Month: October 2018

Dear Friends,

Tangents: RIP Paul Allen
On Oct. 16, 1964, China detonated its first atomic bomb.  Go to article »
1853 ~ Start of the Crimean War
1793 ~ Marie Antoinette executed.
Looks like Marie Antoinette is about to lose the family jewels. Gems in her family for two centuries will be up for auction soon. -CNN
PHOTOS OF THE DAY

Winemaker Brian Shirley enjoys the autumn colours breaking out at his vineyard south of the Mendip Hills in Somerset, UK. Credit: Jason Bryant/APEX

Staff members (R) transferring a hot air balloon during the 2018 Outdoor Sports Conference in Xingyi in China’s southwestern Guizhou province. Credit: STR/AFP/Getty Images

A street vendor selling helium balloons at the premises of Shikali Temple at Khokana Village, Patan, Nepal. Credit: Narayan Maharian/Nurphoto/SIPA USA
Market Closes for October 16th, 2018

Market Index	Close	Change
Dow Jones	25798.42	+547.87   +2.17%
S&P 500	2809.92	+59.13   +2.15%
NASDAQ	7645.488	+214.745   +2.89%
TSX	15579.74	+170.27
		+1.10%

International Markets

Market Index	Close	Change
NIKKEI	22549.24	+277.94
		+1.25%
HANG SENG	25462.26	+17.20
		+0.07%
SENSEX	35162.48	+297.38
		+0.85%
FTSE 100*	7059.40	+30.18
		+0.43%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.501		2.501
CND. 30 Year Bond		2.520		2.522
U.S.    10 Year Bond		3.1614		3.1538
U.S. 30 Year Bond		3.3330		3.3347

Currencies

BOC Close	Today	Previous
Canadian $	0.77287	0.76974
US $	1.29388	1.29914
Euro Rate 1 Euro=		Inverse
Canadian $	1.49737	0.66784
US $	1.15735	0.86404

Commodities

Gold	Close	Previous
London Gold Fix	1229.95	1219.75
Oil
WTI Crude Future	71.92	71.78

Market Commentary:
On this day in 1973, the Ministerial Committee of the Gulf Members of OPEC announced an immediate hike in the price of crude oil to $5.12 a barrel, “to exercise their sovereign right to determine the price of their natural resources.” Brent crude, the global benchmark for oil prices, closed at $80.78 a barrel Monday. 
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks regained their footing on Tuesday, posting their biggest gain since April 18, amid a rally in technology shares. U.S. equities also gained on positive corporate earnings reports.
     The S&P/TSX Composite Index rose 1.1 percent, with energy and industrials also contributing to gains. Health care was the only sector that fell in the index as pot stocks fell.
                            Stocks
* Sierra Wireless Inc. rose 2.4 percent after appointing Kent Thexton as president & CEO.
* Bombardier rose 0.8 percent after reporting that its Global 7500 aircraft delivery remains on track for 2021; the better-than-expected announcement on business jet deliveries helped strengthen its backlog, according to BMO analyst Fadi Chamoun(outperform, PT $6). 
* Corus Entertainment Inc. rose 7 percent after Canaccord Genuity analyst Aravinda Galappatthige upgraded it to buy from hold.
                            Commodities
* Western Canada Select crude oil traded at a $47 discount to WTI
* Gold fell 0.2 percent to $1,228.50 an ounce
                            FX/Bonds
* The Canadian dollar gained 0.3 percent at C$1.2946 per U.S. dollar
* The Canada 10-year government bond yield fell 0.5 basis points at 2.492%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — U.S. stocks gained the most in more than six months as corporate earnings provided a respite from tensions over trade and geopolitics. The dollar declined.  The S&P 500 surged more than 2 percent, all 30 members of the Dow Jones Industrial Average advanced and small caps in the Russell 2000 Index notched the best gain since the day after the 2016 election. The Nasdaq Composite saw its biggest gain since March as UnitedHealth Group bolstered health-care firms and Adobe’s forecast lifted software makers. Technology stocks looked set to extend gains in the futures session as Netflix rallied on a surge in net subscribers. IBM fell in late trading as its revenue missed targets.
     The dollar held near a two-week low and the 10-year Treasury yield traded around 3.15 percent as data showed U.S. factory production expanded in September. Oil edged higher amid tensions between the Saudi Arabia and the U.S. over the disappearance of a prominent journalist. “The third quarter, which is now underway, would be the first sign if you’re looking for a smoking gun for either tariffs or tightening conditions,” Jurrien Timmer, director of global macro at Fidelity Investments, said by phone. “People at this point want to be relieved or are feeling that things aren’t as bad as last week suggested.”
     Better results at the start of earnings season are giving many investors breathing room from concerns that a slowdown could be on the horizon. Netflix Inc. becomes the first large technology company to report after today’s close, while minutes from the latest Fed meeting should offer more clues a day later.
     In the background, traders are still grappling with continuing U.S.-China trade war rhetoric and geopolitical strains. Elsewhere, the pound climbed as leaders struck a conciliatory tone a day after Brexit negotiations broke down.  The Turkish lira rose following seven days of gains after the country released U.S. pastor Andrew Brunson on Friday.
     In Asia, Japan’s equities outperformed, while Chinese shares retreated.
Here are some key events coming up this week:
* APEC finance ministers meet in Port Moresby, Papua New Guinea.
* China’s new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. 
* Third-quarter GDP for China comes Friday, with headline growth forecast to slow to 6.6 percent year on year from 6.7 percent, in addition to last month’s retail sales and factory output.
* Minutes from the Federal Reserve’s latest policy meeting are due on Wednesday, with investors focused on projections for further interest rate rises.
* Netflix is among companies reporting this week.
* Euro-area governments, including Italy, must turn in fiscal budget proposals to the European Commission by midnight Monday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index rose 2.2 percent to 2,809.83 as of 4 p.m. New York time, the most since March 26.
* The Nasdaq Composite Index advanced 2.6 percent, the biggest rise since March 26. 
* The Russell 2000 Index gained 2.4 percent, the most since November 9, 2016.
* The Dow Jones Industrial Average rose 1.9 percent, the most since March 26. 
* The Stoxx Europe 600 Index gained 1.6 percent, the most since April 5. 
* The MSCI Emerging Market Index gained 1.2 percent.
                            Currencies
* The Bloomberg Dollar Spot Index dipped 0.1 percent.
* The euro rose 0.1 percent to $1.1585.
* The British pound gained 0.3 percent to $1.3189.
* The Japanese yen dipped 0.4 percent to 112.18 per dollar.
                            Bonds
* The yield on 10-year Treasuries was steady at 3.15 percent.
* Germany’s 10-year yield dipped one basis points to 0.49 percent, the lowest in almost two weeks.
* Britain’s 10-year yield advanced one basis point to 1.624 percent.
                            Commodities
* West Texas Intermediate crude rose 0.2 percent at $71.91 a barrel.
* Gold fell 0.2 percent to $1,228.20 an ounce.
–With assistance from John Ainger, Sarah Ponczek and Yakob Peterseil.

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

Art is never finished, only abandoned.
           -Claude Monet, 1840-1926

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…
1986 – John Polanyi joint winner of Nobel Prize for Chemistry for development of chemical laser. 
1989 – Wayne Gretzky passes Gordie Howe as NHL scoring leader; 1,851 career points.
1917 – Mata Hari executed.
1908 – John Kenneth Galbraith, b.
1844 – Friedrich Nietzsche, philosopher, b.
1881 – P.G. Wodehouse, writer, b.
70 BC – Virgil, epic poet, b.
1959 –  Duchess Sarah Ferguson, b.
PHOTOS OF THE DAY

Sailboats gather at the start of the Barcolana regatta at Trieste harbour, Italy. Credit: Reuters/Alessandro Garofalo

The Alexander Pushkin Boldino State Literature Memorial and Nature Museum Reserve in Nizhny Novgorod Region. Credit: Stanislav Krasilnikov/Tass/Barcroft Images

The centrepiece of the Pickering events calendar is the ever-popular Wartime Weekend, which is held every October, and includes a full programme of WWII and 1940s themed entertainment and events. The event is run by the North Yorkshire Moors Railway but is now so popular events have sprung up all over the town. Attractions including singing, dancing, workshops, parades and fashion shows, in addition to living history showcases, period vehicle exhibitions and re-enactments. Incredibly popular with visitors from all over the UK and beyond. Credit: Charlotte Graham CAG Photography
Market Closes for October 15th, 2018

Market Index	Close	Change
Dow Jones	25250.55	-89.44   -0.35%
S&P 500	2750.79	-16.34   -0.59%
NASDAQ	7430.742	-66.152   -0.88%
TSX	15409.47	-4.82
		-0.03%

International Markets

Market Index	Close	Change
NIKKEI	22271.30	-423.36
		-1.87%
HANG SENG	25445.06	-356.43
		-1.38%
SENSEX	34865.10	+131.52
		+0.38%
FTSE 100*	7029.22	+33.31
		+0.48%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.501		2.496
CND. 30 Year Bond		2.522		2.510
U.S.    10 Year Bond		3.1538		3.1651
U.S. 30 Year Bond		3.3347		3.3373

Currencies

BOC Close	Today	Previous
Canadian $	0.76974	0.76795
US $	1.29914	1.30217
Euro Rate 1 Euro=		Inverse
Canadian $	1.50450	0.66463
US $	1.15820	0.86341

Commodities

Gold	Close	Previous
London Gold Fix	1219.75	1205.55
Oil
WTI Crude Future	71.78	71.34

Market Commentary:
The Stone Age didn’t end because we ran out of stones, and the oil age will end long before the world runs out of oil. -Sheik Ahmed Zaki Yamani(Saudi oil minister 1962-1986, b. 1930)
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks ended the session little changed, after erasing earlier gains fueled by a rally in pot shares. U.S. equities also fell as investors weighed a growing list of global concerns against a backdrop of strong economic growth. The S&P/TSX Composite Index fell 0.03 percent, with tech shares leading to the downside. Pot stocks lifted health care to its highest since April 2016, two days ahead of the legalization of recreational marijuana on Oct. 17.
                            Stocks
* Canopy Growth Corp rose 14 percent after it bet on potential growth in the U.S. hemp industry with a deal to buy Colorado-based Ebbu Inc. for about C$430 million ($330 million) in cash and shares.
* SNC-Lavalin Group Inc rose 5.9 percent, paring last week’s slump. After the “unexpected announcement” that the Canadian government is unwilling to negotiate a remediation agreement, BMO wrote that a breakup might be “a way to bring value to a battered shareholder base.”
* Green Organic Dutchman Ltd fell 3.7 percent after ending a milestone option pact with Aurora Cannabis that would have let it take a bigger stake in the company.
                            Commodities
* Western Canada Select crude oil traded at a $46 discount to WTI
* Gold gained 0.7 percent to $1,230.30 an ounce
                            FX/Bonds
* The Canadian dollar gained 0.3 percent at C$1.29887 per U.S. dollar
* The Canada 10-year government bond yield was little changed at 2.497%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — Technology companies pulled stock indexes lower, while the dollar dropped as investors eyed a growing list of global concerns. Treasuries rose. The tech-heavy Nasdaq indexes led losses Monday, while small caps gained after President Donald Trump on Sunday threatened more tariffs on Chinese goods. The S&P 500 deepened declines following its biggest weekly retreat since March, holding near the key 200-day moving average. Bank of America Corp. dropped after posting quarterly results, while Harris Corp. and L3 Technologies Inc. surged on the announcement of a merger.
     The dollar touched a two-week low against peers, while the 10-year Treasury yield traded around 3.15 percent after U.S. retail sales in September fell short of analysts’ estimates. West Texas crude advanced amid tensions between Saudi Arabia and the U.S. over the disappearance of a prominent journalist. Gold headed toward its fourth gain in five days.
     “The overall trade tensions and geopolitical tensions with China leads to more worries about global growth and about general growth in the marketplace. That certainly impacts tech,” Chris Gaffney, president of world markets at TIAA Bank, said in an interview. “We’re not seeing a follow-through on the big recovery we saw on Friday. Instead, we’re seeing investors stay on the sidelines today. They’re trying to figure out if this is the start of a longer-term correction or just a healthy move lower setting up for a longer recovery.”
     While global tensions were on full display this weekend, with the IMF warning of more market volatility and U.S.-China trade war rhetoric increasing, investors are also trying to gauge the direction of the American economy and earnings from last quarter that are starting to roll in. Anything hinting of a slowdown or stronger growth that could impact the pace of Federal Reserve rate hikes will push markets around.
     Elsewhere, European equities rose while Asia stocks fell.  In Frankfurt, stock trading resumed after the opening was delayed by a technical glitch. Italian bonds pared earlier gains as the nation prepared to meet Monday’s midnight deadline for euro-area governments to turn in fiscal budgets.
     Here are some key events coming up this week:
* APEC finance ministers meet in Port Moresby, Papua New Guinea
* China’s new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. On Tuesday, consensus is for CPI to pick up to 2.5 percent growth and PPI to slow to 3.6 percent.
* Third-quarter GDP for China comes Friday, with headline growth forecast to slow to 6.6 percent year on year from 6.7 percent, in addition to last month’s retail sales and factory output.
* Minutes from the Federal Reserve’s latest policy meeting are due on Wednesday, with investors focused on projections for further interest rate rises.
* Goldman Sachs, Morgan Stanley and Netflix are among companies reporting this week.
* Euro-area governments, including Italy, must turn in fiscal budget proposals to the European Commission by midnight Monday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index fell 0.6 percent to 2,750.79 as of 4 p.m. New York time. 
* The Nasdaq Composite Index dropped 0.9 percent, while the Nasdaq 100 slid 1.2 percent. 
* The Russell 2000 Index rose 0.4 percent. 
* The Stoxx Europe 600 Index gained 0.1 percent.
* The MSCI All-Country World Index dipped 0.2 percent.
* The MSCI Emerging Market Index declined 0.7 percent.
                            Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent.
* The euro climbed 0.2 percent to $1.1581.
* The Japanese yen gained 0.3 percent to 111.82 per dollar, the strongest in four weeks.
* The MSCI Emerging Markets Currency Index advanced 0.2 percent.
                            Bonds
* The yield on 10-year Treasuries decreased less than one basis point to 3.15 percent.
* Germany’s 10-year yield fell less than one basis point to 0.50 percent, the lowest in more than a week.
* Britain’s 10-year yield dipped three basis points to 1.606 percent.
                            Commodities
* The Bloomberg Commodity Index gained 1 percent.
* West Texas Intermediate crude rose 0.4 percent at $71.63 a barrel.
* Gold gained 0.7 percent to $1,230.80 an ounce, the highest since Aug. 1. 
–With assistance from Eddie van der Walt.

Have a great night. 

Be magnificent!

As ever,

Carolann

Every man is the builder of a temple called his body.
                     -Henry David Thoreau, 1817-1862

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!

1970 – FLQ October Crisis – Canadian Army troops from Camp Petawawa deploy in Ottawa to meet FLQ terrorist threats.

Luciano Pavarotti, b. 1935.
1999~ World population reaches 6 billion people.

PHOTOS OF THE DAY

Bunting flutters in the wind in front of Windsor Castle, ready for the royal wedding of Britain’s Princess Eugenie and Jack Brooksbank, in Windsor, UK. CREDIT: THE TELEGRAPH

Social humanoid robot Sophia, a latest creation by Hanson Robotics company, attends a news conference after a meeting with young inventors and officials in Kiev, Ukraine. CREDIT: REUTERS/VALENTYN OGIRENKO
Market Closes for October 12th, 2018

Market Index	Close	Change
Dow Jones	25339.99	+287.16     +1.15%
S&P 500	2767.13	+38.76   +1.42%
NASDAQ	7496.895	+167.834   +2.29%
TSX	15414.29	+97.15  +0.63%

International Markets

Market Index	Close	Change
NIKKEI	22694.66	+103.80
		+0.46%
HANG SENG	25801.49	+535.12
		+2.12%
SENSEX	34733.58	+732.43
		+2.15%
FTSE 100*	6995.91	-11.02
		-0.16%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.496		2.501
CND. 30 Year Bond		2.510		2.509
U.S.    10 Year Bond		3.1651		3.1498
U.S. 30 Year Bond		3.3373		3.3233

Currencies

BOC Close	Today	Previous
Canadian $	0.76795	0.76765
US $	1.30217	1.30267
Euro Rate 1 Euro=		Inverse
Canadian $	1.50526	0.66434
US $	1.15590	0.86512

Commodities

Gold	Close	Previous
London Gold Fix	1205.55	1188.60
Oil
WTI Crude Future	71.34	70.97

Market Commentary:
Canada
By Tatiana Darie
(Bloomberg) — Canadian stocks rebounded with their U.S. peers, but still closed more than three percent lower for the week, its worst weekly performance since February. Technology shares that led the longest rout in U.S. equities in almost two years bounced back Friday to power major indexes higher.
     The S&P/TSX Composite Index rose 0.6 percent, the most since Sept. 18, with health care, tech and consumer discretionary leading gains. Gold and silver miners dragged materials shares lower.
                                                   Stocks
* Detour Gold Corp fell 2.4 percent after Paulson & Co. said it made two settlement alternatives to Detour Gold this morning and has not received a response other than via the media; Paulson also said Detour had failed to engage in good-faith discussions by making the talks public.
* Canadian Pacific Railway Ltd rose 1.9 percent after Stifel analyst Michael Baudendistel upgraded to buy from hold, saying the company has room for growth given strategic plans to expand capacity in key locations near terminals, invest in high-capacity grain cars and improve intermodal operations.
* Sunniva Inc rose 0.4 percent after reporting it has retained Canaccord to commence a formal process to review all strategic alternatives potentially including a sale, investment in or joint venture of some or all of its Canadian assets with the intention to spin out the assets.
                                                   Commodities
* Western Canada Select crude oil traded at a $48.50 discount to WTI
* Gold fell 0.5 percent to $1,221.30 an ounce
                                                   FX/Bonds
* The Canadian dollar little changed at C$1.3035 per U.S. dollar
* The Canada 10-year government bond yield fell 1.3 basis points to 2.483%
US
By Vildana Hajric and Sarah Ponczek
(Bloomberg) — Stocks rose the most in six months Friday as technology shares, which led the longest rout in U.S. stocks in almost two years, bounced back to power major indexes higher.
     Treasuries fell, and the dollar rose with oil.
     The S&P 500 Index gained 1.4 percent in the final hour of a wild up-and-down session, with trading 30 percent above average, to post its best performance since April 10. The benchmark had all but erased a morning rally that reached 1.7 percent, only to bounce higher after JPMorgan analysts said that selling forced by computer-driven strategies had likely run its course.
     Volatility ruled, though, with the index making another run at wiping out the gain before resuming its climb.
     Technology buoyed all the major averages, with the Nasdaq 100 Index rising 2.8 percent just two days after its worst rout since 2011. Netflix Inc. rallied 6 percent amid an “opportunistic upgrade” from analysts at Citigroup Inc.
     Activision Blizzard Inc. drove gains in gaming shares after releasing a new version of “Call of Duty.” The 10-year Treasury yield for the first time in three days, reaching 3.16 percent.  Still, rising interest rates weighed on banks even after mostly positive earnings reports from JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. The group was down almost 5.5 percent for the week.
     The reasons for Friday’s rally were as varied as for the weeklong pounding. Trade data from China helped ease concerns about global growth, while signs emerged of relaxing tensions with the U.S. amid a planned meeting between the countries in November and the Treasury Department’s determination that China isn’t manipulating its currency. Relief that bank earnings weren’t bad cooled anxiety that corporate profits might not live up to lofty expectations amid higher costs from the Trump tariffs.  “Solid bank earnings, Chinese trade data and excessively oversold conditions is charging the equity rebound,” Ben Emons, chief economist at Intellectus Partners LLC, wrote in an emailed note. “All of these set in motion what you could dub as a ‘stock reflation’ trade after several days of brutal moves.”
     The rally, which came after two days of market tumult, was global, with the MSCI All-Country World Index adding more than 1 percent. The MSCI Asia Pacific Index climbed from the lowest level since May 2017. European shares, however, slid into the close, with the Stoxx 600 Index turning negative to erase a gain that had reached almost 1 percent and cap its worst week since February.
     Emerging-market stocks headed for the biggest gain in more than two years as risk appetite improved, and most developing-nation currencies advanced against the dollar. Turkey’s lira retreated from earlier gains after it was reported that a Turkish court set free U.S. Pastor Andrew Brunson after two years in jail, removing a source of tension between the countries.
     Despite the strong one-day performance, the S&P 500, Nasdaq 100 and Dow Jones Industrial Average all had their worst week since March. With investors debating whether this correction has created immediate buying opportunities, earnings remain key as third-quarter reports from U.S. companies will show whether the Trump Administration’s tax breaks are still boosting corporate profits.
     “We expect further volatility and possible additional down moves,” though “the bear checklist is not yet flashing red,” Pascal Blanque, chief investment officer at Amundi SA, said in a client note. “The focus will be on the U.S. earnings season, so any news will be carefully assessed by the market.”
     West Texas crude recovered but remained on track for the biggest weekly drop since May. The International Energy Agency cut forecasts for demand this year, but said dwindling supply will keep prices high. Gold slipped, but copper led a gauge of industrial metals higher.
These are the main moves in markets:
                                                   Stocks
* The S&P 500 rose 1.4 percent to 2,767.13, while the Nasdaq 100 jumped 2.8 percent.
* The Stoxx Europe 600 Index fell 0.3 percent, retreating from an increase of 1 percent. 
* The MSCI All-Country World Index gained 1.1 percent. 
* The MSCI Emerging Market Index surged 2.6 percent, the first advance in more than a week and the largest jump since March 2016.
                                                 Currencies
* The Bloomberg Dollar Spot Index climbed 0.1 percent. 
* The euro declined 0.3 percent to $1.1558. 
* The British pound fell 0.6 percent to $1.3155
* The Japanese yen was little changed at 112.21 per dollar.
                                                 Bonds
* The yield on 10-year Treasuries rose one basis point to 3.16 percent. 
* Germany’s 10-year yield slid two basis point to 0.497 percent.
* Britain’s 10-year yield fell four basis points to 1.633 percent. 
                                                Commodities
* The Bloomberg Commodities Index rose 0.4 percent after two days of losses.
* West Texas Intermediate crude added 0.8 percent to $71.56 a barrel. 
* Gold declined 0.5 percent to $1,218.05 an ounce.

–With assistance from Cecile Vannucci, Robert Brand and Blaise Robinson.

Have a wonderful weekend.

Be magnificent!

As ever,

Carolann

I have learned that to be with those I like is enough.
                                   -Walt Whitman, 1819-1892

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 Oct. 11, 1968, Apollo 7, the first manned Apollo mission, was launched with astronauts Wally Schirra, Donn Fulton Eisele and R. Walter Cunningham aboard.
Go to article »

~1975: Saturday Night premieres.

PHOTOS OF THE DAY

Children play in a water installation titled “Circular Appearing Rooms” by artist Jeppe Hein in Bonn, western Germany, where temperatures reached 21 degrees Celsius. CREDIT: FREDERICO GAMBARINI/AFP

Balloons take off from Balloon Fiesta park during the 2018 Albuquerque International Balloon Fiesta. The Albuquerque Balloon Fiesta is one of the largest hot air balloon festivals drawing more than 500 balloons from all over the world. CREDIT: MADDIE MEYER/GETTY
Market Closes for October 11th, 2018

Market Index	Close	Change
Dow Jones	25052.83	-545.91     -2.13%
S&P 500	2728.37	-57.31   -2.06%
NASDAQ	7329.061	-92.989   -1.25%
TSX	15317.13	-200.27  -1.29%

International Markets

Market Index	Close	Change
NIKKEI	22590.86	-915.18
		-3.89%
HANG SENG	25266.37	-926.70
		-3.54%
SENSEX	34001.15	-759.74
		-2.19%
FTSE 100*	7006.93	-138.81
		-1.94%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.501		2.536
CND. 30 Year Bond		2.509		2.532
U.S.    10 Year Bond		3.1498		3.1629
U.S. 30 Year Bond		3.3233		3.3476

Currencies

BOC Close	Today	Previous
Canadian $	0.76765	0.76764
US $	1.30267	1.30501
Euro Rate 1 Euro=		Inverse
Canadian $	1.50990	0.66229
US $	1.15908	0.86276

Commodities

Gold	Close	Previous
London Gold Fix	1188.60	1185.55
Oil
WTI Crude Future	70.97	73.17

Market Commentary:
Canada
By Tatiana Darie
(Bloomberg) — Canadian stocks extended losses for a fifth session as the U.S. stock market rout deepened and a measure of volatility rose to its highest level since February. A rally in miners offset weakness elsewhere as gold posted its biggest gain in more than two years.
     The S&P/TSX Composite Index fell 1.3 percent, led by losses in energy, health care and financials. Gold miners rebounded from the lowest levels in more than two years as demand for the precious metal as a safe-haven asset increases.
                                                Stocks
* Aurora Cannabis Inc. led losses among cannabis producers; Canadians who travel to the U.S. for reasons related to the marijuana industry “may be deemed inadmissible” at the border, according to U.S. Customs and Border Protection.
* Celestica Inc rose 7.6 percent as analysts cheered the news that it was acquiring Impakt Holdings for $329 million; Macquarie Research analyst Gus Papageorgiou upgraded shares to outperform from neutral
* Capstone Mining Corp fell 8.5 percent after National Bank Financial analyst Shane Nagle downgraded the stock to sector perform from outperform
                                              Commodities
* Western Canada Select crude oil traded at a $50.00 discount to WTI
* Gold gained 2.9 percent to $1,227.60 an ounce FX/Bonds
* The Canadian dollar gained 0.3 percent C$1.3029 per U.S. dollar
* The Canada 10-year government bond yield fell 3.6 basis points to 2.496%
US
By Sarah Ponczek and Vildana Hajric
(Bloomberg) — U.S. stocks tumbled a second day, with major averages notching wild swings in heavy volume. Treasuries surged after a strong 30-year auction, the dollar fell with oil, and gold, that traditional safe haven, posted its biggest gain in more than two years.
     The S&P 500 Index fell more than 2 percent for a second straight day and is now in its longest slide since 2016. The Dow Jones Industrial Average dropped more than 500 points in volatile trading that saw the benchmark gain and lose 300 points in the last 45 minutes of the session. Tech shares, which bore the brunt of the selling Wednesday, fared relatively better Thursday, although the Nasdaq 100 Index’s losses from an August record reached 9 percent.
     “All of a sudden, you got that severe downturn because the results of the 30-year note auction were better than expected and people said ‘We’re going to shift now,’” said Donald Selkin, chief market strategist at Newbridge Securities. “It was asset allocation, it was a plunge. That’s unusual. That’s not a normal rate of decline. That’s an accelerated rate of decline. It was an algorithm on the asset allocation because it took place after the bond auction which was better than expected.”
     The S&P 500 is at a three-month low after a six-day slide of 6.7 percent that’s the longest slump of Donald Trump’s presidency. Energy shares bore the brunt of selling after oil plunged by more than 3 percent. Financial firms also contributed heavily to the losses, with banks and insurers down at least 2.7 percent. The Nasdaq 100 surrendered an early rally in tech stocks and added to its 4.4 percent decline from Wednesday.
     Trading was heavy with volume surging roughly 60 percent above average over the past 30 days.  “This is just a normal run-of-the-mill correction that happens to be concentrated in some of the more expensive and most notable names in technology,” said Jamie Cox, managing partner at Harris Financial Group. “But I think it’s been precipitated by the uncertainty about global growth and whether or not Fed policy is going too far too fast.”
     In addition to energy and financials, biotech weighed on the market, while media companies were the relative best performers. The Cboe Volatility Index rose to its highest level since February.
     “Volatility is back and it may require more active strategies on the part of investors to pursue their long-term goals,” John Lynch, chief investment strategist for LPL Financial, wrote in a note to clients Thursday. “Volatility is also not to be feared, but embraced, as varying data points will cause bouts of market anxiety. But remember that fundamentals are still strong.”
     Earlier, Asian and European equities plunged as the market rout extended around the world. China’s Shanghai Composite gauge closed down more than 5 percent and Taiwan’s technology-heavy benchmark plummeted more than 6 percent. Europe’s main equity index fell to the lowest since December 2016. The euro and the pound both advanced.

     Investors seeking to pinpoint the cause of the equities rout have no shortage of culprits to choose from. U.S companies are increasingly fretting the impact of the burgeoning trade war, while the same issue prompted the International Monetary Fund to dial down global growth expectations. And in the tech sector, which was a key driver of the rally that pushed American equities to a record just a month ago, expensive-looking companies have been roiled by a hacking scandal.  Against this backdrop, the Federal Reserve has been trimming its balance sheet and raising interest rates, provoking Trump’s ire and helping to force a repricing of riskier assets.

     Elsewhere, West Texas Intermediate crude tumbled below $71 a barrel amid a broad decline in commodities as OPEC cut estimates for demand. Precious metals gained with gold. A Bloomberg index of cryptocurrencies dropped 10 percent.
Here are some key events coming up:
* The U.S. Treasury is in the midst of $230 billion worth of debt auctions this week.
* The IMF and World Bank will hold meetings in Bali beginning Friday, where finance chiefs from around the world will gather.
* JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kick off earnings season for U.S. banks on Friday.

These are the main moves in markets:
Stocks
* The S&P 500 fell 2.1 percent to 2,728.37.
* The Dow Jones Industrial Average declined 2.1 percent, while the Nasdaq 100 slid 1.1 percent.
* The Stoxx Europe 600 Index sank 2 percent to the lowest since December 2016.
* The MSCI Asia Pacific Index plunged 3.4 percent to the lowest since May 2017.
* The MSCI Emerging Market Index dropped 3.2 percent to the lowest since April 2017 on the biggest decline in more than two years.
Currencies
* The Bloomberg Dollar Spot Index fell 0.5 percent.
* The euro increased 0.7 percent to $1.1596.
* The British pound added 0.3 percent to $1.3236.
* The Japanese yen rose 0.1 percent to 112.14 per dollar.
Bonds
* The yield on 10-year Treasuries declined two basis points to 3.146 percent.
* Germany’s 10-year yield decreased three basis points to 0.517 percent.
* Britain’s 10-year yield dipped five basis points to 1.674 percent.
Commodities
* The Bloomberg Commodity Index declined 0.5 percent.
* West Texas Intermediate crude sank 3.2 percent to $70.87 a barrel.
* Gold rose 2.4 percent to $1,223.53 an ounce, its biggest gain since June 2016.
–With assistance from Carolyn Wright, David Ingles, Andreea Papuc, Adam Haigh and Samuel Potter.

Have a great night.

Be magnificent!
As ever,

Carolann

Courage is grace under pressure.
-Ernest Hemingway, 1899-1961

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 Oct. 10, 1973, Vice President Spiro T. Agnew pleaded no contest to one count of federal income tax evasion and resigned his office. Go to article »

From The NY Times, October 10, 2018:
Print isn’t dead.

In fact, it’s throwing one of its biggest annual parties this week. 

The Frankfurt Book Fair can trace its origins back some 800 years. CREDIT: Boris Roessler/EPA, via Shutterstock

The Frankfurt Book Fair kicks off today, bringing hundreds of thousands of people in publishing and related fields together for days of wheeling, dealing, seeing and being seen. 
The tradition dates back some 800 years — long before Johannes Gutenberg turned out Europe’s first printed page in 1454. 
Frankfurt was a flourishing medieval commercial center. In 1240, the Holy Roman Emperor Frederick II decreed that no one should harass travelers to its autumn fair, where wine, gold, horses and more were bought and sold.
Handwritten manuscripts began selling there, a forerunner to the book trade. Frankfurt held its earliest recorded book fair in 1462. 
Then, as now, it was a place where people mingled and ideas flowed.
Henri II Estienne, a Frenchman, praised the fair in 1574 for bringing together so many scholars. 
The effect, he said, was a modern-day Athens: “In reality, it should be happening in that city where once bloomed the most celebrated intellectual life in all of Greece.”
The Frankfurt Book Fair’s guest of honor this year is the nation of Georgia, and 90 new translations of Georgian books are planned to mark that occasion.  
Nancy Wartik wrote today’s Back Story.
PHOTOS OF THE DAY

Chunks of ice are seen on the black sand beach known as Diamond Beach, where the Jokulsarlon glaciar lagoon meets the sea, along Route 1 between Hofn and Skaftafell in southeastern Iceland. Credit: Mariana Suarez/AFP/GETTY IMAGES

Cormorant master, Masahiko Sugiyama, uses sea cormorants to catch sweetfish in Giftu, Japan. In this traditional fishing art ‘ukai,’ a cormorant master called ‘usho’ manages cormorants to capture ayo or sweetfish. The ushos of River Nagara have been the official staff of the Imperial Household Agency of Japan since 1890. Currently six imperial fishermen of Nagara River conduct special fishing to contribute to the Imperial family eight times a year, on top of daily fishing from mid-May to mid-October. Credit: Carl Gourt/GETTY IMAGES

A stag bellows at first light in Bushy Park, south west London. Parts of the UK will experience unseasonably high autumnal temperatures over the next few days. Credit: Peter MacDiarmid/LNP
Market Closes for October 10th, 2018

Market Index	Close	Change
Dow Jones	25598.74	-831.83     -3.15%
S&P 500	2785.68	-94.66   -3.29%
NASDAQ	7422.051	-315.965   -4.08%
TSX	15517.40	-336.64  -2.12%

International Markets

Market Index	Close	Change
NIKKEI	23506.04	+36.65
		+0.16%
HANG SENG	26193.07	+20.16
		+0.08%
SENSEX	34760.89	+461.42
		+1.35%
FTSE 100*	7145.74	-91.85
		-1.27%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.536		2.507
CND. 30 Year Bond		2.532		2.484
U.S.    10 Year Bond		3.1629		3.0836
U.S. 30 Year Bond		3.3476		3.2343

Currencies

BOC Close	Today	Previous
Canadian $	0.76628	0.78051
US $	1.30501	1.28125
Euro Rate 1 Euro=		Inverse
Canadian $	1.50430	0.66476
US $	1.15273	0.86750

Commodities

Gold	Close	Previous
London Gold Fix	1185.55	1187.25
Oil
WTI Crude Future	73.17	75.30

Market Commentary:

• Analysts expect companies in the S&P 500 to increase third-quarter earnings by 19% from a year earlier, one of the fastest rates of growth during the 9 ½-year bull market, according to FactSet.

Canada
By Tatiana Darie
(Bloomberg) — Canadian stocks fell amid a global selloff fueled by fresh concerns about the impact of the trade war with China. U.S. peers tumbled, with the S&P 500 seeing its worst rout since February.
     The S&P/TSX Composite Index fell 2.1 percent to the lowest since April, with industrials, tech and energy leading losses.
     Reports about potentials deals in the cannabis industry offset weakness in health care.
     The loonie resumed losses against the dollar, trading at the lowest level in nearly two weeks.
                                                  Stocks
* Aphria Inc jumped 15 percent on reports that Altria Group was in talks to buy an equity stake in the company
* Canadian National Railway Co, Canadian Pacific Railway Ltd joined a selloff in the transportation sector; Cowen cautioned that tariff fears and concerns that the peak of the cycle has passed “could present near-term pressure on transport shares”
* Bombardier Inc fell 6.2 percent amid the merger between two of its suppliers, Esterline Technologies and TransDigm; the deal “will make it harder for [BBD/B] to push supplier costs lower,” according to Bloomberg Intelligence analyst George Ferguson.
                                                 Commodities
* Western Canada Select crude oil traded at a $47.00 discount to WTI
* Gold gained 0.5 percent to $1,197.00 an ounce
                                                  FX/Bonds
* The Canadian dollar fell 0.7 percent to C$1.30361 per U.S. dollar
* The Canada 10-year government bond yield fell 1.6 basis points to 2.550%
US
By Jeremy Herron and Sarah Ponczek
(Bloomberg) — U.S. stocks tumbled the most since February as fresh concern about the impact of the trade war with China roiled technology and industrial shares. Treasuries rose with the yen amid demand for haven assets.
     The broad selloff took the S&P 500 to the lowest in three months, the Dow Jones Industrial Average plunged as much as 836 points and the Nasdaq 100 Index tumbled more than 4 percent for its worst day in seven years. All 30 members of the blue-chip index retreated, with Boeing and Caterpillar dropping at least 3.8 percent. Computer companies led the S&P 500 to a fifth straight loss, the longest slide since Donald Trump’s election win.
     Fastenal Co. added to angst that the trade war with China is raising materials costs that will crimp profit margins. Estee Lauder and Tiffany led losses after French luxury goods maker LVMH confirmed China is enforcing customs rules more strictly as trade tensions remain high.
     The Cboe Volatility Index rose past 20 for the first time since April. Oil fell from $75 a barrel even as a major hurricane headed for the Florida Panhandle.  “The biggest thing going on in markets is you’re seeing an unwind,” Sameer Samana, a global quantitative and technical strategist for Wells Fargo Investment Institute, said by phone.
     “You had stocks doing really well, rates for the most part were very well-behaved. When you’ve got these risk-off moments, especially when you’re later in the cycle, there is some concern on the part of investors where it’s like, ‘Is this the beginning of the end?”’
     Just days before the start of the third-quarter earnings season, signs are mounting that companies might not be able to deliver the runaway growth that’s bolstered equities so far in 2018. Investors have long fretted that the trade war would crimp profits, and now a group of companies is warning just that is happening at the same time that rising bond yields makes the cost of borrowing higher.  Valuations look more appealing, but the backdrop to trading is still dominated by deepening U.S.-China tensions and a surge in volatility for stock and bond markets.
     In Europe, the Stoxx 600 Index dropped as declines for industries including miners and automakers outweighed gains in telecom companies and banks. Shares in Japan rose after four days of losses while those in China edged up, and South Korean equities slumped as trading resumed after a holiday.
     Elsewhere, Italian bonds erased a slump as the deputy premier predicted yields on the debt won’t blow out too far because of the government’s budget plans. The South African rand slipped following Tuesday’s rally. American crude traded near $75 a barrel as Hurricane Michael curtailed offshore oil production and the IEA issued a warning to the global market.
Here are some key events coming up:
* The U.S. Treasury has $230 billion worth of debt auctions this week.
* The IMF and World Bank will hold meetings in Bali from Friday,  where finance chiefs from around the world will gather.
* A closely watched gauge of U.S. consumer prices probably remained elevated in September and rose 2.3 percent from a year earlier, according to forecasts ahead of Thursday’s release.
* JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kick off earnings season for U.S. banks on Friday.

These are the main moves in markets:
                                                  Stocks
* The S&P 500 Index declined 3.3 percent as of 4 p.m. New York time. The five-day slump is the longest since November 2016.  It’s down 4.8 percent during that span.
* The Dow fell 832 points, or 3.2 percent, for the biggest drop since February. It slid below 26,000 to the lowest since Aug. 16.
* The Nasdaq 100 lost 4.4 percent to the lowest since July 3 in the biggest rout since 2011. 
* The Stoxx 600 sank 1.6 percent to the lowest since March.
* The MSCI Asia Pacific Index fell less than 0.05 percent.
* The MSCI Emerging Market Index decreased 1.1 percent.
                                                   Currencies
* The Bloomberg Dollar Spot Index rose less than 0.1 percent.
* The euro rose 0.3 percent to $1.152.
* The British pound climbed 0.4 percent to $1.3143.
* The Japanese yen rose 0.4 percent to 112.499 per dollar, a fifth straight gain.
                                                    Bonds
* The yield on 10-year Treasuries was little changed at 3.21 percent.
* The two-year yield fell to 2.87 percent and the 30-year hit 3.39 percent.
* Germany’s 10-year yield was flat at 0.55 percent.
                                                     Commodities
* West Texas Intermediate crude decreased 2.8 percent to $72.89 a barrel.
* Gold futures were rose 0.4 percent to $1,196.40 an ounce.
–With assistance from Andreea Papuc, Adam Haigh, Samuel Potter and Luke Kawa.
Have a great night.

Be magnificent!
As ever,

Carolann

Study nature, love nature, stay close to nature.  It will never fail you.

                                                     -Frank Lloyd Wright, 1867-1959

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 Oct. 9, 1967, Latin American guerrilla leader Che Guevara was executed in Bolivia while attempting to incite revolution. Go to article »
John Lennon, b.  October 9, 1940

Blackbird singing in the dead of night
Take these broken wings and learn to fly
All your life
You were only waiting for this moment to arise…
        ~John Lennon and Paul McCartney

www.thebeatles.com

PHOTOS OF THE DAY

Student Eimear Heath sitting in her room at St John’s College, Cambridge, enjoying the warm Autumn weather by the wall of Boston Ivy which is turning red. The largest wall of Boston Ivy in Britain is putting on a stunning display after turning a blaze of red, as the UK looks to see the warmest October weather in seven years this week. The magnificent 170-year-old ivy is looking spectacular as temperatures are expected to hit 23C in the south on Wednesday – making it the hottest October day since 2011. The bright red creeper on the back of the building at St John’s College at Cambridge University is one of the city’s most famous autumn spectacles. CREDIT: GEOFF ROBINSON PHOTOGRAPHY

The sun rises behind mist on Lake Windermere in the Lake District, UK. CREDIT: DEAN ALLAN/MERCURY PRESS & MEDIA

The SpaceX Falcon 9 rocket carrying the SAOCOM 1A satellite launched from Vandenberg Air Force Base as SpaceX completed the secondary mission of landing the first stage of the Falcon 9 rocket at Landing Zone 4, which was previously called SLC-4W. This was SpaceX’s first land landing attempt at Vandenberg Air Force Base. CREDIT: DANIEL J. QUINAJON/AFP/GETTY IMAGES
Market Closes for October 9th, 2018

Market Index	Close	Change
Dow Jones	26430.57	-56.21     -0.21%
S&P 500	2880.34	-4.09   -0.14%
NASDAQ	7738.016	+2.067   +0.03%
TSX	15854.05	-92.12  -0.58%

International Markets

Market Index	Close	Change
NIKKEI	23469.39	-314.33
		-1.32%
HANG SENG	26172.91	-29.66
		-0.11%
SENSEX	34299.47	-174.91
		-0.51%
FTSE 100*	7237.59	+4.26
		+0.06%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.570		2.558
CND. 30 Year Bond		2.558		2.542
U.S.    10 Year Bond		3.2044		3.1833
U.S. 30 Year Bond		3.3650		3.3432

Currencies

BOC Close	Today	Previous
Canadian $	0.77235	0.77373
US $	1.29474	1.29248
Euro Rate 1 Euro=		Inverse
Canadian $	1.48812	0.67199
US $	1.14935	0.87005

Commodities

Gold	Close	Previous
London Gold Fix	1186.95	1201.20
Oil	Close	Previous
WTI Crude Future	74.96	74.33

Market Commentary:
I think democracies are prone to inflation because politicians will naturally spend – they have the power to print money and will use money to get votes. -Charlie Munger
Canada
By Carolina Wilson
(Bloomberg) — Canadian stocks declined for a third day, reaching their lowest level since May, as shares of materials companies weighed on the market’s benchmark. The loonie pared earlier losses against the greenback.
     The S&P/TSX Composite Index fell about 0.6 percent, marking its longest losing streak in four weeks. 
     Technology stocks slid 2.5 percent, while the materials and consumer discretionary sectors each lost more than 1 percent. Health care firms rebounded, climbing the most.
     Canadian housing starts fell to the lowest in almost two years in September, led by a drop in British Columbia, a government report showed.
                                                    Stocks
* Pretium Resources Inc. slumped 11 percent after results at the key Brucejack mine disappointed 
* Interfor Corp. fell 7.5 percent alongside other lumber stocks, as analysts flagged pricing and capacity concerns for the group
* BRP Inc. slid 7.4 percent, even as the Ski-Doo maker won a new buy rating at UBS and an upgrade to outperform at RBC
* Suncor Energy Inc. rose as much as 1.4 percent after Macquarie analyst Brian Bagnell upgraded the stock to outperform from neutral; it closed lower by 0.5 percent
* Aphria Inc. climbed 6.8 percent, as pot-stock investors look ahead to Canada legalization next week 
                                                   Commodities
* Western Canada Select crude oil traded at a $47 discount to WTI
* Gold gained 0.4 percent to $1,193.50 an ounce
                                                    FX/Bonds 
* The Canadian dollar climbed about 0.1 percent to C$1.29467 per U.S. dollar
* The Canada 10-year government bond yield fell to 2.571%
US
By Vildana Hajric and Sarah Ponczek
(Bloomberg) — Technology stocks rebounded from a three-day rout but failed to lead the broader market higher, while yields on Treasuries retreated from a seven-year peak amid rising trade tensions and a sketchy outlook for global growth.
     The dollar drifted lower and crude hovered around $75 a barrel.  The Nasdaq 100 Index, which lost nearly 4 percent over the previous three sessions, rose despite giving up much of a 1 percent increase earlier in the day. The S&P 500 Index turned lower on a 3.4 percent decline in materials shares, the worst performing group in the stock market, after a leading coatings maker warned that profits would fall short of analyst forecasts.
     “Tech’s slide — outside semiconductors — has stopped due to the pause in interest rates moving higher,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.  “Separately from that, people are stepping in and buying some of these names because they’re on sale.” Meanwhile, the yield on benchmark 10-year Treasuries slipped after almost hitting 3.26 percent, the highest since 2011. 
     “There was some talk that when the bond market opened up today we may see rates move lower. That was a telling sign, and we did not see that,” said Victoria Fernandez, chief market strategist for Crossmark Global Investments. “We have really established this new range on the 10-year.”
     The Stoxx Europe 600 Index rose for the first time in four days. The MSCI Asia Pacific Index notched a seventh straight drop, though stocks in Shanghai rose following the biggest selloff in more than three months. The yuan gained in onshore trading after sliding a day earlier — a move that prompted concern from the U.S. government.  With a gloomy mood permeating markets, the latest report from the International Monetary Fund did little to spur investor confidence. The IMF cut its global growth outlook for the first time since 2016, in part because of rising trade tensions between the world’s two largest economies. China took steps to aid lending this week, a move that inevitably puts pressure on the yuan and potentially creates a vicious circle where the currency’s weakness threatens to further aggravate the situation by prompting more easing by Chinese officials. 
     “If the trade confrontation continues, the Chinese currency will go lower and that will create a whole host of problems for the global economy,” said Alicia Levine, chief strategist at BNY Investment Management.   
     Meanwhile, Chinese Internet giant Tencent Holdings Ltd. continued to plunge, falling 38 percent, or $220 billion, from its January high. It has lost more market value than any other company in the world this year.
     South Korea’s market was closed for a holiday. Next up, traders are bracing themselves for $230 billion of Treasury auctions this week.
Here are some key events coming up:
* The U.S. Treasury has $230 billion worth of debt auctions this week.
* The IMF and World Bank will hold meetings in Bali from Friday, where finance chiefs from around the world will gather.
* A closely watched gauge of U.S. consumer prices probably remained elevated in September and rose 2.3 percent from a year earlier, according to forecasts ahead of Thursday’s release.
* JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kick off earnings season for U.S. banks on Friday.

These are the main moves in markets:
                                                    Stocks
* The S&P 500 declined 0.1 percent to 2,880.34, while the Nasdaq 100 increased 0.3 percent.
* The Stoxx Europe 600 Index rose 0.2 percent.
* The U.K.’s FTSE 100 Index gained 0.5 percent.
* The MSCI Asia Pacific Index sank 0.8 percent, hitting the lowest since July 2017 with its seventh consecutive decline.
* The MSCI Emerging Market Index added 0.1 percent, rebounding from a loss of almost 0.5 percent earlier in the day.
                                                    Currencies
* The Bloomberg Dollar Spot Index declined less than 0.1 percent.
* The euro was little changed at $1.1494.
* The British pound added 0.4 percent to $1.314.
* The Japanese yen gained 0.3 percent to 112.93 per dollar.
                                                     Bonds
* The yield on 10-year Treasuries fell three basis points to 3.2025 percent.
* Germany’s 10-year yield climbed two basis points to 0.547 percent.
* Britain’s 10-year yield increased four basis points to 1.716 percent.
                                                     Commodities
* The Bloomberg Commodity Index rose 0.4 percent.
* West Texas Intermediate crude added 0.8 percent to $74.85 a barrel.
* Gold gained 0.2 percent to $1,189.95 an ounce.
–With assistance from Emma Dai, Jan-Patrick Barnert and Samuel Potter.
Have a great night.

Be magnificent!
As ever,

Carolann
No man ever listened himself out of a job.
                   -Calvin Coolidge, 1872-1933

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 Thanksgiving! 

Samuel Johnson:  “As the Spanish proverb says, ‘He, who would bring home the wealth of the Indies, must carry the wealth of the Indies with him.’

James Boswell, The Life of Samuel Johnson

PHOTOS OF THE DAY

Women dressed in traditional attire display their decorated hands as they pose for pictures during rehearsals for Garba, a folk dance, ahead of Navratri, a festival during which devotees worship the Hindu goddess Durga and youths dance in traditional costumes, in Ahmedabad, India. CREDIT: AMIT DAVE/REUTER

With temperatures gradually dropping as autumn arrives, dawn sees a beautiful sunrise over the small coastal village of Instow in North Devon. CREDIT: TERRY MATTHEWS/ALAMY LIVE NEW

The west coast of southern Africa is pictured from the International Space Station by International Space Station Commander Alexander Gerst, who said: “Not many artists in this world are as creative as Mother Nature.” CREDIT: ALEXANDER GERST/AFP/GETTY IMAGES
Market Closes for October 5th, 2018

Market Index	Close	Change
Dow Jones	26447.05	-180.43     -0.68%
S&P 500	2885.57	-16.04   -0.55%
NASDAQ	7788.449	-91.061   -1.16%
TSX	15946.17	-60.49  -0.38%

International Markets

Market Index	Close	Change
NIKKEI	23783.72	-191.90
		-0.80%
HANG SENG	26572.57	-51.30
		-0.19%
SENSEX	34376.99	-792.17
		-2.25%
FTSE 100*	7318.54	-99.80
		-1.35%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.600		2.558
CND. 30 Year Bond		2.584		2.542
U.S.    10 Year Bond		3.2309		3.1833
U.S. 30 Year Bond		3.4027		3.3432

Currencies

BOC Close	Today	Previous
Canadian $	0.77260	0.77373
US $	1.29433	1.29248
Euro Rate 1 Euro=		Inverse
Canadian $	1.49269	0.77260
US $	1.15325	0.86712

Commodities

Gold	Close	Previous
London Gold Fix	1203.45	1201.20
Oil
WTI Crude Future	74.34	74.33

Market Commentary:
Canada
By Tatiana Darie
(Bloomberg) — Canadian stocks extended losses, alongside U.S. peers, to end the week lower amid a persistent selloff in bonds that took U.S. Treasury yields to seven-year highs.
     Canadian 10-year yields rose to the highest since 2014.  The S&P/TSX Composite Index fell 0.4 percent, with energy and tech shares leading the decline. Industrials, health care and utilities rose. Pot stocks were mixed after a Canadian government official said in a briefing that it’s still unclear whether investors in the Canadian marijuana industry will be denied entry into the U.S.
                                                   Stocks
* Ensign Energy Services Inc. fell 8 percent after Precision Drilling outbid it for Trinidad Drilling with a C$540 million ($417 million) deal; Raymond James analyst Andrew Bradford wrote that walking away from M&A may not be the best idea.
* Algonquin Power & Utilities Corp. fell 1 percent after NBF downgraded it to sector perform from outperform (PT $10.50 from $11).
* TransCanada Corporation rose 0.8 percent after FERC said in a filing that Columbia Gas Transmission can start service at an Ohio compressor station as part of its Mountaineer Xpress natgas pipeline.
                                                   Commodities
* Western Canada Select crude oil traded at a $45.00 discount to WTI
* Gold gained 0.5 percent to $1,207.00 an ounce
                                                   FX/Bonds 
* The Canadian dollar fell 0.2 percent at C$1.2947 per U.S. dollar* The Canada 10-year government bond yield gained 4.3 basis points to 2.595%
US
By Jeremy Herron and Vildana Hajric
(Bloomberg) — U.S. stocks capped the worst week in a month, as the selloff in Treasuries that took yields to seven-year highs persisted amid speculation the latest jobs report clears the path for raising interest rates.
    Technology shares led losses Friday, sending the Nasdaq 100 Index to a weekly drop of 3 percent amid concern the U.S.-China trade spat will intensify. Eight of 11 sectors declined in the S&P 500. Intel Corp. dropped the most in the Dow Jones Industrial Average after Bloomberg’s report on Chinese hacking. Stocks began the day higher after the employment data added to confidence in the strength of the American economy.
     Just a week after U.S. stocks plowed to fresh records, investors continued to sell the bull market’s biggest winners, ditching high-flyers from Amazon.com to Netflix. The tech rout is the latest blow for global stocks in a week that saw 10-year U.S. Treasury yields climb to seven-year highs, reducing demand for riskier assets. Fed Chairman Jerome Powell stoked the rates surge when he said the central bank could eventually boost its benchmark past the neutral level.
     “It’s more trade worries than anything else because these companies, they either sell a lot to China or produce a lot in China,” said Matt Maley, equity strategist at Miller Tabak + Co. “And we have the issue of the two naval boats in China, which raises it to more than just an economic issue — there’s political tensions there. And then of course there’s the hacking issue.”
     The 10-year bond yield pushed above 3.21 percent as the unemployment rate fell to a 48-year low, though the number of jobs created fell short of estimates. The dollar turned lower versus major peers. Gold futures rose, crude gained and the pound advanced.
     “The jobs report was nothing great — it was ok. Today we’re all over the place,” Donald Selkin, chief market strategist at Newbridge Securities, said. “It will be volatile, it will chop around in both directions. We’ll settle into a lower range until earnings start coming out towards the end of the month.”
     Treasuries resumed a slide as investors speculated the low unemployment rate and major upward revision to prior months would do little to deter the Fed from raising rates for a fourth time this year. The hiring figures were influenced by the hurricane that hit the Southeast last month, muddling the picture.
     “This is a report that’s consistent with being pretty close to full employment and it’s going to reinforce the Fed’s path for raising rates,” Alan Krueger, professor of economics at Princeton University, said on Bloomberg TV.
     Earlier, a rout in technology shares roiled Asian equity markets. PC maker Lenovo Group Ltd. plunged 15 percent in Hong Kong, amid Bloomberg’s report that China infiltrated U.S. companies by hacking hardware.
     In Europe, miners led the Stoxx 600 lower as industrial-metal prices fell and Danske Bank A/S headed for a four-year low. Germany’s 30-year bond was poised for its biggest one-week yield increase since April. Italian bonds also slipped as GDP forecasts failed to convince investors the country will be able to meet fiscal targets. 
     Elsewhere, West Texas Intermediate crude oil prices climbed back toward $75 a barrel. Copper led a decline in industrial-metal prices as a rally in raw materials stalled. Gold advanced, capping the best week in six for the precious metal.
These are the main moves in markets:
                                                 Stocks
* The S&P 500 fell 0.6 percent at 4 p.m. in New York. It’s down 0.9 percent in the week.
* The Nasdaq 100 Index dropped 1.2 percent, and was off 3 percent for the worst week since March.
* The Stoxx Europe 600 Index fell 0.9 percent to the lowest in three weeks. 
* The MSCI All-Country World Index declined 0.6 percent.
* The MSCI Emerging Market Index dipped 1 percent to the lowest since May 2017.
                                                 Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent. 
* The euro declined less than 0.1 percent to $1.1524. 
* The British pound climbed 0.7 percent to $1.3113. 
* The Japanese yen increased 0.2 percent to 113.753 per dollar.
                                                  Bonds
* The yield on 10-year Treasuries advanced four basis points to 3.2271 percent, the highest in more than seven years. 
* The two-year yield rose two basis points to 2.89 percent.
* Germany’s 10-year yield climbed four basis points to 0.57 percent, the highest in more than 19 weeks. 
* Italy’s 10-year yield jumped 10 basis points to 3.42 percent.
                                                  Commodities
* West Texas Intermediate crude was flat at 74.34 a barrel. 
* Gold futures increased 0.5 percent to $1,207.60 an ounce. 
* Copper fell 0.3 percent to $2.78 a pound, the lowest in more than two weeks.
–With assistance from Jeremy Herron, Sarah Ponczek, Robert Brand and Luke Kawa.

Have a wonderful weekend. 

Be magnificent!
As ever,

Carolann

 Feel the fear and do it anyway.
       –Susan Jeffers, 1938-2012

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 Oct. 4, 1957, the Space Age began as the Soviet Union launched Sputnik, the first man-made satellite, into orbit.  Go to article »

259: The number of people worldwide who’ve died since 2011 while taking selfies.

PHOTOS OF THE DAY

A woman cleans the sculpture ‘Tennis Player’ during the launch of Gunther von Hagens’ Body Worlds museum in London. The exhibition of the human body is opening at a permanent museum site at Piccadilly Circus. It features real bodies, donated to be preserved by plastination – a process invented by von Hagen. CREDIT: AP PHOTO/FRANK AUGSTEIN

A gaggle of geese go walkabout past a traditional thatched cottage on a Donegal farm. Ardara, County Donegal, Ireland. CREDIT: RICHARD WAYMAN/ALAMY LIVE NEWS

Couple beneath a glorious midnight skyscape on the Crimean peninsula. A heart-warming moment between a loving couple as they’re lit up under a stunning night sky. CREDIT: ANDREI SHELIAKIN/CATERS NEWS
Market Closes for October 4th, 2018

Market Index	Close	Change
Dow Jones	26627.48	-200.91     -0.75%
S&P 500	2901.61	-23.90   -0.82%
NASDAQ	7879.512	-145.573   -1.81 %
TSX	16006.67	-65.38
		-0.41%

International Markets

Market Index	Close	Change
NIKKEI	23975.62	-135.34
		-0.56%
HANG SENG	26623.87	-467.39
		-1.73%
SENSEX	35169.16	-806.47
		-2.24%
FTSE 100*	7418.34	-91.94
		-1.22%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.558		2.507
CND. 30 Year Bond		2.542		2.484
U.S.    10 Year Bond		3.1833		3.0836
U.S. 30 Year Bond		3.3432		3.2343

Currencies

BOC Close	Today	Previous
Canadian $	0.77373	0.78051
US $	1.29248	1.28125
Euro Rate 1 Euro=		Inverse
Canadian $	1.48812	0.67199
US $	1.15138	0.86853

Commodities

Gold	Close	Previous
London Gold Fix	1201.20	1187.25
Oil
WTI Crude Future	74.33	75.30

Market Commenrtary:
It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait. -Charlie Munger
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed their U.S. peers lower amid a rise in global bond yields and growing signs of strain in U.S.-China relations after a Bloomberg report revealed China used a tiny chip in a hack that infiltrated U.S. companies. The S&P/TSX Composite Index fell 0.4 percent, to the lowest since Sept. 13, dragged lower by health care and tech shares.  Rail and media shares offset losses elsewhere. The loonie extended a decline against the dollar ahead of Canadian unemployment and trade data on Friday.
                            Stocks
* Manulife Financial Corp fell 2.8 percent after Muddy Waters revealed a short position in the stock, saying its life-insurance subsidiary just concluded a trial with a hedge fund that could lead to billions in losses.
* Hudbay Minerals Inc fell 6 percent after a report that the company is in talks to buy Chilean miner Mantos Copper, according to people familiar with the matter.
* Energy Fuels rose 1.4 percent after Noble Capital Markets analyst Mark Reichman upgraded the shares to outperform from hold.
                            Commodities
* Western Canada Select crude oil traded at a $43.25 discount to WTI
* Gold was little changed at $1,203.30 an ounce
                            FX/Bonds
* The Canadian dollar fell 0.4 percent at C$1.2920 per U.S. dollar
* The Canada 10-year government bond yield gained 0.7 basis points to 2.553%
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks fell the most since June and volatility spiked higher as the rout in Treasuries that took yields to multiyear highs fueled a repricing of risk assets. The S&P 500 dropped to a three-week low, with nine of the 11 main sectors retreating. High-dividend-yielding stocks dropped after the 10-year yield poked above 3.2 percent for the first time in seven years. Technology shares fell the most, with the Nasdaq 100 Index notching its worst day since June following Bloomberg’s report that China infiltrated American companies with hardware hacks. Higher rates lifted financial firms.
     The bond rout rippled through global financial markets even as Treasuries stabilized Thursday. Emerging-market shares sank the most since February, European government bonds fell and commodities from crude to copper tumbled.
     The Turkish lira led developing-nation currencies lower, closely followed by Russia’s ruble. “This withdrawal of liquidity and gradual tightening of monetary policy” is reverberating across financial markets, Bob Baur, chief global economist at Principal Global Investors, said in an interview with Bloomberg Television. “We look for 10-year Treasury yields to hit 3.5 at some point — later this year, early next year — and I think that’s going to be a real problem for stock markets.”
     Data underscoring the strength of the American economy sparked the Treasury selloff, sending yields higher fast enough to spook equity investors who had pushed stocks toward records on the heels of the new Nafta agreement. Fed Chairman Jerome Powell stoked rate worries when he said the central bank could eventually boost its benchmark past the neutral level.
     Adding to the rising risk sentiment were growing signs of strain in U.S.-China relations that could exacerbate the trade war. Along with the hacking report, Vice President Mike Pence laid out allegations of Chinese election interference in a harshly worded speech, and Alibaba co-founder Jack Ma warned the tariff dispute will destroy commerce.
    “It has to do with this story about the hacking,” Matt Maley, equity strategist, at Miller Tabak + Co, said. “This is going to raise the stress in the trade tensions with China.  China is very important to a lot of these tech cos.”
     The bond slump likely also reflects the growing impact of the world’s major central banks stepping back from stimulus. The ECB this month cut monthly asset purchases in half, while the Fed balance sheet unwind continues. Meanwhile, resurgent commodity prices are raising the prospect of a fresh tailwind to inflation.
    In credit, borrowing costs have been advancing amid the Treasury slump. Global investment-grade corporate bond yields rose to the highest since July 2012, Bloomberg index data show. The instability may have affected Europe’s primary market as two borrowers pulled bond sales.
    Here are some key events coming up this week:
* The U.S. government’s September jobs report is in focus Friday, with investors looking for signs of wage growth that could accelerate Fed tightening plans.
* The Reserve Bank of India’s policy decision is due Friday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index fell 1 percent as of 4 p.m. in New York.
* The Nasdaq 100 Index slid 2.1 percent, the most since mid-June.
* Super Micro Computer sank almost 50 percent after the Bloomberg’s report that China implanted tiny chips on motherboards supplied by the company. 
* The Stoxx Europe 600 Index lost 1.1 percent, the most since August.
* The MSCI Asia Pacific Index sank 1 percent to the lowest in three weeks on the largest tumble in more than four weeks.
* The MSCI Emerging Market Index sank 2.5 percent to the lowest in more than three weeks on the biggest tumble in more than six months.
                           Currencies
* The Bloomberg Dollar Spot Index rose 0.1 percent after hitting the highest in seven weeks with its sixth straight advance.
* The euro increased 0.3 percent to $1.1516, the first advance in more than a week and the biggest climb in two weeks.
* The Japanese yen jumped 0.6 percent to 113.843 per dollar, the biggest increase in four weeks.
                            Bonds
* The yield on 10-year Treasuries rose one basis point to 3.19 percent, the highest in more than seven years.
* The two-year rate was flat at 2.878 percent.
* Germany’s 10-year yield increased six basis points to 0.53 percent, the highest in a week.
* The spread of Italy’s 10-year bonds over Germany’s decreased one basis point to 2.828 percentage points.
                            Commodities
* West Texas Intermediate crude fell 2.5 percent to $74.55 a barrel, the largest fall in more than a week.
* Gold futures were flat at $1,203.2 an ounce.
–With assistance from Adam Haigh, Tom Freke, Samuel Potter and Sophie Caronello.

Have a great night.
 

Be magnificent!

As ever,

 

Carolann

Man is able to do what he is unable to imagine.
                               -Rene Char, 1907-1988

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 Oct. 3, 1990, West Germany and East Germany ended 45 years of postwar division, declaring the creation of a new unified country. Go to article »

Llamas. Bagels. Even mosquitoes. They’re all getting the respect they deserve, now that they’re among 70 new emoji Apple’s rolling out. -5things@CNN.com
While we’re all still debating whether Pluto is a planet (it is!!), scientists found an object called  “the Goblin” lurking at the edge of our solar system. -5things@CNN.com

Good luck is what happens when preparation meets opportunity; bad luck is what happens when lack of preparation meets a challenge. – Paul Krugman, Economist, NY Times Op-Ed, March 3, 2006
PHOTOS OF THE DAY

Lightening strikes the spire of One World Trade Center in lower Manhattan as a thunder storm moves through the New York City, US. Credit: UPI/Barcroft Images

British Museum stone conservator Kasia Weglowska, prepares a 1.8 ton head which is part of the final installations for the I Am Ashurbanipal: king of the world, king of Assyria, exhibition at the British Museum, London. Credit: Nick Ansell/PA

EastEnders hardman Jake Wood and rugby stars Thom Evans and Max Evans taking part in a ballet class taught by Bennet Gartside at the Royal Opera House in London. Credit: Andrej Uspenski/PA
Market Closes for October 3^rd, 2018

Market Index	Close	Change
Dow Jones	26828.39	+54.45   +0.20%
S&P 500	2925.51	+2.08   +0.07%
NASDAQ	8025.086	+25.539   +0.32%
TSX	16072.05	+54.83
		+0.34%

International Markets

Market Index	Close	Change
NIKKEI	24110.96	-159.66
		-0.66%
HANG SENG	27091.26	-35.12
		-0.13%
SENSEX	35975.63	-550.51
		-1.51%
FTSE 100*	7510.28	+35.73
		+0.48%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.532		2.464
CND. 30 Year Bond		2.520		2.452
U.S.    10 Year Bond		3.1681		3.0538
U.S. 30 Year Bond		3.3249		3.2049

Currencies

BOC Close	Today	Previous
Canadian $	0.77677	0.77994
US $	1.28739	1.28214
Euro Rate 1 Euro=		Inverse
Canadian $	1.47812	0.67653
US $	1.14816	0.87096

Commodities

Gold	Close	Previous
London Gold Fix	1204.70	1189.35
Oil
WTI Crude Future	76.41	75.23

Market Commentary:
On this day in 2008, in the depths of the financial crisis, President Bush signed into law a $700 billion plan to rescue the U.S. financial system. Meanwhile, Wells Fargo trumped Citigroup’s offer with a proposed $15 billion takeover of Wachovia with no government aid.
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed U.S. peers higher as a global selloff in government bonds deepened and trading volume surged. The yield on 10-year Canadian government debt jumped to the highest in more than four years as traders bet on faster interest rate hikes in the wake of a revised free-trade agreement with the U.S.
     The S&P/TSX Composite Index gained 0.3 percent, led by health care, and pot stocks, energy and technology groups. Rate-sensitive sectors such as utilities and consumer staples led declines.
                            Stocks
* Norbord Inc. fell 3 percent, along with U.S. peers, as lumber/oriented strand board prices declined more, and buyers remained concerned about additional downside risk, CIBC wrote, citing trade journals.
* Canopy Growth Corp. rose 8 percent ahead of its second-quarter earnings Thursday from its largest shareholder, Constellation Brands.
* Enbridge Inc. gained 1.5 percent after entering a second agreement with Michigan committing to a “range of measures” to protect the Straits of Mackinac and the Great Lakes
                            Commodities
* Western Canada Select crude oil traded at a $41.75 discount to WTI
* Gold fell 0.4 percent to $1,202.30 an ounce
                            FX/Bonds
* The Canadian dollar fell 0.2 percent at C$1.2851 per U.S. dollar
* The Canada 10-year government bond yield gained 6.8 basis points to 2.527%
US
By Jeremy Herron and Vildana Hajric
     (Bloomberg) — U.S. stocks edged higher after flirting with records as a selloff in Treasuries deepened amid a surge in trading volume. Crude rallied above $76 a barrel and the dollar rose. The S&P 500 Index eked out a gain after earlier climbing to within a whisker of an all-time high. Steep losses in rate-sensitive shares from utilities to real-estate firms weighed on the measure. Banks surged as 30-year Treasury yields popped to the highest since 2014, while the two-year rate jumped to a pre-crisis high and 10-year yields hit levels last seen in 2011.
     The moves were sparked by data on private payrolls and American services industries that underscored the economy’s robustness at the same time Chairman Jerome Powell signaled the Federal Reserve will press on with rate hikes. More than two million 10-year Treasury futures contracts traded before the 3 p.m. settlement, about 170 percent above average.
     The retreat in equities rekindled discussions of the tug-of-war between rising rates and stocks, as investors weigh allocations. The equity gains come days after the Trump administration clinched a new Nafta deal, removing some investor angst that the trade wars would spiral out of control.
     While political risks remain in Europe and Washington, there’s few signs they’ll spilling into financial markets.  “It will likely become an issue when higher yields lead to slower economic activity through the interest rate sensitive housing and durable goods areas,” Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management, said.
     “These things tend to go too far too soon and tend to correct when the enthusiasm for growth gives way to worries about the weight of higher debt servicing costs.” Elsewhere, crude in New York rose past $76 a barrel, trading near the highest level in almost four years, while aluminum in London rose the most since 2011. European shares rallied, and emerging-market equities slipped. MSCI Inc.’s Asia Pacific share index fell for a third day, with Japanese and South Korean equities leading declines. The rupiah and the rupee remained under pressure on surging oil prices. In India, the focus was also back on the country’s financial sector after Prime Minister Narendra Modi’s government took control of a financial firm.
Here are some key events coming up this week:
* American factory orders for August are due Thursday; data on the trade balance will come Friday.
* The U.S. government’s September jobs report is also due on Friday.
* The Reserve Bank of India’s policy decision is due Friday.
These are the main moves in markets:
                            Stocks
* The S&P 500 Index rose 0.1 percent at 4 p.m. in New York. It had been on track for a record close.
* The Dow Jones Industrial Average rose 0.3 percent, adding to an all-time high.
* The Russell 2000 Index gained 1 percent.
* The Stoxx Europe 600 Index jumped 0.5 percent
* The MSCI Asia Pacific Index sank 0.7 percent to the lowest in more than two weeks.
* The MSCI Emerging Market Index slipped 0.1 percent.
                            Currencies
* The Bloomberg Dollar Spot Index climbed 0.4 percent, hitting the highest in almost four weeks with its fifth straight advance.
* The euro fell for a sixth day, dropping 0.3 percent to $1.1518.
* The Japanese yen declined 0.7 percent to 114.43 per dollar.
                            Bonds
* The yield on 10-year Treasuries climbed nine basis points to 3.15 percent.
* The 30-year rate topped 3.30 percent, rising nine basis points. Two-year yields climbed four basis points to 2.8516 percent.
* Italy’s 10-year yield decreased 14 basis points to 3.31 percent, the first retreat in a week and the biggest tumble in more than two weeks.
                            Commodities 
* West Texas Intermediate crude climbed 1.4 percent to $76.27 a barrel, the highest in almost four years.
* Gold futures fell 0.4 percent to $1,202.20 an ounce.
–With assistance from Adam Haigh, Samuel Potter and Edward Bolingbroke.

Have a great night.

Be magnificent!

As ever,

Carolann

 

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

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
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:
October 2, 1869 ~ Mahatma Gandhi’s birthday, Indian spiritual leader, advocate of non-violent resistance as a tool against tyranny.
He was assassinated in the garden of his home in New Delhi, January 30, 1948.  On the anniversary of Gandhi’s birth (Gandhi Jayanti), thousands gather at the park on Jumna River at Delhi where Gandhi’s body was cremated.  Hymns are sung, verses from the Gita, the Koran, and the Bible are recited, and cotton thread is spun on small spinning wheels (one of Gandhi’s favorite activities).  Other observances are held at his birthplace (Porbandar, India) and throughout India on this public holiday.

“Whatever you do will be insignificant, but it is very important that you do it.” -Mahatma Gandhi.

PHOTOS OF THE DAY

Indian school children with their head tonsured and dressed like Mahatma Ghandi assemble during a event at a school in Chennai ahead of Ghandi’s 149th birth anniversary. – Indians all over the country celebrate Ghandi’s birthday on October 2. Credit: ARUN SANKAR/AFP/GETTY IMAGES

Church secretary Jacqui Tait opens the doors to the 200 year old Liberton Kirk in South Edinburgh, Scotland. CREDIT: DUNCAN MCGLYNN

Award winning pumpkins at the RHS Harvest Festival Show in London. CREDIT: HEATHCLIFF O’MALLEY FOR THE TELEGRAPH

Autumn colours in New England, US. CREDIT: KYLE DEMPSEY/MEDIADRUMWORLD.CO
Market Closes for October 2nd, 2018

Market Index	Close	Change
Dow Jones	26773.94	+122.73     +0.46%
S&P 500	2923.43	-1.16   -0.04%
NASDAQ	7999.547	-37.755   -0.47%
TSX	16017.23	-87.20  -0.54%

International Markets

Market Index	Close	Change
NIKKEI	24270.62	+24.86
		+0.10%
HANG SENG	27126.38	-662.14
		-2.38%
SENSEX	36526.14	+299.00
		+0.83 %
FTSE 100*	7474.55	-21.12
		-0.28%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.464		2.507
CND. 30 Year Bond		2.452		2.484
U.S.    10 Year Bond		3.0538		3.0836
U.S. 30 Year Bond		3.2049		3.2343

Currencies

BOC Close	Today	Previous
Canadian $	0.77994	0.78051
US $	1.28214	1.28125
Euro Rate 1 Euro=		Inverse
Canadian $	1.48066	0.67530
US $	1.15470	0.86585

Commodities

Gold	Close	Previous
London Gold Fix	1189.35	1187.25
Oil
WTI Crude Future	75.23	75.30

Market Commentary:
Canada
By Tatiana Darie
(Bloomberg) — Canadian stocks fell, while U.S. stocks were mixed, amid declines in pot and technology shares. Energy stocks pared recent gains as oil slid.
     The S&P/TSX Composite Index fell 0.5 percent, with gold miners, consumer staples and utilities offsetting weakness elsewhere. Cannabis stocks dropped as PepsiCo said it had no plans to invest in the business because of the federal ban in the U.S. Total short interest in the marijuana group hit $3.1 billion last week, up from just over $2 billion at the end of June.
                             Stocks
* Gold and silver equities rallied after spot gold price above its 50-DMA as budget turmoil in Italy boosted demand for the metal as a safe haven. Goldman Sachs “three reasons to buy gold” call may also be contributing to the rally.
* Methanex Corp. fell 0.6 percent after its largest shareholder, M&G Investment Management, cut its stake in the company again, saying it’s become “repeatedly frustrated with the market valuation” of the methanol company
* Pembina Pipeline Corp. rose 1 percent after Canaccord analyst David Galison wrote that the company stands to benefit most from Canada’s LNG project
                            Commodities
* Western Canada Select crude oil traded at a $40.75 discount to WTI
* Gold rose 1.3 percent to $1,207.10 an ounce FX/Bonds
* The Canadian dollar was little changed at C$1.2819 per U.S. dollar
* The Canada 10-year government bond yield fell 4.3 basis points to 2.459%
US
By Jeremy Herron and Vildana Hajric
(Bloomberg) — U.S. stocks ended an up-and-down session mostly lower as Amazon.com’s wage increase pressured retailers and small caps slumped to a two-month low as trade tensions eased. The dollar, Treasuries and commodities advanced. 
     The S&P 500 Index edged lower. Retailers led declines after Amazon raised the minimum wage for all its employees. Small caps remained under pressure after the new Nafta deal, while Boeing Co. and Caterpillar Inc. led the Dow Jones Industrial Average to a fresh record. Comments from Federal Reserve Chairman Jerome Powell shrugging off inflation worries added to pressure on equities.
     Amazon’s wage move raised the specter that competitors will have to make a similar move, threatening profit margins at a time when input costs have also been on the rise. Otherwise, trade largely set the tone, with multinationals continuing to benefit from a reduction in tension and domestically focused companies under pressure. Meanwhile, political drama in Washington still swirls around President Donald Trump’s Supreme Court nominee.
    European shares slid as concern mounted that Italy’s budget could lead to a debt crisis. The region’s common currency touched the lowest in six weeks. Emerging-market equities tumbled amid weak data and as Mohamed El-Erian warned against rushing into the group.
     Elsewhere, the dollar climbed against almost all its major peers. Indonesia’s rupiah fell past 15,000 per dollar for the first time since 1998 a day after inflation came in slower than forecast. The pound slumped as Brexit and the annual conference of the governing Conservative Party continued to dominate headlines.
Here are some key events coming up this week:
* U.K. Prime Minister Theresa May speaks Oct. 3. in Birmingham.
* A central bank policy decision from the Reserve Bank of India is due Friday.
* U.S. employment reports for September also due Friday.

These are the main moves in markets:
Stocks
* The S&P 500 fell less than 0.1 percent at 4 p.m. in New York.
* The Dow added 0.5 percent and the Nasdaq 100 Index fell 0.2 percent. The Russell 2000 Index fell 1 percent.
* The Stoxx Europe 600 Index dipped 0.5 percent to the lowest in almost two weeks.
* The MSCI Emerging Market Index declined 1.2 percent to the lowest in almost two weeks.
* The MSCI Asia Pacific Index declined 0.8 percent to the lowest in two weeks on the biggest drop in almost four weeks.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in three weeks.
* The euro dipped 0.4 percent to $1.1554, reaching the weakest in almost six weeks on its fifth straight decline.
* The British pound declined 0.5 percent to $1.298.
* The Japanese yen rose 0.3 percent to 113.611 per dollar.
Bonds
* The yield on 10-year Treasuries decreased four basis points to 3.05 percent.
* Germany’s 10-year yield fell five basis points to 0.42 percent, the lowest in almost three weeks.
* Italy’s 10-year yield gained 15 basis points to 3.448 percent, the highest in more than four years.
Commodities
* West Texas Intermediate fell 0.2 percent to $75.14 a barrel after hitting the highest in almost four years.
* Gold futures climbed 1.3 percent to $1,207.70 an ounce.
–With assistance from Mark Cranfield, Andreea Papuc and Samuel Potter.

Have a great night.

Be magnificent!
As ever,

Carolann

Life must be understood backwards; but it must be lived forwards.
                                              -Soren Kierkegaard, 1812-1855

 

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