September 25, 2023, Newsletter

Dear Friends,

Tangents:  Happy Monday!
Carolann is away from the office for a conference, I will be writing the newsletter on her behalf.

15 places on Earth that look like alien planets
These stunning locations feel out of this world, but are actually right here on Earth.

This is the oldest fish in an aquarium in the world
You will never guess the age of this Australian lungfish at Steinhart Aquarium in San Francisco.

PHOTOS OF THE DAY

Ningbo, China
Cho Won-woo of South Korea leads others in the men’s RS:X class at Ningbo Xiangshan sailing centre at the 19th Asian Games
Photograph: Eugene Hoshiko/AP

Lima, Peru
An interior view of an underground cemetery, located under the Church of San Francisco, which contains the remains of thousands of people who were buried between the 16th and 19th centuries. The catacombs of the cemetery contain a collection of skulls and bones, providing a different perspective on mortality and society’s connection to death
Photograph: Klebher Vasquez/Anadolu Agency/Getty Images

Hangzhou, China
Li Yujuan competes in the women’s park skateboarding event during the Hangzhou Asian Games in China’s eastern Zhejiang province
Photograph: Adek Berry/AFP/Getty Images
Market Closes for September 25^th, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1928, engineers and brothers Paul and Joseph Galvin incorporated the Galvin Manufacturing Corp. in Chicago, after taking over the bankrupt Stewart Storage Battery and its design for a battery eliminator, which allowed home radios to run on ordinary household current. Later the Galvins rechristened their firm with a racy name combining “motion” and “radio”: Motorola
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.1% at 19,800.61 in Toronto.
The move was the biggest since rising 0.3% on Sept. 15 and follows the previous session’s decrease of 0.1%.
Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 2.4%.
Energy Fuels Inc/Canada had the largest increase, rising 8.5%.
Today, 87 of 227 shares rose, while 133 fell; 5 of 11 sectors were higher, led by energy stocks.
Insights
* This year, the index rose 2.1%, heading for the best year since 2021
* This quarter, the index fell 1.8%
* This month, the index fell 2.4%
* The index advanced 7.1% in the past 52 weeks. The MSCI AC Americas Index gained 17% in the same period
* The S&P/TSX Composite is 5% below its 52-week high on Feb. 2, 2023 and 10.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 3.4% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15 on a trailing basis and 14.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.14t
* 30-day price volatility fell to 13.72% compared with 13.78% in the previous session and the average of 12.06% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 47.1178| 1.3| 35/4
Industrials | 9.7171| 0.4| 13/13
Information Technology | 5.1754| 0.4| 4/6
Consumer Discretionary | 2.4553| 0.3| 7/7
Health Care | 1.0783| 1.7| 2/2
Utilities | -1.6103| -0.2| 6/9
Consumer Staples | -4.7675| -0.6| 1/10
Real Estate | -6.6710| -1.4| 2/18
Communication Services | -7.9470| -1.1| 0/5
Financials | -8.5582| -0.1| 7/20
Materials | -15.3537| -0.7| 10/39
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian Natural | | | |
Resources | 15.0300| 2.4|n/a | 13.2
TD Bank | 8.4640| 0.8|n/a | -6.0
Canadian National | 6.5120| 1.1|n/a | -6.7
Barrick Gold | -4.4150| -1.7|n/a | -9.8
Franco-Nevada | -5.2190| -2.1|n/a | 0.7
Bank of Nova Scotia | -6.3610| -1.2|n/a | -5.7
US
By Isabelle Lee and Cristin Flanagan
(Bloomberg) — Government bonds fell while stocks ended the day higher as traders speculated central banks will keep interest rates elevated to quell inflation.
A gauge of dollar strength hit its highest level this year.
A bond selloff extended into a fourth week as the US Treasury 10-year yield climbed 11 basis points above 4.54%, a level last seen in 2007.
Bloomberg’s Dollar Spot Index rose for a fourth day, reaching the highest since December.
The S&P 500 snapped a four-day slide, rising 0.4% as traders returned to their desks following the worst weekly selloff on Wall Street since March.
The Nasdaq 100 ended the day 0.5% higher, with Amazon.com Inc. gaining 1.7% — the head of its cloud unit told Bloomberg Television he was seeing “huge demand” for chips used in AI.
Netflix Inc. led film and TV producers higher after striking Hollywood screenwriters reached a tentative new labor agreement.
Jefferies downgrades weighed on Foot Locker Inc. and Nike Inc. with the broker pointing to looming consumer headwinds.
After the salvo of central bank decisions last week, traders are increasingly concerned that rising oil prices risk fanning inflation, which will make it difficult for policymakers to reduce rates anytime soon.
Hedge funds boosted exposure to oil on bets tightening supplies will stoke demand.
West Texas Intermediate oil traded below $90 a barrel in the afternoon session.
“There are several reasons to believe that the full impact from tighter monetary policy is still yet to take effect,” said Henry Allen, a strategist with Deutsche Bank. “As such, it will be some months before we can sound the all clear for the economy, not least given longer-term interest rates are still reaching new highs even now.”
Fed Bank of Chicago head Austan Goolsbee said it’s still possible for the US to avoid a recession. “I’ve been calling that the golden path and I think it’s possible, but there are a lot of risks and the path is long and winding,” he said in a CNBC interview.
Two Fed officials last week said at least one more rate hike is possible and that borrowing costs may need to stay higher for longer for the central bank to ease inflation back to its 2% target.
While Boston Fed President Susan Collins said further tightening “is certainly not off the table,” Governor Michelle Bowman signaled that more than one increase will probably be required.
Markets are having to contend with “the reality of regime change,” according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. “Thus far, fixed income investors have paid the steepest price, but expensive stocks with valuations premised on low rates may be increasingly vulnerable,” she wrote in a note to clients. “Unlike other periods, when the rising tide of falling rates lifted all boats, adjusting to higher rates is likely to be an idiosyncratic affair favoring stock selection.”
A surge in oil prices and massive fiscal deficit are spurring losses in government debt, sending Treasury yields across the maturity curve to the highest levels in more than a decade.
The Treasury 10-year yield may rise to 4.75% before softer risk sentiment and tighter financial conditions push it lower into year-end, according to strategists at Bank of America Corp.
A warning that a US government shutdown would reflect poorly on America’s credit rating from Moody’s Investors Service did little to shift market sentiment Monday.
Meanwhile, fresh signs of concern for China’s property developers were highlighted after China Evergrande Group missed a debt payment and former executives were detained, adding to fears about its debt pile.
That’s compounding concern that global growth will stall as the economic engine of China sputters.

Key events this week:
* Minneapolis Fed President Neel Kashkari in Q&A, Monday
* US new home sales, Conference Board consumer confidence, Tuesday
* ECB’s Philip Lane speaks on monetary policy, Tuesday
* China industrial profits, Wednesday
* US durable goods, Wednesday
* Eurozone economic confidence, consumer confidence, Thursday
* US initial jobless claims, GDP, Thursday
* Fed Chair Jerome Powell town hall meeting with educators while Richmond Fed President Tom Barkin, Chicago Fed President Austan Goolsbee make speeches, Thursday
* Eurozone CPI, Friday
* Japan unemployment, industrial production, retail sales, Tokyo CPI, Friday
* US consumer spending, wholesale inventories, University of Michigan consumer sentiment, Friday
* ECB President Christine Lagarde speaks, Friday
* New York Fed President John Williams speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.5%
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.6% to $1.0593
* The British pound fell 0.2% to $1.2212
* The Japanese yen fell 0.3% to 148.82 per dollar
Cryptocurrencies
* Bitcoin fell 0.6% to $26,337
* Ether was little changed at $1,591.89
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 4.54%
* Germany’s 10-year yield advanced six basis points to 2.80%
* Britain’s 10-year yield advanced seven basis points to 4.32%
Commodities
* West Texas Intermediate crude fell 0.1% to $89.92 a barrel
* Gold futures fell 0.6% to $1,934.80 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cecile Gutscher and Denitsa Tsekova.

Have a wonderful day everyone.

Be magnificent!
As ever,
 
Shabnam
Nothing is impossible. The word itself says, ‘I’m possible!'” —Audrey Hepburn

Shabnam Mohammadpourmarzbali
Assistant to Carolann Steinhoff
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