September 7th, 2022 Newsletter

Dear Friends,
 
Tangents:
1822: Independence Day, Brazil.
1914: Opening of NY Post Office.
1996: Rapper Tupac Shakur was shot on the Las Vegas Strip; he died six days later at age 25. Go to article »
 
Queen Elizabeth I, b. 1533.
Grandma Moses, b. 1860.
Buddy Holly, b. 1936.
 
Tips for counting your steps.  If you wear a smartwatch, here’s the magic number of steps you should take each day to reduce your risk of dementia, according to a new study.
 
McDonald’s is adding a new treat for fall.  And surprisingly, it’s not pumpkin or maple flavored…
Apple unveils iPhone 14 with camera upgrades and a satellite feature.
The doomsday glacier in Antarctica is melting faster than once thought.
A lost branch of the Nile helped build the Pyramids.
 
PHOTOS OF THE DAY

This image was taken by a drone to show the working time of rural people during the monsoon season in the wetlands of West Bengal. Two workers occupy the scene with their colourful hats and clothes. Waterlilies create two concentric coloured rings from which one of the two characters seems to emerge
Credit: The Guardian, 7 Sep 2022

Some labourers at work in a salt pan where they move the salt to form circular lines, allowing a slow evaporation in the sun. At the end of the day the salt will be collected in baskets
Credit: The Guardian, 7 Sep 2022

Flamingos sleep together at night for greater security and stay close during the day. In this crowd of bodies the colourful nuances of their plumage and the reflections of the light are eye-catching
Credit: The Guardian, 7 Sep 2022
Market Closes for September 7, 2022

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 Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.8% at 19,241.44 in Toronto.
The move was the biggest since rising 0.9% on Aug. 12 and follows the previous session’s decrease of 0.9%.
Royal Bank of Canada contributed the most to the index gain, increasing 1.2%.
Osisko Mining Inc. had the largest increase, rising 9.0%.
Today, 185 of 237 shares rose, while 51 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index fell 9.3%, heading for the worst year since 2018
* This quarter, the index rose 2%
* The index declined 7.5% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 13.4% below its 52-week high on April 5, 2022 and 5.9% above its low on July 14, 2022
* The S&P/TSX Composite is down 1.4% in the past 5 days and fell 1.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13 on a trailing basis and 11.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.05t
* 30-day price volatility rose to 13.81% compared with 13.78% in the previous session and the average of 13.72% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 62.8840| 1.1| 26/3
Industrials | 41.6275| 1.7| 27/1
Materials | 39.1267| 1.8| 45/6
Information Technology | 22.2818| 2.3| 14/0
Consumer Discretionary | 11.5753| 1.7| 11/2
Utilities | 7.1260| 0.7| 14/2
Real Estate | 5.9439| 1.2| 23/0
Communication Services | 4.1246| 0.4| 6/1
Consumer Staples | 3.3259| 0.4| 8/3
Health Care | 2.2952| 3.2| 7/0
Energy | -47.0061| -1.3| 4/33
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | 13.8700| 1.2| -31.4| -7.7
Canadian Pacific | 12.8900| 2.1| -0.2| 8.4
TD Bank | 12.7900| 1.2| -26.4| -12.2
Cenovus Energy | -7.6230| -3.7| 21.5| 48.9
Suncor Energy | -8.8670| -2.2| 29.6| 26.3
Canadian Natural Resources | -14.6400| -2.6| 17.1| 31.6
US
By Rita Nazareth
(Bloomberg) — Stocks climbed the most in about a month as Treasury yields halted a surge to multiyear highs, with traders sifting through remarks from a slew of Federal Reserve speakers.
Oil plunged, easing concern about price pressures that could imperil the central bank’s war against inflation.
About 95% of the companies in the S&P 500 moved higher, with every group but energy ending in the green.
Only four of the Nasdaq 100’s members fell as a rally in the tech-heavy gauge topped 2%.
Apple Inc. rose after unveiling a new lineup of devices with few surprises beyond one major one: It didn’t raise its US prices during one of the worst years for inflation in decades.
“Stocks are rebounding as the global bond market selloff takes a break,” wrote Edward Moya, senior market analyst at Oanda. “Economic momentum remains for the US economy, and that could only improve if inflation continues to soften. Investors seem poised to enter a holding pattern until the September 13^th inflation report.”
Oil benchmarks took a hit as demand concerns emanating from China prompted a wave of selling as prices breached technical warning levels.
West Texas Intermediate settled below $82 a barrel while Brent closed at $88.
The dollar fell after a rally that rattled currencies around the globe and briefly drove gold below the “danger zone” of $1,700 per ounce.
In the final week before officials enter a blackout period ahead of the Sept. 20-21 policy meeting, Fed Vice Chair Lael Brainard said the US will have to raise interest rates to restrictive levels, while cautioning risks would become more two-sided in the future.
She also sees the scope for lower retail margins to ease price pressures.
Separately, Fed Bank of Cleveland President Loretta Mester warned against declaring early victory on inflation, while her Boston counterpart Susan Collins said it’s too soon to specify what policy makers should do at this month’s gathering.
Fed Vice  Chair for Supervision Michael Barr said that inflation is “far too high” and central bankers are committed to restoring price stability.
High prices and a tight labor market weighed on US economic prospects over the next year, though inflation showed signs of decelerating, the Fed said in its Beige Book.
Equities have tumbled since mid-August amid a panoply of risks spanning from restrictive central banks, Europe’s energy crisis and China’s economic slowdown.
The recent slide in the S&P 500 pared a bounce from June lows that a Goldman Sachs Group Inc. team led by Peter Oppenheimer described as a “bear-market rally.”
The strategists “expect further weakness and bumpy markets before a decisive trough is established.”
American stocks haven’t fallen enough to account for the elevated inflation pressures that will drive the Fed to keep interest rates high for a sustained period of time, said billionaire investor Thomas Peterffy.
The founder and chairman of Interactive Brokers Group Inc. told Bloomberg Television the S&P 500 won’t hit a bottom until it trades at levels between 3,300 and 3,500.
After it reaches that trough, it will stay there for “a while” until the US contends with an inflation-fueled economy.
The gauge closed at 3,979.87 Wednesday.
“Economies all around the world are slowing down, and that’s really not a market that says we’re on the verge of a dynamic rebound in equities,” Margaret Patel, senior portfolio manager at Allspring Global Investments, told Bloomberg Television. “Earnings are going to decelerate a lot. That says a lot of stocks could go down.”
Bank of America Corp. clients were net sellers of US equities for a third straight week.
As the S&P 500 posted weekly losses of over 3%, the group sold $1.9 billion in equities, including exchange-traded funds and single stocks, strategists led by Jill Carey Hall wrote.
The weakening economy should favor continued outperformance for cheaper, so-called value stocks over their growth equivalents, a separate Goldman note from strategists led by Cormac Conners said.
“History shows value stocks outperform around the start of recessions,” they wrote.
What to watch this week:
* European Central Bank rate decision, Thursday
* Fed Chair Jerome Powell due to speak, Thursday
* Chicago Fed President Charles Evans and his Minneapolis counterpart Neel Kashkari due to speak, Thursday
* EU energy ministers extraordinary meeting on emergency intervention in electricity markets, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.8% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.1%
* The Dow Jones Industrial Average rose 1.4%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 1% to $1.0007
* The British pound was little changed at $1.1528
* The Japanese yen fell 0.7% to 143.74 per dollar
Bonds
* The yield on 10-year Treasuries declined nine basis points to 3.26%
* Germany’s 10-year yield declined six basis points to 1.58%
* Britain’s 10-year yield declined seven basis points to 3.03%
Commodities
* West Texas Intermediate crude fell 5.8% to $81.85 a barrel
* Gold futures rose 0.9% to $1,728.60 an ounce
–With assistance from Andreea Papuc, John Viljoen, John McCorry, Sophie Caronello, Alex Longley, John Deane and Edward Bolingbroke.
Have a lovely evening.
 
Be magnificent!
As ever,
 
Carolann
 
 
I want to know God’s thoughts; the rest is details. -Albert Einstein, 1879-1955.
 
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