September 3, 2020 Newsletter

Dear Friends,

Tangents:

Mariah Carey’s tell-all; a J.F.K. biography; new fiction from Elena Ferrante; and tales of Cold War espionage: All are on our list of 15 books to watch for in September. -NYT.

Have you collected many house plants over the past few months? Here’s how to take care of them. -NYT.

On Sept. 3, 1976, the unmanned U.S. spacecraft Viking 2 landed on Mars to take the first close-up, color photographs of the planet’s surface. Go to article »

PHOTOS OF THE DAY

A misty sunrise is seen over Stonehenge.
CREDIT: NICK BULL/PICTUREEXCLUSIVE.COM

A red squirrel and a woodpecker appear to have an argument over some nuts in woodland near Lockerbie.
CREDIT: KAREN CRAWFORD/SWNS.COM

The corn full moon rises over Red Square, Moscow in Russia.
CREDIT: SEFA KARACAN/ANADOLU AGENCY VIA GETTY IMAGES

Market Closes for September 3rd, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1946, the S&P index plunges by 6.73%, leading the U.S. Securities and Exchange Commission to appoint an investigative task force that concludes that the crash was caused when believers in the Dow Theory of technical analysis all sold at once.
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks fell the most since late June, led by a rout in technology shares.
The S&P/TSX Composite Index lost 1.5% on Thursday. All 11 sectors retreated, led by a 4.5% drop in technology shares. Broader decliners included Dye & Durham Ltd. and Ballard Power Systems Inc., both falling at least 10%.
Oil dipped to its lowest level in nearly a month with a stronger dollar, looming extra supplies from Iraq and depressed demand all contributing to the bearish sentiment.
The global copper market could be on the cusp of a historic supply squeeze as Chinese demand runs red hot and exchange inventories plunge to their lowest levels in more than a decade.
Commodities
* Western Canada Select crude oil traded at a $9.00 discount to West Texas Intermediate
* Spot gold fell 0.6% to $1,930 an ounce

FX/Bonds
* The Canadian dollar fell 0.6% to $1.3126 per U.S. dollar
* The 10-year government bond yield fell 1.0 basis points to 0.538%
US
By Claire Ballentine
(Bloomberg) — U.S. equities tumbled by the most in almost three months as the rotation away from high-flying tech stocks gained steam, with investors questioning the sustainability of lofty valuations.
The S&P 500 Index retreated from a record high and fell more than 3.5%, its biggest drop since early June, amid declines in Apple, Microsoft, Amazon and Facebook. The Nasdaq 100 sank 5%, its largest decline since March. European stocks erased gains and finished more than 1% lower. Treasury yields dipped and the dollar rose. Global equities are pulling back hard from unprecedented highs as investors question the justification for steep
valuations as the pandemic rages on. While data Thursday showed applications for jobless claims fell last week, U.S. investors may need evidence of a fuller economic recovery after a 60% run- up in the S&P 500 since its March lows.
“What we’re seeing here just a little bit of a reckoning,” said Nancy Prial, co-chief executive officer at Essex Investment Management. “It’s too soon to say whether this is a pause that refreshes or whether this is the beginning of a more meaningful downturn in big tech. Most of these are great companies with really robust growth opportunities, but the stocks are very
richly valued.”
The Cboe Volatility Index — a measure of expected price swings for the S&P 500 Index known as Wall Street’s “fear gauge” — rose to the highest level since June. Bitcoin fell as much as 7.6%.
Elsewhere, oil slumped. Major equity gauges in Asia were mixed.
Here are some key events to watch this week:
* U.S. jobs report Friday is forecast to show payrolls continued to rebound in August from virus lows.

Here are the main market moves:

Stocks
* The S&P 500 Index sank 3.5% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 1.4%.
* The MSCI Asia Pacific Index fell 0.3%.
* The MSCI Emerging Market Index dipped 1%.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.2%.
* The euro was little changed at $1.1853.
* The Japanese yen rose less than 0.1% to 106.13 per dollar.
Bonds
* The yield on 10-year Treasuries fell two basis points to 0.63%.
* Germany’s 10-year yield fell one basis point to -0.49%.
* Britain’s 10-year yield rose less than one basis point to 0.23%.
Commodities
* West Texas Intermediate crude declined 0.5% to $41.29 a barrel.
* Gold fell 0.6% to $1,930.71 an ounce.

–With assistance from Adam Haigh, Cecile Gutscher, Yakob Peterseil, Todd White, Nancy Moran and Sophie Caronello.

Have a great night.

Be magnificent!
As ever,

Carolann

Poetry is language at its most distilled and most powerful.
                                                                   -Rita Dove, 1952–

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
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