September 25, 2019 Newsletter

Dear Friends,

Tangents:
1676: Greenwich Mean Time established.

The Anne Frank of Poland: A journal kept by Renia Spiegel, a Jewish girl who lived in Poland and was murdered by the Nazis in 1942, has been released in English. -NY Times.

German court rules hangovers are an illness 
You still probably shouldn’t make that case to your boss.-CNN

1956 – The first trans-Atlantic telephone cable went into service.  Go to article »
1897: William Faulkner, b.

The past is not dead.  In fact, it’s not even past. –Wm. Faulkner, 1897-1962.

PHOTOS OF THE DAY

Thousands attired in Zulu traditional regalia gathered to commemorate King Shaka’s Day Celebration near the grave of the great Zulu King Shaka at Kwadukuza, some 98 kilometres north of Durban.
CREDIT: RAJESH JANTILAL AFP/GETTY IMAGES

Participants walk maintaining a human tower or “castellers” during the Saint Merce celebrations in San Jaume square in Barcelona, Spain.
CREDIT: AP PHOTO/EMILIO MORENATTI

A worker lights a bidi, a local cigarette hand rolled with tobacco leaf, at an idol making workshop ahead of the upcoming Hindu festival of Durga Puja in New Delhi, India.
CREDIT: REUTERS/ANUSHREE FADNAVIS

Market Closes for September 25^th, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks fell for a third session as gold declined and the U.S. dollar strengthened amid signs of easing trade tension between U.S. and China. Even Shopify’s bounce back after an eight-day loss couldn’t help the index eke out a gain. The S&P/TSX Composite Index was down 0.08 % to 16,784. The MSCI AC Americas Index advanced 0.6%. Materials stocks led the market lower, as 5 of 10 sectors fell. Barrick Gold contributed the most to the index decline, falling 3.4%. Eldorado Gold had the largest drop, falling 8.1%. Shopify provided the biggest boost to the index and had the largest gain, advancing 6.9%. Meanwhile, Fairfax Financial Holdings Ltd.’s Prem Watsa lost more than C$160 million ($121 million) just in his top five listed Canadian investments, according to the latest filings compiled by Bloomberg on Tuesday. BlackBerry’s abysmal fiscal second-quarter earnings, which saw one of its staunchest bulls join the bear camp, was the prime offender. The stock fell 23% on Tuesday and extended declines Wednesday to the lowest in six years.
Commodities
* Western Canada Select crude oil traded at a $12.75 discount to WTI
* Gold spot price fell 1.8% to $1,504.17 an ounce
FX/Bonds
* The Canadian dollar fell 0.2% to C$1.3266 per U.S. dollar
* The Canada 10-year government bond yield climbed to 1.397%
US
By Jeremy Herron and Vildana Hajric
(Bloomberg) — U.S. stocks rose as renewed signs of easing trade tensions diverted attention from the swirling impeachment drama in Washington. The dollar rallied the most since March. The S&P 500 halted a three-day slide, with tech and bank shares pacing the gain. Equities rattled by the political turmoil in America turned higher after President Donald Trump suggested a trade deal with China was possible and then moved toward a pact with Japan. The advance recouped most of Tuesday’s drop sparked by the start of a formal impeachment inquiry of Trump. “Markets are way more interested in a trade deal with China,” Jamie Cox, managing partner for Harris Financial Group in Richmond, VA. “Now that the Congress is deadlocked into impeachment, the president can close a deal with China to boost the global economy into 2020, just in time for ballots to be cast.” In company news, Philip Morris and Altria both advanced after ending merger talks, while Marathon surged on activist intervention. Nike Inc. rose to a record after strong results.
Financials paced gains as Treasury yields turned higher. The dollar rallied versus major peers, rising more than 1% versus the pound and 0.7% versus the yen. The impeachment push added a fresh element of risk into markets already on edge over trade and signs of slowing global growth, but trade has reliably been the biggest determinant of asset moves, and Trump’s conciliatory comments toward China helped ease some angst over the political upheaval. “You can’t trade this stuff right now, it’s impossible,” Michael Purves, chief executive officer at Tallbacken Capital Advisors LLC, said on Bloomberg TV Wednesday. “There’s so many different scenarios, you almost have t ignore it and keep investing the way you would.” In Europe, the mood was more dour. Equities slumped amid rising concern that growth is flagging. U.K. shares fell as parliament reconvened amid Brexit turmoil. Asian benchmarks retreated, with losses of more than 1% in Hong Kong, South Korea, mainland China and India. Crude futures declined after Saudi Aramco said it was ahead of schedule in restoring output.
These are some key events coming up this week:
* Trump will hold a press conference in New York at 4 p.m.
* Thailand decides on monetary policy on Wednesday, followed by the Philippines on Thursday.
* Core PCE — the Fed’s preferred inflation measure — is forecast for 1.8%. That’s due Friday.

Here are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.6% as of 4 p.m. New York time.
* The Nasdaq 100 Index added 1.2%.
* The Stoxx Europe 600 Index fell 0.6%.
* Switzerland’s SMI Index dropped 1.2%.
* The MSCI Asia Pacific Index sank 0.7%.
Currencies
* The Bloomberg Dollar Spot Index jumped 0.6%.
* The British pound sank 1.1% to $1.235.
* The euro fell 0.7% to $1.0942.
* The Japanese yen weakened 0.7% to 107.82 per dollar.
Bonds
* The yield on 10-year Treasuries increased eight basis points to 1.73%.
* The yield on two-year Treasuries rose five basis points to 1.68%.
* Britain’s 10-year yield declined two basis points to 0.509%.
* Japan’s 10-year yield fell two basis points to -0.255%.
Commodities
* West Texas Intermediate crude sank 1.3% to $56.53 a barrel.
* The Bloomberg Commodity Index declined 0.8%.
* Gold futures tumbled 1.9% to $1,510.60 an ounce.

–With assistance from Sarah Ponczek, Vildana Hajric, Adam Haigh
and Todd White.

Have a great night.

Be magnificent!
As ever,

Carolann

There is nothing noble in being superior to your fellow man; true nobility
is being superior to your former self.
-Ernest Hemingway, 1899-1961

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