September 8, 2020 Newsletter

Dear Friends,

Tangents: Carolann is away from office today, I am writing the newsletter on her behalf.

PHOTOS OF THE DAY

A friendly dolphin leaps clear out of the water to greet a jet-ski rider off the south coast of England.
CREDIT: STEVE HAMILTON/JURASSICJETSKITOURS/BNP

An osprey catching trout for its lunch. The photo shows the tight grip the osprey has on the trout who was caught in a small lochan hide in Aviemore, Scotland.
CREDIT: LIAM MCBRIDE/CATERS NEWS

A sunny start to the week as the sun rises over Ely Cathedral in Cambridgeshire, UK on Monday morning with temperatures set to reach the mid 20s later in the week.
CREDIT: ANDREW SHARPE/BAV MEDIA
Market Closes for September 8th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1916, the U.S. Congress enacted the Revenue Act of 1916, creating the federal estate tax.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities fell for a third-straight session Tuesday, led by a drop in information technology stocks. Weak crude oil prices helped push energy shares lower. The S&P/TSX Composite Index lost 0.7%, with seven of eleven sectors lower. Investors found safe havens in utilities and
materials.
Crude in London tumbled below $40 a barrel for the first time since late June and futures in New York also sank in the wake of faltering demand and weaker equities dampening market sentiment.
The Bank of Canada will probably brush off the economy’s stronger-than-expected rebound and stick to its narrative of a long and bumpy recovery that will require extraordinary support
for years to come.
Canadian crude prices strengthened after Suncor Energy Inc. lowered its production guidance.
Commodities
* Western Canada Select crude oil traded at a $8.75 discount to West Texas Intermediate
* Spot gold fell 0.2% to $1,928.90 an ounce

FX/Bonds
* The Canadian dollar fell 1% to $1.3224 per U.S. dollar
* The 10-year government bond yield fell 3.0 basis points to 0.566%

Insights
* So far this week, the index fell 2.9 percent, heading for the biggest decline since the week ended June 12
* This quarter, the index rose 4.5 percent
* This year, the index fell 5 percent, heading for the worst year since 2018
* The index declined 1.4 percent in the past 52 weeks. The MSCI AC Americas Index gained 16 percent in the same period
* The S&P/TSX Composite is 9.8 percent below its 52-week high on Feb. 20, 2020 and 45.2 percent above its low on March 23, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.8 on a trailing basis and 23.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.5t
* 30-day price volatility rose to 11.89 percent compared with 11.02 percent in the previous session and the average of 10.89 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -64.4108| -3.9| 0/10
Financials | -34.7946| -0.7| 6/19
Materials | -33.3875| -1.3| 12/37
Energy | -32.5211| -1.6| 3/20
Industrials | -18.2635| -0.9| 7/20
Consumer Staples | -12.2654| -1.8| 0/11
Communication Services | -10.6873| -1.2| 0/8
Utilities | -9.7076| -1.2| 0/16
Consumer Discretionary | -9.3613| -1.6| 1/12
Real Estate | -4.3600| -0.9| 5/22
Health Care | -1.1224| -0.7| 3/6
US
By Adam Haigh
(Bloomberg) — Stocks in Asia were set to resume declines after signs of stabilization from earlier in the week were upended by heavy losses on Wall Street. The dollar and Treasuries climbed.
Equity futures declined in Japan, Hong Kong and Australia. The selloff in U.S. technology shares picked up steam Tuesday as investors fled the high flyers that fueled a historic rally. Tesla suffered the worst rout in its history and is now down 34% in September. Brent crude tumbled below $40 for the first time since June as a stalling consumption recovery in Asia and increased supply from OPEC+ signaled a bleak short-term outlook.
Investors are grappling with the recent market turbulence, assessing whether the pullback for equities is a sign of market health or the start of a larger drawdown that has further to go. For now, traders are seeking the safety of haven assets, pushing Treasury yields lower and strengthening the dollar. “The path of least resistance for the market may well be to test the downside,” said Peter Chatwell, head ofmulti asset strategy at Mizuho International Plc. “Ultimately, if there is more selloff, I suspect real money investors will take the opportunity to buy the dip.”
Meantime, investors are monitoring progress on fighting the pandemic. AstraZeneca Plc has put on hold a phase 3 study testing a Covid-19 vaccine, STAT reported.
Here are some key events coming up:
* The ECB will probably hold rates on Thursday but indicate that downside risks have intensified, suggesting further easing is possible before year-end.
* U.S. CPI data is due Friday, with consumer prices expected to rise in August for a third straight month.

These are the main moves in markets:
Stocks
* The S&P 500 fell 2.8% and the Nasdaq 100 dropped 4.8%.
* Futures on Japan’s Nikkei 225 declined 0.7%.
* Hang Seng futures dropped 0.6%.
* Futures on Australia’s S&P/ASX 200 Index retreated 1.6%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%.
* The yen was at 106.04 per dollar.
* The offshore yuan traded at 6.8527 per dollar.
* The euro bought $1.1778.
Bonds
* The yield on 10-year Treasuries declined four basis points to 0.68%.
Commodities
* West Texas Intermediate crude retreated 7.4% to $36.84 a barrel.
* Gold was at $1,932.02 an ounce.

–With assistance from Andreea Papuc, Olivia Konotey-Ahulu and Dave Liedtka.
Have a wonderful evening everyone.

Be magnificent!
As ever,

Isabel

The greater the obstacle, the more glory in overcoming it.

                           -Jean Baptiste Poquelin “Moliere” , 1622-1673

Isabel Luo
Assistant to Carolann Steinhoff

Queensbury Securities Inc.,
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