war that’s going on right now,” said Matt Maley, an equity strategist at Miller Tabak & Co. “It’s between monetary policy and the trade war.” Areas of the market that were previously this year’s best performers fell the most. The opposite was true, too, with energy stocks gaining and small caps outperforming for a second day.
“The rotation from growth to value started a couple of weeks ago, but was out-sized yesterday,” said Michael O’Rourke, JonesTrading’s chief market strategist. “That caught people offside so they need to de-risk more until the situation stabilizes.” The pound fluctuated as embattled British Prime Minister Boris Johnson insisted he won’t ask for another Brexit delay, while U.K. wage and unemployment data beat estimates. Most euro- zone sovereign bonds nudged lower as European Central Bank officials prepare to meet. The recent pullback in the bond rally “is a correction to an outsized move in yields during August, not a turn in the trend,” Kit Juckes, chief global FX strategist at Société Generale SA, wrote in his daily note.
“Last Friday’s U.S. labor market data show, clearly enough for me, that the U.S. economy is slowing slowly but steadily as the global trade slowdown infects it.” Investors are awaiting the ECB’s policy decisions on
Thursday and those next week by the Federal Reserve and Bank of England as they assess how much monetary easing may be looming. Elsewhere, oil plunged after President Donald Trump fired one of his most hawkish advisers. Futures fell as much as 1% after Trump announced that National Security Advisor John Bolton was out.
Here are some key events coming up this week:
* OPEC’s monthly oil market report, which includes demand forecasts and production estimates, is due Wednesday.
* The ECB policy meeting Thursday is widely expected to see a cut to interest rates and a review of all options, including QE. Policy makers will also publish forecasts for growth and inflation. ECB President Mario Draghi will hold a press conference.
* U.S. data for August is due on producer prices Wednesday, and CPI Thursday.

These are the main moves in markets:
Stocks
*The S&P 500 Index was little changed at 2,979.39 as of 4:15 p.m. New York time, the highest in almost six weeks.
*The Dow Jones Industrial Average rose 0.3% to 26,909.43, reaching the highest in almost six weeks on its fifth consecutive advance.
*The Nasdaq Composite Index was little changed at 8,084.16.
Currencies
*The Bloomberg Dollar Spot Index was little changed at 1,208.73, the first advance in more than a week and the biggest advance in a week.
Bonds
*The yield on two-year Treasuries gained eight basis points to 1.68%, the highest in more than five weeks.
*The yield on 10-year Treasuries rose eight basis points to 1.73%, reaching the highest in a month on its fifth straight advance. Germany’s 10-year yield increased four basis points to -0.55%, the highest in almost five weeks.
Commodities
*Gold depreciated 0.8% to $1,487.02 an ounce, the weakest inalmost five weeks.
*West Texas Intermediate crude dipped 0.5% to $57.57 a barrel,the first retreat in a week.
–With assistance from Lu Wang.

Have a great night.
 
Be magnificent!
As ever,
 
Carolann
 
Develop success from failures.  Discouragement and failure
are two of the surest stepping stones to success.
                                          -Dale Carnegie, 1888-1955
 
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