September 29,2022 Newsletter

Dear Friends,

Tangents: Happy Thursday.

Carolann is away from the office today, I will be writing the newsletter on her behalf.

Amid widespread flooding and power outages, people are leaving Florida in droves as Ian pummels the state. But some brave individuals are intentionally traveling into the ferocious storm to gather data for research and forecasting. Watch these professional hurricane hunters — famous for enduring the world’s most dangerous weather — fly a plane directly in the turbulent eye of the storm.

On this day, 1978 Pope John Paul I was found dead in his Vatican apartment a little more than one month after becoming head of the Roman Catholic Church. Go to article »

Stunning discovery of 1,200-year-old shipwreck contradicts history books. An ancient shipwreck was found off the coast of Israel with artifacts from all over the Mediterranean, contradicting a major archaeological theory.
PHOTOS OF THE DAY

An installation by the Mexican artist Betsabeé Romero at Kew Gardens’ Temperate House, the world’s largest Victorian glasshouse, for Kew’s Mexico festival
Photograph: Zac Goodwin/PA

A polar bear after it tried to catch a beluga whale, seen in the background, off the coast of Hudson Bay
Photograph: Olivier Morin/AFP/Getty Images
Vanessa Jones, an assistant curator at the Leeds Discovery Centre, surrounded by some of the more than 230 historic umbrellas and parasols that are being saved in a conservation project
Photograph: Danny Lawson/PA
Market Closes for September 29, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1952, the New York Stock Exchange changed its trading hours: The market’s closing time was shifted to 3:30 p.m. Monday through Friday, instead of 3 p.m., and it would no longer be open at all on Saturday.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.1% at 18,441.84 in Toronto. The move follows the previous session’s increase of 1.9%.
Today, financials stocks led the market lower, as 10 of 11 sectors lost; 175 of 236 shares fell, while 61 rose.
Shopify Inc. contributed the most to the index decline, decreasing 8.0%. Linamar Corp. had the largest drop, falling 11.6%.
Insights
* This year, the index fell 13%, heading for the worst year in at least 10 years
* This quarter, the index fell 2.2%
* This month, the index fell 4.6%
* So far this week, the index was little changed
* The index declined 8.5% in the past 52 weeks. The MSCI AC Americas Index lost 18% in the same period
* The S&P/TSX Composite is 17% below its 52-week high on April 5, 2022 and 1.5% above its low on July 14, 2022
* The S&P/TSX Composite is down 3% in the past 5 days and fell 7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.5 on a trailing basis and 11.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.98t
* 30-day price volatility rose to 17.80% compared with 17.75% in the previous session and the average of 14.82% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -62.7147| -1.1| 1/28
Information Technology | -33.6541| -3.4| 1/13
Utilities | -24.9547| -2.6| 0/16
Industrials | -23.0690| -0.9| 2/25
Communication Services | -20.6023| -2.2| 3/4
Energy | -19.5342| -0.6| 16/22
Consumer Discretionary | -14.0761| -2.1| 1/13
Real Estate | -10.0572| -2.2| 0/22
Health Care | -4.2062| -5.1| 0/7
Consumer Staples | -0.3086| 0.0| 2/9
Materials | 6.0992| 0.3| 35/16
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -25.9800| -8.0| 13.9| -78.9
Brookfield Asset Management | -18.8800| -3.3| 45.7| -27.0
BCE | -12.5600| -3.3| -2.1| -10.8
Barrick Gold | 3.7800| 1.5| -30.2| -14.0
Agnico Eagle Mines | 3.9590| 2.3| -42.3| -15.5
Canadian Natural Resources | 4.6430| 0.9| -55.7| 22.5
US
By Isabelle Lee and Vildana Hajric
(Bloomberg) — US stocks plunged to the lowest since November 2020 as another group of Federal Reserve officials struck a hawkish tone, and turmoil in Europe continued to fray investor nerves.
The S&P 500 fell as much as 2.9% during Thursday’s session but trimmed losses as markets closed. Its decline wipes out an ill-timed attempt Wednesday to rebound from a six-day slide.
The tech-heavy Nasdaq 100 dropped nearly 4% during the session after St. Louis Fed President James Bullard said investors have now understood that they can’t escape additional rate hikes in coming months. The index was dragged down by Apple Inc., which fell as much as 6.1% after a rare analyst downgrade from Bank of America warning of weaker consumer demand for its popular devices.
Signs of stress emerged in the interest-rate swaps market and a leveraged-buyout deal was shelved. US Treasuries pared earlier losses, with the 10-year yield hovering around 3.76%.
In Europe, UK gilt yields rose after Prime Minister Liz Truss’s defense of unfunded tax cuts that sent markets into turmoil failed to persuade investors. German inflation topped 10% and the country agreed to energy caps that could add to inflationary pressures.
Investors are grappling with threats posed by discordant moves from central banks over the past few days, with Fed officials adamant on further monetary tightening, the Bank of England unveiling a plan to support government debt and authorities in Asia trying to prop up weakening currencies.
“I was actually really surprised by the impact that the Bank of England had on the global market,” said Fiona Cincotta, senior financial markets analyst at City Index. “Yet, it was short-lived, the relief rally. We sort of pushed past that quite quickly and it seems to be back to that narrative of inflation fears, higher-interest-rate fears.”
Fed officials haven’t shied away from warning that more rate-hike pain is yet to come, with Cleveland Fed President Loretta Mester echoing the rhetoric that her colleagues reinforced this week. San Francisco Fed President Mary Daly, after US markets closed, said the central bank should curb inflation in a manner that avoids a difficult downturn.  Better-than-expected 2Q core PCE and personal consumption numbers on Thursday also paved the path for the Fed to stay aggressive. Weekly jobless claims fell to the lowest since April, showing a persistently tight labor market.
Recession concerns persisted as a gap in the government’s two primary measures of US economic activity during the first half of 2022 narrowed. The National Bureau of Economic Research’s Business Cycle Dating Committee uses this metric and other variables to make any recession call.
“The market is now coming to terms with the idea that a recession is almost a given at this point and it’s really making adjustments for that,” said Shawn Snyder, head of investment strategy at Citi US Wealth Management.
Separately, the European Commission announced an eighth package of sanctions that would include a price cap on Russia’s oil exports as Russia vowed to go ahead with the annexation of the parts of Ukraine that its troops currently control after UN- condemned votes, putting the Kremlin on a fresh collision course with the US and its allies.

Key events this week:
* Fed’s Mary Daly speak at an event, Thursday
* China PMI, Friday
* Euro zone CPI, unemployment, Friday
* US consumer income , University of Michigan consumer sentiment, Friday
* Fed’s Lael Brainard and John Williams speak, Friday

Some of the main moves in markets:

Stocks
* The S&P 500 fell 2.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.9%
* The Dow Jones Industrial Average fell 1.5%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro rose 0.7% to $0.9801
* The British pound rose 1.7% to $1.1077
* The Japanese yen fell 0.2% to 144.44 per dollar
Cryptocurrencies
* Bitcoin fell 0.8% to $19,409.32
* Ether fell 1.2% to $1,334.31
Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.76%
* Germany’s 10-year yield advanced six basis points to 2.18%
* Britain’s 10-year yield advanced 13 basis points to 4.14%
Commodities
* West Texas Intermediate crude fell 0.7% to $81.59 a barrel
* Gold futures were little changed

–With assistance from Abigail Moses, Natalia Kniazhevich and Reade Pickert.

Have a lovely evening.

Be magnificent!
As ever,

Isabel 

A somebody was once a nobody who wanted to and did. – John Burroughs, 1837-1921

Isabel Luo
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
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www.carolannsteinhoff.com