September 12, 2019 Newsletter

Dear Friends,

Tangents:
On Sept. 12, 2001, President George W. Bush labeled the previous day’s terrorist attacks “acts of war” and asked Congress for $20 billion to rebuild and recover.  Go to article »

H.L. Mencken, critic, b. 1880.
An idealist is one who, on noticing that a rose smells better tan a cabbage, concludes that it will also make better soup. -H.L. Mencken.

The Porsche 911 is the most profitable car of the year. -Bloomberg
Tokyo’s iconic Hotel Okura is back, after a $1 billion makeover. -Bloomberg.

PHOTOS OF THE DAY

A gallery assistant poses with the artwork “Dark Matter’ by Palestinian artist Mona Hatoum, part of a multi -artist show at the White Cube Bermondsey in London
CREDIT: NEIL HALL/EPA

A man oversees cows during the traditional cattle drive in bad Hindelang, 700 animals from five mountain pastures are brought to the valley for their winter quarters.
CREDIT: LINO MIRGELER/AFP

An attendee inspects a Hongqi concept electric sports utility vehicle, manufactured by China FAW Group corp., on display during the day two of the IAA Frankfurt Motor Show in Frankfurt.
CREDIT: KRISZTIAN BOCSI/BLOOMBERG
Market Closes for September 12^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Hong Kong Exchange made an offer for its London rival. A proposed $36.6-billion deal would unite two of the world’s major stock exchanges when both regions are under political pressure, with Hong Kong reeling from a summer of protests and London gripped by political paralysis.
Canada
By Divya Balji
(Bloomberg) — The Canadian stock market flirted with a new high Thursday as the intraday record faded in late afternoon trading. The benchmark S&P/TSX Composite Index closed 0.2% higher at 16,643.28, paring a record high reached midday, as trade tensions between the world’s two largest economies showed signs of easing. The key stock gauge is now about 23 points away for closing at a new high. Technology and financial shares were the biggest gainers, while the health-care sector fell, dragged down by pot stocks after Aurora Cannabis Inc. reported a quarterly loss and revenue that missed its own guidance. U.S. administration officials have discussed offering a limited trade agreement to China that would delay and even roll back some U.S. tariffs for the first time in exchange for Chinese commitments on intellectual property and agricultural purchases, according to five people familiar with the matter.
Stocks have been trading in a narrow range all through the summer, even as volatility soared amid concerns surrounding global economic growth. A rally in commodity prices, economic and earnings growth, and the market’s strong correlation with the U.S. propelled Canada’s benchmark index to a record high earlier this year. The unwinding of momentum trades has also helped as investors piled back into sectors with some of the largest contributions — financials and energy.
–With assistance from Kristine Owram.
US
By Vildana Hajric
(Bloomberg) — Stocks eked out a gain on optimism about the outlook for a trade agreement between the U.S. and China and after Europe’s central bank announced a fresh round of stimulus. The S&P 500 Index closed just 0.5% below its all-time high after a report that American officials have discussed offering a limited trade agreement to China. That followed a decision by the European Central Bank to cut its main rate to minus 0.5% and buy 20 billion euros ($22 billion) of bonds a month. The euro gained and sovereign bonds were mixed. Any steps by China and the U.S. to ease tensions ahead of face-to-face talks in Washington in the coming weeks would support sentiment as investors await monetary decisions from more of the world’s major central banks. The ECB changed its guidance on interest rates to say they’ll stay at present or lower levels until the outlook for inflation “robustly” converges to its goal of just below 2%. “It’s a perfect storm of good news,” said Chris Gaffney, president of world markets at TIAA. “Investors are feeling relief now and feeling that perhaps things aren’t quite as bad as they seemed two months ago.”
The Federal Reserve is due to meet next week as economic indicators give mixed signals about whether the record-long expansion will end soon. The dollar weakened. Elsewhere, European equities edged higher. Turkey’s lira rallied after its policy makers cut interest rates by more than forecast. Oil turned lower as the International Energy Agency warned OPEC it faces a “daunting” surplus of crude in 2020. Hong Kong equities bucked the advance in Asia, dragged lower by shares of the city’s exchange following a surprise takeover bid for its London counterpart.
Here are the main moves in markets:
Stocks
* The S&P 500 Index climbed 0.3% at the close in New York.
* The Stoxx Europe 600 Index rose 0.2%.
* The Nikkei-225 Stock Average rose 0.8% for its eighth straight
gain, the best streak in a year
Currencies
* The Bloomberg Dollar Spot Index slipped 0.2%.
* The euro rose 0.5% to $1.1065.
* The British pound rose 0.1% to $1.2339.
* The Japanese yen fell 0.3% to 108.14 per dollar.
Bonds
* The yield on 10-year Treasuries rose four basis points to 1.78%.
* Germany’s 10-year yield rose five basis points to -0.52%.
* Britain’s 10-year yield rose three basis points 0.67%.
* Italy’s 10-year yield decreased 11 basis points to 0.86%.
Commodities
* Gold added 0.1% to $1,499.21 an ounce.
* West Texas Intermediate crude dipped 1.3% to $55.05 a barrel.
* Silver fell 0.2% to $18.08 per ounce.
–With assistance from Yakob Peterseil and Reade Pickert.
Have a great evening.

Be magnificent!
As ever,
Carolann

By nature, men are nearly alike; by practice, they get to be wide apart.
                                                          -Confucius, 551 BC-479 BC.

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