Posted on

February 7, 2018 Newsletter

Dear Friends,

Tangents:
On this day in 1958, the Advanced Research Projects Agency of the U.S. Department of Defense is established. It would later create ARPANET, the prototype of the World Wide Web.

On Feb. 7, 1964, the Beatles arrived in the United States for the first time, giving rise to Beatlemania.
Go to article »

PHOTOS OF THE DAY

Two swans land on a snow-covered field in Hemmingen, northern Germany.
CREDIT: JULIAN STRATENSCHULTE/GETTY IMAGES

Leo Bartholomew, three, from Bath, cuddles up with a newborn lamb at The Olde House, Chapel Amble, Cornwall, in the middle of lambing season, which is a few weeks earlier than the rest of the country due to much milder Cornish weather.
CREDIT: BEN BIRCHALL/PA WIRE

Hikers follow the Latrigg walk to take in the view of Lake Derwentwater next to the town of Keswick, Lake District National Park.
CREDIT: OWEN HUMPHREYS/PA WIRE
Market Closes for February 7th, 2018

Market

Index

 Close Change
Dow

Jones

 24893.35 -19.42

 

-0.08%
 
S&P 500 2681.66 -13.48

 

-0.50%
 
NASDAQ 7051.984 -63.898

 

-0.90%
 
TSX 15330.58 -33.35

 
-0.22%

International Markets

Market

Index

 Close Change
NIKKEI 21645.37 +35.13
+0.16%
HANG

SENG

 30323.20 -272.22
-0.89%
SENSEX 34082.71 -113.23
-0.33%
FTSE 100* 7279.42 +138.02
+1.93%

Bonds

Bonds % Yield Previous % Yield
CND.

10 Year Bond

 2.372 2.365
CND.

30 Year

Bond

 2.470 2.461
U.S.   

10 Year Bond

 2.8340 2.8054
U.S.

30 Year Bond

 3.1089 3.0684

Currencies

BOC Close Today Previous  
Canadian $ 0.79613 0.80043
US

$

 1.25608 1.24933
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.54088 0.64898
US

$

 1.22674 0.81517

Commodities

Gold Close Previous
London Gold

Fix

 1324.65 1331.40
     
Oil    
WTI Crude Future 61.79 63.39

Market Commentary:
Number of the Day
1,167 points
The trading range for the Dow Jones Industrial Average on Tuesday, the second-widest swing for the blue-chip index in its long history. The all-time high is 1,597 points–a record that was set Monday.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were unable to hold onto early gains, closing down for the 7th time in 8 days as U.S. oil stockpiles grew the most since September, weighing on energy stocks.
     The S&P/TSX Composite Index fell 33 points or 0.2 percent to 15,330.58, the lowest since mid-September. Energy shares lost 1% as crude prices tumbled 2.5% to the lowest since early January.
     The materials index retreated 1.1% as precious and base metals fell. Klondex Mines Ltd. was the biggest decliner on the Canadian benchmark, losing 7.1% following several analyst downgrades.
     In other moves:
                          Stocks
* Hudson’s Bay Co. fell 1% after the retailer said its board has unanimously rejected an unsolicited proposal for its German business
* WestJet Airlines Ltd. gained 3.1%, the most since October. At least two analysts upgraded the stock on better-than-expected management guidance
* Canaccord Genuity Group Inc. fell 4.6% despite predicting ‘robust’ financing activity in the cannabis sector
                         Commodities
* Western Canada Select crude oil traded at a $28.75 discount to WTI, the narrowest gap in a week
* Gold fell 1.1 percent to $1,311.60 an ounce, the lowest since December
                         FX/Bonds
* The Canadian dollar weakened 0.6 percent to $1.2567 per U.S. dollar, the lowest since December
* The Canada 10-year government bond yield rose one basis point to 2.37 percent
US
By Kailey Leinz and Lu Wang
     (Bloomberg) — U.S. stocks remained on unsteady footing as the bout of volatility that’s gripped global financial markets persisted amid signs that the rise in Treasury yields has yet to run its course.
     Pressure Wednesday came from a weak 10-year note auction, sending the rate toward the four-year high that days ago sparked the biggest equity selloff in seven years. Stocks swung between gains and losses throughout the session before ending lower after heavy selling in the final 15 minutes of trading. Volume on U.S. exchanges topped 9 billion shares for a fourth straight day after surpassing that total just once in the past seven months.
     The S&P 500 erased a gain that reached 1.2 percent at its highest and closed lower by 0.5 percent in the biggest reversal since 2015. The Dow Jones Industrial Average swung 500 points from peak to trough, and heavy selling in megacap technology shares pushed the Nasdaq indexes to losses of at least 0.9 percent. While the Cboe Volatility Index eased back from levels last seen in August 2015, at 26.84 it remains about 40 percent above its average since 1990.
     The yield surge sparked concern the Federal Reserve would accelerate its tightening schedule, slowing the economy and eroding corporate profit margins. Chicago Fed President Charles Evans signaled as much Wednesday, saying sustained inflation could force more hikes.
     “When the rates began to move higher today seemed to be when the selling started to pick up in the market,” Michael Ball, president and lead portfolio manager of Colorado-based Weatherstone Capital Management Inc., said by phone. “That’s a long-term concern that’s out there. After the waterfall decline we had on Friday and Monday, people are just hyper-sensitive.”
     The U.S. equity decline signaled that Tuesday’s rebound — the S&P 500 had its best day in 15 months, as buyers picked over the wreckage from Monday’s 4.1 percent rout — might not persist into the Asian open. The region’s bid for its own recovery faltered late Wednesday, with the MSCI Asia Pacific Index almost completely erasing a gain of as much as 2.4 percent. Europe proved an outlier, with shares halting a seven-day slide on the biggest rally in nine months.
     A lingering issue for equity bulls is the wisdom of doing what they always do — buy the dip — when more selling by speculators may be imminent after Monday’s break in volatility markets. Accounts of losses and liquidations at hedge funds specializing in the asset class were rife Wednesday morning even as Wall Street strategists urged investors to consider the market’s solid underpinning in economic growth and earnings.
     “I think it’s telling you that people are still unnerved about the past several days,” David Ader, chief macro strategist at Informa Financial Intelligence, said by phone. “The stock market is going to be reacting to this retreat, to higher yields, until the bond market finds a footing.”
     The dollar rallied, adding to pressure in commodities. Bloomberg’s index of materials fell for a fourth day with its biggest drop since November. West Texas intermediate crude declined the most in two months after government data showed a jump in production. Gold futures slid and copper futures tumbled more than 3 percent.
     Here are some key events scheduled for this week:
* Monetary policy decisions are due this week in Russia, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
* Earnings season continues with reports from Philip Morris, Tesla, Rio Tinto, L’Oreal and Twitter.
* New York Fed President William Dudley and Dallas Fed President Robert Kaplan are among policy officials due to speak.    
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index fell 0.5 percent as of 4 p.m. in New York.
* The Dow lost 19 points to 24,893.35. The Nasdaq 100 Index fell 1.3 percent.
* The Stoxx Europe 600 Index increased 2 percent, the first advance in more than a week.
* The MSCI Emerging Market Index declined 0.2 percent.
                           Currencies
* The Bloomberg Dollar Spot Index advanced 0.5 percent to the highest in more than two weeks.
* The euro dipped 0.9 percent to $1.227, the weakest in more than two weeks.
* The British pound sank 0.5 percent to $1.3878, the weakest in almost three weeks.
* The Japanese yen declined less than 0.05 percent to 109.60 per dollar.
                            Bonds
* The yield on 10-year Treasuries rose four basis points to 2.84 percent, the highest in about four years.
* Germany’s 10-year yield increased five basis points to 0.75 percent.
* Britain’s 10-year yield climbed three basis points to 1.551 percent.
                            Commodities
* The Bloomberg Commodity Index fell 1.2 percent, its biggest tumble in 12 weeks.
* West Texas Intermediate crude fell 2.4 percent to $61.84 a barrel.
* Gold dipped 0.7 percent to $1,315.24 an ounce.
* Copper declined 2.8 percent to $6,880 a metric ton.
–With assistance from Sarah Ponczek.

Have a wonderful evening everyone.

 

Be magnificent!

As ever,

 

Carolann

We die only once, and for such a long time.
                                    –Moliere, 1622-1673

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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

Posted on

February 6, 2018 Newsletter

Dear Friends,

Tangents:
On Feb. 6, 1952, Britain’s King George VI died; he was succeeded by his daughter, Elizabeth II.
Go to article »

PHOTOS OF THE DAY

A wintry snow shower over the Stade fishing beach this morning in Hastings, East Sussex, England.
Credit: The Telegraph

Fools dressed as balloonists celebrate in the streets of Damme near Osnabrueck, northern Germany, during a traditional carnival parade. The small town of Damme traditionally organises its carnival parade one week ahead of Rose Monday.
Credit: The Telegraph

A woman looks at an art installation titled Temple of the Soul – Two Suns is seen on Gyeongpo Beach as part of the Fire Art exhibition with the Pyeongchang Cultural Olympiad in celebration of the 2018 Pyeongchang Winter Olympics, in South Korea. The Olympic opening ceremony will be held this Friday, February 9th. Throughout the Olympics each of the 23 pieces of art will be burned as part of the art exhibit.
Credit: The Telegraph
Market Closes for February 6th, 2018

Market

Index

 Close Change
Dow

Jones

 24912.77 +567.02

 

+2.33%
 
S&P 500 2695.14 +46.20

 

+1.74%
 
NASDAQ 7115.883 +148.357

 

+2.13%
 
TSX 15363.93 +29.12

 
+0.19%

International Markets

Market

Index

 Close Change
NIKKEI 21610.24 -1071.84
-4.73%
HANG

SENG

 30595.42 -1649.80
-5.12%
SENSEX 34195.94 -561.22
-1.61%
FTSE 100* 7141.40 -193.58
-2.64%

Bonds

Bonds % Yield Previous % Yield
CND.

10 Year Bond

 2.365 2.295
CND.

30 Year

Bond

 2.461 2.418
U.S.   

10 Year Bond

 2.8054 2.7000
U.S.

30 Year Bond

 3.0684 2.9961

Currencies

BOC Close Today Previous  
Canadian $ 0.80043 0.79826
US

$

 1.24933 1.25273
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.54614 0.64677
US

$

 1.23757 0.80803

Commodities

Gold Close Previous
London Gold

Fix

 1331.40 1333.60
     
Oil    
WTI Crude Future 63.39 64.15

Market Commentary:
Number of the Day
503 
The number of components in the (slightly misnamed) S&P 500 that fell in Monday’s trading. Two were up. None were unchanged.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for the first time in seven trading days after a turbulent session that saw the benchmark tumble 2.5 percent at the open.
     The S&P/TSX Composite Index rose 29 points or 0.2 percent to 15,363.93, the first increase since Jan. 26. Cannabis stocks led the gains, with Canopy Growth Corp. jumping 19 percent and Aphria Inc. rising 18 percent.
     The consumer discretionary index rose 1.2 percent. Auto supplier Magna International Inc. jumped 4.7 percent, the most since May, following stronger-than-expected results from customer General Motors Co.
      In other moves:
                         Stocks
* Element Fleet Management Corp. fell 29 percent, the most ever, after the company said it was no longer exploring a sale
* Nutrien Ltd. lost 2.9 percent. The potash company’s 2018 outlook and fourth-quarter results missed most analyst estimates
* Superior Plus Corp. rose 4.6 percent after the stock was rated a new buy at Desjardins Securities
                         Commodities
* Western Canada Select crude oil traded at a $30 discount to WTI
* Gold fell 0.5 percent to $1,326.10 an ounce, the lowest since Jan. 11
                          FX/Bonds
* The Canadian dollar strengthened 0.2 percent to $1.2511 per U.S. dollar
* The Canada 10-year government bond yield rose seven basis points to 2.36 percent
US
By Sarah Ponczek and Kailey Leinz
     (Bloomberg) — U.S. stocks rebounded from a violent selloff to post the biggest rally in 15 months as investors poured back into some of the most beaten-down sectors.
     Technology, materials and consumer shares paced a 1.7 percent gain in the S&P 500 Index, while DowDuPont and Home Depot led a 567 point surge in the Dow Jones Industrial Average, the biggest gain in two years. The ride wasn’t straight up, though. The Dow plunged more than 500 points at the open, adding to anxiety after Monday’s rout — the worst in almost seven years. Stocks swung between gains and losses no fewer than a dozen times before a late-session rally.
     The benchmark for U.S. share volatility went through wild gyrations after hitting a two-year high. Treasury yields swung before nudging higher. The greenback was little changed after two days of gains.
     Earlier, the Stoxx Europe 600 Index slumped the most since June 2016, and Japan’s Nikkei entered a correction as most of the shares on the 1,000-plus member MSCI Asia Pacific Index declined. European bonds traded higher.
     What began with rising bond yields became a selloff across global equity markets late last week, as investors feared the return of inflation and higher rates that could erode profitability for companies already trading at elevated valuations. Traders are watching how the moves unfold from here — a sustained stock slump has the potential to undermine consumer and business sentiment, crimp borrowing and so start to curtail global growth.
    “Based on where we stand relative to historic averages, there may be more pain ahead,” David Lebovitz, global market strategist at JPM Asset Management, said in a message. “However, with economic growth solid, profits rising and central banks only normalizing policy at a gradual pace, it seems reasonable to expect that we will look back on this a few months from now and not even remember what the initial plunge felt like.”
     Earlier Tuesday, the Cboe Volatility Index, a gauge of implied volatility for the S&P 500 Index over the next month, breached 50 to touch its highest level since the aftermath of China’s devaluation of the yuan in 2015.
     Elsewhere, oil declined and metals fell. Bitcoin traded around $7,600 after at one point sinking below $6,000 for the first time since October.
     Here are some key events scheduled for this week:
* Monetary policy decisions are due in Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
* Earnings season continues with reports from Walt Disney, SoftBank, Sanofi, Philip Morris, Tesla, Rio Tinto, L’Oreal and Twitter.
* Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index gained 1.7 percent as of 4 p.m. New York time, the biggest surge in 15 months.
* The Stoxx Europe 600 Index decreased 2.4 percent.
* The U.K.’s FTSE 100 Index dipped 2.6 percent.
* The MSCI Emerging Market Index sank 2.5 percent to the lowest in almost five weeks.
                           Currencies
* The Bloomberg Dollar Spot Index fell less than 0.05 percent.
* The euro climbed less than 0.05 percent to $1.2371.
* The British pound declined 0.1 percent to $1.3949.
* The Japanese yen declined 0.4 percent to 109.56 per dollar.
                           Bonds
* The yield on 10-year Treasuries climbed nine basis points to 2.80 percent.
* Germany’s 10-year yield declined four basis points to 0.69 percent.
* Britain’s 10-year yield fell four basis points to 1.521 percent, the biggest fall in almost five weeks.
                          Commodities
* West Texas Intermediate crude dipped 1 percent to $63.43 a barrel.
* Gold fell 1.3 percent to $1,322.74 an ounce.
* Copper fell 1.3 percent to $7,076 per metric ton.
–With assistance from Adam Haigh, Samuel Potter, Luke Kawa, Lu Wang and Julie Verhage.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

As ever,

 

Carolann

 

Alone we can do so little; together we can do so much.
                                     -Helen Keller, 1880-1968

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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

Posted on

February 5, 2018 Newsletter

Dear Friends,

Tangents:

André-Gustave Citroën was born on this day in 1878. The French engineer and industrialist introduced Henry Ford’s methods of mass production to the European automobile industry when he converted his munitions factory into a facility to make low-cost vehicles after World War I.

POINTS OF PROGRESS:
WORLDWIDE
Pirate attacks against ships worldwide fell to their lowest level in more than two decades last year, according to the International Maritime Bureau.  A total of 180 incidents of piracy and armed robbery against ships were recorded in 2017, the lowest since noted, however, that piracy has increased in the Philippines, Bangladesh, and several areas in Africa. -The Straits Times

VANUATU
Vanuatu’s Council of Ministers has banned the manufacturing and importing of single-use plastic bags in this South Pacific nation.  The council made its move after a study showed a large amount of plastic garbage had accumulated on the main island of Efate.  As of Jan. 31, plastic bag manufacturers will only be allowed to use biodegradable plastics on all of the nation’s 80-some islands. -Radio New Zealand

SAUDI ARABIA
As of this month, Saudi women will be allowed to attend professional soccer matches for the first time in the country’s history.  Also, early in 2018, the government will begin issuing tourist visas to women older than 24, allowing them to leave the country without a male guardian.  -The Guardian and The National

CAMBODIA
Wages for worker in Cambodia’s garment industry rose by 11 percent on Jan. 1, evidence of a continuing trend.  The country’s garment workers have seen their wages increase by more than 150 percent over the past five years, from $61 per month in 2012 to a new high of $170 in 2018.  Cambodia’s $7 billion garment industry employs an estimated 700,000 workers. -Reuters

PARAGUAY
Giant lily pads believed to be extinct have reappeared.  The fragrant lilies known for their size (as large as six feet in diameter) and unusual shape (rimmed, like a teacup) – have reappeared at the mouth of the Salado River, a tributary of the Paraguay River.  The lilies had been listed as endangered in 2006 and later were believed to have disappeared. -BBC

PHOTOS OF THE DAY

A winter wonderland scene near Alston, Cumbria. Forecasters warning that the UK will experience the coldest spell of weather this winter in the coming week with heavy snowfalls and sub-zero temperatures.
CREDIT:  PAUL KINGSTON/NNP

Elisa Costantini performs in the Flight of Angel on in Venice, Italy. The traditional event goes back to the Serenissima period, and marks the official start of the Venice carnival.
CREDIT: AWAKENING/GETTY IMAGES

People dressed as ‘Pantallas’ dance and run, enjoying the Corredoiro Carnival Sunday in Xinzo de Limia, Ourense, Spain.
CREDIT: FOTOPRESS/GETTY IMAGES

A traditional Powhiri is given to the New Zealand Governor General Dame Patsy Reddy at Te Whare Runanga on the Waitangi Treaty Grounds in New Zealan. The Waitangi Day national holiday celebrates the signing of the treaty of Waitangi on February 6. 1840 by Maori chiefs and the British Crown, that granted the Maori people the rights of British Citizens and ownership of their lands and other properties.
CREDIT: PHIL WALTER/GETTY IMAGES
Market Closes for February 5th, 2018

Market

Index

 Close Change
Dow

Jones

 24345.75 -1175.21

 

-4.60%
 
S&P 500 2648.94 -113.19

 

-4.10%
 
NASDAQ 6967.527 -273.419

 

-3.78%
 
TSX 15334.81 -271.23

 
-1.74%

International Markets

Market

Index

 Close Change
NIKKEI 22682.08 -592.45
-2.55%
HANG

SENG

 32245.22 -356.56
-1.09%
SENSEX 34757.16 -309.59
-0.88%
FTSE 100* 7334.98 -108.45
-1.46%

Bonds

Bonds % Yield Previous % Yield
CND.

10 Year Bond

 2.295 2.361
CND.

30 Year

Bond

 2.418 2.435
U.S.   

10 Year Bond

 2.7000 2.8354
U.S.

30 Year Bond

 2.9961 3.0784

Currencies

BOC Close Today Previous  
Canadian $ 0.79826 0.80462
US

$

 1.25273 1.24282
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.55055 0.64493
US

$

 1.23773 0.80783

Commodities

Gold Close Previous
London Gold

Fix

 1333.60 1331.15
     
Oil    
WTI Crude Future 64.15 65.45

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell the most in 17 months as a rapid crash in the Dow Jones Industrial Average led North American indexes lower.
     The S&P/TSX Composite Index fell 271 points or 1.7 percent to 15,334.81, the lowest since mid-September. The benchmark has now lost 5.6 percent in the past six trading days.
     All sectors were lower Monday, with financials leading the decline, down 2.4 percent. Bank of Montreal lost 3 percent and Toronto-Dominion Bank fell 2.9 percent.
     The energy index retreated 2 percent along with West Texas Intermediate crude prices. The gap between Canadian crude and WTI remained the widest since 2013.
     In other moves:
                          Stocks
* Hudson’s Bay Co. lost 2.4 percent. The retailer named CVS Health Corp. executive Helena Foulkes as its chief executive officer
* Aurora Cannabis Inc. jumped 8.8 percent, bucking the broader market sell-off, after taking a 20 percent stake in Liquor Stores NA Ltd., which rose 2.1 percent
* Canaccord Genuity Group Inc. lost 6.5 percent. The stock was downgraded to hold at TD Securities
                          Commodities
* Western Canada Select crude oil traded at a $30.60 discount to WTI
* Gold fell 0.1 percent to $1,333 an ounce
                          FX/Bonds
* The Canadian dollar weakened 0.8 percent to $1.2523 per U.S. dollar, the lowest in nearly four weeks
* The Canada 10-year government bond yield fell five basis points to 2.31 percent, the most since December
US
By Sarah Ponczek and Jeremy Herron
     (Bloomberg) — U.S. stocks plunged the most in 6 1/2 years, with the Dow Jones Industrial Average sinking 1,175 points, as the equity selloff reached a fever pitch amid rising concern that inflation will force interest rates higher. Treasuries rallied and gold rose on haven demand.
     Volatility roared back into American equity markets, as the S&P 500 Index sank 4.1 percent to wipe out its January gain and turn lower on the year. The index capped its worst day since the U.S. lost its pristine credit rating, topping the rout that followed China’s shock devaluation of the yuan, the Brexit selloff and jitters heading into the presidential election. Trading volume was almost double the 30-day average. All but two stocks in the broad gauge declined.
     “This is classic risk off that may not end any time soon,” says Win Thin, head of emerging-market currency strategy at Brown Brothers Harriman.
     Selling accelerated shortly after 3 p.m. in New York, with the Dow sinking more than 800 points in a matter of 15 minutes to put its drop at 1,597 points. It snapped back in 10 minutes before turning lower again to end down 4.6 percent — its steepest drop since August 2011, and is also lower for the year. The Cboe Volatility Index more than doubled to its highest level in 2 1/2 years.
     Treasuries popped, sending the 10-year yield down more than 10 basis points, and gold future pushed higher. The dollar stabilized while the yen advanced.
     While Friday’s market rout came amid U.S. wage data on Friday that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies, the selling Monday came amid few major data points.
     “I think sentiment was a little too optimistic,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “What was driving the market up in January? It wasn’t the fundamentals, as good as they were, it was excessive confidence.”
     Elsewhere, oil extended declines after U.S. explorers raised the number of rigs drilling for crude to the most since August. Copper climbed the most in a week. Bitcoin slid below $7,000.
     Here are some key events scheduled for this week:
* Monetary policy decisions are due in Australia, Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
* Earnings season continues with reports from Bristol-Myers Squibb, Ryanair, Toyota Motor Corp., BNP Paribas, BP, General Motors, Walt Disney, SoftBank, Sanofi, Philip Morris, Total, Tesla, Rio Tinto, L’Oreal and Twitter.
* Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.
     These are the main moves in markets:
                         Stocks
* The S&P 500 fell 4.1 percent as of 4 p.m. New York time, to the lowest since Dec. 7.
* The Dow fell 1,175.21 points, or 4.6 percent, while the Nasdaq averages were off by more than 3.7 percent.
* The Russell 2000 Index lost 3.6 percent.
* The Stoxx Europe 600 Index declined 1.6 percent , hitting the lowest in almost 12 weeks with its sixth consecutive decline.
* The MSCI Emerging Markets Index lost 1.9 percent.
                         Currencies
* The Bloomberg Dollar Spot Index gained 0.4 percent.
* The euro decreased 0.6 percent to $1.2385.
* The British pound declined 1.1 percent to $1.3967, the weakest in almost two weeks.
* The Japanese yen gained 0.8 percent to 109.242 per dollar.
                          Bonds
* The yield on 10-year Treasuries fell 13 basis points to 2.71 percent.
* Germany’s 10-year yield declined three basis points to 0.74 percent, the largest decrease in almost six weeks.
* Britain’s 10-year yield declined two basis points to 1.558 percent.
                          Commodities
* West Texas Intermediate crude dipped 2.2 percent to $64.01 a barrel.
* Gold advanced 0.1 percent to $1,334.76 an ounce.
* Copper gained 1.8 percent to $7,169 per metric ton.
–With assistance from Andrew Dunn, Adam Haigh, Natasha Doff, Kailey Leinz and Lananh Nguyen.

Have a wonderful evening everyone.

Be magnificent!

As ever,

 

Carolann

 

Jealousy is all the fun you think they had.
                                    -Erica Jong, b. 1942

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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

Posted on

February 2, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!

On this day in 1887, Groundhog Day is celebrated for the first time at Gobbler’s Knob in Punxsutawney, Penn. The groundhog saw its shadow.

6 More Weeks of Winter: Punxsutawney Phil Sees His Royal Shadow
                     -By Jeanna Bryner, Live Science Managing Editor 

Punxsutawney Phil, the seemingly immortal and consistently cute groundhog and weather prognosticator, has emerged from his burrow on Gobbler’s Knob in Punxsutawney, Pennsylvania, this morning (Feb. 2) only to see his shadow, indicating six more weeks of winter.
The furry, well-fed groundhog — also called a woodchuck, marmot and whistle-pig — was welcomed by flashing TV cameras and a cheering crowd. And he apparently had something to say, speaking Groundhogese to the Punxsutawney Groundhog Club president, Bill Deeley, who reported that Phil directed him to a scroll that read: “… My faithful followers, your hands and my paws are getting cold, so here’s my forecast, not lead but solid gold. I see my royal shadow, six more weeks of winter to go.” Lots of cheering, and some boos, followed from the huge crowd that turned out in front of Gobbler’s Knob.
This is Phil’s 132nd weather forecast. And while your average groundhog (Marmota monax) in captivity lives about 10 years, the marmot’s caregivers maintain there has been only one furry forecaster.
Another claim of Phil’s handlers: that the well-pampered (he lives next to the children’s library the other 364 days of the year) rodent is spot-on with his forecasts every year.
“He sees his shadow about 80 percent of the time and the other 20 percent he doesn’t,” Deeley told Live Science previously. “He’s pretty darn accurate.”
The various incarnations of Punxsutawney Phil have seen their shadow 103 times (more winter) and reported no shadow, or early springs, 18 times. And in 1942, apparently, Phil saw a partial shadow, which was counted as “no shadow,” according to Stormfax Almanac. There is no record for nine years. Overall, Phil has swung it out of the park about 39 percent of the time, according to Stormfax Almanac.
Last year, Phil reported seeing his shadow, suggesting six more weeks of winter. At the end of February, forecasters did predict winter would stay around into spring, AccuWeather reported.
The weather-forecasting powers of woodchucks seem to date back to medieval Europe and were brought to the United States by German immigrants in the 1880s, Live Science previously reported.
Original article on Live Science.

On Feb. 2, 1943, the remainder of Nazi forces from the Battle of Stalingrad surrendered in a major victory for the Soviets in World War II.
Go to article ??

PHOTOS OF THE DAY

A super blue blood moon behind a mountain is seen from Longyearbyen, Svalbard, Norway.

A Soyuz 2.1a rocket booster with a Frigate upper stage block launched from the Vostochny Cosmodrome. The Soyuz 2.1s rocket booster is to deliver Russian Kanopus-V No3 and No4 remote sensing satellite and 9 small satellites to orbit.

An Indian Hindu devotee touches the water of the river Ganges on its pass through Brijghat in the Indian state of Uttar Pradesh.
Market Closes for February 2nd, 2018

Market

Index

 Close Change
Dow

Jones

 25520.96 -665.75

 

-2.54%
 
S&P 500 2764.26 -57.72

 

-2.05%
 
NASDAQ 7240.945 -144.918

 

-1.96%
 
TSX 15614.39 -246.53

 
-1.55%

International Markets

Market

Index

 Close Change
NIKKEI 23274.53 -211.58
-0.90%
HANG

SENG

 32601.78 -40.31
-0.12%
SENSEX 35066.75 -839.91
-2.34%
FTSE 100* 7443.43 -46.96
-0.63%

Bonds

Bonds % Yield Previous % Yield
CND.

10 Year Bond

 2.361 2.364
CND.

30 Year

Bond

 2.435 2.417
U.S.   

10 Year Bond

 2.8354 2.7840
U.S.

30 Year Bond

 3.0784 3.0200

Currencies

BOC Close Today Previous  
Canadian $ 0.80462 0.81536
US

$

 1.24282 1.22645
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.54787 0.64605
US

$

 1.24545 0.80292

Commodities

Gold Close Previous
London Gold

Fix

 1331.15 1341.35
     
Oil    
WTI Crude Future 65.45 65.80

Market Commentary:
Number of the Day
$546 million
Tesla Inc. sold $546 million of bonds backed by lease payments on Model X and Model S vehicles on Thursday, the latest sign of how yield-hungry investors continue to soak up corporate debt of all flavors.
CANADA
By Kristine Owram
     (Bloomberg) — Canadian stocks posted their worst week since January 2016, falling to the lowest in nearly five months amid a broader global rout.
     The S&P/TSX Composite Index tumbled 255 points or 1.6 percent to 15,606.03. The benchmark fell 3.9 percent on the week as a combination of rising bond yields and worsening sentiment weighed on stocks.
     The health-care index was the biggest decliner, losing 5.4 percent as marijuana stocks Canopy Growth Corp. and Aphria Inc. led the drop with double-digit losses.
     Materials tumbled 2.8 percent as precious and base metals fell, and energy lost 2.1 percent as the gap between Canadian crude and West Texas Intermediate widened to the largest since 2013.
     In other moves:
                          Stocks
* Canada Goose Holdings Inc. was one of the few gainers, adding 1.6 percent ahead of next week’s earnings release
* Imperial Oil Ltd. fell 4.3 percent after fourth-quarter earnings per share missed the average analyst estimate
* Norbord Inc. lost 2.8 percent even as fourth-quarter earnings beat estimates
                          Commodities
* Western Canada Select crude oil traded at a $30.55 discount to WTI, the widest since 2013
* Gold fell 0.8 percent to $1,333.70 an ounce
                           FX/Bonds
* The Canadian dollar weakened 1.2 percent to $1.2419 per U.S. dollar as U.S. jobs data strengthened the greenback
* The Canada 10-year government bond yield was little changed at 2.36 percent
US
By Jeremy Herron
     (Bloomberg) — The Dow Jones Industrial Average tumbled 666 points in the biggest plunge since June 2016, as the worsening bond rout stirred angst that the Federal Reserve will accelerate its rate-hike schedule.
     Solid jobs data that underscored the strength of the economy sent bond bulls scurrying and rattled equity investors who haven’t seen a week this bad in two years. The tandem selling accelerated after Dallas Fed President Robert Kaplan suggested officials may need to hike more than three times this year to cool the advance. The 10-year Treasury yield popped above 2.85 percent for the first time since January 2014.
     “Yields have risen, inflation evidence is rising rather broadly. It’s that combo of factors that’s starting to mount,” Jim Paulsen, chief investment strategist at Leuthold Weeden, said by phone. “And then you get a report, and that’s the straw that breaks the camel’s back, and that’s kind of what we got into today.”
     There was nowhere to hide on the stock market, with all 11 S&P 500 sectors lower. The index’s five-day rout reached 3.9 percent — marking its first pullback of at least that much in a record 404 days. Energy shares sank 4.1 percent as earnings disappointed and crude slumped. The tech selloff worsened, sending the Nasdaq 100 Index lower by 2.1 percent. Its weekly rout hit 3.7 percent, most since February 2006. Not even a record rally at Amazon.com Inc. could rescue the measure, as the world’s biggest company, Apple Inc. hit its lowest since October.
     “People are finally starting to reprice reflation, it’s about time,” Jeanne Asseraf-Bitton, head of global cross-asset research at Lyxor Asset Management, said by phone. “Global economic growth is strong and corporate earnings are very solid, so there’s no reason to question the equity bull market. The rise in bond yields is good, it’s just the speed at which it’s happening that is making investors nervous. Bottom line: this is a healthy correction.”
     U.S. hiring picked up in January and wages rose at the fastest annual pace since the recession ended, as the economy’s steady move toward full employment extended into 2018. Equities are being tested by the surge in bond yields, with some fund managers saying 3 percent U.S. 10-year rates would signal a bond bear market. The level is seen by many stock-watchers as a potential trigger for a correction in equities.
     In Europe, a bond selloff deepened across the continent, and equities dropped for a fifth straight day, the longest streak since November. Disappointing results from companies including Deutsche Bank AG and BT Group Plc. paced losses, with Germany’s DAX giving up the year’s gains, capping the worst weekly decline since 2016. Bund yields reached a fresh two-year high, while the euro and British pound weakened. Japanese debt gained and the yen declined after the Bank of Japan intervened to stem the rise in rates.
     These are the main moves in markets:
                        Stocks
* The S&P 500 Index fell 2.1 percent to 2,761.91 at 4 p.m. in New York.
* The Dow Jones Industrial Average lost 668.64 points to close at 25,518.07, the lowest since Jan. 10.
* The Nasdaq 100 Index lost 2.1 percent.
* The Stoxx Europe 600 Index decreased 1.4 percent, wiping out gains this year with its fifth consecutive decline. It lost 3.1 percent in the week.
* Germany’s DAX Index sank 1.7 percent, the most since June. It closed a four-month low.
* Emerging market stocks lost 1.6 percent, for a weekly drop of 3.5 percent, the most since May 2016.
* The MSCI Asia Pacific Index fell 0.7 percent.
* Topix index fell 0.3 percent, Hong Kong’s Hang Seng Index dropped 0.1 percent, the Kospi index declined 1.7 percent, Australia’s S&P/ASX 200 Index rose 0.5 percent.
                        Currencies
* The Bloomberg Dollar Spot Index gained 0.8 percent, the largest rise in more than 10 weeks.
* The euro declined 0.4 percent to $1.2457.
* The British pound fell 1 percent to $1.4123.
* The Japanese yen fell 0.7 percent to 110.144 per dollar, the weakest since Jan. 23.
                         Bonds
* The yield on 10-year Treasuries rose five basis points to 2.834 percent. It touched 2.8525 earlier.
* Germany’s 10-year yield rose five basis points to 0.77 percent, the highest in more than two years.
* Japan’s 10-year yield dipped one basis point to 0.086 percent.
                         Commodities
* West Texas Intermediate crude fell 0.5 percent to settle at $65.45 a barrel.
* Gold posted the biggest weekly drop since early December. Futures on Friday decreased 0.8 percent to settle at $1,337.30 an ounce.
–With assistance from Masaki Kondo, Cormac Mullen and Robert Brand 

Have a wonderful weekend everyone.

 

Be magnificent!

As ever,

 

Carolann

I always pass on good advice.  It is the only thing
to do with it.  It is never of any use to oneself.
                       -Oscar Wilde, 1854-1900

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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

Posted on

February 1, 2018 Newsletter

Dear Friends,

Tangents:
February – the month of purification among the ancient Romans (Latin februum,”purgatation”)

POINTS OF PROGRESS:
NORWAY
In 2017, sales of electric or hybrid cars (52 %) outpaced sales of new gas or diesel-powered cars.  The country’s ambitious goal is to ban sales of gas-reliant cars by 2025.  The Norwegian government is offering tax cuts and other incentives, including free or subsidized parking and charging, and reduced road tolls, to achieve its goal. -Quartz.

CHINA
The country  – the world’s largest importer of elephant tusks – banned ivory sales early this month.  Although not all environmentalists approve (some predict it will drive traffic in ivory to countries such as Laos), others applaud the move.  Peter Knights, chief executive of WildAid, called the new legislation “the greatest single step toward reducing elephant poaching. -CBC

NEW YORK
Between 2011 and 2016, community gardens were created on 36 vacant lots, when advocacy group 596 Acres circulated a list of unused spaces available for public use.  The movement to inform residents of vacant lots that they may not have realized were open to the public use has since spread throughout the United States and to Australia, Canada, Brazil, England and Germany. -World Economic Forum.
PHOTOS OF THE DAY

A paddle boarder on Loch Lomond as wintery conditions return in Tarbet, Scotland.
CREDIT: JEFF J MITCHELL/GETTY IMAGES

A Panel from the First Class smoking room of the Normandie. ‘Les Sports’ 1935 on display at the V&A in London as part of a major exhibition – Ocean Liners: Speed and Style which will re-imagine the golden age of ocean travel, exploring the design and cultural impact of the ocean liner on an international scale.
CREDIT: JULIAN SIMMONDS FOR THE TELEGRAPH

A super blue blood moon rises over hills near the city of Yuzhno-Sakhalinsk on Sakhalin Island, Russia.
CREDIT: SERGEI KRASNOUKHOV/TASS/GETTY IMAGES

The European flag is projected onto the town hall at the Grand Place in Brussels, Belgium, during a light and sound show to mark the launch of the European year of cultural heritage 2018.
CREDIT: EMMANUAL DUNAND/AFP
Market Closes for February 1st, 2018

Market

Index

 Close Change
Dow

Jones

 26186.71 +37.32

 

+0.14%
 
S&P 500 2821.98 -1.83

 

-0.06%
 
NASDAQ 7385.863 -25.619

 

-0.35%
 
TSX 15860.92 -90.75
-0.57%

International Markets

Market

Index

 Close Change
NIKKEI 23486.11 +387.82
+1.68%
HANG

SENG

 32642.09 -245.18
-0.75%
SENSEX 35906.66 -58.36
-0.16%
FTSE 100* 7490.39 -43.16
-0.57%

Bonds

Bonds % Yield Previous % Yield
CND.

10 Year Bond

 2.364 2.289
CND.

30 Year

Bond

 2.417 2.360
U.S.   

10 Year Bond

 2.7840 2.7050
U.S.

30 Year Bond

 3.0200 2.9348

Currencies

BOC Close Today Previous  
Canadian $ 0.81536 0.81252
US

$

 1.22645 1.23074
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.53429 0.65177
US

$

 1.25100 0.79936

Commodities

Gold Close Previous
London Gold

Fix

 1341.35 1345.05
     
Oil    
WTI Crude Future 65.80 64.73

Market Commentary:
On this day in 1975, Bill Gates and Paul Allen finish writing the first BASIC language program for a personal computer and license it to Micro Instrumentation and Telemetry Systems of Albuquerque, NM, the maker of the Altair 8800 PC.
Number of the Day
10
The Dow Jones Industrial Average has risen for ten consecutive months, the longest winning streak since the 12 months ending February 1959.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell to their lowest close since October after a 4th day of declines, while government bond yields rose to the highest since mid-2014.
     The S&P/TSX Composite Index lost 91 points or 0.6 percent to 15,860.92. The 4-day retreat was the most in nearly a year.
     Energy stocks lost 0.6 percent as the gap between Canadian crude prices and West Texas Intermediate hit the widest since 2013. Financials fell 0.6 percent and health-care stocks tumbled 4.4 percent, led by a decline in cannabis shares.
     The only sector that rose was technology, which added 2.6 percent. Shares of Open Text Corp. jumped 13 percent, the most since 2015, after earnings and revenue beat the highest analyst estimate.
     In other moves:
                          Stocks
* Saputo Inc. fell 2.6 percent after the dairy company’s 3Q earnings missed the lowest analyst estimate
* Stella-Jones Inc. lost 8.2 percent, the most since 2008. The company’s principal shareholder is selling 5m shares at C$48.50 through a secondary offering
* Aimia Inc. tumbled 25 percent, the most since June, after selling its Nectar loyalty program for what one analyst called a “remarkably low price”
                          Commodities
* Western Canada Select crude oil traded at a $30.45 discount to WTI, the biggest gap since 2013
* Gold rose 0.4 percent to $1,344.30 an ounce
                          FX/Bonds
* The Canadian dollar strengthened 0.4 percent to $1.2269 per U.S. dollar, the highest since September
* The Canada 10-year government bond yield rose eight basis points to 2.37 percent, the highest since May 2014
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks and Treasuries fell in tandem Thursday ahead of a slew of technology earnings, as the threat of higher rates from the Federal Reserve continued to rattle equity markets coming off their best month since March 2016.
     The Nasdaq 100 Index bore the brunt of the selling as the tech-heavy gauge headed for its worst week since June. Amazon.com Inc. tumbled before its earnings, with Apple Inc. and Alphabet Inc. also fell on results that disappointed.
     Other major averages notched modest retreats in an up-dand- down session that actually saw the CBOE Volatility Index decline. The Dow Jones Industrial Average gave up all of a 150- point advance only to eke out a gain in the final minutes of trading. Rate-sensitive real estate and utility shares led the S&P 500 Index to a third drop in four days.
     While earnings drove individual stock moves, a resumption in the bond selloff weighed heaviest. The 10-year yield spiked to just under 2.79 percent, the highest level since April 2014, renewing speculation that pain in the bond market would spill over into equities. The dollar also fell, losing 0.5 percent against major peers.
     “The performance of the bond market has got to be beginning to flash red to equities,” Mark Heppenstall, chief investment officer of Penn Mutual Asset Management, said by phone. “Just the strength of rally in the equity market is going to bring the Fed more and more into play this year. It seems we’re reaching a critical level on interest rates that could throw some cold water on the party in the equity market.”
     Treasury weakness spread to European sovereign debt amid solid manufacturing data from the region, while earnings sent . The pound increased a third day alongside the euro, though U.K. numbers disappointed. Oil retook $65 a barrel and gold pushed higher. The dollar slumped.
     Investors are weighing the path of monetary policy at a time of synchronized global growth and rising corporate profits that’s pushed equity gauges to unprecedented levels and sent benchmark bond yields to the highest in almost four years. The Fed on Wednesday acknowledged stronger growth, expressed more confidence that inflation will rise to its 2 percent target, and set the stage for a March interest-rate increase.
     “The equity market has been selling off the last couple days in terms of understanding that rates are going to go higher and higher,” Wade Balliet, chief investment strategist at Bank of the West, said by phone. “Given some of the massive gains we’ve had in the last nine years, as rates trickle higher, that puts a little bit of nervousness in the equity market that we may not have as good a year as we had in 2017.”
     Elsewhere, oil rose and gold retreated as Bloomberg’s commodity index headed for a fourth consecutive drop. And following a miserable January Bitcoin slipped below $9,500.

     Here are some important things to watch out for this week:
* U.S. employers probably added more jobs in January than a month earlier, economists forecast before the Friday report.
* Technology earnings continue with Apple Inc., Alphabet Inc. and Amazon.com Inc.
     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index fell 0.1 percent to 2,821.96 at 4 p.m. in New York.
* The Nasdaq 100 fell 0.7 percent, while the Dow Jones Industrial Average rose 0.1 percent.
* Facebook Inc. rose 3.3 percent and Microsoft slipped 0.8 percent.
* The Stoxx Europe 600 Index fell 0.5 percent to the lowest in four weeks.
* The MSCI Asia Pacific Index gained 0.3 percent.
* The MSCI Emerging Market Index sank 0.5 percent.
                          Currencies
* The Bloomberg Dollar Spot Index fell 0.5 percent.
* The euro advanced 0.3 percent to $1.2456, the strongest in more than three years on the largest gain in more than a week.
* The British pound increased 0.3 percent to $1.423, the strongest in more than a week.
* The Japanese yen declined 0.4 percent to 109.59 per dollar, the weakest in more than a week.
* South Africa’s rand declined 0.3 percent to 11.8863 per dollar.
* The MSCI Emerging Markets Currency Index decreased 0.2 percent.
                           Bonds
* The yield on 10-year Treasuries increased eight basis points to 2.7877 percent.
* Germany’s 10-year yield advanced two basis points to 0.72 percent, the highest in more than two years.
* Britain’s 10-year yield climbed two basis points to 1.533 percent, reaching the highest in 21 months on its seventh straight advance.
                          Commodities
* West Texas Intermediate crude advanced 1.1 percent to $65.44 a barrel, the largest gain in more than a week.
* Gold fell 0.4 percent to $1,340.07 an ounce.
–With assistance from Samuel Potter and Kailey Leinz.

 

Have a wonderful evening everyone.

 

Be magnificent!

As ever,

 

Carolann

 

There’s a divinity that shapes our ends,
Rough-hew them how we will.
    -William Shakespeare, 1564-1616, Hamlet.

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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

Posted on

January 31, 2018 Newsletter

Dear Friends,

Tangents:  Super Blue Moon tonight!


A super blood blue moon rises behind a temple in Bangkok, Thailand, Jan. 31. A NASA briefing describes the confluence of factors behind the phenomenon: ‘It is the third in a series of “supermoons,” when the Moon is closer to Earth in its orbit – known as perigee – and about 14 percent brighter than usual. It’s also the second full moon of the month, commonly known as a “blue moon.” The super blue moon will pass through Earth’s shadow to give viewers in the right location a total lunar eclipse. While the Moon is in the Earth’s shadow it will take on a reddish tint, known as a “blood moon.” ‘ Athit Perawongmetha/Reuters
(The illustrations in today’s Monitor Daily are by Jacob Turcotte and Karen Norris.)

PHOTOS OF THE DAY

The sun rises over East Sussex after a cold night.
CREDIT: PETER CRIPPS/ALAMY LIVE NEWS

Trees reflected in the water along the flooded banks of the Saone River between Tournus and Macon, eastern France.
CERDIT: PHILIPPE DESMZES/AFP/GETTY IMAGES

Gathering spaces and a plant-filled wall are shown before a grand opening ceremony for the Amazon Spheres in Seattle, US. The plant-filled geodesic domes will serve as a work-and gathering space for Amazon.com employees.
CREDIT: TED S. WARREN/AP
Market Closes for January 31st, 2018

Market

Index

 Close Change
Dow

Jones

 26149.39 +72.50

 

+0.28%
 
S&P 500 2823.81 +1.38

 

+0.05%
 
NASDAQ 7411.480 +8.999

 

+0.12%
 
TSX 15951.67 -3.84

 
-0.02%

International Markets

Market

Index

 Close Change
NIKKEI 23098.29 -193.68
-0.83%
HANG

SENG

 32887.27 +279.98
+0.86%
SENSEX 35965.02 -68.71
-0.19%
FTSE 100* 7533.55 -54.43
-0.72%

Bonds

Bonds % Yield Previous % Yield
CND.

10 Year Bond

 2.289 2.298
CND.

30 Year

Bond

 2.360 2.377
U.S.   

10 Year Bond

 2.7050 2.7236
U.S.

30 Year Bond

 2.9348 2.9747

Currencies

BOC Close Today Previous  
Canadian $ 0.81252 0.81031
US

$

 1.23074 1.23409
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.52827 0.65433
US

$

 1.24175 0.80531

Commodities

Gold Close Previous
London Gold

Fix

 1345.05 1344.90
     
Oil    
WTI Crude Future 64.73 64.50

Market Commentary:
On this day in 1990, McDonald’s opens its first restaurant in Russia. It has to import cheese from Poland, chickens from France, and potatoes from Holland, but the outlet on Moscow’s Pushkin Square is a huge success.
Number of the Day
3.44%
The average yield-to-maturity on U.S. investment-grade corporate bonds this week, up from from 3.05% in early September. 
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were little changed Wednesday, wrapping up their worst January since 2010.
     The S&P/TSX Composite Index slipped 4 points or less than 0.1 percent to 15,951.67, its lowest close since early December, as declines in energy and financials offset gains in most other sectors. The benchmark fell 1.6 percent on the month.
     Financials lost 0.3 percent and energy slipped 0.2 percent as the differential between Canadian crude prices and West Texas Intermediate hit the widest since 2013.
     Technology shares were the biggest gainers, adding 1 percent as Shopify Inc. rose 2.6 percent. Utilities gained 0.9 percent and telecom stocks rose 0.6 percent.
     In other moves:
                          Stocks
* Thomson Reuters Corp. fell 7.3 percent, giving up all of Tuesday’s gain. Analysts at National Bank Financial downgraded the stock, citing several “pressure points” in the Blackstone Group LP deal
* Imperial Oil Ltd. rose 1.9 percent, making it one of the top performers in the Canadian energy index, after RBC Capital Markets upgraded the stock
* Hudson’s Bay Co. rose 2.3 percent. Activist investor Land & Buildings Investment Management said a go-private transaction could be viable again
                          Commodities
* Western Canada Select crude oil traded at a $29 discount to WTI, the widest gap since 2013
* Gold rose 0.3 percent to $1,339.00 an ounce
                          FX/Bonds
* The Canadian dollar strengthened 0.3 percent to $1.2301 per U.S. dollar, the highest since September
* The Canada 10-year government bond yield was little changed at 2.29 percent
US
By Kailey Leinz and Sarah Ponczek
     (Bloomberg) — Treasury yields touched almost four-year highs and U.S. stocks managed to hold onto late gains after Federal Reserve officials set the stage for an rate increase in March by adding emphasis to their plan for more hikes while leaving borrowing costs unchanged.
     After being whipsawed by the Fed announcement, the S&P 500 Index closed higher for the first time in three days, rounding out the best start to the year for the U.S. benchmark since 1997. European and Asian equities continued to experience the pullback seen since the start of the week, with the Stoxx Europe 600 Index and the MSCI Asia Pacific Index both declining for a third day.
     The changes to the Fed statement, collectively acknowledging stronger growth and more confidence that inflation will rise to the 2 percent target. Officials also said inflation “is expected to move up this year and to stabilize” around the goal, in phrasing that marked an upgrade from December.
     “Some people who were not as hawkish before are probably a bit more hawkish now,” said John Vail, chief global strategist at Nikko Asset Management. “So let’s say probably due to economic developments, including the tax cut, the board and all the Fed members are moderately more hawkish than they were at the last meeting.”
     The yield on the 10-year U.S. note rose to as much as 2.75 percent, the highest since April 2014. It has climbed higher earlier the Treasury raised the amount of long-term bonds it will sell this quarter with the budget deficit worsening. The dollar briefly rallied before retracing losses.
     While U.S. bonds are off to their worst start to a year since 2009, it’s been a big month for stock markets, with stellar gains across most major gauges that were followed this week by the MSCI All-Country World Index’s biggest two-day slide since September 2016.
     
     Here are some important things to watch out for this week:
* U.S. employers probably added more jobs in January than a month earlier, economists forecast before the Friday report.

     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.1 percent, the Dow Jones Industrial Average gained 0.3 percent and the Nasdaq Composite Index increased 0.1 percent as of 4:09 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.2 percent.
* The MSCI Asia Pacific Index decreased 0.4 percent.
* The U.K.’s FTSE 100 Index dipped 0.7 percent.
                           Currencies
* The Bloomberg Dollar Spot Index declined 0.2 percent.
* The euro rose 0.1 percent to $1.2414.
* The British pound increased 0.3 percent to $1.4191.
* The Japanese yen weakened 0.4 percent to 109.17 per dollar.
                            Bonds
* The yield on 10-year Treasuries was little changed at 2.72 percent.
* Germany’s 10-year yield rose two basis points to 0.69 percent.
* Britain’s 10-year yield rose five basis points to 1.51 percent.
                           Commodities
* West Texas Intermediate crude gained 0.6 percent to $64.86 a barrel.
* Gold rose 0.5 percent to $1,345.76 an ounce.
–With assistance from Lu Wang.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

As ever,

 

Carolann

Rarely do great beauty and great virtue dwell together.
                            -Francesco Petrarch, 1304-1374

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
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Victoria, B.C. V8W 3Y7

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