Month: October 2018

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Clouds reflecting in the calm water at Newlyn harbour in Cornwall. Credit: Simon Maycock/Alamy Live News

Swans are pictured ahead of the Turkish Airlines Open at the Regnum Carya Golf & Spa Resort in Antalya, Turkey. Credit: Warren Little/Getty Images

A surfing Prairie Falcon appears to be walking on the wings of a Great Horned Owl in an attempt to ambush it. Credit: Rob Palmer/Caters News Agency
Market Closes for October 31^st, 2018

Market Index	Close	Change
Dow Jones	25115.76	+241.12   +0.97%
S&P 500	2711.71	+29.08   +1.08%
NASDAQ	7305.898	+144.248   +2.01%
TSX	15028.55	+134.05
		+0.90%

International Markets

Market Index	Close	Change
NIKKEI	21920.46	+463.17
		+2.16%
HANG SENG	24979.69	+394.16
		+1.63%
SENSEX	34442.05	+550.92
		+1.63%
FTSE 100*	7128.10	+92.25
		+1.31%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.492		2.443
CND. 30 Year Bond		2.529		2.485
U.S.    10 Year Bond		3.1492		3.1114
U.S. 30 Year Bond		3.3953		3.3558

Currencies

BOC Close	Today	Previous
Canadian $	0.75991	0.76272
US $	1.31594	1.31110
Euro Rate 1 Euro=		Inverse
Canadian $	1.48891	0.67163
US $	1.13144	0.88383

Commodities

Gold	Close	Previous
London Gold Fix	1225.40	1230.80
Oil
WTI Crude Future	65.31	66.18

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks rose alongside their U.S. peers as megacap tech shares that bore the brunt of October’s rout paced the Wednesday rebound. The rally trimmed some of the S&P/TSX Composite index’s losses this month but the benchmark still ended October lower by 6.5%, its worst monthly performance since 2011.
     The S&P/TSX Composite Index rose 0.9 percent on Wednesday, with health care and technology shares leading gains. Telecom shares fell.
Stocks
* Precision Drilling Corp. and Trinidad Drilling Ltd rose 0.3 percent and 0.6 percent, respectively, after the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Act with respect to the companies’ pending deal.
* Methanex Corp rose 0.4 percent after Scotia Capital analyst Benoit Laprade upgraded shares to sector outperform from sector perform.
* Blackbird Energy Inc. was halted after reporting a merger with Pipestone Oil; Haywood analyst Christopher Jones saw potential for selling pressure once BBI CN shares resume given what Haywood believes to be an investor base that has held the name in hopes of a premium takeout scenario.
Commodities
* Western Canada Select crude oil traded at a $43.00 discount to
WTI
* Gold fell 0.6 percent to $1,217.00 an ounce
FX/Bonds
* The Canadian dollar fell 0.3 percent at C$1.3157 per U.S. dollar
* The Canada 10-year government bond yield gained 4.2 basis points to 2.490%
US
By Jeremy Herron and Vildana Hajric
     (Bloomberg) — U.S. stocks rallied for a second day to close out one of the worst months of the bull market on an upbeat note. The dollar added to a 16-month high and Treasury yields jumped. The S&P 500 Index capped its biggest two-day surge since February, paring its biggest monthly decline since 2011 to 7 percent. The Nasdaq 100 Index jumped 2.3 percent, but still fell the most in any month during the bull market. Megacap tech shares that bore the brunt of October’s rout paced the Wednesday rebound, with Netflix and EBay surging more than 5 percent. The FANG cohort rallied after Facebook’s earnings topped expectations.
     Private payrolls data calmed nerves about the strength of the economy, lifting the dollar. Treasuries fell after the government said it will raise the amount of long-term debt it sells this quarter. “People have been skittish over the last month and it’s been pretty volatile, it’s unnerved a lot of folks,” Mike Loewengart, vice president of investment strategy at E*Trade Financial, said in an interview. “When we see a reading today such as ADP, it further illustrates that fundamentals remain sound.” Equity bulls will be hoping this rebound can last following a series of bounces in the past few weeks that quickly gave way to declines as some $8 trillion was wiped off stock markets globally. The MSCI All-Country World Index has dropped almost 8 percent in October, the worst monthly performance since May 2012.
     In Europe, miners and energy companies led the way as almost every sector on the Stoxx Europe 600 Index climbed. Italian bonds bucked a decline as the risk-on mood sent core European debt lower. The euro drifted down as inflation accelerated in October and underlying price pressures increased, handing policy makers a headache after growth data disappointed.
     The pound rebounded after Tuesday’s slump. Corporate results may be key to sustaining the share gains: attention will next turn to earnings from Apple Inc. after the close on Thursday. But there are risks in the background, from the American midterm elections to trade talks with China. 
     Meanwhile, the U.S. jobs report is due Friday — private data surprised to the upside on Wednesday. In Asia, Japanese stocks were the stand-out performers as indexes rose across the board. China’s overnight repo rate surged the most in more than four years as authorities take steps to combat bets against the yuan, which held near the weakest level in a decade against the greenback. The yen edged lower after the Bank of Japan left its monetary stimulus unchanged and kept its 10-year bond yield target at about zero percent.
     Elsewhere, gold fell and oil edged up from a two-month low. In emerging markets, the Indian rupee pared a drop after the finance ministry moved to diffuse growing tensions with the central bank. Developing-nation stocks jumped as currencies edged lower.
Here are some key events coming up this week:
* This week’s earnings season highlights include: Macquarie, Apple, Alibaba, Credit Suisse, Exxon Mobil, and Shell.
* A monetary policy decision is due in the U.K.
* On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved and that the unemployment rate held at a 48-year low.
And these are the main moves in markets:
Stocks
* The S&P 500 Index advanced 1.1 percent as of 4 p.m. New York time.
* The Nasdaq 100 rose 2.3 percent, and the Nasdaq composite added 2 percent.
* The Stoxx Europe 600 Index surged 1.7 percent to the highest in almost two weeks on the biggest jump in seven months.
* The MSCI Asia Pacific Index surged 2 percent to the highest in a week on the largest jump in almost eight months.
* The MSCI Emerging Market Index gained 1.6 percent to the highest in a week on the biggest rise in almost three weeks.
Currencies
* The Bloomberg Dollar Spot Index increased 0.2 percent to the highest in more than 17 months.
* The euro fell 0.2 percent to $1.1322.
* The British pound advanced 0.4 percent to $1.2761.
* The Japanese yen decreased 0.1 percent to 112.93 per dollar, the weakest in almost four weeks.
Bonds
* The yield on 10-year Treasuries increased two basis points to 3.14 percent. The rate at the end of September was 3.06 percent.
* The two-year yield added two basis points to 2.87. It rose from 2.82 percent last month.
* Germany’s 10-year yield advanced two basis points to 0.39 percent. The rate has fallen 9 basis points in October.
Commodities
* West Texas Intermediate crude advanced 0.3 percent to $66.39 a barrel. Oil’s down 9 percent in the month, the most since July 2016.
* Gold futures decreased 0.7 percent to $1,216.90 an ounce. It’s up 1.7 percent in the month.

Have a wonderful evening. 

Be magnificent!

As ever,

Karen

“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do.” Pele

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

The Scillonian passenger ferry passes through a rainbow in Mounts Bay, Mousehole, Cornwall, UK. Credit:  Simon Maycock/Alamy Lives News

East Village Annual Halloween Dog Parade In New York Original description: Dogs dressed in costume compete at the East Village annual Halloween dog parade at the East River Park Amphitheatre in New York City. Credit: UPI/Barcroft Images

A woodpecker made by Chilean artist Mauricio Garcia and winner of the public art contest “IdeasTorreEntel” is seen in Santiago as part of the “Hecho en Casa” (Made at Home) art installation. Credit: Martin Bernetti/AFP
Market Closes for October 30^th, 2018

Market Index	Close	Change
Dow Jones	24874.64	+431.72   +1.77%
S&P 500	2685.36	+44.11   +1.67%
NASDAQ	7161.648	+111.356   +1.58%
TSX	14897.01	+175.26
		+1.19%

International Markets

Market Index	Close	Change
NIKKEI	21457.29	+307.49
		+1.45%
HANG SENG	24585.53	-226.51
		-0.91%
SENSEX	33891.13	-176.27
		-0.52%
FTSE 100*	7035.85	+9.53
		+0.14%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.443		2.392
CND. 30 Year Bond		2.485		2.432
U.S.    10 Year Bond		3.1114		3.0868
U.S. 30 Year Bond		3.3558		3.3349

Currencies

BOC Close	Today	Previous
Canadian $	0.76272	0.76151
US $	1.31110	1.31319
Euro Rate 1 Euro=		Inverse
Canadian $	1.48731	0.67235
US $	1.13440	0.88153

Commodities

Gold	Close	Previous
London Gold Fix	1230.80	1233.85
Oil
WTI Crude Future	66.18	67.04

Market Commentary:
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks opened Tuesday trading mostly higher, with about two-thirds of issues rising in the S&P/Toronto Stock Exchange Composite Index. U.S. stocks also gained, led by real estate and consumer staples, after 7 declines in 8 days. The S&P/TSX Composite rose about 0.5 percent, led by health care and industrials. Only energy and utilities weakened.
     The Canadian dollar held its ground against the greenback Tuesday following 3 days of declines ahead of planned parliamentary testimony by Bank of Canada Governor Stephen Poloz. The loonie trailed other commodity-related currencies such as the Australian and New Zealand dollars as oil dipped, but outperformed most G-10 peers.
     Pot stocks accounted for more than a third of the 11 percent decline in the S&P/TSX Venture Composite Index so far this quarter, with cannabis companies making up 10 of the 15 biggest contributors to the benchmark’s downside through Oct. 29. This has exacerbated a longer-term slump in the commodity- heavy, small-cap index that has seen it lose about 80 percent from its 2007 high amid weakness in Canadian crude and metals prices.
Stocks
* Guyana Goldfields Inc. plunged about 53 percent, with trading halted two minutes into trading 
* Aphria Inc. was up 8.8 percent after announcing approval of common shares for listing on the New York Stock Exchange and the start of trading Nov. 2
* Manulife Financial Corp. jumped 5.8 percent, saying it was “confident it would prevail” in suit related to Mosten
* Waste Connections Inc. dropped 4.9 percent after third-quarter revenue met analyst estimates 
Commodities
* Western Canada Select crude oil traded at a $42 discount to WTI
* Gold gained 1.4 percent to $1,226.5 an ounce FX/Bonds
* The Canadian dollar was little changed at C$1.31285 per U.S. dollar
* The Canada 10-year government bond yield fell to 2.412%
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks ended a tumultuous day sharply higher, with all major averages rising at least 1.4 percent as volatility continues to grip equity markets during earnings season. Treasuries fell and the dollar rose.
     The S&P 500 Index twice erased gains that topped 1 percent before finally securing a rebound in the final hour of trading. All 11 main groups rose, with consumer and commodity shares pacing gains. The average flirted with a correction earlier Tuesday and is still down more than 8 percent in October, on track for its worst month of the bull market. More than four shares rose for every one that fell in the S&P 500. Earnings drove some of the biggest moves. Take-Two Interactive and Under Armour surged on strong results. General Electric slumped to the lowest since 2009. Facebook edged higher in after-hours trading following its report. An ETF tracking homebuilders surged the most since April.
     The Tuesday rally was welcomed by U.S. stock investors on edge after largely stellar earnings have failed to provide sustained relief to selling that began amid concern that rising rates will crimp economic growth. Attention will turn to major tech results including from Apple and Friday’s jobs report. Trade also remains in focus, while the American midterm elections on Nov. 6 have started creeping into the calculus.
     “The largest risks are the trade war and rising rates,” said Michael O’Rourke, JonesTrading’s chief market strategist. “When it comes to the midterm elections, most people are looking at them optimistically in the sense that usually after midterms the stock market rallies. The stock market is going to do what it’s going to do whether you vote Republican or Democrat.”
     The Stoxx Europe 600 Index failed to sustain momentum from Asia — it opened higher after good earnings for BP and Volkswagen, but corporate results were mixed overall before ending little changed. The euro edged down after underwhelming economic data.
     The MSCI Asia Pacific Index halted a five-day losing streak after Trump held out the possibility of a trade deal with China, even as his administration prepares for a possible expansion of tariffs. China’s stocks climbed as authorities said they’d encourage long-term funds to invest. The yuan was little changed after earlier hitting its weakest against the greenback in a decade.
Here are some key events coming up this week:
* This week’s earnings season highlights include: Facebook, Komatsu, Macquarie, Apple, Alibaba, China Telecom, Fanuc, Airbus, Credit Suisse, Exxon Mobil, and Shell.
* Monetary policy decisions are due in Japan and the U.K.
* On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved as payrolls rose about 190,000, and the unemployment rate held at a 48-year low of 3.7 percent, analysts forecast.
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 1.6 percent at 4 p.m. in New York.
* The Nasdaq 100 rose 1.4 percent. The Dow Jones Industrial Average was higher by 1.8 percent.
* The Stoxx Europe 600 Index rose 0.1 percent.
* The MSCI Asia Pacific Index increased 0.5 percent, the first advance in more than a week and the largest climb in almost two weeks.
* The MSCI Emerging Market Index declined 0.2 percent, reaching the lowest in almost 20 months on its sixth straight decline.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.1 percent to the highest in more than 17 months.
* The euro fell 0.1 percent to $1.1367, the weakest in almost 11 weeks.
* The British pound dipped 0.5 percent to $1.2732.
* The Japanese yen sank 0.4 percent to 112.79 per dollar.
Bonds
* The yield on 10-year Treasuries gained two basis points to 3.11 percent.
* The two-year rate rose two basis points to 2.84 percent.
* Germany’s 10-year yield was unchanged at 0.37 percent.
Commodities
* West Texas Intermediate crude fell 0.5 percent to $66.75 a barrel.
* Gold futures sank 0.1 percent to $1,226.30 an ounce.

Have a wonderful evening. 

Be magnificent!

As ever,

Karen

“The most wasted day of all is that on which we have not laughed”. Nicholas Chamfort

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday!

ICYMI
Science may be backing up lavender’s reputation in folk medicine for reducing stress and anxiety.
A study found that sniffing linalool, an alcohol component of lavender odor, was akin to taking a Valium. It worked on the same parts of a mouse’s brain, but without the dizzying side effects. Relief could be triggered simply by inhaling.
Hideki Kashiwadani, a physiologist and neuroscientist at Kagoshima University in Japan and an author of the study, believes this new insight is a key step in developing lavender-derived compounds for clinical use in humans. Since anxiety disorders affect nearly a fifth of all adults in the U.S., this may come as welcome news. Read more »
from The New York Times, October 26, 2018                                                 

FYI~ I’ll be attending an investment conference in New York for the next few days.  Arriving back on Wednesday evening next week, but available by email if you need to contact me.

PHOTOS OF THE DAY

A Murmuration of Starlings, Ludes, France. Credit: Gutner/Sipa/Rex

Emirati competitors sail their dhows as they take part in the Dalma Sailing Festival, off of the coast of Dalma island in the Persian Gulf. Credit: Karim Sahib/AFP

A surfer rides the artic waves in Norway. The imposing mountain in the distance resembles a tidal wave. Credit: Tomarcherphoto/Caters News
Market Closes for October 26^th, 2018

Market Index	Close	Change
Dow Jones	24688.31	-296.24   -1.19%
S&P 500	2658.69	-46.88   -1.73%
NASDAQ	7167.211	-151.125   -2.07%
TSX	14888.26	-35.82
		-0.24%

International Markets

Market Index	Close	Change
NIKKEI	21184.60	-84.13
		-0.40%
HANG SENG	24717.63	-276.83
		-1.11%
SENSEX	33349.31	-340.78
		-1.01%
FTSE 100*	6939.56	-64.54
		-0.92%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.393		2.452
CND. 30 Year Bond		2.429		2.476
U.S.    10 Year Bond		3.0755		3.1205
U.S. 30 Year Bond		3.3098		3.3444

Currencies

BOC Close	Today	Previous
Canadian $	0.76288	0.76495
US $	1.31082	1.30728
Euro Rate 1 Euro=		Inverse
Canadian $	1.49571	0.66858
US $	1.14123	0.87625

Commodities

Gold	Close	Previous
London Gold Fix	1230.80	1230.55
Oil
WTI Crude Future	67.59	67.33

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks ended the week on a sour note, posting their biggest weekly loss since February. In theU.S., a rout in technology shares deepened Friday, pushing the S&P500 index close to a 10% correction.
     The S&P/TSX Composite Index fell 0.2 percent, with healthcare and communication services leading losses. Energy, industrials and materials were the only bright spots on Friday. The Canadian 10-year yield dropped to the lowest level in a month.
Stocks
* Lundin Mining Corp. rose 6.3 percent after being upgraded at  RBC to outperform from sector perform (PT C$8) as the “valuation and implied upside to target are more compelling after the recent pullback.”
* Canopy Growth fell despite being pitched at the Invest For Kids Conference in Chicago earlier this week. Cannabis peers also dropped amid a risk-off trading session.
* Barrick Gold Corp. and Goldcorp Inc. were among the best- performing gold stocks on Friday as prices for the yellow metal rose amid increased volatility.
Commodities
* Western Canada Select crude oil traded at a $43.25 discount to WTI
* Gold gained 0.3 percent to $1,236.00 an ounce
FX/Bonds
* The Canadian dollar fell 0.14 percent at C$1.3088 per U.S. dollar
* The Canada 10-year government bond yield fell 5.5 basis points to 2.390%
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — A rout in technology shares deepened Friday, threatening to push the S&P 500 Index into corrective territory along with the Nasdaq Composite Index, in one of the most volatile weeks this year. Treasuries and gold rose as investors sought refuge.
     The S&P 500 finished just short of a 10 percent decline from its record September high, and remains on pace for the worst month since 2009. The tech-heavy Nasdaq indexes bore the brunt of selling after Amazon.com and Alphabet sank on disappointing results. The Chicago Board Options Exchange Volatility Index shows price swings are the greatest since February. Investors got a brief reprise after a report showed the U.S. economy expanded at a high-than-forecast 3.5 percent pace last quarter.
     “It’s a very treacherous environment because you see these big up days and then they get their heads handed to them,” said Donald Selkin, chief market strategist at Newbridge Securities. “There’s no consistency. It’s vicious, it’s nerve wracking. There’s no consistency.” The rout that had largely been contained to equities spilled into other assets Friday. Gold spiked toward the highest since July and the rally in Treasuries pushed the two-year note yield down 10 basis points this week. Yields on benchmark 10- year notes have slumped 11 basis points, the biggest weekly decline since May.
     In Europe, the Stoxx Europe 600 Index continued its retreat, heading for the biggest monthly drop in three years. Asian shares sank deeper into a bear market earlier. Core European bonds gained as the risk-off mood spread. Markets remain on edge after more than $6.7 trillion was lost from global equities’ value since late September, as lofty expectations for earnings were tested amid heightened trade tensions and tightening financial conditions.
     Meanwhile, West Texas oil briefly dipped back below $67 a barrel and copper closed the week lower. The offshore yuan extended this week’s slide to trade at the weakest since January 2017, while the yen pushed higher. Emerging-market stocks tumbled to the lowest in 19 months, capping a fifth straight week of losses.
These are the main moves in markets:
Stocks
* The S&P 500 dropped 1.7 percent to 2,658.57 as of 4:04 p.m. in New York, while the Dow Jones Industrial Average fell 1.2 percent to 24,688.31 and the Nasdaq Composite Index declined 2.1 percent to 7,167.21.
* The Stoxx Europe 600 dropped 0.8 percent. 
* The U.K.’s FTSE 100 slumped 0.9 percent.
* Germany’s DAX Index fell 0.9 percent.
* The MSCI Emerging Market Index eased 0.9 percent.
* The MSCI Asia Pacific Index slumped 0.3 percent.
Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent, after reaching a 17-month high. 
* The euro gained 0.3 percent to $1.1411.
* The British pound rose 0.2 percent to $1.2836.
* The Japanese yen strengthened 0.6 percent to 111.77 per dollar.
Bonds
* The yield on 10-year Treasuries fell four basis points to 3.08 percent, while the two-year note yield eased four basis points to 2.81 percent.
* Germany’s 10-year yield fell five basis points to 0.35 percent.
Commodities
* West Texas Intermediate crude rose 0.7 percent to $67.80 a barrel.
* Gold rose. 0.2 percent at $1,234.70 an ounce.
–With assistance from Robert Brand and David Wilson.

Have a wonderful weekend. 

Be magnificent!

As ever,

Carolann

Opportunity is missed by most people because it is dressed in overalls and looks like work.
–Thomas Edison, 1847-1931

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
1881 ~ Pablo Picasso b.

1923 – October 25 – Frederick Banting & John Macleod of the University of Toronto jointly win the Nobel Prize for Medicine for their discovery of the hormone insulin, which was to save the lives of millions of diabetics. Banting, whose idea launched the research, shares the prize money with Charles Best. Macleod, who supervised the research, shares with J. B. Collip. They are the first Canadians to win a Nobel Prize. Stockholm, Sweden 

PHOTOS OF THE DAY

An incredible display of 15,000 knitted and crocheted poppies at St Peter Mancroft Church in Norwich, Norfolk. Credit: James Linsell-Clark/SWNS.COM

Cornwall hosts beautiful pastel coloured sunrise. Credit: Simon Maycock/Cover Images

A section of the Hong Kong-Zhuhai-Macau Bridge stands in Macau, China. Credit: Justin Chin/Bloomberg
Market Closes for October 25^th, 2018

Market Index	Close	Change
Dow Jones	24984.55	+401.13   +1.63%
S&P 500	2705.57	+49.47   +1.86%
NASDAQ	7318.336	+209.935   +2.95%
TSX	14924.08	+14.95
		+0.10%

International Markets

Market Index	Close	Change
NIKKEI	21268.73	-822.45
		-3.72%
HANG SENG	24994.46	-255.32
		-1.01%
SENSEX	33690.09	-343.87
		-1.01%
FTSE 100*	7004.10	+41.12
		+0.59%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.452		2.439
CND. 30 Year Bond		2.476		2.472
U.S.    10 Year Bond		3.1205		3.1091
U.S. 30 Year Bond		3.3444		3.3340

Currencies

BOC Close	Today	Previous
Canadian $	0.76495	0.76667
US $	1.30728	1.30435
Euro Rate 1 Euro=		Inverse
Canadian $	1.48687	0.67255
US $	1.13760	0.87904

Commodities

Gold	Close	Previous
London Gold Fix	1230.55	1235.95
Oil
WTI Crude Future	67.33	66.77

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks managed to eke out a gain on Thursday despite erasing most of their intraday gain toward the market close. U.S. peers saw a bigger rally, as strong earnings pushed benchmark indexes back into the black for the year in the wake of Wednesday’s rout that had wiped out this year’s gains.
     The S&P/TSX Composite Index rose 0.1 percent, with health care snapping a seven-day streak of losses amid a rally in pot shares. Materials were the largest underperformer due to a plunge in gold-mining stocks.
     The loonie weakened against the dollar for the first time in the past four sessions.
Stocks
* AltaGas Ltd fell 2.7 percent after CIBC analyst Robert Catellier anticipated that the company may need to cut its dividend by 40 percent and raise C$1 billion in equity.
* Goldcorp Inc. plunged 18 percent on a “miserable quarter,” falling from the top tier of gold miners as peer Agnico-Eagle Mines Ltd. takes its spot.
* Canfor Corp rallied 7.5 percent after Canfor CEO Don Kayne said on a conference call that lumber pricing is expected to stabilize and move higher amid stronger seasonal demand and strength in the repair and remodel sector.
Commodities
* Western Canada Select crude oil traded at a $43.00 discount to WTI
* Gold little changed to $1,232.00 an ounce
FX/Bonds
* The Canadian dollar fell 0.1 percent at C$1.3069 per U.S. dollar
* The Canada 10-year government bond yield gained 2 basis points to 2.457%
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks surged back into positive territory, with the Nasdaq Composite Index registering its biggest increase since March, a day after a broad-based rout sent equities negative for the year. Yields on Treasuries rose and the dollar strengthened to the highest level this year.
     The S&P 500 Index finished higher for the first time in seven days, propelled by strong earnings results from Twitter, Microsoft and Tesla. Amazon and Alphabet reported after the close. The Dow Jones Industrial Average surged 400 points, after tumbling 600 points Wednesday. European stocks edged higher. The sentiment was darker in Asia, where shares fell for a third day, with Japan’s Topix index falling to the lowest in more than a year. Oil advanced from a two-month low.
     “The most important thing to think about today is that we got into a valuation level that’s more constructive,” said Art Hogan, chief market strategist at B Riley FBR. “This is one of the first times in the earnings cycle where we’re getting a positive response on earnings, when stocks actually react positively to their good news — that’s in the action today.”
     “There’s a transition going on and when there’s a transition going on, there’s a lot of volatility both up and down,” Randy Swan, founder of Swan Global Investments, which manages about $5 billion, said in an interview at Bloomberg’s New York headquarters. “People are trying to figure out where things are going to go.”
     Sentiment has been tested in October, with global stocks poised for their worst month in more than six years as the effects of trade tensions and geopolitical uncertainty begin to bite. Investors remain apprehensive as a flood of earnings, while mostly stellar, have come with warnings about the future impact of tariffs and rising costs. Central banks remain in the spotlight, with investors speculating what, if any, impact the market uncertainty will have on policy decisions.  “The question is: can we go the distance?” said Donald Selkin, chief market strategist at Newbridge Securities. “You have to see how it goes.”  Elsewhere, the euro weakened after European Central Bank President Mario Draghi downplayed recent slowdown in economic momentum and Italian fiscal risks, reiterating that growth is returning to potential. The ECB kept its target rate unchanged at zero. 
Here are some key events coming up this week:
* U.S. gross domestic product growth may have slowed in the third quarter, yet remained near its best pace since mid-2015, according to forecasts ahead of Friday’s release.

These are the main moves in markets:
Stocks
* The S&P 500 rose 1.9 percent to 2,705.64 as of 4:01 p.m. in New York, while the Dow Jones Industrial Average gained 1.6 percent to 24,983.37 and the Nasdaq Composite Index increased 3
percent to 7,318.34. All three benchmark indexes are still down this week.
* The Stoxx Europe 600 rose 0.5 percent.
* The U.K.’s FTSE 100 gained 0.6 percent.
* Germany’s DAX Index gained 1 percent for the first increase in seven days.
* The MSCI Emerging Market Index eased 0.4 percent.
* The MSCI Asia Pacific Index slumped 1.9 percent.
Currencies
* The Bloomberg Dollar Spot Index gained 0.1 percent.
* The euro weakened 0.2 percent to $1.1368.
* The British pound fell 0.5 percent to $1.2814.
* The Japanese yen weakened 0.3 percent to 112.55 per dollar.
Bonds
* The yield on 10-year Treasuries rose three basis points to 3.13 percent, while the two-year note yield increased two basis points to 2.85 percent.
* Germany’s 10-year yield was little changed at 0.40 percent.
Commodities
* West Texas Intermediate crude rose 0.4 percent to $67.07 a barrel.
* Gold fell 0.3 percent to $1,230.40 an
Have a great night.

Be magnificent!

As ever,

Carolann

 

Everything should be made as simple as possible, but not simpler.
                                                -Albert Einstein, 1879-1965

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,
Tangents:
On this day in…
1956: Hungarian Revolution
1989: Hungarian Independence
1993 – October 23 – Baseball – Toronto Blue Jays slugger Joe Carter hits a three-run homer in the bottom of the 9th inning to give Toronto an 8-6 win over the Philadelphia Phillies in Game 6 of the World Series; defending champions take the Series 4-2; First team to win the World Series on Canadian soil. Paul Molitor, who hit .500, is MVP. Toronto, Ontario. -The Morning Meeting, Advisor Analyst.
PHOTOS OF THE DAY

The Hong Kong-Zhuhai-Macau Bridge is lit up in Hong Kong. The bridge, the world’s longest cross-sea project, which has a total length of 55 kilometers (34 miles), will have an opening ceremony in Zhuhai on Oct. 23. Credit: Kin Cheung/AP Photo

People enjoy the view over fog-covered valleys during sunny autumn weather near the peak of Mount Rigi, Switzerland. Credit: Arnd Wiegmann/Reuters

People walk in a field of fireweed, or Kochia scoparia, at the Hitachi Seaside Park in Hitachinaka, Japan. Fireweed is a grass bush that takes on a bright colour in autumn. Credit: Toru Hanai/Reuters

Weighing one tonne, the UK’s largest pumpkin arrives in Covent Garden at the area kicks off 10 days of family fun to celebrate Halloween. Credit: Jeff Moore/Thisismission.com
Market Closes for October 23^rd, 2018

Market Index	Close	Change
Dow Jones	25191.43	-125.98   -0.50%
S&P 500	2740.69	-15.19   -0.55%
NASDAQ	7437.539	-31.090   -0.42%
TSX	15285.17	-127.53
		-0.83%

International Markets

Market Index	Close	Change
NIKKEI	22010.78	-604.04
		-2.67%
HANG SENG	25346.55	-806.60
		-3.08%
SENSEX	33847.23	-287.15
		-0.84%
FTSE 100*	6955.21	-87.59
		-1.24%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.450		2.485
CND. 30 Year Bond		2.488		2.518
U.S.    10 Year Bond		3.1657		3.1978
U.S. 30 Year Bond		3.3662		3.3889

Currencies

BOC Close	Today	Previous
Canadian $	0.76438	0.76358
US $	1.30825	1.30962
Euro Rate 1 Euro=		Inverse
Canadian $	1.50074	0.66634
US $	1.14713	0.87174

Commodities

Gold	Close	Previous
London Gold Fix	1222.30	1227.85
Oil
WTI Crude Future	66.28	69.17

Market Commentary:
I succeeded because I have a long attention span. –Charlie Munger, The Tao of Charlie Munger, David Clark 2017, Scribner.
The key to making money in stocks is not to get scared out of them. -Peter Lynch.
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks swung through another volatile session amid a morning rout in U.S. stocks spurred by disappointing results from Caterpillar and 3M. Those results added to worries that rising costs will erode profit margins.
     The Canadian 10-year yield fell to the lowest in nearly a month as bonds rallied. The S&P/TSX Composite Index fell 0.8% to the lowest since April 16, with health care and industrials leading losses.  Consumer staples rose while a rally in gold stocks wasn’t enough to boost materials shares higher.
Stocks
* Barrick Gold Corp. rose 1.9 percent after a report that the company favors taking back control of its separately listed Tanzanian assets after completing its takeover of Africa-focused rival Randgold Resources Ltd., according to people familiar with the situation.
* Crescent Point Energy Corp. and Parkland Fuel Corp. followed energy peers lower as oil traded at its lowest in more than a month after Saudi Arabia reiterated plans to raise output.
* AirBoss of America Corp. rose 2.6 percent after Industrial Alliance Securities analyst Navdeep Malik upgraded shares to buy from hold.
Commodities
* Western Canada Select crude oil traded at a $46 discount to WTI
* Gold gained 0.7 percent to $1,233.70 an ounce
FX/Bonds
* The Canadian dollar rose 0.1% to C$1.3087 per U.S. dollar
* The Canada 10-year government bond yield fell 3.6 basis points to 2.446%
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks closed lower for a fifth day, as an afternoon rally from the lowest levels for the S&P 500 since May fell short of pushing benchmark indexes back into positive territory. Treasury yields declined and crude oil tumbled.  The S&P 500 pared to 0.6 percent a loss that took it below 2,700 for the first time since July, while the Nasdaq Composite Index flirted with a correction before paring losses. Defensive sectors from consumer staples to real-estate firms recovered.
     Verizon and McDonald’s advanced on solid results, while Netflix led gains in tech shares. Industrial stocks remained under pressure after disappointing results from Caterpillar and 3M added to worries that rising costs will erode profit margins. The Russell 2000 Index erased gains for the year. Energy producers in the S&P 500 sank more than 2 percent. Texas Instruments reported disappointing results after the market closed.
     “Today we opened down, basically at technical support at 2,700 on the S&P, 7,000 on the Nasdaq 100, this is kind of a picture-perfect day to buy,” said Michael O’Rourke, JonesTrading’s chief market strategist. “But now the question is how far does this rally get, how far does it go?”
     The afternoon rebound in American equities delivered a measure of calm for investor nerves frayed by a monthlong sell-off. U.S. growth data later in the week as well as earnings from companies including Amazon, Alphabet, Microsoft and Intel could be key to where equities go from here. In the meantime, uncertainty over the death of a Saudi journalist, Italy’s budget and Brexit are among the factors weighing on sentiment.
     The Stoxx Europe 600 Index slid to the lowest level since December 2016 and Asian equities teetered on the verge of a bear market. Some of the steepest losses were in Japan, Hong Kong and China, where shares had posted the biggest jump in more than two years a day earlier. Disappointing earnings from Renault and some European tech companies added to the pain in Europe.
     Equities failed to get any reprieve after China announced fresh measures to ease the funding strains of private companies, as top officials seek to restore confidence in the world’s second-largest economy.
     “Trade tensions here are important, interest rate levels are important, but the next week or two, earnings will be important,” said Matt Maley, equity strategist at Miller Tabak + Co. “The fact that some key multinationals are giving disappointing guidance is a problem.” Elsewhere, oil traded near the lowest in almost five weeks. Emerging-market equities slumped as Turkish President Recep Tayyip Erdogan said a team including Saudi generals conducted the killing of writer Jamal Khashoggi.
     Here are some key events coming up this week:
* Earnings season gathers pace with notable highlights including Twitter, UBS, Deutsche Bank, Barclays, Total, Halliburton and Linde.
* Monetary policy decisions are due in Europe, Indonesia, Sweden and Canada.
* ECB policy makers could on Thursday confirm that asset purchases will end this year, reiterating its pledge to keep interest rates at record lows through summer 2019. President Mario Draghi will hold a press conference.
* U.S. gross domestic product growth may have slowed in the third quarter, yet remained near its best pace since mid-2015, according to forecasts ahead of Friday’s release.
These are the main moves in markets:
Stocks
* The S&P 500 fell 0.6 percent to 2,740.69 as of 4:05 p.m. in New York, while the Dow Jones Industrial Average dropped 0.5 percent to 25,191.43 and the Nasdaq Composite Index eased 0.4 percent to 7,437.54. 
* The Stoxx Europe 600 fell 1.6 percent. 
* The U.K.’s FTSE 100 declined 1.2 percent.
* Germany’s DAX Index dropped 2.2 percent higher, the fifth straight decline.
* The MSCI Emerging Market Index dipped 2.1 percent.
* The MSCI Asia Pacific Index slumped 2.2 percent.
Currencies
* The Bloomberg Dollar Spot Index dropped 0.2 percent.
* The euro gained 0.1 percent to $1.1470.
* The British pound rose 0.2 percent to $1.2984.
* The Japanese yen strengthened 0.4 percent to 112.40 per dollar.
Bonds
* The yield on 10-year Treasuries dropped three basis points to 3.17 percent, while the two-year note yield fell three basis points to 2.87 percent.
* Germany’s 10-year yield fell four basis points to 0.41 percent.
Commodities
* West Texas Intermediate crude slumped 4.2 percent to $66.26 a barrel, the first drop in three days.
* Gold gained 0.7 percent to $1,230.45 an ounce.

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

Justice is the right of the weakest.
         -Joseph Joubert, 1754-1824

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:

ICYMI

from the NY Times today:

“Je refuse le prix,” Jean-Paul Sartre said on this day in 1964. 

With these words, the French writer and philosopher became the first person to freely decline the Nobel Prize. 

Jean-Paul Sartre in 1964. Associated Press 

But the Swedish Academy wasn’t the first to hear them. 

A young journalist landed the scoop after tracking down Sartre at a Paris bistro. The 59-year-old “pope of existentialism” was lunching with Simone de Beauvoir, his long-time partner. 

Interrupted before the cheese course, Sartre was stunned to hear that he had just been named the academy’s literary laureate. (A week earlier, after learning that he had been nominated for the honor, he had written to the jury asking not be chosen. His letter didn’t arrive in time.) 

That evening, Sartre read a statement to the Swedish media to explain why he refused the prize — and the $53,000 that came with it. 

Official honors, he said, exposed his readers “to a pressure I do not consider desirable.” 

The jury did not change its decision. 

More than a decade later, Sartre, or someone related to him, allegedly asked for the money that he had turned down, according to the Swedish Academy’s former secretary. 

This time, it was the academy that declined. 

Lara Takenaga wrote today’s Back Story.

1962~Cuban missile crises.
PHOTOS OF THE DAY

The Berryman celebrates the apple harvest at the Borough Market Apple Day in London. Credit: Dave Rose For The Telegraph

This combination of pictures created shows Notre Dame de Paris Cathedral during a light show entitled “Dame de Coeur” as part of the first World War centennial celebrations. Credit: Ludovic Marin/AFP/Getty Images

Sheep are mustered along the streets of Madrid city centre during the 25^th anniversary of the livestock migration festival, Madrid, Spain. Credit: Pablo Blazquez Dominguez/Getty Images
Market Closes for October 22^nd, 2018

Market Index	Close	Change
Dow Jones	25317.41	-126.93   -0.50%
S&P 500	2755.88	-11.90   -0.43%
NASDAQ	7468.629	+19.603   +0.26%
TSX	15412.70	-57.40
		-0.37%

International Markets

Market Index	Close	Change
NIKKEI	22614.82	+82.74
		+0.37%
HANG SENG	26153.15	+591.75
		+2.32%
SENSEX	34134.38	-181.25
		-0.53%
FTSE 100*	7042.80	-7.00
		-0.10%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.485		2.500
CND. 30 Year Bond		2.518		2.529
U.S.    10 Year Bond		3.1978		3.1920
U.S. 30 Year Bond		3.3889		3.3766

Currencies

BOC Close	Today	Previous
Canadian $	0.76358	0.76299
US $	1.30962	1.31064
Euro Rate 1 Euro=		Inverse
Canadian $	1.50184	0.66585
US $	1.14678	0.87201

Commodities

Gold	Close	Previous
London Gold Fix	1227.85	1223.00
Oil
WTI Crude Future	69.17	69.12

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks fell on Monday, with pot and commodity shares pacing losses. U.S. peers were mixed as the FANG cohort lifted tech-heavy Nasdaq indexes ahead of several mega cap earnings reports later this week. On the trade front, Mexico’s incoming foreign affairs minister Marcelo Ebrard said that steel tariffs could end when the USMCA trade pact is signed.
     The S&P/TSX Composite Index fell 0.4 percent, with a sell-off in cannabis stocks sending the health-care sector to the lowest in more than a month. Chemical stocks also fell on macro fears. Tech shares, industrials and utilities rose.
Stocks
* Stantec Inc. rose 5.8 percent, climbing for a second day after announcing plans to sell its construction division; the move prompted an upgrade from CIBC, which said the sale would remove earnings surprises and improve the company’s margin profile. 
* Cenovus Energy Inc. rose 1.1 percent after TD analysts raised the stock to buy from hold, citing an outlook for material upside.
* Pot stocks post their worst session in more than two years, as Canopy Growth Corp., Aurora Cannabis Inc. and Aphria Inc. plunged.
Commodities
* Western Canada Select crude oil traded at a $43.50 discount to WTI
* Gold down 0.3 percent to $1,225.30 an ounce
FX/Bonds
* The Canadian dollar was little changed at C$1.3101 per U.S. dollar
* The Canada 10-year government bond yield fell 1.4 basis points to 2.482%
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — Most U.S. equities fell, with financial and commodity shares pacing losses as an overnight rally in Asian equities failed to hold ahead of a spate of key earnings reports this week. The dollar rose to the highest level in two months.
     More than three stocks fell for every two that rose in the S&P 500 Index, with banks tumbling the most. Energy producers slumped more than 1 percent as crude traded at a five-week low. 
     The FANG cohort lifted tech-heavy Nasdaq indexes ahead of a spate of mega cap earnings later this week. Earlier, the Shanghai Composite Index surged the most since March 2016 in the wake of verbal interventions from authorities.  “This week’s earnings announcements are the bulk of them, so it will be crucial to see what happens, especially to industrials to see whether there’s been any sort of disruption of their business due to the trade disputes,” said John Vail, chief global strategist at Nikko Asset Management.
     Risks still abound across global markets, from the continuing U.S.-China trade showdown and tension surrounding the killing of a Saudi journalist to Italian budget fears and President Donald Trump’s unpredictable actions ahead of American midterm elections. Still, equities were attempting to bounce back after a miserable few weeks, and company results from the likes of Amazon, Alphabet, Microsoft and Intel as well as U.S. growth data may provide a welcome stimulus in the coming days.
    “It’s early days with under 15 percent of companies having reported [earnings], but the beats have been above average, and margin strength has continued despite some concerns about higher input costs,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “That said, corporate earnings calls have highlighted several potential and real headwinds as we face 2019.”
     Italy’s sovereign bonds pared their advance after the nation’s populist government called for a budget dialogue with the European Union to address their differences. The pound retreated as the U.K. blurred more red lines in its Brexit negotiations, heightening the danger to Prime Minister Theresa May.
    Elsewhere, commodities were mixed. Gold dropped. The South African rand rallied before the country’s budget.
Here are some key events coming up this week:
* Earnings season gathers pace with notable highlights including  Amazon.com, Alphabet, Intel, Verizon, Microsoft, Twitter, McDonald’s, UBS, Deutsche Bank, Barclays, Total, United Technologies, Caterpillar, Halliburton and Linde.
* Monetary policy decisions are due in Europe, Indonesia, Sweden and Canada.
* ECB policy makers could on Thursday confirm that asset purchases will end this year, reiterating its pledge to keep interest rates at record lows through summer 2019. President Mario Draghi will hold a press conference.
* U.S. gross domestic product growth may have slowed in the third quarter, yet remained near its best pace since mid-2015, according to forecasts ahead of Friday’s release. 
And these are the main moves in markets:
Stocks
* The S&P 500 fell 0.4 percent to 2,755.88 as of 4:03 p.m. in New York, while the Dow Jones Industrial Average dropped 0.5 percent to 25,317.48 and the Nasdaq Composite Index gained 0.3 percent to 7,468.63.
* The Stoxx Europe 600 fell 0.4 percent. 
* The U.K.’s FTSE 100 eased 0.1 percent.
* Germany’s DAX Index edged 0.3 percent lower.
* The MSCI Emerging Market Index jumped 1.1 percent.
* The MSCI Asia Pacific Index increased 0.4 percent.
Currencies
* The Bloomberg Dollar Spot Index increased 0.3 percent.
* The euro weakened 0.4 percent to $1.1470.
* The British pound fell 0.8 percent to $1.2972.
* The Japanese yen weakened 0.3 percent to 112.83 per dollar.
Bonds
* The yield on 10-year Treasuries was little changed at 3.19 percent, while the two-year note yield was 2.90 percent.
* Germany’s 10-year yield fell one basis point to 0.45 percent.
Commodities
* Crude oil increased was little changed at $69.17 a barrel.
* Gold dropped 0.4 percent to $1,222.43 an ounce, the first decline in three days.
Have a great night.

Be magnificent!

As ever,

 

Carolann

 

A man who cannot find tranquility within himself will search for it in vain elsewhere.
                                   –François, Duc de La Rochefoucauld, 1613-1680  

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday!

NUMBERS:

4,400
Books banned in Kuwait over the past five years, sparking public outcry there.  The country was once known as the “Hollywood of the Gulf” for its culturally open society.

37 to 50
Minutes that British readers of The Independent’s now-defunct daily print edition spent reading per issue; half of subscribers read it “almost every day,” according to a study of how readers respond when newspapers go on-line-only.

6
Minutes (on average) that readers of The Independent’s online edition spend reading it each month, according to the study mentioned above.
Sources: Wired, Nieman Lab.

POINTS OF PROGRESS:
NORWAY
The country recently launched a zero-emissions catamaran as part of its efforts to revolutionize the carbon-heavy seafaring industry.  The battery-powered ship carries passengers on sightseeing trips and will be followed by dozens of other zero-emissions vessels currently in production.  Though the effort is funded by proceeds from the country’s vast fossil fuel resources, the emissions and chemicals from traditional ships are particularly noxious and the industry has been reluctant to change.  Norway’s zero-emission fleet is aimed to spur change in that arena; the country also ruled that by 2026 all ships that travel into World Heritage fjords must be zero-emissions. –Smithsonian Magazine.

NEPAL
The population of wild Bengal tigers in Nepal has nearly doubled in the past 10 years.  In 2009, there were 120 tigers; today there are 235.  Conservation groups attribute the success of their efforts to a model that ensures tigers have enough land, prey, and separation from humans too thrive. –National Geographic.

NEW ZEALAND
The Maori language, also known as te reo, has enjoyed a recent rise in popularity despite being historically stigmatized.  The government has pledged to have Maori taught in all New Zealand schools by 2025 and wants more than 20 per cent of the population to speak the language by 2040.  The movement toward accepting the language has been growing since the 1970s but has seen increased visibility as government programming normalized its use. –The Guardian.

BOLIVIA
President Evo Morales opened a solar array that will be the largest in the country.   The 180-hectare (445-acre) array will generate 60 megawatts of electricity, or enough to supply 880,000 people.  Officials say they plan to export energy to other countries in the near future.

PHOTOS OF THE DAY

The Couple Sculpture by Sean Henry, which sits out at sea at Newbiggen-by-the-sea on the Northumberland coast, before sunrise. Credit: Owen Humphreys/PA Wire

Silhouette’s of commuters and tourists as they make their way through Grand Central Terminal in New York City during the morning rush hour. Grand Central Terminal serves commuters on the Metro-North Railroad and is also a connection to the New York City Subway at Grand Central 42^nd Street. Credit: Timothy A. Clary/AFP

Mitchell Hatfield and Perrie admire some of the 9,057 stitched poppies on the side of Carmunnock Parish Church, Carmunnock, Glasgow, Scotland, which were stitched by members of the parish. Credit: SWNS.COM
Market Closes for October 19th, 2018

Market Index	Close	Change
Dow Jones	25444.34	+64.89   +0.26%
S&P 500	2767.78	-1.00   -0.04%
NASDAQ	7449.027	-36.111   -0.48%
TSX	15740.10	+65.97
		+0.43%

International Markets

Market Index	Close	Change
NIKKEI	22532.08	-126.08
		-0.56%
HANG SENG	25561.40	+106.85
		+0.42%
SENSEX	34315.63	-463.95
		-1.33%
FTSE 100*	7049.80	+22.81
		+0.32%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.500		2.499
CND. 30 Year Bond		2.529		2.525
U.S.    10 Year Bond		3.1920		3.1748
U.S. 30 Year Bond		3.3766		3.3617

Currencies

BOC Close	Today	Previous
Canadian $	0.76299	0.76450
US $	1.31064	1.30804
Euro Rate 1 Euro=		Inverse
Canadian $	1.50949	0.66247
US $	1.15177	0.86827

Commodities

Gold	Close	Previous
London Gold Fix	1223.00	1229.05
Oil
WTI Crude Future	69.12	68.65

Market Commentary:
On Oct. 19, 1987, the stock market crashed as the Dow Jones Industrial Average plunged 508 points, or 22.6 percent in value – its second biggest percentage drop. Go to article »
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks rebounded Friday to eke out a small weekly gain for the first time in four weeks. The loonie extended its losses for a third day as Canadian inflation unexpectedly slowed down in September, giving ample ammunition to the BoC’s doves to take things slowly.
     The S&P/TSX Composite Index rose 0.4 percent, led by gains in consumer staples, real estate and energy shares. A sell-off in pot stocks weighed on health care, which fell for a fourth consecutive session.
Stocks
* Barrick Gold Corp. advanced 0.2 percent after reporting that ISS recommended shareholders vote to approve issuing shares in connection with the Randgold Resources acquisition.
* Stantec Inc. rose 3.3 percent after Scotia Capital analyst Mark Neville upgraded shares to sector outperform from sector perform.
* TransAlta Renewables Inc. rose 2.5 percent after reporting that the 17.25MW expansion of its wind facility at Kent Hills, New Brunswick, is fully operational, bringing total generating capacity to 167 MW.
Commodities
* Western Canada Select crude oil traded at a $43 discount to WTI
* Gold was little changed to $1,230 an ounce 
FX/Bonds
* The Canadian dollar fell 0.2 percent at C$1.3104 per U.S.dollar
* The Canada 10-year government bond yield gained 0.1 basis point at 2.496%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — U.S. stocks edged lower as investors assessed the latest batch of corporate earnings and simmering geopolitical tensions ahead of the weekend. The dollar weakened and oil rose. The S&P 500 Index ended the week virtually unchanged, holding near its average price of the past 200 days. The measure earlier powered to a gain of more than 1 percent on the strength of corporate results, but gave back the advance as investors grew concerned tariffs will increasingly dent profit margins.
     Honeywell warned as much during its conference call, dragging down shares in Boeing and Caterpillar. The gyrations capped a wild week of trading that saw stocks put in their biggest rally since March only to tumble almost 1.5 percent two days later. Tech shares remained under pressure, with the Nasdaq indexes falling Friday for their third straight weekly retreat.
     A renewed rise in Treasury yields — the 10-year rate targeted 3.2 percent again — added to pressure on equities, though bank shares benefited. The dollar slumped versus major peers. Oil gave back some gains after Federal Reserve President Raphael Bostic said tensions between Saudi Arabia and the U.S. pose a geopolitical risk.
     “It seems like it’s another day of uncertainty, digestion,” said Christian Magoon, chief executive officer of Amplify ETFs.  “The two macro forces pushing on the market are the interest rates and how aggressive the Fed is going to be and whether that aggression could take the economy into a recession. The other uncertainty is around what will happen with tariffs. It’s a buyers strike right now.”
     Markets rode a roller coaster this week as investors parsed a mixed bag of earnings to see whether the ongoing trade war and higher rates are eating away at profits. Reports that President Xi Jinping and President Donald Trump would meet in November eased concerns early Friday, but they were soon ratcheted higher on worries about the potential impending impact of Chinese tariffs. And still hanging in the background are tensions surrounding the disappearance of a prominent Saudi journalist, Brexit and the Italian budget drama.
     Elsewhere, Italian bonds weighed on European debt amid the country’s debt crisis, while a slowdown in Chinese growth added to concerns that the world economy is not on firm footing. The pound rose after U.K. Prime Minister Theresa May was said to be ready to ditch a key demand in Brexit talks.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell less than 0.1 percent to 2,767.78 as of 4 p.m. New York time.
* The Nasdaq Composite Index fell 0.5 percent, while the Nasdaq 100 dropped 0.1 percent.
* The Stoxx Europe 600 Index fell 0.1 percent.
* The MSCI Emerging Market Index gained 0.1 percent.
Currencies
* The Bloomberg Dollar Spot Index fell less than 0.1 percent.
* The euro climbed 0.4 percent to $1.1502.
* The Japanese yen declined 0.3 percent to 112.57 per dollar.
* The MSCI Emerging Markets Currency Index increased 0.1 percent.
Bonds
* The yield on 10-year Treasuries gained two basis points to 3.19 percent.
* Germany’s 10-year yield rose four basis points to 0.46 percent.
* Britain’s 10-year yield added four basis points to 1.576 percent.
Commodities
* The Bloomberg Commodity Index climbed 0.2 percent.
* West Texas Intermediate crude gained 0.9 percent to $69.29 a barrel.
* Gold fell less than 0.1 percent to $1,229.50 an ounce.
–With assistance from Randall Jensen, Vassilis Karamanis and Eddie van der Walt.

Have a wonderful weekend.

Be magnificent!

As ever,

 

Carolann

 

But words are things, and a small drop of ink, falling like dew upon a thought, produces that which makes thousands and perhaps millions, think.
                                    -Lord Byron, 1788-1824

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
I was at a restaurant for dinner last night where there was live music; the female vocalist sang a moving rendition of Autumn Leaves and I had forgotten how beautiful the lyrics (and musical score) are.  The lyrics – inspiring this time of year:

Autumn Leaves

The falling leaves drift by my window
The falling leaves of red and gold
I see your lips the summer kisses
The sunburned hands I used to hold
Since you went away the days grow long
And soon I’ll hear old winter’s song
But I miss you most of all my darling
When autumn leaves start to fall
Since you went away the days grow long
And soon I’ll hear old winter’s song
But I miss you most of all my darling
When autumn leaves start to fall
I miss you most of all my darling
When autumn leaves start to fall

Songwriters: Giorgio Canali / Francesco Magnelli / Gianni Maroccolo / Massimo Zamboni / Giovanni Lindo Ferretti
Autumn Leaves lyrics © Universal Music Publishing Group

October 18,1970 – Police find body of QC Labour Minister Pierre Laporte in the trunk of a car at St-Hubert Airport; strangled by FLQ terrorists with the chain of a religious medal.

PHOTOS OF THE DAY

A train leaves the main train station in Frankfurt, Germany and provides the photographer with an opportunity to show off his skills. Credit: Michael Probst/AP

Pink-footed Geese flying in front of the Moon taken in South Shields, South Tyneside. The geese arrive in the UK for winter before returning to their breeding grounds of Iceland and Greenland in the early spring. Credit: Lee Harris

The Chimbu Skeleton Tribe of Papua New Guinea. The tribe traditionally dress as skeletons to strike fear into their enemies. The tribe first made contact with the Western world in 1934. Credit: Pongtharin Tanthasindhu/Mediad
Market Closes for October 18th, 2018

Market Index	Close	Change
Dow Jones	25379.45	-327.23   -1.27%
S&P 500	2768.82	-40.39   -1.44%
NASDAQ	7485.141	-157.562   -2.06%
TSX	15394.96	-134.94
		-0.87%

International Markets

Market Index	Close	Change
NIKKEI	22658.16	-182.96
		-0.80%
HANG SENG	25454.55	-7.71
		-0.03%
SENSEX	34779.58	-382.90
		-1.09%
FTSE 100*	7026.99	-27.61
		-0.39%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.499		2.517
CND. 30 Year Bond		2.525		2.534
U.S.    10 Year Bond		3.1748		3.1993
U.S. 30 Year Bond		3.3617		3.3660

Currencies

BOC Close	Today	Previous
Canadian $	0.76450	0.76804
US $	1.30804	1.30202
Euro Rate 1 Euro=		Inverse
Canadian $	1.49836	0.66739
US $	1.14550	0.87298

Commodities

Gold	Close	Previous
London Gold Fix	1229.05	1230.70
Oil
WTI Crude Future	68.65	69.75

Market Commentary:
On this day in 1937, the stock market crashed on worries of cutbacks in government spending and rumors that the Roosevelt administration would crack down on Wall Street. The Dow Jones Industrial Average lost 10.57 points, or 7.8%, to close the day at 125.73.  
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed global peers lower as investors flocked to government bonds amid increased concerns  over the U.S.-China trade war’s impact on economic growth and rising interest rates.
     The S&P/TSX Composite Index extended losses for a second day, falling 0.8 percent, with industrials and tech shares leading to the downside. Telecom and media stocks rose.
                            Stocks
* Centerra Gold Inc rose 1 percent, outperforming most gold peers after Canaccord upgraded the shares to buy from hold (PTC $6.50 vs C$6.75) citing more attractive risk-reward trade off.
* MEG Energy Corp rose 0.6 percent as Husky Energy said it has reviewed the directors’ circular filed by MEG Energy and that it remains committed to its offer as the “best available option” for MEG holders to maximize value.
* Aurora Cannabis Inc, Aphria Inc rebounded after a lackluster day Wednesday, as Canada’s recreational marijuana legalization looks to be off to a good start, and as two Canadian pot producers seek listings on the New York Stock Exchange.
                            Commodities
* Western Canada Select crude oil traded at a $44.25 discount to WTI
* Gold gained 0.1 percent to $1,228.10 an ounce
                            FX/Bonds

* The Canadian dollar fell 0.4 percent at C$1.3071 per U.S.dollar
* The Canada 10-year government bond yield fell 2.3 basis points to 2.496%
US

By Randall Jensen and Vildana Hajric
(Bloomberg) — A risk-off tone gripped global financial markets, with U.S. stocks sliding while Treasuries climbed with the yen on demand for havens.
American equities fell the most since last week’s rout as investors fretted over the U.S.-China trade war’s impact on economic growth, the Italian debt crisis and rising interest rates. High-flying technology shares again led the sell-off, while defensive sectors like utilities and real estate fared better. Mixed earnings, with disappointments from key industrial and tech names, added to investor anxiety.
The S&P 500 slid back toward its 200-day moving average, the Dow Jones Industrial Average shed more than 300 points and the Nasdaq 100’s rout topped 2 percent.  The weakness comes after China sank overnight, bringing losses in its major benchmark to 30 percent since January highs.
The dollar touched the highest in more than a week, while the 10-year Treasury yield fell to 3.17 percent. Italy’s yield spread over Germany’s hit the highest level since 2013 as European Union officials questioned the country’s budget plan.
“Like every other spurt of volatility, it’s hard to give an exact reason, but we have all the usual culprits: concern about global trade, earnings season and companies potentially staring down the barrel of another tariff maybe over the winter,” said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors. “It’s a hodgepodge. You have all these things that come together at the same time.”
Earnings remain in focus though the depth of the sell-off overshadowed most major reports. Weak results from Germany’s SAP and Taiwan Semiconductor dragged American tech indexes lower.
Earnings misses from several U.S. industrial firms and a Bank of America downgrade of the housing sector fueled worries that higher interest rates and the trade war are hitting profits.
Philip Morris surged on strong demand, buoying consumer shares.
Here are some key events for the rest of this week:
* Third-quarter GDP for China comes Friday in addition to last month’s retail sales and factory output.
These are the main moves in markets:
                            Stocks
* The S&P 500 Index declined 1.4 percent as of 4 p.m. New York time, the most since Oct. 11.
* The Nasdaq Composite fell 2.1 percent, while the Nasdaq 100 dropped 2.2 percent, both the most since Oct. 10.
* The Dow Jones Industrial Average slid 324 points to 25,382.50.
* The Stoxx Europe 600 Index fell. 0.5 percent.
* The MSCI Emerging Market Index sank 1.4 percent.
* The MSCI Asia Pacific Index declined 0.7 percent.
                            Currencies
* The Bloomberg Dollar Spot Index rose 0.4 percent, hitting the highest since Oct. 9.
* The euro fell 0.4 percent to $1.1456.
* The British pound fell 0.7 percent to $1.3020.
* The Japanese yen increased 0.4 percent to 112.17 per dollar.
                            Bonds
* The yield on 10-year Treasuries fell three basis points to 3.17 percent.
* Germany’s 10-year yield fell five basis points to 0.42 percent.
* Britain’s 10-year yield fell four basis points to 1.54 percent.
                            Commodities
* West Texas Intermediate crude decreased 1.5 percent to $68.71 a barrel.
* Gold rose 0.1 percent to $1,228.00 an ounce.
–With assistance from Yakob Peterseil.

Have a great night.

Be magnificent!

As ever,

Carolann

 

The reward for conformity was that everyone liked you except yourself.
                                                              -Rita Mae Brown, b. 1944

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7 

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:

1989- San Francisco earthquake.

1915- Arthur Miller, writer, b.

On Oct. 17, 1931, mobster Al Capone was convicted of income tax evasion and sentenced to 11 years in prison. He was released in 1939. Go to article »

“The poet and warrior,” Pauli Murray once wrote, “grapple in my brain.”  -from The New York Times, October 17, 2018

The warrior side of that equation is largely responsible for the recent surge of interest in Murray (1910-85), an African-American civil rights activist and lawyer who fought for racial justice and women’s equality. 

Pauli Murray in 1974. Barton Silverman/The New York Times 

But Murray was also a poet, and today is Black Poetry Day in the U.S. 

She also came to think of herself as a man, a story that resonates for many today. Two biographies of Murray have been published since 2016. 

Orphaned young and raised by an aunt in Durham, N.C., Murray grew up reading Paul Laurence Dunbar, one of the first famous African-American poets. Later, as a student at Hunter College in New York, she befriended Langston Hughes, Countee Cullen and other key figures of the Harlem Renaissance. 

Her own poems, collected in the 1970 volume “Dark Testament” (recently reissued, with an introduction by the poet Elizabeth Alexander), grapple with her family’s and her nation’s complicated legacy of oppression. They also unabashedly imagine a country that lives up to its ideals. 

“I sing of a new American / Separate from all others,” she writes in “Prophecy.” 

It concludes: “I seek only discovery / Of the illimitable heights and depths of my own being.” 

Gregory Cowles wrote today’s Back Story.

PHOTOS OF THE DAY

The golden couple by Marsel van Oosten, The Netherlands, which is the 2018 winner of Animal Portraits, part of the Wildlife Photographer of the Year competition. Credit: Marsel Van Oosten/PA

Photocall at the Royal Hospital, Chelsea to announce the ‘There But Not There’ campaign to commemorate 100 years since the end of WW1. Credit: Paul Grover for The Telegraph

Pepper the robot, appearing before a select committee for the first time, to answer questions about the fourth industrial revolution. Credit: PA Wire
Market Closes for October 17th, 2018

Market Index	Close	Change
Dow Jones	25706.68	-91.74   -0.36%
S&P 500	2809.20	-0.72   -0.03%
NASDAQ	7642.703	-2.786   -0.04%
TSX	15528.74	-51.00
		-0.33%

International Markets

Market Index	Close	Change
NIKKEI	22841.12	+291.88
		+1.29%
HANG SENG	25462.26	+17.20
		+0.07%
SENSEX	34779.58	-382.90
		-1.09%
FTSE 100*	7054.60	-4.80
		-0.07%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.517		2.501
CND. 30 Year Bond		2.534		2.520
U.S.    10 Year Bond		3.1993		3.1614
U.S. 30 Year Bond		3.3660		3.3330

Currencies

BOC Close	Today	Previous
Canadian $	0.76804	0.77287
US $	1.30202	1.29388
Euro Rate 1 Euro=		Inverse
Canadian $	1.49752	0.66777
US $	1.15008	0.86950

Commodities

Gold	Close	Previous
London Gold Fix	1230.70	1229.95
Oil
WTI Crude Future	69.75	71.92

Market Commentary:
One of the great defenses – if you’re worried about inflation – is not to have a lot of silly needs in your life – if you don’t need a lot of material goods. –The TAO of Charlie Munger
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks declined alongside their U.S. peers even as Canada became the second nation in the world to legalize recreational pot. Cannabis shares added pressure to the health-care sector, which was the largest decliner. The  sell-off for marijuana growers came after about two months of solid gains.
     The S&P/TSX Composite Index fell 0.3 percent with technology and energy companies also lagging versus the benchmark. Financial and communication services shares were the strongest groups. Canada manufacturing sales saw a smaller-than-expected monthly drop in August, according to new data. The loonie was weaker against a strong U.S. dollar.
                            Stocks
* Canopy Growth Corp. and Aurora Cannabis Inc. fell after Canada’s legalization of adult use went live. The pot industry “is real, it is here to stay and we believe there is money to be made,” Scotiabank analysts wrote
* Canfor Corp. fell 7.8 percent after CIBC analysts said lumber prices are falling and may be nearing a floor. Norbord Inc. and Interfor Corp. also declined 
* Ensign Energy Services Inc. fell almost 4 percent, continuing its decline after being downgraded at both Scotiabank and Evercore ISI on Tuesday.
                            Commodities
* Western Canada Select crude oil traded at a $47.50 discount to WTI
* Gold fell 0.4 percent to $1,225.70 an ounce
                            FX/Bonds
* The Canadian dollar fell 0.7 percent at C$1.30191 per U.S. dollar
* The Canada 10-year government bond yield rose to 2.514%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — Most U.S. stocks fell as a mixed bag of earnings and concerns over rising rates weighed on investor confidence. Treasuries declined and the dollar gained as Fed minutes appeared to lean toward the chance of more hikes in the future.
     The S&P 500 edged lower, failing to add to the biggest rally since March. Gains by banking giants Goldman Sachs and Morgan Stanley couldn’t counter concerns about China that hit Technology stocks, as well as worries about the Fed’s path that seeped into rates-sensitive shares. IBM’s disappointing results dragged on the Dow Jones Industrial Average, while Netflix’s surge and a gain in biotech shares lifted the Nasdaq 100.
     The 10-year Treasury yield rose to 3.19 percent after minutes showed Fed officials appeared to favor an eventual move in rates above the level they see as neutral for the economy. The dollar rose the most in two weeks before a report expected Wednesday by the U.S. that could label China a currency manipulator. Oil fell to $70 a barrel after American stockpiles swelled for the fourth straight week.  “Yesterday, it was such a big rally it was almost a little too much. There are some legit reasons out there why the market has come down,” said Matt Maley, equity strategist at Miller Tabak + Co. “Obviously the higher interest rates, it also looks like this thing with China is getting prolonged. These things are still out there.”
     The risk-off tone across markets highlights the fragility of investor confidence just days after the worst week U.S. stocks since March. The uneven batch of earnings reports rekindled concern that corporate profit growth may have peaked. At the same time, the Trump administration is pressing its trade war with China, Brexit negotiations remain testy and Italian debt worries loom.
     Elsewhere, the Turkish lira gained as the country took advantage of a lull in political turmoil to return to the dollar bond market. Earlier in Asia the mood was more upbeat, with Japanese, South Korean and Australian shares all posting strong gains.  Hong Kong markets were shut for a holiday.
Here are some key events coming up this week:
* Third-quarter GDP for China comes Friday in addition to last month’s retail sales and factory output.
These are the main moves in markets:
                            Stocks
* The S&P 500 Index fell less than 0.1 percent to 2,809.21 as of 4 p.m. New York time.
* The Nasdaq 100 Index rose less than 0.1 percent. 
* The Stoxx Europe 600 Index dipped 0.4 percent.
* The MSCI Asia Pacific Index advanced 0.6 percent.
* The MSCI Emerging Market Index fell 0.1 percent.
                            Currencies
* The Bloomberg Dollar Spot Index advanced 0.5 percent, the most since Oct. 3.
* The euro declined 0.6 percent to $1.1504, the weakest in two weeks.
* The British pound declined 0.5 percent to $1.3122.
* The Japanese yen fell 0.3 percent to 112.57 per dollar.
                            Bonds
* The yield on 10-year Treasuries rose three basis points to 3.197 percent.
* Germany’s 10-year yield decreased three basis points to 0.46 percent, the lowest in more than two weeks.
* Britain’s 10-year yield dipped three basis points to 1.575 percent.
                            Commodities
* West Texas Intermediate crude decreased 2.6 percent to $70.04 a barrel.
* Gold fell 0.4 percent to $1,226.60 an ounce.
–With assistance from Samuel Potter.

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

I was taught that the way of progress was neither swift nor easy.
                                     -Marie Curie Sklodowska, 1867-1934

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com