Month: March 2018

Dear Friends,

Tangents: Happy Wednesday!
2010 – Sydney’s Crosby’s overtime goal gives Canada to a 3-2 victory over the United States in the hockey Gold Medal Game at the Vancouver Olympics.

POSSIBILITY
     -by Charles Coe

The new snow covers everything.
This morning the world was bathed
in that sharp-edged light
that comes in winter
after a storm blows through.
Outside my window, on the street below,
a small child, an electric blue bundle,
lets go of an adult’s hand
to charge headfirst
into a towering snowdrift…
…People who pass each other without speaking
each morning on the way to work
are now laughing and shoveling together,
butts of Mother Nature’s joke… 

PHOTOS OF THE DAY

Snow covers Staithes on the Yorkshire Coast.
CREDIT: TOM WHITE/GETTY IMAGES

A horse stands in a snow covered field in Keele, Newcastle-under-Lyme.
CREDIT: CARL RECINE/REUTERS

A dog runs in the snow at Horse Guards Parade in London.
CREDIT: ALEX BURSTOW/GETTY IMAGES
Market Closes for February 28th, 2018

Market Index	Close	Change
Dow Jones	25029.20	-380.83    -1.50%
S&P 500	2713.83	-30.45   -1.11%
NASDAQ	7273.008	-57.347   -0.78%
TSX	15442.68	-228.47
		-1.46%

International Markets

Market Index	Close	Change
NIKKEI	22068.24	-321.62
		-1.44%
HANG SENG	30844.72	-423.94
		-1.36%
SENSEX	34184.04	-162.35
		-0.47%
FTSE 100*	7231.91	-50.54
		-0.69%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.235		2.275
CND. 30 Year Bond		2.375		2.434
U.S.    10 Year Bond		2.8606		2.8934
U.S. 30 Year Bond		3.1242		3.1588

Currencies

BOC Close	Today	Previous
Canadian $	0.77938	0.78311
US $	1.28306	1.27696
Euro Rate 1 Euro=		Inverse
Canadian $	1.56486	0.63904
US $	1.21958	0.81996

Commodities

Gold	Close	Previous
London Gold Fix	1317.85	1325.75
Oil
WTI Crude Future	61.64	63.01

Market Commentary:
On this day in 1827, two dozen business leaders in Baltimore incorporated the Baltimore and Ohio Railway Co. to link Baltimore with Wheeling, W. Va. and connect the western frontier with the eastern seaboard. America’s first great growth industry was born.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell 3.2 percent in February, their worst month since December 2015, after Wednesday’s losses accelerated through the afternoon.
     The S&P/TSX Composite Index lost 229 points or 1.5 percent to 15,442.58, the biggest drop in nearly three weeks. Energy stocks were the biggest culprit, tumbling 2.9 percent after government data showed U.S. crude stockpiles grew more than expected.
     The financial index retreated 1.3 percent as bank earnings season neared its end. Laurentian Bank of Canada fell 3.2 percent to the lowest since 2016 after earnings missed estimates, while National Bank of Canada lost 2.3 percent amid volatile trading revenues.
     In other moves:
                             Stocks
* Lithium X Energy Corp. fell 9.8 percent as speculation swirled that its prospective buyer may fail to come through
* Valeant Pharmaceuticals International Inc. lost 12 percent to the lowest since November after reporting lower revenue in all three of its major units
* Student Transportation Inc. jumped 26 percent to a record high after reaching a deal to be acquired by a group of investors led by the Caisse de depot et placement du Quebec
                          Commodities
* Western Canada Select crude oil traded at a $25.25 discount to WTI, the narrowest gap in more than two weeks
* Gold fell 0.1 percent to $1,317.90 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.4 percent to C$1.2832 per U.S. dollar, the lowest since December, following a federal budget that set no path to eliminating the deficit
* The Canada 10-year government bond yield fell four basis points to 2.23 percent, the lowest in more than a month
US
By Kailey Leinz and Sarah Ponczek
     (Bloomberg) — U.S. stocks tumbled in afternoon trading, adding to the worst month for equities in two years, while Treasuries climbed with the dollar.
     The S&P 500 Index dropped more than 1 percent, ending February with a decline of 3.9 percent in one of the wildest months in years. After a torrid January, the stock market sank into a recession a week later, only to claw back half of the rout just as quickly. Trading was heavier than normal Wednesday, with shares swinging between gains and losses for much of the day.
     “February finally cracked the volatility genie out of the bottle, and now the big question is: will he stay out for good?”
Ryan Detrick, senior market strategist at LPL Financial, wrote in a note to clients Wednesday. “The good news is that March kicks off two of the strongest months historically for equities, before we hit a period of seasonal weakness from May through October.”
     The 10-year Treasury yield held just below 2.9 percent, roughly where it began a month that saw it fall as low as 2.70 and come within five basis points of 3 percent, a level it hasn’t touched in four years. The dollar added to its monthly gain, strengthening versus major peers including the euro and pound. Crude plunged after an unexpectedly strong rise in inventories.
     Equities continued to fall one day after major indexes tanked based on a generally upbeat assessment of the U.S.
economy from Federal Reserve Chairman Jerome Powell. His comments left investors wondering if the central bank planned more interest rate hikes than expected in 2018.
     “We saw the treasury market catch a little bid here off of Powell’s comments,” said Sean Simko, head of fixed-income portfolio management at SEI Investments Co. “The market initially took it as a little more hawkish than expected, but I don’t really think he really was, it was just in line with what everybody’s been saying for the last number of meetings.”
     U.S. and European bond yields have soared in recent months amid speculation that the Fed’s monetary policy will be tightened at a faster pace. But in the equity markets that possibility is increasingly testing nerves, as traders try to divine how many increases are coming.
     “Yesterday’s Powell comments in our view were more noise,” said Mike Bailey, the director of research at FBB Capital Partners in Bethesda, Maryland. “You had Powell suggesting four rate hikes as opposed to three and on the margin that’s a little bit better if you’re looking for higher yields and a little worse for a lot of equities. Today, you’re seeing a reversal out of that and a lack of incremental news coming out of the Fed.”
     Miners led a decline in the Stoxx Europe 600 Index after China posted lower-than-expected manufacturing output. The U.K. pound extended a decline and the nation’s bonds rose after the European Union published a draft Brexit treaty, with Prime Minister Theresa May squaring off for a fight. The euro slipped while most bond yields in the region ticked lower.
          Here are some key events scheduled for this week:
* Fed Chairman Powell testifies before the Senate Banking Committee Thursday. Other Fed speakers this week are Neel Kashkari and Bill Dudley.
* In the euro region, investors will be watching manufacturing and jobs numbers Thursday.
* U.K. Prime Minister Theresa May delivers a speech Friday on Britain’s relationship with the European Union.
* Japan capital spending is out on Thursday.
     These are the main moves in markets:
                             Stocks
* The S&P 500 Index sank 1.1 percent, while the Dow Jones Industrial Average lost 1.5 percent.
* The Stoxx Europe 600 Index dropped 0.7 percent.
* Germany’s DAX Index declined 0.4 percent.
* The U.K.’s FTSE 100 Index slid 0.7 percent.
* The MSCI Asia Pacific Index fell 1 percent.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.2 percent.
* The euro slipped 0.3 percent to $1.22, the weakest in five weeks.
* The British pound dropped 1 percent to $1.3765, the lowest in almost seven weeks.
* The Japanese yen rose 0.6 percent to 106.69 per dollar.
                             Bonds
* The yield on 10-year Treasuries declined three basis points to 2.87 percent.
* Germany’s 10-year yield slid two basis points to 0.66 percent.
* Britain’s 10-year yield fell six basis points to 1.50 percent.
* Japan’s 10-year yield increased one basis point to 0.05 percent.
                          Commodities
* West Texas Intermediate crude plunged 2.4 percent to $61.48 a barrel.
* Gold slid 0.1 percent to $1,317.58 an ounce.
–With assistance from Adam Haigh and Robert Brand.

Have a wonderful evening everyone.

Be magnificent!

As ever, 

Carolann
All the flowers of all the tomorrows are in the seeds of today and yesterday.
                                                                              -Chinese Proverb 

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

Dear Friends,

Tangents:

Carolann is at a tax seminar today, I will be writing the newsletter on her behalf. 

PHOTOS OF THE DAY

A deer stag stands in heavy snowfall and freezing temperatures in Richmond park, west London, as a cold front sweeps in from the east. Up to 20cm of snow are expected in parts of the UK, with temperatures feeling as low as -15C in some places.
CREDIT: THE TELEGRAPH

Indian students smear coloured powder during an event to celebrate the Hindu festival of Holi in Kolkata. Holi, the popular Hindu spring festival of colours is observed in India at the end of the winter season on the last full moon of the lunar month, and will be celebrated on March 1 this year.
CREDIT: THE TELEGRAPH

Airbus Defence and Space of Cimon, a free-flying ball-shaped robot with a smiling face, who has an appreciation of music and a vocabulary of more than 1,000 sentences, as the white droid is set to join the crew of the International Space Station (ISS) later this year. Short for Crew Interactive Mobile Companion, Cimon is designed to float and fly around the ISS offering technical help, warning of system failures and dangers, and providing a source of entertainment.
CREDIT: THE TELEGRAPH
Market Closes for February 27th, 2018

Market Index	Close	Change
Dow Jones	25410.03	-299.24    -1.16%
S&P 500	2744.28	-35.32   -1.27%
NASDAQ	7330.355	-91.108   -1.23%
TSX	15671.15	-43.51
		-0.28%

International Markets

Market Index	Close	Change
NIKKEI	22389.86	+236.23
		+1.07%
HANG SENG	31268.66	-229.94
		-0.73%
SENSEX	34346.39	-99.36
		-0.29%
FTSE 100*	7282.45	-7.13
		-0.10%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.275		2.254
CND. 30 Year Bond		2.434		2.410
U.S.    10 Year Bond		2.8934		2.8623
U.S. 30 Year Bond		3.1588		3.1530

Currencies

BOC Close	Today	Previous
Canadian $	0.78311	0.78843
US $	1.27696	1.26834
Euro Rate 1 Euro=		Inverse
Canadian $	1.56242	0.64003
US $	1.22355	0.81729

Commodities

Gold	Close	Previous
London Gold Fix	1325.75	1333.50
Oil
WTI Crude Future	63.01	63.91

Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed lower after oil prices tumbled, while the loonie weakened to the lowest point of
2018 as investors awaited the federal budget.
     The S&P/TSX Composite Index lost 44 points or 0.3 percent to 15,671.15. Materials led to the downside, falling 1.4 percent as gold miners retreated. Detour Gold Corp. lost 5.3 percent and Agnico Eagle Mines Ltd. fell 3.8 percent.
     The energy index retreated 1.2 percent as crude prices weakened to the lowest level in more than two weeks. The International Energy Agency said “explosive” growth in U.S.
shale may extend beyond this year, threatening OPEC’s supply cuts.
     In other moves: 

                             Stocks 
* Bank of Nova Scotia added 1.4 percent, the most since September, after profit topped estimates thanks to record results from its international businesses
* Bank of Montreal fell 1 percent. Several of the bank’s divisions reported lower profits in the first quarter
* Aphria Inc. fell 3.3 percent and Canopy Growth Corp. lost 3 percent. Competitor Cronos Group Inc. because the first Canadian pot stock to list on the Nasdaq Tuesday 
                          Commodities
* Western Canada Select crude oil traded at a $25.40 discount to WTI, the narrowest gap in two weeks
* Gold fell 0.9 percent to $1,318.60 an ounce, the lowest in two and a half weeks
                            FX/Bonds
* The Canadian dollar weakened 0.7 percent to C$1.2775 per U.S. dollar, a 2018 low
* The Canada 10-year government bond yield rose two basis points to 2.28 percent
US
By Sarah Ponczek and Kailey Leinz
     (Bloomberg) — U.S. stocks sold off for the first time in three sessions and Treasuries slumped as investors weighed the potential for added interest rate hikes this year following Federal Reserve Chairman Jerome Powell’s assessment that the economy is strengthening and inflation could be gaining speed.
The dollar advanced.
     All major equity gauges finished lower. Shares of media companies led the way down following Comcast’s $31 billion proposal to buy Sky Plc, which could set off a bidding war with Walt Disney Co. and 21st Century Fox Inc. Automakers and real estate developers also struggled.
     Powell’s testimony raised the possibility that the Fed could rethink its plan for three interest rate hikes this year and potentially add a fourth. The 10-year Treasury yield initially spiked on Powell’s seemingly hawkish tone before drifting back below 2.9 percent.
     “The markets are skittish,” said Barry James, president and portfolio manager at James Investment Research in Xenia, Ohio.
“People are maybe a little bit oversensitive right now.”
     The pace of U.S. monetary policy tightening remains a hot debate on Wall Street, and traders have been betting that Powell won’t seek to shock financial markets by moving toward a more hawkish monetary policy. Fed Governor Randal Quarles made clear on Monday that he thought a sustained period of strong growth might require higher interest rates.
     “At some point rates do start to bite,” said Mona Mahajan, U.S. investment strategist for Allianz Global Investors. “And at some point if inflation does start to emerge more rapidly, which it can toward the end of the Fed cycle, we can start to see either the Fed making a policy mistake or equity markets start to price in a downward movement.”
     Elsewhere, German bunds and U.K. gilts led a retreat in European bonds. Most industry groups in the Euro Stoxx 600 Index declined after Japan led Asian equities higher. The won rose for a third day as the Bank of Korea left its benchmark interest rate unchanged. Oil slipped following a three-day rally as investors awaited U.S. inventory data. South Africa’s rand handed back recent gains amid a cabinet reshuffle.

     Here are some key events scheduled for this week:
* Companies announcing earnings this week include: Vale, Bayer and Lowe’s.
* The European Union will publish a draft Brexit treaty on Wednesday and U.K. Prime Minister Theresa May delivers a speech Friday on Britain’s relationship with the European Union.
* A barrage of data is expected out of Japan including retail sales and industrial production Wednesday, and capital spending Thursday.
* In China, the official and Caixin purchasing managers’ indexes on Wednesday and Thursday respectively may show growth momentum slowed slightly in February, though the signal may be clouded by the holidays. 

     These are the main moves in markets:
                             Stocks
* The S&P 500 Index plunged 1.3 percent to 2,744.27, its biggest decline in more than two weeks.
* The Nasdaq Composite Index dropped 1.2 percent.
* The Stoxx Europe 600 Index slipped 0.2 percent.
* The MSCI All-Country World Index retreated 0.9 percent.
                           Currencies
* The Bloomberg Dollar Spot Index climbed 0.6 percent.
* The euro fell 0.7 percent to $1.223.
* The Japanese yen declined 0.4 percent to 107.37 per dollar.
* South Africa’s rand plunged 1.7 percent to 11.7488 per dollar, the biggest drop in more than three weeks.
* The British pound slid 0.5 percent to $1.3904.
                             Bonds
* The yield on 10-year Treasuries rose three basis points to 2.89 percent.
* Germany’s 10-year yield gained three basis points to 0.68 percent.
* Britain’s 10-year yield added five basis points to 1.56 percent.
                          Commodities
* West Texas Intermediate crude slumped 1.6 percent to $62.89 a barrel, the largest decline in almost three weeks.
* Gold dropped 1.1 percent to $1,318.79 an ounce, the lowest in more than two weeks. 

–With assistance from Richard Richtmyer and Eddie van der Walt.

Have a wonderful evening everyone.

Be magnificent! 

As ever, 

Megan

“The Person Who Says It Cannot Be Done Should Not Interrupt The Person Who Is Doing It.” – Chinese Proverb

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

Dear Friends,

Tangents: Happy Monday!

PRIME NUMBERS:
16.5 TRILLION
Facebook messages sent in 2017, approximately 31.25 million per minute.
3.5 MILLION
Google searches made every minute (on average) during 2017.  Other “per minute” numbers include 70,017 Netflix hours watched and 1.8 million Snaps created on Snapchat.
5
Years until Sweden’s economy is expected to be essentially cash-free, according to a study.  The nation is on track to switch almost entirely to card and mobile payments by 2023.
Sources: CNET, CNN Money, world Economic Forum

PRINTING HOMES:
  3-D printing has been used to create everything from  jet airliner components to custom-fit shoes.  Many experts say the process of turning digital files into three-dimensional objects could ultimately usher in a  new industrial revolution.
  One of the latest manifestations of 3-D wizardry: building houses.  It’s an application that could transform construction practices that have remained unchanged for centuries. 
  Using a swiveling robotic arm that extrudes concrete, a San Francisco company, Apis Cor, 3-D printed the concrete walls for a 400-square foot house in Russia in less than 24 hours in 2017.  And researchers at the Massachusetts Institute of Technology in Cambridge have built a robotic arm and a vehicle that dispenses concrete for a 50-foot-diameter, 12-foot-high dome in less than 14 hours.
  The technology could greatly speed up the construction of homes and reduce the waste.  Construction refuse accounts for half of all solid waste in the United States.
  Robot-printed houses might also prove useful if humans ever try to colonize Mars or other areas of the cosmos.  In November, NASA opened the third phase of its 3D-Printed Habitat Challenge, offering a $2 million prize for inventors who can print a foundation and a small home using indigenous materials. -CSM.

PHOTOS OF THE DAY

Robots fight during the 32^nd ROBO-ONE tournament in Tokyo, Japan. According to the organizer, the ROBO-ONE, held by the Biped Robotics Association, is a robot fighting competition for bipedal walking robots, aiming to improve the robotic technology and spread the popularity of bipedal walking robots.
CREDIT: THE TELEGRAPH

Artists perform during the closing ceremony of the 2018 Winter Olympics in Pyeongchang.
CREDIT: THE TELEGRPAH

Drones are seen on the runway at the Dolce & Gabbana show during Milan Fashion Week Fall/Winter 2018/19 in Milan, Italy.
CREDIT: THE TELEGRAPH

People watch hundreds of thousands of starlings coming in to Roost at Westhay, Somerset.
CREDIT: THE TELEGRAPH
Market Closes for February 26th, 2018

Market Index	Close	Change
Dow Jones	25709.27	+399.28    +1.58%
S&P 500	2779.60	+32.30   +1.18%
NASDAQ	7421.465	+84.074   +1.15%
TSX	15714.66	+76.21
		+0.49%

International Markets

Market Index	Close	Change
NIKKEI	22153.63	+260.85
		+1.19%
HANG SENG	31498.60	+231.43
		+0.74%
SENSEX	34445.75	+303.60
		+0.89%
FTSE 100*	7289.58	+45.17
		+0.62%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.254		2.251
CND. 30 Year Bond		2.410		2.403
U.S.    10 Year Bond		2.8623		2.8678
U.S. 30 Year Bond		3.1530		3.1563

Currencies

BOC Close	Today	Previous
Canadian $	0.78843	0.79167
US $	1.26834	1.26316
Euro Rate 1 Euro=		Inverse
Canadian $	1.56171	0.64033
US $	1.23130	0.81215

Commodities

Gold	Close	Previous
London Gold Fix	1333.50	1327.95
Oil
WTI Crude Future	63.91	63.48

Market Commentary:
On this day in 1987, Templeton Emerging Markets Fund, the first portfolio of emerging markets stocks for retail investors, was launched.
Number of the Day
$642.8 billion
The amount retail and institutional investors have borrowed against their portfolios, according to the Financial Industry Regulatory Authority, as they try to pocket bigger gains by ramping up their exposure to stocks.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest since Feb. 1, the day before the recent rout began in earnest, as all but one sector gained.
     The S&P/TSX Composite Index added 76 points or 0.5 percent to 15,714.66, the benchmark’s second straight gain. Industrials rose 1.2 percent as Air Canada added 3.8 percent and Canadian National Railway Co. gained 2.2 percent.
     The energy index advanced 0.7 percent, matching the gain in the price of crude. Saudi Arabia’s oil minister said over the weekend that OPEC may begin easing output cuts in 2019.
     In other moves:
                             Stocks
* Lucara Diamond Corp. jumped 17 percent, the most since 2015. Lucara is buying a blockchain technology firm to track the quality and ethics of gems
* Boardwalk Real Estate Investment Trust rose 9.1 percent to the highest since August. Fourth-quarter funds from operations beat analyst estimates
* Maxar Technologies Ltd. fell 7.7 percent to the lowest since 2013 after the sudden departure of its chief financial officer
                          Commodities
* Western Canada Select crude oil traded at a $26.70 discount toWTI, the narrowest gap in more than a week
* Gold rose 0.2 percent to $1,330.70 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2674 per U.S. dollar as Nafta negotiations resumed in Mexico City
* The Canada 10-year government bond yield was little changed at 2.25 percent ahead of Tuesday’s federal budget
US
By Eric J. Weiner and Sarah Ponczek
     (Bloomberg) — U.S. stocks rose to a nearly four-week high Monday as continuing gains in Treasuries pushed yields further below 2.9 percent, alleviating investor angst that higher rates will accelerate fiscal tightening. Oil climbed with gold.
     The S&P 500 Index gained for a third day and the Dow Jones Industrial Average climbed to its highest level in almost a month, buoyed by strength in technology and financial shares.
Volume was lower than usual as investors await the first public comments from Federal Reserve Chairman Jerome Powell on Tuesday.
The 10-year yield fell for a third straight day, reaching a two- week low. The dollar was little changed.
     “There was a lot of talk from various Federal Reserve related folks last week and that provided to a certain extent a sense of calm that we won’t see rates spike in the second half of this year,” said Matt Schreiber, president and chief investment strategist at WBI Investments. “The market freaked out when they thought Jerome Powell might raise rates faster than expected — his first comments are eagerly anticipated here.”
     Powell may help set a new direction for investors at a time when some of the biggest names in markets are at odds over the implications of this month’s surge in U.S. bond yields. Morgan Stanley put out a bullish call on Treasuries Monday, countering warnings on the securities from Goldman Sachs Group Inc. and Warren Buffett.
     “Investors are starting to realize and understand that this former low rate, low inflation environment is evolving,” Erik Knutzen, multi-asset class chief investment officer at Neuberger Berman Group, said by phone. “Rates are going to higher levels, inflation is going to higher levels, and as long as rates and inflation, and to a certain extent the dollar, don’t move too far too fast, then this can continue to be a reasonably good environment for equities and for credit.”
     Overseas, the Stoxx 600 Index reached its highest level in three weeks. The pound and euro fluctuated, and Russia’s ruble appreciated the most among emerging market currencies after S&P Global Ratings boosted its credit score to investment grade.
     Meanwhile, Bank of Japan Governor Haruhiko Kuroda said the central bank has no plan to overhaul its current form of easing, adding that he saw no need to do another comprehensive assessment of the effectiveness of the bank’s policies. Oil futures edged lower after Saudi Oil Minister Khalid Al-Falih said OPEC and its allies may ease output curbs in 2019 in a way that won’t disturb the market. Bitcoin erased its decline and broke above $10,000.
     Here are some key events scheduled for this week:
* Powell testifies before a House panel on Tuesday. He’ll discuss the Fed’s Semi-Annual Monetary Policy Report and the state of the economy. Powell returns on March 1 before a Senate committee.
* Companies announcing earnings this week include: Vale, BASF, Standard Chartered, Bayer, Lowe’s, Galaxy Entertainment Group, Anheuser-Busch InBev, Peugeot, WPP, and London Stock Exchange Group.
* U.K. Prime Minister Theresa May delivers a speech on Britain’s relationship with the European Union after Brexit.
* A barrage of data is expected out of Japan including retail sales and industrial production Wednesday, and capital spending Thursday.
* Bank of Korea has policy decision and briefing on Tuesday.
* In China, the official and Caixin purchasing managers’ indexes on Wednesday and Thursday respectively may show growth momentum slowed slightly in February, though the signal may be clouded by the holidays. 

     These are the main moves in markets:
                            Stocks
* The S&P 500 rose 1.2 percent to 2,779.59, its highest level in almost a month.
* The Stoxx Europe 600 climbed 0.5 percent to the highest in more than three weeks.
* Germany’s DAX Index gained 0.4 percent to the highest in almost three weeks.
* The MSCI All-Country World Index added 0.9 percent.
                           Currencies
* The Bloomberg Dollar Spot Index was essentially flat.
* The euro added 0.1 percent to $1.2312.
* The Japanese yen was little changed at 106.92 per dollar.
* The British pound declined less than 0.1 percent to $1.3962.
                             Bonds
* The yield on 10-year Treasuries dropped one basis point tom2.86 percent, the lowest in almost two weeks.
* Germany’s 10-year yield slid less than a basis point to 0.65 percent, reaching the lowest in a month on its fifth straight decline.
                          Commodities
* West Texas Intermediate crude rose 0.7 percent to $63.98 a barrel, the highest in three weeks.
* Gold increased 0.4 percent to $1,333.46 an ounce.
–With assistance from Adam Haigh and Natasha Doff.

Have a great week ahead!

Be magnificent! 

As ever, 

Carolann

The beginning is always today.
-Mary Wollstonecraft Shelley, 1797-1851

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

Dear Friends,

Tangents: Happy Friday!

On Feb. 23, 1909, engineer J.A.D. McCurdy piloted the first powered airplane flight by a British subject in the British Empire – and made Canadian history. The plane was called the Silver Dart, and had been built by the Aerial Experiment Association, a group of like-minded aviation enthusiasts dedicated to creating a “practical aerodrome.” In this CBC radio clip, McCurdy – by then Lieutenant-Governor of Nova Scotia – looks back at the event on its 40th anniversary. The flight took place on the frozen Bras d’Or Lake at Baddeck on Cape Breton Island in Nova Scotia, near the home of AEA member Alexander Graham Bell. Before a crowd of astonished onlookers, McCurdy took off and piloted the plane for about half a kilometre along the shoreline before making a smooth landing.

Also on Feb. 23, 1954, the first mass inoculation of children against polio with the Salk vaccine began in Pittsburgh.

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And on February 23^rd, 1861,  Abraham Lincoln made a covert arrival in Washington, D.C. amid concerns about plots to assassinate the president-elect. The Civil War began just two months later.

PHOTOS OF THE DAY

Swiss mountaineer and Mammut Pro Team athlete Dani Arnold opens a new ice-climbing route on the world-famous Helmcken Falls in British Columbia, Canada.
CREDIT: THOMAS SENF/PPR FOR MAMMUT/AP IMAGES

Artist Arabella Dorman puts the final touches to her piece called Suspended, which is displayed in the Nave of Canterbury Cathedral in Kent, and is made up of hundred of items of refugee clothing found largely on the beaches of the Greek island Lesbos.
CREDIT: GARETH FULLER/ PA WIRE

A woman walks in a forest covered by snow with a colourful umbrella near Ghisoni on the French Mediterranean island of Corsica.
CREDIT: PASCAL POCHARD-CASABIANCA/AFP/GETTY IMAGES

Masses of vehicles move slowly to leave the Haikou Xiuying Port in a traffic jam due to a heavy fog during the Chinese Lunar New Year in Haikou city, south China’s Hainan province.
CREDIT: IMAGINECHINA/REX/SHUTTERSTOCK
Market Closes for February 23^rd, 2018

Market Index	Close	Change
Dow Jones	25309.99	+347.51    +1.39%
S&P 500	2747.36	+43.40   +1.61%
NASDAQ	7337.391	+127.305   +1.77%
TSX	15632.46	+124.29
		+0.80%

International Markets

Market Index	Close	Change
NIKKEI	21892.78	+156.34
		+0.72%
HANG SENG	31267.17	+301.49
		+0.97%
SENSEX	34142.15	+322.65
		+0.95%
FTSE 100*	7244.41	-7.98
		-0.11%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.251		2.302
CND. 30 Year Bond		2.403		2.453
U.S.    10 Year Bond		2.8678		2.9207
U.S. 30 Year Bond		3.1563		3.2062

Currencies

BOC Close	Today	Previous
Canadian $	0.79167	0.78708
US $	1.26316	1.27053
Euro Rate 1 Euro=		Inverse
Canadian $	1.55302	0.64391
US $	1.22947	0.81336

Commodities

Gold	Close	Previous
London Gold Fix	1327.95	1328.35
Oil
WTI Crude Future	63.48	62.72

Market Commentary:
Number of the Day
$21 trillion
Assets under management across the private equity, hedge fund and alternatives industries are expected to more than double to $21 trillion by 2025, according to consultants PwC.  Private-equity firms have been on a fund-raising frenzy as insurers and pension funds hunt for yield.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose above their 200-day moving average for the first time since the market rout on Feb.2, led by commodity producers.
     The S&P/TSX Composite Index added 130 points or 0.8 percent to 15,638.45 Friday and gained 1.2 percent on the week. Energy stocks rose 1.5 percent, outpacing gains in the price of crude.
Enerplus Corp. jumped 8.8 percent to the highest since 2015 after reporting strong earnings.
     The materials index added 1.4 percent despite declines in gold and copper prices. Winpak Ltd. rose 12 percent, the most since 2008, after fourth-quarter earnings beat the highest analyst estimate.
     In other moves:
                             Stocks
* Maxar Technologies Ltd. tumbled 13 percent, the most since 2008. The company expects revenue to decline 2-4 percent this year
* Toromont Industries Ltd. closed up 7 percent after briefly hitting a record high earlier in the day. Fourth-quarter earnings beat the highest analyst estimate
* Royal Bank of Canada rose 0.4 percent to the highest in three weeks after first-quarter profit beat estimates
                          Commodities
* Western Canada Select crude oil traded at a $27.50 discount to WTI, the narrowest gap in a week
* Gold fell 0.2 percent to $1,328.20 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 0.5 percent to C$1.2639 per U.S. dollar, the first gain of the week, after January inflation was stronger than expected
* The Canada 10-year government bond yield fell five basis points to 2.25 percent, the lowest in a month
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks rallied, Treasuries advanced and the dollar slipped as investors grew confident that the Jerome Powell-led Federal Reserve won’t rush to raise interest rates as the economy picks up steam.
     The S&P 500 Index pushed past its average price for the past 50 days and erased losses for the week with its biggest gain in almost three weeks. The gauge extended gains in afternoon trading, reversing a four-day pattern had seen it swoon. The 10-year Treasury yield slipped to 2.87 percent, roughly where it started the week, as investors dissect the Fed’s semiannual monetary policy report to Congress. The dollar was flat versus major peers.
     The report indicated that the central bank sees the labor market at or beyond full employment, while some pockets of finance are showing signs of rising leverage and high valuation.
Concern that the Fed would step up the pace of rate hikes rattled markets earlier in the week.
     “Concerns about interest raters are overblown,” Don Townswick, the director of equities at Hartford, Connecticut- based Conning Inc, said by phone. “The markets will tend to remain strong. Historically markets have been strong during the first 18 to 24 months of rising interest rates as long as inflation is under control.”
     The Stoxx Europe 600 Index rose as gains in telecom shares offset declines in retailers. The MSCI Asia Pacific Index rose earlier, underpinned by gains from Sydney to Shanghai. Yields on 10-year German bunds dropped to the lowest since January. The common currency slipped.
     Traders seem unconvinced by the Federal Reserve’s hawkish tilt, with the market still pricing in less than the three quarter-point rate hikes that officials have signaled as likely this year. Minutes of the Fed’s January meeting indicated confidence the economy is strengthening amid signs inflation is rising. Meanwhile, bond investors took heart from an account of the European Central Bank’s most recent meeting, which showed policy makers aren’t yet ready to remove a pledge to expand its asset-buying program if needed.
Elsewhere, the pound gained after U.K. Prime Minister Theresa May won the backing of her divided cabinet to seek a trade deal with the European Union. WTI crude oil retreated, but remained on track for a second weekly increase that was supported by a surprise pullback in U.S. inventories.
     In China, the government seized temporary control of high- profile conglomerate Anbang Insurance Group Co. Markets took the news in stride, however, and the Shanghai Composite Index rose 0.6 percent.
          Here are some key events scheduled for the remainder of the week:
* Chairman Jerome Powell testifies before House and Senate committees next week 

     These are the main moves in markets:
                             Stocks
* The S&P 500 rose 1.6 percent at 4 p.m. in New York. It rose 0.6 percent on the week.
* The Nasdaq Composite climbed for the first time in five days.
It added 1.3 percent in the four days.
* The Stoxx Europe 600 Index increased 0.2 percent to finish the week higher.
* The MSCI Asia Pacific Index advanced 0.9 percent.
* Japan’s Topix index rose 0.8 percent, Hong Kong’s Hang Seng Index climbed 1 percent, and South Korea’s Kospi was up 1.5 percent.
* Australia’s S&P/ASX 200 Index gained 0.8 percent.
                           Currencies
* The Bloomberg Dollar Spot Index fell less than 0.1 percent.
* The euro decreased 0.2 percent to $1.2301.
* The British pound advanced 0.1 percent to $1.3971.
* The Japanese yen fell 0.1 percent to 106.826 per dollar.
                             Bonds
* The yield on 10-year Treasuries fell five basis points to 2.87 percent. It rose as high as 2.95 percent on Wednesday.
* The two-year yield was flat at 2.24 percent.
* Germany’s 10-year yield fell five basis points to 0.653 percent, the lowest in four weeks.
* Japan’s 10-year yield dipped less than one basis point to 0.05 percent.
                          Commodities
* West Texas Intermediate crude advanced 1.2 percent to $63.56 a barrel, capping a second weekly gain.
* Gold futures declined 0.1 percent to $1,331.30 an ounce.
–With assistance from Cormac Mullen, Vassilis Karamanis and Robert Brand.

Have a terrific weekend!

Be magnificent!

As ever,

Carolann

Your world is as big as you make it.
          -Georgia Douglas Johnson 

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
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www.carolannsteinhoff.com