September 7, 2021 Newsletter

Dear Friends,

Tangents:
On Sept. 7, 1940, the German air force began its blitz on London during World War II. Go to article »
1914~Opening of NY Post Office.

Queen Elizabeth I, b. 1533.
Grandma Moses, painter. b. 1860.
Buddy Holly, singer, b. 1936

Watch a plane fly through a tunnel (and set a Guinness World Record).  In total, Dario Costa set five records with his feat. 

Brain-machine interfaces keep getting more comfortable.

PHOTOS OF THE DAY

A view shows a Lion’s sculpture against a twilight sky at Venice Lido on the fourth day of the 77th Venice Film Festival
CREDIT: TIZIANA RABI / AFP

People standing on salt formations in the Dead Sea near Ein Bokek, Israel
CREDIT: MUAMMAR AWAD/XINHUA NEWS AGANCY / EYEVINE

People play volleyball at Mission Beach as smoke from the Valley Fire fills the air during a record-setting heat wave in San Diego County. The Valley Fire was burning out of control in east San Diego County.
CREDIT: ZUMA PRESS/PA IMAGES

Autumnal weather arrives in Somerset as fog settles over St Peter’s Church, Evercreech Village, Somerset 
CREDIT: JASON BRYANT/APEX

Market Closes for September 7^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
📈 On this day in 1950, as the Japanese economy started struggling back to its feet, the Tokyo Stock Exchange began calculating its share-price index—which in 1970 became the Nikkei 225 average—with a retroactive starting date of May 16, 1949.
Canada
By Michael Bellusci
(Bloomberg) — The S&P/TSX Composite declined slightly to 20,806.63 in Toronto. The move follows the previous session’s increase of 0.1% Canadian Pacific Railway Ltd. contributed the most to the index decline, decreasing 1.0%. New Gold Inc. had the largest drop, falling 4.9%.  Gold fell the most in more than a month as the dollar strengthened and inflation-adjusted rates advanced after the Labor Day break. Today, 146 of 229 shares fell, while 77 rose; 6 of 11 sectors were lower, led by industrials stocks.
Insights
* This year, the index rose 19 percent, heading for the best year in at least 10 years
* This quarter, the index rose 3.2 percent
* The index advanced 28 percent in the past 52 weeks. The MSCI AC Americas Index gained 33 percent in the same period
* The S&P/TSX Composite is 0.4 percent below its 52-week high on Sept. 7, 2021 and 34.9 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 1 percent in the past 5 days and rose 1.6 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 16.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.27t
* 30-day price volatility fell to 5.69 percent compared with 5.70 percent in the previous session and the average of 7.84 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Industrials | -19.3747| -0.8| 14/15
* Materials | -13.3281| -0.6| 8/43
* Real Estate | -4.6670| -0.7| 4/21
* Utilities | -4.6043| -0.5| 4/12
* Consumer Staples | -3.9046| -0.5| 1/11
* Health Care | -0.4107| -0.2| 3/6
* Consumer Discretionary | 0.0926| 0.0| 6/7
* Communication Services | 0.9058| 0.1| 3/4
* Information Technology | 3.5162| 0.1| 10/2
* Energy | 9.2878| 0.4| 9/12
* Financials | 17.6757| 0.3| 15/13
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Pacific | -4.0420| -1.0| 87.0| 1.6
* Barrick Gold | -3.9660| -1.3| -6.4| -12.3
* Wheaton Precious | | | |
* Metals | -3.4500| -1.9| 27.3| 7.7
* Enbridge | 6.0710| 0.9| 53.1| 24.2
* TD Bank | 7.3590| 0.7| 4.6| 15.4
* Nutrien | 8.1080| 2.7| 14.8| 28.4

US
By Richard Richtmyer and Kamaron Leach
(Bloomberg) — U.S. stocks slipped from near records after traders returned from the long weekend to worries that the economic recovery is faltering. The S&P 500 and Dow Jones Industrial Average declined, while gains in heavyweight tech stocks including Netflix Inc., Amazon.com Inc. and Apple Inc. pushed the Nasdaq 100 higher even as about seven out of every 10 stocks in that gauge dropped. European markets slipped as investors speculated that euro-zone policy makers may get ready to roll back stimulus.  The greenback strengthened for a second day amid rising bond yields and softer commodity prices.  Bitcoin plunged as El Salvador became the first country to adopt it as legal tender Tuesday. The broad retreat in equities came after investors on Friday left for a three-day holiday weekend with markets near all-time highs following a much weaker-than-expected U.S. jobs report. And there won’t be much by way of data this week to ease their minds about the outlook for the third quarter, with growth estimates already having been reduced recently.  At the same time, concerns about the Covid-19 delta variant impeding re-openings in the U.S. are pressuring some corners of the market.  “The delta variant concerns are weighing down on overall third-quarter growth,” said Haris Khurshid, portfolio manager at Fate Capital management.  “The next couple of weeks are going to be pretty rocky. We’re seeing investors become more picky with their stocks not only because of the delta concern but also because of fading fiscal stimulus, legislative policies and an overall slowing recovery in some sectors” On Tuesday, data showed Chinese exports and imports grew faster than estimated in August, easing some concerns that the pandemic is delaying economic re openings and creating global supply-chain bottlenecks.
Even so, investors remain nervous over the prospects for a growth slowdown and tapering of support outside the U.S., especially in Europe. The Stoxx 600 dropped 0.5% as investors focused on the European Central Bank’s Thursday meeting where policy makers will decide if they’ll dial down emergency stimulus. Bank of America said it sees the “Goldilocks combination” of accelerating growth and lower real yields coming to an end. In Australia, the central bank stuck with a planned reduction in bond purchases, even though a majority of analysts had expected policy makers to hold off the tapering. U.S. Treasury yields rose, with the 10-year rate increasing 5 basis points. The dollar advanced the most since Aug. 26. Japan’s Nikkei 225 rose for a seventh straight session, touching 30,000 for the first time since April, boosted by an index reshuffle and optimism that a new prime minister will usher in favorable policies. MSCI Inc.’s gauge for global stocks halted a seven-day rally. Chinese stocks traded in the U.S. including Alibaba Group Holding and Baidu Inc. rallied after equities in China advanced amid renewed demand for technology shares and the surprise trade data. Vertex Pharmaceuticals dropped to a three-week low after Morgan Stanley cut its stock recommendation to underweight. Bitcoin plunged as much as 17% to its lowest level in a month. El Salvador bought 400 coins as it adopted the cryptocurrency as legal tender.  Tuesday’s drop came amid news that the government disconnected its Bitcoin wallet to fix problems and tests are being run tests to make it available for download later in the day. 

What to watch this week:
* U.S. President Joe Biden will likely make his choice this week on whether to renominate Fed Chair Jerome Powell to a second term
* Dallas Fed President Robert Kaplan holds a virtual town hall discussion Wednesday
* ECB President Christine Lagarde holds a press conference after the bank’s rate decision Thursday
* China PPI, CPI, new yuan loans, money supply, aggregate financing, Thursday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3%
* The Nasdaq 100 rose 0.1%
* The Dow Jones Industrial Average fell 0.8%
* The MSCI World index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.2% to $1.1841
* The British pound fell 0.4% to $1.3782
* The Japanese yen fell 0.4% to 110.28 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 1.37%
* Germany’s 10-year yield advanced five basis points to -0.32%
* Britain’s 10-year yield advanced four basis points to 0.74%
Commodities
* West Texas Intermediate crude fell 1.4% to $68.35 a barrel
* Gold futures fell 2% to $1,796.40 an ounce
–With assistance from Andreea Papuc.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

If you can’t fly then run.
If you can’t run then walk.
If you can’t walk then crawl, but whatever you do, you have to keep moving forward. -Martin Luther King Jr., 1929-1968.

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