September 12,2022 Newsletter

Dear Friends,

Tangents: Happy Monday.
“One small positive thought in the morning can change your whole day.” -Tenzin Gyatso, 14^th Dalai Lama.

September 12, 2020: The United Kingdom is brought to a standstill as fuel tax protesters, backed by tanker drivers, causes petrol shortages.

Hot housing markets are cooling around the world.

Hot housing markets are cooling around the world.

Online art communities are banning AI art.

What happens in your brain while you sleep?  Our brains are complex and elaborate. They contain billions of neurons, don’t fully form until we reach age 25, and can generate around 25 watts of power — enough to illuminate a light bulb.  Scientists are constantly learning new information about how the brain functions, but what do we know about how this incredible organ operates during sleep? Is it a total mystery, or are there some things we know for sure? Full Story: Live Science (9/11)

Countless civilizations have risen and fallen over the millennia. But which one is the oldest on record?  About 30 years ago, this question seemed to have a straightforward answer. Around 4000 B.C., the earliest phase of the Sumerian culture arose as the oldest civilization in the Mesopotamia region, in what is now mostly Iraq. The Sumerians are named after the ancient city of Sumer, which was a few miles south of the modern city of Kut, in eastern Iraq. Archaeologists call the earliest Sumerian phase the Uruk period, after the equally ancient city of Uruk about 50 miles (80 kilometers) to the southwest, where many of the oldest Sumerian artifacts were found. But evidence uncovered in the past few decades indicates that the Sumerians have a few contenders, including ancient Egypt, for the title of “oldest civilization.”  Full Story: Live Science (9/12)

Who will take care of the Queen’s dogs?  Queen Elizabeth’s adorable corgis, Muick and Sandy, will move in with the Duke and Duchess of York. Take a look at this photo gallery of Queen Elizabeth II and her pups over the years.
PHOTOS OF THE DAY

The Tribute in Light in Manhattan commemorates the 21st anniversary of 9/11
Photograph: Andrew Kelly/Reuters

President Volodymyr Zelenskiy leaves his condolence message to Elizabeth II at the residence of the British ambassador
Photograph: Ukrainian Presidential Press Service/Reuters

Icelandic horses play on a meadow at a stud farm near Frankfurt as the sun rises
Photograph: Michael Probst/AP
Market Closes for September 12, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1968: As tech stocks boomed, H. Ross Perot took his company Electronic Data Systems public for $16.50 a share, or 118 times earnings. Mr. Perot had steadfastly kept his company private, refusing 17 offers to do an IPO, until investment banker Ken Langone declared that he could sell the stock for more than 100 times earnings.  By early 1970, the stock was at $160
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 1.1%, or 213.89 to 19,987.23 in Toronto.
The index advanced to the highest closing level since Aug. 25.
Enbridge Inc. contributed the most to the index gain, increasing 2.3%.
New Gold Inc. had the largest increase, rising 8.1%.
Today, 201 of 237 shares rose, while 33 fell; all sectors were higher, led by financials stocks.
Insights
* This year, the index fell 5.8%, heading for the worst year since 2018
* This quarter, the index rose 6%, heading for the biggest advance since the second quarter of 2021
* The index declined 3.1% in the past 52 weeks. The MSCI AC Americas Index lost 9.5% in the same period
* The S&P/TSX Composite is 10% below its 52-week high on April 5, 2022 and 10% above its low on July 14, 2022
* The S&P/TSX Composite is up 3.7% in the past 5 days and fell 1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.5 on a trailing basis and 12.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.16t
* 30-day price volatility fell to 14.01% compared with 14.11% in the previous session and the average of 13.48% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 68.6893| 1.1| 26/3
Energy | 64.7465| 1.8| 32/5
Industrials | 28.3290| 1.1| 22/6
Information Technology | 10.6361| 1.0| 13/1
Consumer Discretionary | 9.8135| 1.4| 12/1
Real Estate | 9.0874| 1.7| 23/0
Utilities | 6.8385| 0.7| 13/3
Consumer Staples | 6.8345| 0.8| 8/3
Communication Services | 5.8033| 0.6| 4/3
Materials | 2.1792| 0.1| 42/7
Health Care | 0.9345| 1.2| 6/1
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Enbridge | 17.7400| 2.3| 33.0| 12.8
TD Bank | 12.4100| 1.1| -34.3| -8.2
RBC | 12.2100| 1.0| -15.2| -4.0
CAE | -0.4370| -0.8| -6.8| -23.8
Dollarama | -3.1920| -2.1| 92.9| 24.7
Nutrien | -21.6300| -4.6| 80.5| 24.2
US
By Stephen Kirkland
(Bloomberg) — US stocks rose on the final day of trading before the release of key consumer-price data, with risk sentiment buoyed by speculation inflation is near peaking.
The dollar fell for a second day.
The S&P 500 extended last week’s rally, notching the biggest gain over a four-day span since June as all 11 major industry groups rose.
Apple Inc. was the largest contributor to the benchmark’s advance as pre-order data showed the iPhone 14 Pro Max was the best selling model, surpassing what the older version did over a similar timeframe.
The dollar declined versus all of its G-10 peers except the yen.
The Treasury curve steepened, with 10-year yields rising after a weak auction of similar-maturity notes.
US inflation data due Tuesday is expected to show headline CPI cooled in August to an 8% a year pace while the core measure that excludes food and energy is seen accelerating.
Meanwhile, traders almost fully expect another jumbo-sized Federal Reserve hike next week, following two 75-basis-point increases, taking their cue from central bank officials supporting that view.
US bond-market indicators suggest that investors are gaining confidence that this year’s spike in inflationary pressures will be brought under control.
The cost of hedging high inflation has fallen, while so-called breakeven rates on Treasury Inflation Protected Securities — a proxy for where markets expect inflation to be — have also dropped.
“I cannot see any scenario where the market doesn’t decide that CPI is heading in the right direction and that October will be lower than September and so on,” Peter Tchir, head of macro strategy at Academy Securities, wrote in a note. “That combination should allow markets to continue to enjoy the strength that they saw towards the end of last week.”
Stocks are building a bullish technical trend after the S&P 500 rallied above 3,900 week with an increasing number of stocks passing key thresholds, according to Bank of America Corp.’s technical strategist Stephen Suttmeier.
Swap markets are pricing in more than 70 basis points of hikes at the central bank’s September meeting.
Fed Governor Christopher Waller said last week he favors “another significant” increase in interest rates, and St. Louis Fed President James Bullard said he was leaning “more strongly” toward a third straight jumbo hike.
“The bad news is that US CPI inflation above 8% keeps the Fed hawkish and interest-rate volatility high,” Yuri Seliger, credit strategist at Bank of America, wrote. “The good news is that US inflation is peaking now according to our economists, and the trend should flip to a clear downward trajectory in 4Q and into 2023.”
The euro jumped the most in six months after Bundesbank President Joachim Nagel signaled support for further interest-rate hikes in Europe.
The Stoxx Europe 600 index climbed for a third day, with retailers leading the advance amid optimism over plans to curb energy bills.
The European Union is set to propose a mandatory target to cut power use — a step toward rationing — along with measures to funnel energy company profits to struggling consumers as it tries to stem the crisis.
Crude oil and industrial metals advanced as the dollar’s descent countered demand concerns.
Bitcoin extended a rally amid a brighter mood in global markets, climbing to a three-week high above $22,000. 
Here are some key events to watch this week:
* US CPI, Tuesday
* UK CPI, Wednesday
* US PPI, Wednesday
* US business inventories, empire manufacturing, retail sales, initial jobless claims, industrial production, Thursday
* China home sales, retail sales, industrial production, fixed assets, surveyed jobless rate, Friday
* Euro area CPI, Friday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.2%
* The Dow Jones Industrial Average rose 0.7%
* The MSCI World index rose 1.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.7% to $1.0115
* The British pound rose 0.8% to $1.1677
* The Japanese yen fell 0.3% to 142.84 per dollar
Bonds
* The yield on 10-year Treasuries advanced four basis points to 3.35%
* Germany’s 10-year yield declined four basis points to 1.65%
* Britain’s 10-year yield declined one basis point to 3.08%
Commodities
* West Texas Intermediate crude rose 1.3% to $87.88 a barrel
* Gold futures rose 0.4% to $1,736.10 an ounce
–With assistance from Matthew Burgess, Tassia Sipahutar, Garfield Reynolds, Robert Brand, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

The biggest argument against democracy is a five-minute discussion with the average voter. -Winston Churchill, 1874-1965.

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