Month: December 2018

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A child looks at African penguins during the opening of a new area reserved for them at Bioparco in Rome. Credit:  Tizana Fabi/AFP

A boy enjoys elephant bathing during the 15^th Elephant Festival in Sauraha, a tourism hub in southwest Nepal’s Chitwan district. Credit: Sunil Sharma/Alamy

The main building of China’s Taishan Station in Antarctica. China started the work of the second phase of the Taishan Station in Antarctica. Credit: Liu Shiping/Barcroft
Market Closes for December 28th, 2018

Market Index	Close	Change
Dow Jones	23062.40	-76.42   -0.33%
S&P 500	2485.74	-3.09   -0.12%
NASDAQ	6584.523	+5.031   +0.08%
TSX	14222.00	+56.79
		+0.40%

International Markets

Market Index	Close	Change
NIKKEI	20014.77	-62.85
		-0.31%
HANG SENG	25504.20	+25.32
		+0.10%
SENSEX	36076.72	+269.44
		+0.75%
FTSE 100*	6733.97	+149.29
		+2.27%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.953		1.994
CND. 30 Year Bond		2.146		2.169
U.S.    10 Year Bond		2.7182		2.7666
U.S. 30 Year Bond		3.0222		3.0560

Currencies

BOC Close	Today	Previous
Canadian $	0.73334	0.73428
US $	1.36362	1.36188
Euro Rate 1 Euro=		Inverse
Canadian $	1.55998	0.64103
US $	1.14400	0.87413

Commodities

Gold	Close	Previous
London Gold Fix	1268.00	1258.15
Oil
WTI Crude Future	45.33	44.61

Market Commentary:
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks extended gains for a second day, with the S&P/TSX Composite Index advancing 0.4 percent, led by health care. It was the first back-to-back advance since Dec. 3.
     Marijuana M&A was the focal point in the wake of U.S. cannabis retailer Green Growth Brands Ltd.’s hostile offer for Aphria Inc., which pushed up Aphria’s peers. Energy stocks also outperformed while materials lagged.
Stocks
* MJardin Group Inc. rose 35 percent after getting its first cannabis sales license from Health Canada 
* Green Organic Dutchmen Holding climbed 15.8 percent 
* Paramount Resources gained 15.9 percent, a top performer among energy stocks 
* Maxar Technologies Ltd. added 15.4 percent; shares are down about 80 percent year-to-date 
* Barrick Gold Corp. dropped 5.5 percent 
Commodities
* Western Canada Select crude oil traded at a $16.00 discount to WTI
* Gold rose 0.1 percent to $1,282.50 an ounce
FX/Bonds
* The Canadian dollar fell 0.3 percent to C$1.3655 per U.S. dollar
* The Canada 10-year government bond yield dropped 4 basis points to 1.956 percent
US
By Jeremy Herron and Vildana Hajric
     (Bloomberg) — U.S. stocks halted a two-day rally as thin trading added to already-volatile markets ahead of the weekend. Treasuries rose. The S&P 500 ended the session lower, but held onto its first weekly gain in a month. Trading was still volatile after a roller-coaster session Thursday that saw the biggest reversal since 2010. The holiday-shortened week began with the worst pre- Christmas day on record before stocks notched the biggest one- day surge in almost a decade. The benchmark is on track for its worst year of the bull market.
     “You’re in a period of high unknown right now,” Jeremy Bryan, portfolio manager at Gradient Investments, said in an interview. “It’s the market trying to find bottoms and trying to find its footing. That’s why we’re seeing such volatile swings in this tape. It’s just right now there seems to be a lot more consternation, which is why you’re seeing markets reacting violently both ways.”
     Global stocks are set for the worst year since 2008 and oil is mired in its steepest quarterly slump since 2014. Plenty of event risks loom in the coming year, from the U.K. vote on the Brexit deal to U.S.-China trade talks to the continuing showdown between President Donald Trump and Congress over the budget.
     “We’re heading into a period of higher volatility,” said Manpreet Gill, head of fixed income, currency and commodities strategy at Standard Chartered Plc in Singapore. “You need to have some dry powder on the side to take advantage of that. That’s where we particularly think that cash plays a bit of a role.”
     In Europe, the Stoxx 600 saw its largest one-day rally since April. Japanese shares declined, while stocks in China saw modest advances. Japanese 10-year yields dipped below zero. West Texas intermediate crude bounced with emerging market equities.
     Japan and China had their final trading day of the year Friday. Aside from any further developments on the American political front — where departures of senior officials and tensions at the White House over the Federal Reserve have unsettled investors, upcoming manufacturing PMIs from China and the U.S. may be a focus in the coming week.
Here’s a look at how some key assets have done this year:
* The S&P 500 is down 7.5%
* Japan’s Topix is down 18%
* The Stoxx Europe 600 is down almost 14%
* The MSCI Emerging Markets Index dropped about 16%
* The Bloomberg Dollar Spot Index rose more than 3%
* The Bloomberg Commodity Index fell almost 12%
     Thursday’s reversal rings of a bear-market bounceTraders are getting used to sharp swingsInvestors keep bailing out of leveraged loansAnd they’re piling into goldBond traders gird for more Fed press conferences China has the worst equity market
Here are some events investors may focus on in coming days:
* China releases its official PMIs on Monday, the last day of 2018.
* Brazil’s new president is sworn in on Tuesday.
* The U.S. ISM manufacturing PMI is due Friday, Jan. 4.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.1 percent as of 4 p.m. in New York.
* The Stoxx Europe 600 Index jumped 2 percent, the biggest surge in about nine months.
* The MSCI All-Country World Index increased 1.2 percent.
* The MSCI Emerging Market Index increased 1.2 percent to the highest in more than a week.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.2 percent.
* The euro climbed 0.1 percent to $1.1442.
* The Japanese yen jumped 0.6 percent to 110.40 per dollar.
* The British pound advanced 0.4 percent to $1.2692.
* The MSCI Emerging Markets Currency Index gained 0.3 percent to the highest in more than three weeks.
Bonds
* The yield on 10-year Treasuries dipped three basis points to 2.74 percent.
* Germany’s 10-year yield one basis point to 0.24 percent, the largest gain in a week.
* Britain’s 10-year yield fell four basis points to 1.269 percent.
Commodities
* The Bloomberg Commodity Index decreased 0.3 percent.
* West Texas Intermediate crude gained 1.7 percent to $45.38 a barrel.
* Gold was little changed at $1,281.50 an ounce.

Have a great weekend.

Be magnificent!

As ever,

Karen

“You cannot shake hands with a clenched fist”. Indira Gandhi

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 today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Wildlife enthusiast Darren Chisholm, 33, captured this image in Culloden Woods, Inverness. “It reminds me of Superman, the way the body is spread out” he said. Credit: Darren Chisholm/SWNS.COM

A participant in a Santa Claus costume jumps into the water during the 109th edition of the ‘Copa Nadal’ (Christmas Cup) swimming competition in Barcelona’s Port Vell. Credit: Josep Lago/AFP/Getty Images

People enjoy interactive visual installations themed on Van Gogh’s art at an exhibition in Hangzhou, China. Credit: Sipa Asia/Zuma Wire/Alamy Live News
Market Closes for December 27th, 2018

Market Index	Close	Change
Dow Jones	23138.82	+260.37   +1.14%
S&P 500	2488.83	+21.13   +0.86%
NASDAQ	6579.492	+25.137   +0.38%
TSX	14165.21	+385.02
		+2.79%

International Markets

Market Index	Close	Change
NIKKEI	20077.62	+750.56
		+3.88%
HANG SENG	25478.88	-172.50
		-0.67%
SENSEX	35807.28	+157.34
		+0.44%
FTSE 100*	6584.68	-101.31
		-1.52%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.994		2.026
CND. 30 Year Bond		2.169		2.181
U.S.    10 Year Bond		2.7666		2.7902
U.S. 30 Year Bond		3.0560		3.0308

Currencies

BOC Close	Today	Previous
Canadian $	0.73428	0.73508
US $	1.36188	1.36040
Euro Rate 1 Euro=		Inverse
Canadian $	1.55730	0.64214
US $	1.14349	0.87452

Commodities

Gold	Close	Previous
London Gold Fix	1258.15	1259.75
Oil
WTI Crude Future	44.61	45.39

Market Commentary:
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks rallied into the close, ending a four-day slide, as their U.S. peers in the S&P 500 rallied from early lows in what became the biggest reversal since 2010.
     The S&P/TSX Composite Index rose 2.8 percent, the most since January 2016, closing at 14,165.21. Canadian stocks didn’t trade Wednesday for the Boxing Day holiday, when U.S. stocks soared 5 percent. Tech and energy led the way Thursday as all eleven sectors gained.
     The loonie was down against most of its Group-of-10 peers amid greenback weakness and a resurgence of weaker oil prices.
Stocks
* Shopify Inc. jumped 11.6 percent amid a strong holiday shopping season 
* Air Canada rose 9.4 percent 
* Encana Corp. rose 14.6 percent 
* BCE Inc. jumped 7.5 percent 
* West Fraser Timber Co. fell 3.2 percent 
* Stelco Holdings Inc. fell 1.9 percent 
Commodities
* Western Canada Select crude oil traded at a $16.50 discount to WTI
* Gold rose 0.4 percent to $1,277.70 an ounce
FX/Bonds
* The Canadian dollar fell 0.3 percent to C$1.3613 per U.S. dollar
* The Canada 10-year government bond yield gained 1 basis point to 1.993 percent
US
By Vildana Hajric
(Bloomberg) — Volatility returned to U.S. markets, with stocks roaring back from the lows of the day to close higher after flirting with a bear market. Treasuries rose and oil slipped below $46 a barrel.
     The S&P 500 and Dow Jones Industrial Average turned green in a late surge after trading negative for most of the day, with a more than 800 point swing up by the Dow in less than two hours. On top of Wednesday’s 5 percent surge, it was the biggest two-day rally in the S&P since August 2015.
     “It’s hard to explain moves like today and yesterday and the last month,” said Sean O’Hara, president at Pacer ETFs. “From a time perspective, it’s a historic bull market and when you get that far into the cycle, people get more jittery.”
     The S&P 500 has been careening toward its worst month of the record bull run and is down about 15 percent in the quarter as everything from higher interest rates to political turmoil in Washington to concern about global growth hammer at investor sentiment. Havens came back in vogue, with Treasury 10-year yields slipping below 2.8 percent, and gold climbing with the yen.
     The euphoria of equity investors evaporated earlier from Wednesday, when investors cheered a reminder of the American consumer’s strength and got reassurance on the tenure of the Federal Reserve chief and progress on U.S.-China trade talks.
     While there was no obvious catalyst for the return to selling that took stocks within a whisker of a bear market, the moves of the past few days sent volatility soaring.
     Elsewhere, WTI crude oil prices gave up a slice of the more than 8 percent gain from the previous day. Losses in utility companies and carmakers dragged the Stoxx Europe 600 Index into the red. Asian shares were mixed, though Tokyo’s Topix Index posted the biggest advance in two years.
     “After a day like yesterday, you’d like to say, ‘Oh, that’s it. That kind of a move, that’s got to be the bottom.’ But you know what?” Michael Antonelli, equity sales trader at Robert W. Baird, said on Bloomberg TV. “We just don’t know yet.”
     Plenty of big rallies occurred during a bear-market downturnA history of U.S. presidential comments on stocksInsiders are pouring money into equitiesThree crazy statistics on a wild day of tradingValuations tumbled before the Wednesday rally
Here are some events investors may focus on in coming days:
* Baker Hughes releases its weekly data on active U.S. oil rigs on Friday.
* Monday is year end.
* Brazil’s new president is sworn in on Tuesday.
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.9 percent as of 4:10 p.m. New York time.
* The Nasdaq 100 rose 0.4 percent and the Dow Jones Industrial Average cut its decline from more than 600 points to close up 1.1 percent.
* The Stoxx Europe 600 Index fell 1.7 percent to the lowest in more than two years on the biggest fall in more than a week.
* The MSCI All-Country World Index dropped 0.2 percent.
* The MSCI Emerging Market Index climbed less than 0.1 percent, the first advance in a week.
Currencies
* The Bloomberg Dollar Spot Index declined 0.4 percent.
* The euro rose 0.8 percent to $1.1438.
* The Japanese yen jumped 0.4 percent to 110.90 per dollar.
* The British pound rose less than 0.1 percent to $1.2638.
* The MSCI Emerging Markets Currency Index gained 0.2 percent, the largest rise in more than a week.
Bonds
* The yield on 10-year Treasuries fell four basis points to 2.76 percent.
* Germany’s 10-year yield decreased two basis points to 0.23 percent, the lowest in a week on the largest dip in almost two weeks.
* Britain’s 10-year yield increased five basis points to 1.31 percent.
Commodities
* The Bloomberg Commodity Index decreased 0.5 percent.
* Crude oil fell 2.3 percent to $45.18 a barrel.
* LME copper jumped 0.6 percent to $5,969 per metric ton, reaching the highest in more than a week on the first advance in more than a week and the biggest increase in more than two weeks.
* Gold increased 0.7 percent to $1,275 an ounce, the highest in more than six months.

Have a great evening.

Be magnificent!

As ever,

Karen

“The work of today is the history of tomorrow and we are its makers”. Juliette Gordon Low

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!

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

PHOTOS OF THE DAY

Dancers from Semaphore Ballet Company perform at Tower Hill in the last evening light before the winter solstice. Credit: Guy Corbishley/Alamy News

A halo rings the moon at night in Turkey’s eastern Van province. Credit: Ozkan Bilgin/Anadolu/Getty Images

A man dressed as Santa Claus waves as he walks along Jerusalem’s Old City Ottoman walls. Credit: Gali Tibbon/AFP
Market Closes for December 21st, 2018

Market Index	Close	Change
Dow Jones	22445.37	-414.23   -1.81%
S&P 500	2416.58	-50.84   -2.06%
NASDAQ	6332.996	-195.411   -2.99%
TSX	13935.44	-206.33
		-1.46%

International Markets

Market Index	Close	Change
NIKKEI	20166.19	-226.39
		-1.11%
HANG SENG	25753.42	+129.89
		+0.51%
SENSEX	35742.07	-689.60
		-1.89%
FTSE 100*	6721.17	+9.24
		+0.14%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.026		2.014
CND. 30 Year Bond		2.181		2.165
U.S.    10 Year Bond		2.7902		2.8065
U.S. 30 Year Bond		3.0308		3.0484

Currencies

BOC Close	Today	Previous
Canadian $	0.73508	0.74082
US $	1.36040	1.34986
Euro Rate 1 Euro=		Inverse
Canadian $	1.54750	0.64620
US $	1.13756	0.87907

Commodities

Gold	Close	Previous
London Gold Fix	1259.75	1255.00
Oil
WTI Crude Future	45.39	45.63

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks ended their worst week since August 2015 with another volatile day that started positive and ended with a significant decline.
     The S&P/TSX Composite Index fell 1.5 percent to 13,935.67 Friday, bringing its weekly loss to 4.5 percent. Higher-than- average volume as a result of expiring futures and options exacerbated the selling on the last full trading day before Christmas, as did the growing likelihood of a U.S. government shutdown.
     All sectors closed in the red, with technology and health- care stocks leading the decline. Cannabis company Aphria Inc. fell 7.4 percent and BlackBerry Ltd. lost 8.1 percent a day after better-than-expected revenue sent its shares higher.
In other moves:
Stocks
* The Stars Group Inc. gained 7.3 percent after the company won a reversal of an $870 million judgement in the Kentucky Court of Appeals
* Canada Goose Holdings Inc. fell 8.2 percent amid ongoing concerns about Canada-China relations following the arrest of Huawei Technologies Co.’s chief financial officer in Vancouver
* Fiera Capital Corp. rose 1.6 percent. The company is acquiring 80 percent of Palmer Capital Partners Ltd., a U.K.-focused real estate investment manager with over 800 million pounds in assets under management
Commodities
* Western Canada Select crude oil traded at a $16.50 discount to WTI
* Gold fell 0.7 percent to $1,258.80 an ounce 
FX/Bonds
* The Canadian dollar weakened 0.7 percent to C$1.3598 per U.S. dollar despite stronger economic growth, as the U.S. dollar advanced
* The Canada 10-year government bond yield rose 1 basis point to 2.03 percent
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — U.S. stocks sank to a 17-month low to close out their worst week since August 2011, with every sector losing ground and heavy selling in technology shares driving the Nasdaq indexes into a bear market. Treasuries edged higher.
     Heavy volume sparked by the simultaneous expiration of futures and options lashed stocks that have been under pressure all week from concern over rising interest rates and the threat of slower global growth. Renewed personnel turmoil in the White House and the growing likelihood of a government shutdown added to investor anxiety before the holidays.
     Dovish comments from a Fed official gave an early boost to the S&P 500, but renewed selling in some of the bull market’s biggest winners sent the index lower. It’s now down over 17 percent from its record.
     The Nasdaq indexes fared even worse, each sliding more than 2 percent Friday to bring routs since summer records past 20 percent. Every member of the FANG cohort lost more than 2.5 percent, while Twitter plunged more than 6 percent. The Cboe Volatility Index, known as the “fear gauge,” rose above 30 to hit a 10-month high. The dollar advanced as China signaled an easier monetary policy, and bonds retreated across Europe.
     The Powell Put Misplaced: Bloomberg Reporters Talk Markets “It’s a convergence of various factors, from global growth, to quantitative tightening concerns, as well as political risk in the U.S. and across the globe,” said Chad Morganlander, portfolio manager at Washington Crossing Advisors. “It’s like ‘Wow, man.’ It’s unbelievable — it’s the polar opposite of what you had in 2017. Investors don’t necessarily need to dive into the pool until you see some of these various issues subside.”
     The MSCI Asia Pacific Index dropped for the fourth session in six. The Stoxx Europe 600 Index finished little changed.
     Treasuries rose, but European bonds fell ahead of the Christmas break. The dollar climbed against the yuan and most major currencies after China’s top policy makers said “significant” cuts to taxes and fees will be enacted in 2019, while signaling an easier monetary policy stance. The moves are the latest by leaders in world’s second-biggest economy as they grapple with a domestic slowdown and a trade war with America.
     Elsewhere, orders placed with U.S. factories for business equipment fell in November, missing forecasts for an increase and adding to signs that demand is slowing amid risks from the trade war with China.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell 2.1 percent as of 4:01 p.m. New York time.
* The Stoxx Europe 600 Index gained less than 0.05 percent.
* The U.K.’s FTSE 100 Index declined less than 0.05 percent.
* Germany’s DAX Index rose 0.2 percent.
* The MSCI Emerging Market Index fell 0.6 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.6 percent.
* The euro declined 0.8 percent to $1.1358, the first retreat in a week.
* The British pound declined 0.3 percent to $1.2625.
* The Japanese yen fell less than 0.05 percent to 111.33 per dollar.
Bonds
* The yield on 10-year Treasuries dipped two basis points to 2.78 percent.
* Germany’s 10-year yield increased two basis points to 0.25 percent, the biggest climb in more than a week.
* Britain’s 10-year yield gained five basis points to 1.321 percent, the highest in three weeks.
Commodities
* West Texas Intermediate crude fell 1.1 percent to $45.41 a barrel.
* Gold fell 0.4 percent to $1,255.45 an ounce.

Have a great weekend!

Be magnificent!

As ever,

Karen

“All the arts we practice are apprenticeship. The big art is our life.” Mary Caroline Richards.

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: Full moon for the weekend! 🙂 

1879 Thomas Edison privately demonstrated his incandescent light at Menlo Park, N.J.  Go to article >>

ICYMI

When Christmas went electric:

It was in 1882, just three years after Thomas Edison filed a patent for his light bulb. The tree became a fixture in the experiment-filled home of an executive at his company.

The tree in Rockefeller Center sparkled after its 7,500 bulbs were lit for the first time in 1949.  Tom Fitzsimmons/Associated Press

Eighty walnut-size red, white and blue bulbs covered the tree, which sat on a revolving box. A newspaper article described it: “As the tree turned, the colors alternated, all the lamps going out and being relit at every revolution. The result was a continuous twinkling of dancing colors, red, white, blue, white, red, blue, all evening.”

President Grover Cleveland popularized electric Christmas lights in the 1890s by installing them on the White House tree.

But it wasn’t until (relatively) inexpensive strings of Christmas lights became available a few years later that the tradition really caught on. -from the New York Times, December 20, 2018

PHOTOS OF THE DAY

The Indian military communication satellite GSAT-7A is pictured next to the moon as it is launched into orbit on the Indian Space Research Organization (ISRO)’s Geosynchronous Satellite Launch Vehicle (GSLV) in Sriharikota in the state of Andhra Pradesh. Credit: Arun Sankar/AFP/Getty Images

People ice skate on the rink at the glass-roofed central hall of the Grand Palais in Paris. Credit: Geoffroy Van Der Hasselt/AFP

A modified Tesla Model X electric vehicle carrying Elon Musk, co-founder executive officer of Tesla Inc. drives though the tunnel as it arrives for an unveiling event for the Boring Co. Hawthorne test tunnel in Hawthorne, California, U.S. Credit: Robyn Beck/Pool via Bloomberg
Market Closes for December 20^th, 2018

Market Index	Close	Change
Dow Jones	22859.60	-342.45   -1.47%
S&P 500	2467.42	-27.37   -1.09%
NASDAQ	6528.406	-108.421   -1.63%
TSX	14141.77	-122.29
		-0.86%

International Markets

Market Index	Close	Change
NIKKEI	20392.58	-595.34
		-2.84%
HANG SENG	25623.53	-241.86
		-0.94%
SENSEX	36431.67	-52.66
		-0.14%
FTSE 100*	6711.93	-54.01
		-0.80%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.014		1.959
CND. 30 Year Bond		2.165		2.123
U.S.    10 Year Bond		2.8065		2.7548
U.S. 30 Year Bond		3.0484		2.9807

Currencies

BOC Close	Today	Previous
Canadian $	0.74082	0.74184
US $	1.34986	1.34800
Euro Rate 1 Euro=		Inverse
Canadian $	1.54627	0.64670
US $	1.14555	0.87294

Commodities

Gold	Close	Previous
London Gold Fix	1255.00	1246.30
Oil
WTI Crude Future	45.63	47.20

Market Commentary:
On this day in 1994, Mexico devalued its currency and announced that the peso would be allowed to float freely in value. Stock and bond markets in emerging economies around the world collapsed, and U.S. bank stocks dropped 2% on fears that defaulting loans would decimate their profits. Over the next six weeks, the Mexican peso would lose 40% of its value—choking the Mexican economy in the short run, but in the long run setting it free.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell sharply on another volatile trading day, buffeted by headwinds from the United States.
     The S&P/TSX Composite Index lost 0.9 percent to 14,141.77 as investors continued to fret over whether the U.S. Federal Reserve is on the right track and as the U.S. government looked increasingly likely to shut down.
     Only the materials sector was positive, gaining 2.1 percent, as gold stocks rose after the metal’s spot price broke above its 200-day moving average. Guyana Goldfields Inc. jumped 18 percent, the most since 2009.
     Energy stocks fell 2 percent as crude oil prices headed for their worst quarterly loss in four years. Nuvista Energy Ltd. lost 5.9 percent and Baytex Energy Corp. slid 5.1 percent.
In other moves:
Stocks
* BlackBerry Ltd. rose 2.9 percent after quarterly sales beat analyst forecasts, extending a run of positive surprises
* ATS Automation Tooling Systems Inc. slid 11 percent to the lowest since October 2017. The stock was cut to sector perform by National Bank Financial on the “vast” differential between its multiple and what it paid to acquire Comecer
* Bombardier Inc. gained 7 percent. The company announced two train orders and said it hired Accenture to help it streamline its procurement process
Commodities
* Western Canada Select crude oil traded at a $15.75 discount to WTI
* Aeco natural gas traded at a $1.55 discount to Henry Hub
* Gold rose 0.9 percent to $1,263.60 an ounce, the highest since June
FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.3488 per U.S. dollar
* The Canada 10-year government bond yield rose 4 basis points to 2.00 percent, the first gain this week
US
By Vildana Hajric and Jeremy Herron
(Bloomberg) — Volatility gripped financial markets a day after the Federal Reserve sent shock waves across assets, with the rising threat of a government shutdown adding to a litany of concerns buffeting equities. The dollar sank with crude oil.
     The S&P 500 Index whipsawed throughout the day in heavy trading before closing at a 15-month low as investors debated whether the Fed set up the central bank for a policy error. 
     Shares turned sharply lower after President Donald Trump hardened his demands in the showdown with Congress over funding the government. “I’ve made my position very clear — any measure that funds the government must include border security,” the president said at White House event.
     The Nasdaq Composite index slumped to the brink of a bear market, finishing almost 20 percent off its August record. The S&P 500 is down more than 10 percent in December, on track for its worst month of the record bull run.
Among the major stock moves:
* The broader FAANG cohort of shares plunged more than 3 percent
and the group is now 25 percent below its record. Twitter tumbled 11 percent in the biggest rout since July.
* Tech high fliers GoPro and Snap skidded to all-time lows, each down at least 5 percent. 
* Walgreens Boots Alliance lost as much as 6.6 percent to lead all but one of 30 Dow components lower.
* The S&P 500 has lost about 15 percent this quarter, the most during the record bull run. 
     Currency traders took the Fed’s lowering of expectations for future hikes as a somewhat dovish turn. The weak greenback spurred a rally in developing-nation assets, sending an ETF that tracks the emerging equities to its best gain in a week. Treasury investors remained on edge after the Fed said quantitative easing was on “autopilot.” The front end of the yield curve rose, while longer-dated bonds saw rates holding steady near multi-month lows.
     Crude added to anxiety on financial markets, with the American benchmark sinking below $47 a barrel. And a renewed U.S. push against alleged intellectual property theft by Chinese nationals is contributing to uncertainty over the direction of the simmering trade conflict.
     The Stoxx Europe 600 recovered some losses but closed broadly lower, while Japanese shares slid into a bear market. The pound trimmed a gain after Britain’s central bank said it now sees inflation slowing to below the 2 percent target as soon as January. Benchmark 10-year Treasuries retreated after steep gains on Wednesday. The greenback slid against almost every major counterpart, helping the yen score its biggest gain since November 2017.
     In Japan, 10-year bond yields fell to within three basis points of zero percent. Bank of Japan Governor Haruhiko Kuroda said in a press conference Thursday that there was no problem if yields fell into negative territory, suggesting he has no plan to intensify the central bank’s tapering of asset purchases.
Here are some events investors will focus on in the comingdays:
* U.S. personal income and spending data are due Friday, along with a gauge of inflation.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.6 percent as of 4:03 p.m. New York time.
* The Nasdaq Composite lost 1.6 percent, a 15-month low.
* The Stoxx Europe 600 Index declined 1.5 percent to the lowest in more than two years.
* MSCI’s emerging market index slid 0.8 percent.
Currencies
* The Bloomberg Dollar Spot Index sank 0.7 percent to the lowest in six weeks.
* The euro climbed 0.7 percent to $1.1458, the strongest in almost two months.
* The British pound advanced 0.4 percent to $1.2662, the strongest in almost two weeks.
* The Japanese yen jumped 1.1 percent to 111.26 per dollar, its biggest jump in 13 months.
Bonds
* The yield on 10-year Treasuries gained four basis points to 2.80 percent.
* Germany’s 10-year yield fell one basis point to 0.23 percent.
* Britain’s 10-year yield dropped one basis point to 1.266 percent.
Commodities
* West Texas Intermediate crude decreased 4.2 percent to $46.14 a barrel.
* Gold jumped 1.4 percent to $1,260.24 an ounce, the highest in six months.
–With assistance from Adam Haigh, Andreea Papuc and Todd White.

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

The best time to make friends is before you need them.
                                  -Ethel Barrymore, 1879-1959

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 Dec. 19, 1998, President Bill Clinton was impeached on charges of perjury and obstruction of justice by a divided House of Representatives, which recommended virtually along party lines that the Senate remove the nation’s 42d President from office. Go to article »

ICYMI:

How the Chinese say “trade”

China and the U.S. may have declared a truce in their trade war, but it’s far from over.

This gives us the opportunity for a language lesson.

Flags at a bilateral meeting of China and the U.S. in Beijing in April.  Jason Lee/Reuters

The English word “trade” is Germanic, originally meaning “track” or “path.” Its modern usage evolved from a Dutch word referring to “means of living,” as in the carpentry trade. Over time, the trade of buying and selling goods came to be called simply “trade.”

In Mandarin Chinese, the word for trade is “màoyì” (“trade war” is “màoyì zhàn,” pronounced MAU-ee-jahn).

The character mào (?) means “to trade,” while yì (?) means “to exchange.”

Yì also has the meaning “easy,” and the character appears in the Chinese word for “easy,” which is “róngyì” (??).

Of course, trade between China and the U.S. is anything but easy these days. -from The New York Times, December 19, 2018

PHOTOS OF THE DAY

A man walks on the boundary wall of a golf course as the sun sets on a cold winter in Srinagar. Credit: Reuters/Danish Ismail

A man stands by an installation depicting “2019” in the Red Square in Moscow, Russia. Credit: Reuters/Maxim Shemetov

Giant waves at Shore Acres State Park, Oregon, U.S. Credit: Wright Aura Photography Via Reuters
Market Closes for December 19^th, 2018

Market Index	Close	Change
Dow Jones	23323.66	-351.98   -1.49%
S&P 500	2506.96	-39.20   -1.54%
NASDAQ	6636.828	-147.084   -2.17%
TSX	14264.06	-152.83
		-1.06%

International Markets

Market Index	Close	Change
NIKKEI	20987.92	-127.53
		-0.60%
HANG SENG	25865.39	+51.14
		+0.20%
SENSEX	36484.33	+137.25
		+0.38%
FTSE 100*	6765.94	+70.99
		+1.06%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.959		2.013
CND. 30 Year Bond		2.123		2.183
U.S.    10 Year Bond		2.7548		2.8210
U.S. 30 Year Bond		2.9807		3.0731

Currencies

BOC Close	Today	Previous
Canadian $	0.74184	0.74288
US $	1.34800	1.34611
Euro Rate 1 Euro=		Inverse
Canadian $	1.53407	0.65186
US $	1.13806	0.87871

Commodities

Gold	Close	Previous
London Gold Fix	1246.30	1241.65
Oil
WTI Crude Future	47.20	46.24

Market Commentary:
On this day in 1927, the Dow industrials closed above 200 for the first time, finishing the day at 200.93. It had taken the Dow nearly 22 years to double. The index closed at 23323.66 today. 
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell to their lowest level since July 2016, making a dramatic reversal following a U.S. Federal Reserve policy meeting that downplayed the recent market sell-off. 
     The S&P/TSX Composite Index lost 1.1 percent to 14,264.06 after rising as much as 0.9 percent earlier in the day. Energy was the only sector that gained as crude prices rose 2.1 percent.
     Health care and materials were the biggest decliners, sliding 4.1 percent and 3.7 percent respectively. Pot stocks weighed on the health sector, with Aphria Inc. down 8 percent, while gold stocks fell along with the price of the yellow metal.
     Yamana Gold Inc. slid 9.1 percent, the most since February 2017.
In other moves:
Stocks
* Home Capital Group Inc. tumbled 15 percent, the most since May 2017, after Warren Buffett’s Berkshire Hathaway Inc. said it will “substantially exit” its investment in the company
* Kinross Gold Corp. fell 6.8 percent. The stock was downgraded to underperform at Credit Suisse
* Emblem Corp. gained 5.3 percent after Aleafia Health Inc. agreed to buy the cannabis company for C$173.2 million. Aleafia lost 4.2 percent
Commodities
* Western Canada Select crude oil traded at a $16.25 discount to WTI
* Gold fell 0.6 percent to $12246.00 an ounce
FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.3499 per U.S. dollar
* The Canada 10-year government bond yield fell 5 basis points to 1.97 percent, the lowest in a year
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — U.S. stocks careened to a 15-month low after Jerome Powell failed to quell investor angst that the Federal Reserve’s tightening policy will throttle economic growth.
     The S&P 500 Index dropped 1.5 percent after policy makers raised rates for the fourth time this year and lowered their forecast for hikes next year to two from three. Markets had been priced for just one. Treasury yields slid and the dollar erased losses as Powell said the Fed’s balance sheet normalization would continue “on automatic pilot.”
     Investors had anticipated a less aggressive approach after U.S. stocks tumbled into a correction amid concern that global growth is slowing.
     “This hike is a vote of confidence in our economy for 2018, but essentially that’s a wrap,” said Mike Loewengart, vice president of investment strategy for E*Trade Financial Corp.
     “We’re now in some uncharted territory as 2019 comes into focus.” Amid the recent volatility in stocks and other risky assets, President Donald Trump had stepped up pressure on the central bank to avoid more tightening in the runup to the announcement. Powell said today that political considerations play no role in Fed policy.
     The tech-heavy Nasdaq indexes underperformed Wednesday as Facebook Inc. tumbled as much as 7 percent on mounting concerns over user privacy. FedEx Corp. sank as much as 12 percent after its executives warned that signs of a global trade slowdown are emerging.
     Beyond the Fed, trade and politics remain dominant themes. The U.S. Senate will vote as soon as Wednesday on a bipartisan spending bill to avoid a partial federal shutdown and keep the government funded until Feb. 8. Meanwhile, Treasury Secretary Steven Mnuchin said America and China are planning to hold meetings in January to negotiate a broader trade truce.
     Elsewhere, the yield on benchmark Japanese notes slipped to within striking distance of 0 percent before a rapid turnaround as the surge in demand triggered a margin call. Asian shares were mixed following a disappointing market debut for SoftBank Group’s Japanese telecom business. The Stoxx Europe 600 Index snapped a four-day losing streak. Italian debt surged after the European Commission decided against launching a disciplinary procedure over the country’s budget.
Here are some events investors will focus on in the coming days:
* The Bank of Japan’s monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also Thursday.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.5 percent at the close of trade in New York.
* The Stoxx Europe 600 Index increased 0.3 percent.
* The Nikkei-225 Stock Average fell 0.6 percent to the lowest since March.
* The MSCI Emerging Market Index gained 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.1 percent.
* The euro rose 0.1 percent to $1.1376.
* The Japanese yen fell 0.1 percent to 112.6 per dollar.
* The British pound fell 0.1 percent to $1.2621.
Bonds
* The yield on 10-year Treasuries fell five basis points to 2.77 percent.
* Germany’s 10-year yield was little changed at 0.24 percent.
* Britain’s 10-year yield fell one basis point to 1.27 percent.
* Italy’s 10-year yield plunged 17 basis points to 2.77 percent.
Commodities
* West Texas Intermediate crude increased 2.1 percent to $47.20 a barrel.
* Gold fell 0.6 percent to $1,242.40 an ounce.
–With assistance from Cormac Mullen, Adam Haigh, Christopher Anstey, Eddie van der Walt, Samuel Potter and Luke Kawa.

Have a great night.

Be magnificent!

As ever,

Carolann

Deep in their roots, all flowers keep the light.
                 -Theodore Roethke, 1908-1963

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:
Antonio Stradivari, violinmaker, b. 1737
Steven Spielberg, film-maker, b. 1947

1987 Ivan F. Boesky was sentenced to three years in prison for plotting Wall Street’s biggest insider-trading scandal. Go to article »

What do curators do when a more-than-500-year-old marble Renaissance sculpture slips off its platform and smashers into hundreds of pieces?  Find out at the Metropolitan Museum of Art’s You Tube channel, where curators reveal the process behind restoration and curation.  Also featured are 360-degree tours of famous spots in the New York museum, explorations of unusual musical instruments, and a showcase of the museum’s Costume Institute, which hosts the annual Met Gala.  See more at www.youtube.com/user/metmuseum. -CSM, 12/10/18.

PHOTOS OF THE DAY

This incredible image shows the moment a British surfer is believed to have broke then world record for the biggest wave ever ridded. Credit: Jorge Leal/SWNS

People visit the exhibition “winter lights” with various illuminations trees and lakes in the Palmengarten in Frankfurt, Germany. Credit: AP Photo/Michael Probst

Snow covers the roofs of the so-called “Alter Flecken” (old spot), the historic core of downtown Freudenberg with its half-timbered houses from the 17^th century in the heart of the federal state of North Rhine-Westphalia near the city of Siegen, Germany. Credit” Reuters/Wolfgang Rattay
Market Closes for December 18^th, 2018

Market Index	Close	Change
Dow Jones	23675.64	+82.66   +0.35%
S&P 500	2546.16	+0.22   +0.01%
NASDAQ	6783.910	+30.178   +0.45%
TSX	14416.39	+54.24
		+0.38%

International Markets

Market Index	Close	Change
NIKKEI	21115.45	-391.43
		-1.82%
HANG SENG	25814.25	-273.73
		-1.05%
SENSEX	36347.08	+77.01
		+0.21%
FTSE 100*	6701.59	-71.65
		-1.06%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.013		2.046
CND. 30 Year Bond		2.183		2.219
U.S.    10 Year Bond		2.8210		2.8588
U.S. 30 Year Bond		3.0731		3.1159

Currencies

BOC Close	Today	Previous
Canadian $	0.74288	0.74557
US $	1.34611	1.34125
Euro Rate 1 Euro=		Inverse
Canadian $	1.53090	0.65321
US $	1.13728	0.87929

Commodities

Gold	Close	Previous
London Gold Fix	1241.65	1235.35
Oil
WTI Crude Future	46.24	49.88

Market Commentary:
On this day in 1899, the Dow suffered its fifth-worst daily percentage loss of all time, rocked by news of heavy casualties in the battle against rebels in the Philippines. The index plunged 8.7%, or 5.57 points, to close the day at 58.27. [P.S. It’s 23,675 today]
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks opened higher, with the S&P/Toronto Stock Exchange Composite Index gaining 0.5 percent. Info tech and consumer discretionary stocks led the rise, while energy and health care fell.
     Aphria Inc. and Rapid Dose Therapeutics Inc. announced today that they have expanded the scope of a previously announced agreement that entails launching RDT’s QuickStrip in the German cannabis market. “Germany is one of the most sought- after cannabis markets today,” Aphria President Jakob Ripshtein said in a statement.
     The number of Canadian workers receiving unemployment benefits dropped for the third month, in part because of the expiry of an extended benefit imposed in the aftermath of the 2014 oil price drop, according to Statistics Canada. An estimated 439,600 Canadians received unemployment benefits in October, which is down 1.5 percent from September.
Stocks
* Advantage Oil & Gas (AAV CT) dropped 6.2 percent
* Aphria Inc. (APHA CT) jumped 4.5 percent after announcing it will work with Rapid Dose Therapeutics to introduce QuickStrip in Germany
* Baytex Energy Corp. (BTE CT) dropped 4.3 percent 
* Westshore Terminals Investment Corp. (WTE CT) rose 4.0 percent
Commodities
* Western Canada Select crude oil traded at a $17 discount to WTI
* Gold dropped 0.13 percent to $1,250 an ounce
FX/Bonds
* The Canadian dollar weakened by 0.15 percent to C$1.34264 per U.S. dollar
* The Canada 10-year government bond yield gained 0.4 basis points to 2.046 percent
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks held near a 14-month low in a volatile session that saw the gauge swing almost 2 percent from trough to peak. Oil tumbled.
     The S&P 500 Index ended virtually unchanged as investors braced for Wednesday’s Federal Reserve policy decision. Consumer and technology companies were the best performers, while energy shares sank along with crude. The benchmark U.S. oil grade dropped more than 8 percent at one point, tumbling past $46 a barrel as traders fretted about the outlook for growth.
     Treasuries and the Japanese yen advanced amid a lingering mood of caution after Chinese President Xi Jinping offered no fresh commitments to stimulate the world’s second-biggest economy in a keynote speech. Treasury Secretary Steven Mnuchin said the U.S. and China are planning to hold meetings next month to seek a trade truce. The dollar slipped and the euro strengthened.
     With equities beaten down in recent weeks, stock investors are increasingly pinning their hopes on the U.S. Federal Reserve taking a dovish turn Wednesday. While a rate hike is widely expected, historically the central bank has rarely raised borrowing costs during such market turmoil. President Donald Trump continued with his criticism of policy makers, warning them to avoid “yet another mistake” just hours before their two- day meeting begins.
     “We’re still in a very treacherous trading environment here, and I don’t think we’ve seen any signs yet that we’re getting out of that,” said Matt Forester, the chief investment officer at BNY Mellon’s Lockwood Advisors. “We have to continually be careful.”
     And beyond the Fed looms more trouble for markets: on Friday night, spending authority expires for a swathe of the U.S. government unless Trump and Congress reach a deal.
Here are some events investors will be watching in the days ahead:
* The Fed holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with Chairman Jerome Powell.
* The Bank of Japan’s monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also Thursday.
* A partial U.S. government shutdown could start this week if lawmakers and Trump fail to resolve how much money to allocate for Trump’s wall along the Mexican border.
And these are the main moves in markets:
Stocks
* The S&P 500 Index was little changed at the close of trading in New York.
* The Stoxx Europe 600 Index dipped 0.8 percent.
* The Nikkei-225 Stock Average fell 1.8 percent to the lowest since March.
* The MSCI Emerging Market Index fell 0.5 percent.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent.
* The euro rose 0.1 percent to $1.1364.
* The Japanese yen strengthened 0.2 percent to 112.57 per dollar.
Bonds
* The yield on 10-year Treasuries declined three basis points to 2.82 percent.
* Germany’s 10-year yield dipped one basis point to 0.24 percent.
* Britain’s 10-year yield rose two basis points to 1.28 percent.
Commodities
* West Texas Intermediate crude declined 7.3 percent to $46.24 abarrel.
* Gold rose 0.3 percent to $1,249.17 an ounce.
–With assistance from Cormac Mullen, Andreea Papuc, Christopher Anstey,
Samuel Potter, Todd White, Lu Wang and Alex Nussbaum.

Have a great night.

Be magnificent!

As ever,

Carolann

He who awaits much can expect little.
  -Gabriel Garcia Márquez,  1927-2014

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:
Saturnalia: The ancient Roman festival of Saturn began on December 17^th and ended on December 23^rd; it was the precursor to Christmas.  It involved feasting, gift-giving, gambling and role reversals – e.g., Roman Masters  served their slaves.
1790: Aztec calendar stone discovered.
On Dec. 17, 1903, Orville and Wilbur Wright made the first successful man-powered airplane flight, near Kitty Hawk, N.C.  Go to article »
Untouched 4,400-year-old tomb discovered in Egypt.
PHOTOS OF THE DAY

A young couple takes happy snaps in front of the snow-covered roofs of the so-called “Alter Flecken” (old spot), the historic core of downtown Freudenberg with is half-timbered houses from the 17th century in the heart of the federal state of North Rhine-Westphalia near the city of Siegen, Germany. Credit: Wolfgang Rattay/Reuters

A frosty sunset is seen through icicles in Peremilova village, 65 km (40,6 miles) north of Moscow, Russia. Temperatures in the Moscow region have dropped to -12 degree Celsius. Credit: Alexander Zemlianichenko/AP

The Geminid Meteor Shower over Sycamore Gap in Northumberland in the early hours. Credit: Daniel Monk/Bav Media
Market Closes for December 17^th, 2018

Market Index	Close	Change
Dow Jones	23592.98	-507.53   -2.11%
S&P 500	2545.94	-54.01   -2.08%
NASDAQ	6573.734	-156.931   -2.27%
TSX	14362.65	-232.42
		-1.59%

International Markets

Market Index	Close	Change
NIKKEI	21506.88	+132.05
		+0.62%
HANG SENG	26087.98	-6.81
		-0.03%
SENSEX	36270.07	+307.14
		+0.85%
FTSE 100*	6773.24	-71.93
		-1.05%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.046		2.102
CND. 30 Year Bond		2.219		2.276
U.S.    10 Year Bond		2.8588		2.8895
U.S. 30 Year Bond		3.1159		3.1433

Currencies

BOC Close	Today	Previous
Canadian $	0.74557	0.74705
US $	1.34125	1.33860
Euro Rate 1 Euro=		Inverse
Canadian $	1.52199	0.65703
US $	1.13475	0.88125

Commodities

Gold	Close	Previous
London Gold Fix	1235.35	1235.35
Oil
WTI Crude Future	49.88	51.20

Market Commentary:
The stock market is a device for transferring money from the impatient to the patient. -Warren Buffett.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell to their lowest close since September 2016 with every sector in the red, as crude prices settled below $50 a barrel for the first time in 14 months.
     The S&P/TSX Composite Index lost 1.6 percent to 14,362.65. Health-care stocks led the retreat, losing 4.6 percent as pot shares retreated amid a broader risk-off mood. Aurora Cannabis Inc. fell 5.5 percent.
     The energy sector slid 2.3 percent to the lowest since February 2016 as West Texas Intermediate prices fell 2.6 percent amid rising U.S. inventories. Cenovus Energy Inc. lost 4 percent while Canadian Natural Resources Ltd. fell 3.3 percent.
In other moves:
Stocks
* Shopify Inc. lost 7.4 percent, bringing its two-day decline to 19 percent, the most ever. The company said Friday that it would sell 2.6 million shares to strengthen its balance sheet, its second equity capital raise this year
* Katanga Mining Ltd. slid 9.5 percent. The company has agreed to settle with Canadian regulators over an investigation into its accounting practices
* Superior Plus Corp. added 1.3 percent after RBC Capital Markets upgraded the stock to outperform
Commodities
* Western Canada Select crude oil traded at a $12.50 discount to WTI
* Gold rose 0.8 percent to $1,247.40 an ounce, the highest since July
FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.3414 per U.S. dollar, the weakest since June 2017
* The Canada 10-year government bond yield fell 5 basis points to 2.05 percent, the lowest since January
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — U.S. equity indexes slid to their lowest close in 14 months as investors weighed the impact of the Federal Reserve on growth in an economy already anxious over trade, geopolitical tensions and a possible government shutdown.
     The S&P 500 Index finished Monday’s session its lowest level since October 2017. The technology, health-care and consumer sectors led the rout, but no segment of the benchmark went unscathed. Insurance stocks plunged after a court ruling jeopardized Obamacare, while Johnson & Johnson sank on fresh worries its asbestos scandal will intensify.
     At one point, the Dow Jones Industrial Average dropped more than 600 points. The Russell 2000 Index of smaller companies entered a bear market. The dollar dropped, while Treasuries gained. West Texas crude settled below $50 for the first time since October 2017 as glut fears grew.
     Investors will be scrutinizing the Fed’s statement Wednesday, as well as Jerome Powell’s news conference, for clues as to its intentions for 2019. One market observer has already weighed in: President Donald Trump tweeted Monday that it was “incredible” the central bank was considering a rate hike, given low inflation and a strong dollar.
     “The stock market, in particular, is very vulnerable to all of these speculations as to what’s going on, politically what’s going on outside our borders, who’s tweeting what, what the Fed’s going to do on Wednesday,” Terri Spath, chief investment officer at Sierra Mutual Funds, told Bloomberg TV.
     Global growth forecasts for next year are being trimmed as a trade war between the biggest economies bites and markets reel from a volatile 2018. Meanwhile, political uncertainty still grips investors. There are yet more personnel changes within the Trump administration and confusion remains over Britain’s future relationship with the European Union.
     U.S. Interior Secretary Ryan Zinke will leave at the end of the year amid a swirl of federal investigations. Investors will keep monitoring Brexit developments after Theresa May’s team pushed back against reports they are warming to a second referendum.
     Retailers led declines in the Stoxx Europe 600 Index as Asos Plc plunged after warning that its Christmas shopping season got off to a disastrous start.
Coming Up
* The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with Chairman Jerome Powell. 
* The Bank of Japan’s monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also Thursday.
* Chinese President Xi Jinping marks the 40th anniversary of Deng Xiaoping’s opening of the nation’s economy to the world with a keynote speech at a conference scheduled for Tuesday. 
* A partial U.S. government shutdown could start this week if lawmakers and Trump fail to resolve how much money to allocate for Trump’s wall along the Mexican border.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 2.1 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dropped 1.1 percent, the biggest fall in a week.
* The U.K.’s FTSE 100 Index fell 1.1 percent.
Currencies
* The Bloomberg Dollar Spot Index declined 0.3 percent.
* The euro rose 0.4 percent to $1.1346.
* The British pound jumped 0.3 percent to $1.2615.
* The Japanese yen increased 0.6 percent to 112.77 per dollar, the strongest in more than a week.
Bonds
* The yield on 10-year Treasuries dipped three basis points to 2.86 percent, the lowest in over a week.
* Germany’s 10-year yield gained less than one basis point to 0.26 percent.
* Britain’s 10-year yield rose three basis points to 1.266 percent.
Commodities
* The Bloomberg Commodity Index dipped 1.2 percent to the lowest in almost 18 months.
* West Texas intermediate crude declined 3.8 percent to $49.28 a barrel.
* Gold climbed 0.6 percent to $1,246.33 an ounce.
–With assistance from Susanne Barton, Masaki Kondo, Cormac Mullen, Adam Haigh and Eddie van der Walt.

Have a great evening.

Be magnificent!

As ever,

 

Carolann

 

It is a profitable thing, if one is wise, to seem foolish.
                                 -Aeschylus, c.525 BC-456 BC.

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!

1503 – Astronomer Nostradamus is born.
1911 – Amundsen reaches the South Pole.
1979 – The album “London Calling” by the Clash was released. Go to article »
PHOTOS OF THE DAY

Visitors stand in front of monumental silk lanterns depicting a palace, installed at the Foucaud Park in Gaillac, southwestern France, during the Lantern Festival. Monumental silk sculptures are exhibited in Gaillac from December 1, 2018 to February 6, 2019, as part of the Chinese traditional Lantern Festival marking the end of celebrations for the Chinese Lunar New Year period. Credit: Eric Cabanis/AFP/Getty Images

Dawn breaks and silhouettes Tower Bridge and commuters crossing the River Thames in London, UK. Credit: Reuters/Henry Nicholls

The Nutcracker performed by The English National Ballet at the London Coliseum. London, UK. Rina Kanehara as Clare, Fernando Carratala Coloma The Nutcracker. Credit: Alastair Muir

A 26 foot Christmas tree that Colin Furze has put in his house in Stamford, Lincolnshire, UK. The tree starts in his lounge (pictured) goes into his bedroom and then out through the roof. The 38-year-old YouTuber cut down the huge Norway Spruce fir tree, cut it in to three sections, and remarkably managed to squeeze into his three-bedroom house-with the tip of the tree poking out of the roof. Credit: The Telegraph
Market Closes for December 14^th, 2018

Market Index	Close	Change
Dow Jones	24100.51	-496.87   -2.02%
S&P 500	2599.95	-50.59   -1.91%
NASDAQ	6910.664	-159.669   -2.26%
TSX	14595.07	-155.28
		-1.05%

International Markets

Market Index	Close	Change
NIKKEI	21374.83	-441.36
		-2.02%
HANG SENG	26094.79	-429.56
		-1.62%
SENSEX	35962.33	+33.29
		+0.09%
FTSE 100*	6845.17	-32.33
		-0.47%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.102		2.158
CND. 30 Year Bond		2.276		2.327
U.S.    10 Year Bond		2.8895		2.9131
U.S. 30 Year Bond		3.1433		3.1694

Currencies

BOC Close	Today	Previous
Canadian $	0.74705	0.74903
US $	1.33860	1.33507
Euro Rate 1 Euro=		Inverse
Canadian $	1.51375	0.66061
US $	1.13084	0.88430

Commodities

Gold	Close	Previous
London Gold Fix	1235.35	1245.75
Oil
WTI Crude Future	51.20	52.58

Market Commentary:
The desire to get rich fast is pretty dangerous. – Charlie Munger
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks headed lower on rising concern over the health of the global economy. The S&P/Toronto Stock Exchange Composite Index fell 1.1 percent, led by tech and energy stocks, while health care, boosted by pot stocks, was the only outperformer.
     The mining royalty company Wheaton Precious Metals Corp. was the best performing stock within the S&P/TSX. The stock surged the most since 2008 as investors breathed a sigh of relief after it reached a settlement with the Canadian government that will mean a lower tax bill than many feared.
     Meanwhile, the Canadian e-commerce company, Shopify Inc. was the worst performing stock on the TSX, after announcing its second capital raise this year. The stock fell as the company planned a sale of 2.6 million Class A subordinate voting shares to strengthen its balance sheet, which follows a 4.8-million share offering earlier this year.
Stocks
* Wheaton Precious Metals Corp. rose 14 percent
* Shopify Inc. plunged 13 percent
* Weed stocks Aphria Inc. and Aurora Cannabis Inc. rose after Ontario said it will open cannabis retail stores in phases in response to a national supply shortage of marijuana,
* Alamos Gold Inc. dropped 6.6 percent, after announcing two employees are feared dead after a mining accident. The news comes after the miner’s stock slumped yesterday on Turkey challenges.
* Detour Gold Corp. fell 9.6 percent one day after a shakeup to its board Thursday 
Commodities
* Western Canada Select crude oil traded at a $12.50 discount to WTI
* Gold dropped 0.4 percent to $1,242.30 an ounce
FX/Bonds
* The Canadian dollar weakened by 0.3 percent to C$1.33905 per U.S. dollar
* The Canada 10-year government bond yield dropped 5.8 basis points to 2.096 percent
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks closed at their lowest level since April, with Treasuries rising alongside the yen, as mounting concern over the health of the global economy overshadowed positive trade developments and signs of strength from the American consumer.
     The S&P 500 Index tumbled 1.9 percent Friday, after testing February lows, erasing the week’s gains. Health-care and technology stocks were among the biggest decliners. The Dow Jones Industrial Average sank almost 500 points, led by Johnson & Johnson’s biggest rout in years amid mounting legal peril.
     Retailers retreated even after monthly data indicated U.S. consumers are still spending. Oil and gold fell. The sour mood on Wall Street came after equities slumped from Asia to Europe on concern that Chinese growth is slowing. President Donald Trump attributed the latest data to his trade war, even suggesting a deal could come soon. Investors took little solace in that, and earlier signs that trade tension was easing didn’t do much to calm nerves.
     “People see the challenges into 2019, and it’s the same litany of fundamental challenges with revenue growth, global growth, all of these questions,” said Yousef Abbasi, director of U.S. institutional equities and global market strategist at INTL FCStone. “They want to see something positive, but at the same time, they’re hesitant to react when it’s a small positive. It almost seems like they want the whole kit and caboodle.”
     Lackluster data also sent the euro down, as France’s “Yellow Vests” movement exacerbated a decline in the region’s PMI data to the lowest in more than four years. The pound slid after European leaders rebuffed Prime Minister Theresa May’s pleas to help her sell her Brexit agreement to a skeptical British parliament.
     Growth concerns came back into focus midweek after European Central Bank President Mario Draghi said economic risks were moving to the downside, while in China retail sales and industrial production figures for November fell significantly short of estimates. The weak readings from Europe on car sales and manufacturing simply added to the gloom.
Here are some key events for investors in the days ahead:
* The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with Chairman Jerome Powell. 
* A partial U.S. government shutdown could start next week if lawmakers and President Trump fail to resolve how much money to allocate for Trump’s wall along the Mexican border.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.9 percent as of 4 p.m. New York time, the biggest drop in a week.
* The Stoxx Europe 600 Index dipped 0.6 percent.
* The U.K.’s FTSE 100 Index decreased 0.5 percent.
* Germany’s DAX Index fell 0.5 percent.
* The MSCI Emerging Markets Index gained 0.7 percent.
Currencies
* The Bloomberg Dollar Spot Index jumped 0.3 percent to the highest in over a month.
* The euro sank 0.5 percent to $1.1303.
* The British pound dipped 0.5 percent to $1.2582.
* The Japanese yen rose 0.2 percent to 113.39 per dollar, its biggest climb in over a week.
Bonds
* The yield on 10-year Treasuries dipped two basis points to 2.89 percent, the first retreat in a week.
* Germany’s 10-year yield declined three basis points to 0.25 percent, the biggest decrease in more than a week.
* Britain’s 10-year yield declined five basis points to 1.24 percent.
Commodities
* West Texas Intermediate crude decreased 2.8 percent to $51.09 a barrel.
* Gold decreased 0.3 percent to $1,238.42 an ounce.
–With assistance from Matt Turner, Adam Haigh and Yakob Peterseil.

Have a wonderful weekend.

Be magnificent!

As ever,

 

Carolann

 

The secret of success is to know something nobody else knows.
                              -Aristotle Socrates Onassis, 1906-1975

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:
Today is Saint Lucia Day:  Lucia was a Sicilian girl caught up in the persecutions of Diocletian.  For refusing to marry a pagan, she was tormented and killed.  Her name derives from Latin lux, or light; she is patron saint of sufferers of eye trouble (as well as writers, known to be susceptible to eye strain!).
  In Sicily, Lucia is still honored by bonfires and torchlight parades.  In Sweden the observance of her day begins before sunrise.  The eldest daughter of the house is the Lussibruden, or Lucia Bride.  She wears a white dress with a red sash, and an evergreen wreath with lighted candles atop her head.  She serves saffron buns and coffee, first to her mother and then to the household.  She is followed by her sisters, carrying candles, and by her brothers in tall, pointed hats decorated with stars.  All sing carols offering thanks to the Queen of Light.
  Lucia’s attributes may derive from pagan traditions.  The feminine elements of midwinter and night are complemented by the starboys who follow her.  Like the moon, she brings radiance amidst the darkness.  She wears white to show…becoming a bride.  But, as the oldest girl, she is ready for marriage and childbearing (hence her red sash).  Her gifts of food and drink give evidence of earth’s abundance.
  However one may understand Luciadagen, the spectacle is breathtaking and the ritual is particularly joyful for children. ~John Miller
For more information on St. Lucia and Luciadagen, see www.umkc.edu/imc/stlucia.htm.

December 13^th, 2000 – Republican George W. Bush claimed the presidency 36 days after Election Day. Go to article »

PHOTOS OF THE DAY

Weather service technician Rene Sosna uses snowshoes as he walks back to the station of the German Meteorological Service after measuring the snow depth, in the Harz region, central Germany. Credit: Klaus-Dietmar Gabbert/AFP/Getty Images

A Mary Poppins stunt double rides on top of the Coca-Cola London Eye ahead of the European premiere of Mary Poppins Returns at the Royal Albert Hall. Credit: Kirsty O’Connor/PA

102-year-old great-grandmother Irene O’Shea during her skydive tandem jump in the South Australia town of Wellington, she is now believed to have become the world’s oldest skydiver after plunging 14,000 feet (4,300 metres) through the South Australian sky. Credit: Bryce Sellick/AGP/Getty Images
Market Closes for December 13^th, 2018

Market Index	Close	Change
Dow Jones	24597.38	+70.11   +0.29%
S&P 500	2650.54	-0.53   -0.02%
NASDAQ	7070.336	-27.976   -0.39%
TSX	14750.35	-32.71
		-0.2%

International Markets

Market Index	Close	Change
NIKKEI	21816.19	+213.44
		+0.99%
HANG SENG	26524.35	+337.64
		+1.29%
SENSEX	35929.64	+150.57
		+0.42%
FTSE 100*	6877.50	-2.96
		-0.04%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.158		2.132
CND. 30 Year Bond		2.327		2.280
U.S.    10 Year Bond		2.9131		2.9096
U.S. 30 Year Bond		3.1694		3.1497

Currencies

BOC Close	Today	Previous
Canadian $	0.74903	0.74906
US $	1.33507	1.33500
Euro Rate 1 Euro=		Inverse
Canadian $	1.51641	0.65945
US $	1.13583	0.88042

Commodities

Gold	Close	Previous
London Gold Fix	1245.75	1245.30
Oil
WTI Crude Future	52.58	51.15

Market Commentary:
On this day in 1961, the longest bull market ever for the Dow industrials ground to a halt. The index peaked at 734.91, up 0.89 point for the day and 355% for the previous 12 1/2 years. Within six months, the Dow would bottom at 535.76, a 27% plunge. The blue-chip index closed at 24527.27 Wednesday.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks lost their earlier gains and closed the session 0.2 percent lower, led mostly by two-day decline in pot stocks. The Horizons Marijuana Life Sciences ETF fell 8 percent in last two days, ahead of potential legalization in New Jersey on December 17. Aphria Inc. was among the worst performing pot stocks, with two-day slump of 14 percent.
     Canada’s mining sector received much investor attention after Paulson & Co. convinced shareholders of Detour Gold Corp. to overthrow the bulk of the Canadian miner’s board of directors, including its interim CEO, ending a nasty six-month proxy battle. Meanwhile Private equity firm Waterton Global Resource Management plans to nominate a majority slate of directors and propose a new CEO at Hudbay Minerals Inc. in an effort to improve its performance.
     On the economic data side, Toronto new home prices dropped the fastest in more than two decades in October, adding further evidence that tighter mortgage lending has slowed a boom in the city. Statistics Canada’s price index for new Toronto homes fell 1.4 percent in October from a year earlier, the most since September 1996. Across the country, the price increase of 0.1 percent was the slowest since 2010.
Stocks
* Empire Co. rose 11 percent as it posted second-quarter adjusted EPS that beat the highest estimate 
* AltaGas rose 10 percent after reporting a cut to dividend, and further asset sales 
* Baytex Energy Corp. climbed 8.4 percent. Cormark Securities Inc. said Canadian energy companies are garnering investors’ attention. 
* Alamos Gold Inc. fell 6.4 percent after Desjardins downgraded the stock on reports from local press in Turkey that development activities have slowed at company’s Kirazl? project
* Aurora Cannabis Inc. fell 6.6 percent, after company said it will invest C$10 million in High Tide
Commodities
* Western Canada Select crude oil traded at a $12 discount to WTI
* Gold dropped 0.2 percent to $1,247.10 an ounce FX/Bonds
* The Canadian dollar remained flat around C$1.3353 per U.S. dollar
* The Canada 10-year government bond yield dropped 2.4 basis points to 2.15 percent
US
By Vildana Hajric and Sarah Ponczek
(Bloomberg) — U.S. equities languished Thursday, with small caps leading declines, as trade tensions continued to weigh on financial markets. The dollar jumped after the European Central Bank sounded a cautious note on growth.
     The S&P 500 Index finished the session little changed, with about three decliners in the benchmark for every two that rose.
     Utilities advanced, while banks came under pressure. The Dow Jones Industrial Average eked out a gain, led by Procter & Gamble and McDonald’s. The greenback edged higher as U.S. jobless claims came in below estimates. Treasuries were little changed.
     Investors are studying the latest moves in the global trade tug of war, after Chinese importers resumed buying U.S. soybeans and Beijing reiterated that its officials were in close contact with Washington counterparts on negotiating details of a broader deal.
     But worries remain: China detained a second citizen of Canada for questioning, further heightening tensions between the two countries, and Trump administration officials on Wednesday signaled that Beijing will have to do more to end the tariff war. U.S. Commerce Secretary Wilbur Ross said on Thursday that there have been “frequent conversations” with China, which gave a good road map to resolving many issues.
     “On the fixed-income side, investors are focused on economic growth and what the Fed is thinking about for next year,” said Jim Barnes, director of fixed income at Bryn Mawr Trust. “On the equity side, it continues to trade on headline news related to trade. That’s been happening for a while and it continues to happen.”
     The ECB kept interest rates unchanged, confirmed an end to its asset-purchase program and provided more details on its reinvestment plan. Speaking after the decision, President Mario Draghi said the balance of risks to the euro area had moved to the downside.
     The pound gained after European Union leaders were said to be set to discuss issuing a declaration on the Irish backstop that would help Prime Minister Theresa May get a Brexit deal through Parliament. The Stoxx Europe 600 Index finished lower, while Hong Kong and Chinese shares outperformed as equities across Asia extended their rebound.
     West Texas crude climbed above $53 a barrel after Saudi Arabia was said to be planning to slash exports to the U.S. in the coming weeks. Gold declined.
Still to come this week:
* China industrial production, retail sales data for November is due Friday.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell less than 0.05 percent as of 4:02 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.2 percent.
* The U.K.’s FTSE 100 Index declined less than 0.05 percent.
* Germany’s DAX Index fell less than 0.05 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2 percent.
* The euro declined 0.1 percent to $1.1361.
* The British pound climbed 0.3 percent to $1.2664.
* The Japanese yen dipped 0.3 percent to 113.60 per dollar.
Bonds
* The yield on 10-year Treasuries gained less than one basis point to 2.91 percent.
* Germany’s 10-year yield rose one basis point to 0.29 percent.
* Britain’s 10-year yield climbed one basis point to 1.289 percent.
Commodities
* West Texas Intermediate crude rose 3.7 percent to $53.04 a barrel, its biggest gain in more than a week.
* Gold fell 0.2 percent to $1,242.78 an ounce.
–With assistance from Luke Kawa, Sydney Maki, Austin Weinstein, Sarah Ponczek, Adam Haigh and Todd White.

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

Never be afraid to sit awhile and think.
     -Lorraine Hansberry,  1930-1965

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:
Frank Sinatra, b. 1915
Gustave Flaubert, b. 1821

Dec. 12^th, 1901 – Marconi Claims to Have Received a Transatlantic Radio Signal in Morse Code. Go to article »

Our ignorance of history makes us libel our own times.  People have always been like this. -Gustave Flaubert.

A heated session of the British Parliament turned to chaos Monday night when a member of the House of Commons grabbed a five-foot-long, silver-gilt mace and tried to leave the chamber.

Lloyd Russell-Moyle, center foreground in light blue suit and glasses, was intercepted while trying to remove a ceremonial mace.  Reuters 

The mace represents the crown’s authority, and Parliament can’t sit or pass laws without it.

Traditionally, the person in charge of guarding the mace — and restoring order after rare mace-snatchings — is the sergeant-at-arms.

The sergeant’s role, which dates to 1415, is to escort the speaker of the house before each sitting, carrying the mace during the procession, and to maintain order during the sitting.

You can’t miss the sergeant — the traditional uniform includes a frilly lace collar and cuffs, silk stockings and black patent-leather shoes. A sword can also come in handy.

After Monday’s breach of protocol, the troublemaking lawmaker said: “They stopped me before I got out of the chamber and I wasn’t going to struggle with someone wearing a huge sword on their hip.” -from The New York Times, December 12, 2018

PHOTOS OF THE DAY

The sun sets behind the Statue of Liberty from Battery Park. Credit: Gary Hershorn/Getty Images

Dog walkers at dawn under a fireglow sky on the beach at Tynemouth, on the coast of northeast England. Credit: Owen Humphreys/PA Wire

Sun rays fall through the clouds over the banking district as a runner passes by in Frankfurt, Germany. Credit: AP Photo/Michael Probst

Internationally acclaimed artist Olafur Eliasson, working in collaboration with leading geologist Minik Rosing, will display blocks of melting ice across two public sites in the centre of London to create a major artwork, Ice Watch. Supported by Bloomberg Philanthropies, Ice Watch will serve as a visceral reminder of the impact of climate change. Credit: Alex Lentati/Evening Standard/Eyevine
Market Closes for December 12^th, 2018

Market Index	Close	Change
Dow Jones	24527.27	+157.03   +0.64%
S&P 500	2651.07	+14.29   +0.54%
NASDAQ	7098.313	+66.481   +0.95%
TSX	14783.06	+115.23
		+0.79%

International Markets

Market Index	Close	Change
NIKKEI	21602.75	+454.73
		+2.15%
HANG SENG	26186.71	+415.04
		+1.61%
SENSEX	35779.07	+629.06
		+1.79%
FTSE 100*	6880.19	+79.17
		+1.16%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.132		2.081
CND. 30 Year Bond		2.280		2.228
U.S.    10 Year Bond		2.9096		2.8790
U.S. 30 Year Bond		3.1497		3.1261

Currencies

BOC Close	Today	Previous
Canadian $	0.74906	0.74730
US $	1.33500	1.33814
Euro Rate 1 Euro=		Inverse
Canadian $	1.51856	0.65852
US $	1.13750	0.87912

Commodities

Gold	Close	Previous
London Gold Fix	1245.30	1245.30
Oil
WTI Crude Future	51.15	51.65

Market Commentary:
On this day in 1914, the New York Stock Exchange reopened after closing in July amid jitters over the outbreak of World War I. By the end of 1915, the stock market had risen nearly 82% as Western Europe supplied its war effort with American-made goods and weapons.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks closed the session higher, with the broader U.S. market, after the S&P/Toronto Stock Exchange Composite Index reached a two-year low yesterday. The best performing sector was technology, led by Shopify Inc.’s three-day advance.
     The S&P/Toronto Stock Exchange Composite Index rose 0.8 percent. Real estate was the worst performing sector on the TSX, led by Canadian Apartment Properties REIT, which fell 4.3 percent after announcing an offering of C$250 million in a bought deal.
     Meanwhile, Canadian exporters are worrying they could be caught in the cross hairs amid tensions between Canada and China after Canada’s arrest of Huawei Technologies Co. CFO and as China’s spy agency detained former Canadian diplomat Michael Kovrig. China is one of Canada’s biggest buyers of agricultural products, from oilseeds to softwood lumber, and is a growing market for the nation’s banks, insurers and luxury-goods makers.
Stocks
* Maxar Technologies Ltd. rose 7.6 percent after falling for 3 days
* Kelt Exploration Ltd. climbed 7.3 percent, to post a 2-day gain of 9.7 percent
* Pretium Resources Inc., Endeavour Mining Corp and Iamgold Corp. were among some the best performing precious metals miners as gold, silver rose
* Bombardier Inc. gained 2.6 percent amid plans to debut a $73 million luxury jet
* Pot stock Aphria Inc. fell 4.5 percent after rising for the last 2 sessions
Commodities
* Western Canada Select crude oil traded at a $12.75 discount to WTI
* Gold gained 0.2 percent to $1,244.40 an ounce
FX/Bonds
* The Canadian dollar rose 0.2 percent to C$1.3368 per U.S. dollar
* The Canada 10-year government bond yield gained 4.2 basis points to 2.12 percent
US
By Sarah Ponczek and Luke Kawa
     (Bloomberg) — U.S. stocks advanced as the outlook for trade took a positive turn and the British prime minister defeated a challenge to her leadership.
     The S&P 500 rose 0.5 percent after an afternoon slump that pared its gain by more than half. It marked the fourth straight day that investors sold an early rally, a trend that’s a stark reversal from months where traders bought any meaningful dip.
     Oil’s retreat coincided with the move, amid reports that deep discord exists among OPEC members ahead of planned output cuts.
     “We’re in a stock market correction. All rallies are suspect,” said Michael Antonelli, the managing director at Robert W. Baird & Co. The early gains came as signs emerged that trade tensions would ease, first after the arrested Huawei executive was granted bail and then when President Donald Trump suggested he could use his influence to calm that situation as part of a deal with China. For its part, China hinted that it would ease access to local markets. The Asian country is also making its first sizable purchase of U.S. soybeans since the countries imposed tariffs.
     The British pound surged the most in a month on speculation Theresa May will survive the vote of confidence and mostly held onto the gains after her victory was confirmed. Treasuries and the dollar both slipped as data showed a key measure of U.S. inflation picked up as expected in November.
     While developments on trade tends and Brexit have been at the forefront for investors, they’re also keeping watch on the risk of a shutdown of parts of the U.S. government. Trump is at odds with Democratic leaders in Congress over funding for a border wall with Mexico.
     Elsewhere, India’s bonds rallied after an ally of Prime Minister Narendra Modi was named as the new central bank chief.
Here are some key events on the calendar this week:
* The European Central Bank is set to end asset purchases at its final policy meeting of 2018 on Thursday.
* China industrial production, retail sales data for November is due Friday.
And these are the main moves in markets:
Stocks
* The S&P 500 Index advanced 0.5 percent at the close of trading in New York.
* The Stoxx Europe 600 Index jumped 1.7 percent to the highest in a week.
* The Nikkei-225 Stock Average added 2.2 percent.
* The MSCI Emerging Market Index advanced 1.6 percent.
Currencies
* The Bloomberg Dollar Spot Index decreased 0.4 percent.
* The euro increased 0.5 percent to $1.1373.
* The British pound jumped 1 percent to $1.2615.
* The Japanese yen gained 0.1 percent to 113.24 per dollar.
Bonds
* The yield on 10-year Treasuries climbed three basis points to 2.91 percent.
* Germany’s 10-year yield climbed five basis points to 0.28 percent.
* Britain’s 10-year yield jumped nine basis points to 1.28 percent.
Commodities
* West Texas Intermediate crude fell 1 percent to $51.14 a barrel.
* Gold advanced 0.2 percent to $1,245.86 an ounce.
–With assistance from Andreea Papuc, Adam Haigh, Christopher Anstey, Samuel Potter and Robert Brand.

Have a great evening. 

Be magnificent!

As ever,

Carolann

It is better to know some of the questions than all of the answers.
                                             -James Grover Thurber, 1894-1961

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