Month: January 2019

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A visitor looks at the Shipwiths & CAIS stand at London Art Fair at the Business Design Centre in Islington. Credit:  Julian Simmonds for The Telegraph

A firefighter builds a snowman on a rooftop in the small Bavarian village Wallgau near Garmisch-Partenkirchen, southern Germany. Credit:  Christof Stache/AFP/Getty Images

Stunt rider Danny MacAskill rides over a bridge in Glencoe, Scotland. Credit: Dave Mackison
Market Closes for January 16^th, 2019

Market Index	Close	Change
Dow Jones	24207.16	+141.57   +0.59%
S&P 500	2616.10	+5.80   +0.22%
NASDAQ	7034.695	+10.861   +0.15%
TSX	15111.26	+64.98
		+0.43%

International Markets

Market Index	Close	Change
NIKKEI	20442.75	-112.54
		-0.55%
HANG SENG	26902.10	+71.81
		+0.27%
SENSEX	36321.29	+2.96
		+0.01%
FTSE 100*	6862.68	-29.29
		-0.42%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.997		1.969
CND. 30 Year Bond		2.222		2.194
U.S.    10 Year Bond		2.7218		2.7112
U.S. 30 Year Bond		3.0711		3.0734

Currencies

BOC Close	Today	Previous
Canadian $	0.75435	0.75380
US $	1.32564	1.32660
Euro Rate 1 Euro=		Inverse
Canadian $	1.51120	0.66172
US $	1.13998	0.87721

Commodities

Gold	Close	Previous
London Gold Fix	1294.40	1292.75
Oil
WTI Crude Future	52.31	52.11

Market Commentary:
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks extended gains for a ninth consecutive session, the longest winning streak since May 2018.
     The S&P/Toronto Stock Exchange Index closed Wednesday’s session up 0.4 percent. Miners helped lead the advance as metals got a boost from optimism surrounding China’s efforts at economic stimulus. The share moves were supercharged for miners such as First Quantum Minerals Ltd. and Centerra Gold Inc. as they reported preliminary production results and 2019 guidance, which beat analysts estimates. But Iamgold Corp. was among the worst performing miners as its 2019 guidance failed to impress the Street.
     Housing market sales in Vancouver plunged 32 percent last year, driving down prices 6.5 percent over the past six months, according to Canadian Real Estate Association data. Toronto also saw sales fall sharply, but by half as much as Vancouver and with prices in Canada’s biggest city little changed in recent months. While the country’s two most expensive real estate markets have both been hit hard by higher interest rates and tougher mortgage regulations, the data suggest Toronto is faring better and showing signs of stabilizing, while Vancouver continues its slide.
Stocks
* NFI Group Inc. plunged 14 percent after announcing fourth quarter 2018 deliveries, orders and a 2019 outlook 
* First Quantum Minerals gained 15 percent after reporting fourth quarter and 2018 production
* Centerra Gold gained 6.9 percent after a 2019 production outlook beat analyst estimates
* Alamos Gold Inc. rose 7.7 percent in two days after 2018 gold production rose 18 percent 
Commodities
* Western Canada Select crude oil traded at a $8.00 discount to WTI
* Gold gained about 0.3 percent to $1,293.50 an ounce
FX/Bonds
* The Canadian dollar rose about 0.05 percent to C$1.3259 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.991%
US
By Randall Jensen and Reade Pickert
     (Bloomberg) — Stocks gained as signs of a better-than-expected start to the earnings season countered concerns about rising U.S.-China tensions. The dollar rose, while Treasuries declined.
     The S&P 500 advanced for a second day to within a whisker of its average price over the past 50 days, a level it hasn’t breached since early December. Financials buoyed major indexes as Goldman Sachs and Bank of America surged following quarterly reports. The tech-heavy Nasdaq 100 erased gains late in the trading session after a report said U.S. prosecutors are investigating Huawei Technologies for allegedly stealing trade secrets.
     The 10-year Treasury yield rose to around 2.72 percent, while the dollar gained against almost all major currencies. In Europe, Deutsche Bank gained after regulators were said to favor a merger with a European lender. The pound rose versus most peers after Prime Minister Theresa May’s government won a no-confidence vote. West Texas crude rose above $52 a barrel.
    “I think what you’re seeing with the financials and banks in particular is part of just a wider risk-on rally,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance. “I think the financials are benefiting from both being relatively undervalued as well as just getting that cyclical tailwind.”
     The mood in equity markets remains fairly buoyant after China pledged to step up efforts to support growth and European Central Bank President Mario Draghi said the euro area will avoid a recession even though recent data signaled softening momentum. Bank of America’s Chief Financial Officer Paul Donofrio further reassured investors, saying on an earnings call that he’d seen nothing to suggest an economic slowdown is imminent.
     Still, there are plenty of worries to give investors pause before taking this month’s rally further. The political impasse in Washington continues to leave swathes of the federal U.S. government shuttered, and the U.K.’s Brexit drama threatens to impair business confidence in the second-largest European economy.
Here are some important events coming up:
* A confidence motion vote will take place after 7 p.m. in London as the opposition Labour Party tries to force a general election.
* Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor are posting results.
These are the main moves in markets:
Stocks
* The S&P 500 Index climbed 0.2 percent as of 4 p.m. New York time after rising as much as 0.6 percent.
* The Stoxx Europe 600 Index increased 0.5 percent, the highest in five weeks.
* The U.K.’s FTSE 100 Index sank 0.5 percent.
* The MSCI Emerging Market Index rose 0.5 percent.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.1 percent to the highest in more than a week.
* The euro dipped 0.1 percent to $1.1402.
* The British pound was little changed at to $1.2863.
* The Japanese yen fell 0.2 percent to 108.89 per dollar.
Bonds
* The yield on 10-year Treasuries climbed one basis point to 2.72 percent.
* Germany’s 10-year yield advanced two basis points to 0.22 percent.
* Britain’s 10-year yield gained seven basis points to 1.326 percent, the highest in almost seven weeks.
Commodities
* West Texas Intermediate crude rose 0.5 percent to $52.38 a barrel.
* Gold gained 0.4 percent to $1,293.40 an ounce.

Have a great night.

Be magnificent!

As ever,

Karen

“Education is the most powerful weapon which you can use to change the world.” – Nelson Mandela

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:
Martin Luther King Jr, b. 1929
1943, Pentagon completed.
January 15, 2009 – US Airways Capt. Chelsey Sullenberger guided a jetliner disabled by a bird strike just after takeoff from New York’s LaGuardia Airport to a safe landing in the Hudson River. All 155 people aboard survived. Go to article »

It’s time for the Kumbha Mela. What, you’ve never heard of it? It’s only the largest gathering of humanity in the world. -CNN
The statues on Easter Island hold many mysteries, but researchers think they’ve solved one of them.

PHOTOS OF THE DAY

Britain’s Prince Harry, Duke of Sussex (R) and Meghan, Duchess of Sussex, view a new sculpture erected to mark the 100th  anniversary of the poet Wilfred Owen’s death, during their visit to Birkenhead, northwest England. The Duke and Duchess viewed a new sculpture erected in to mark the 100th anniversary of the poet Wilfred Owen’s death. The statue, by artist Jim Whelan, is entitled ‘Futility’ after one of Owen’s poems, is cast in bronze and represents an exhausted World War One solider. Credit: Paul Eillis/AFP/Getty Images

A dragon lantern is illuminated during a lantern show to mark the upcoming Lunar New Year of the Pig in Hong Kong, China. Credit: Zhou Yi/China News Service/VCG Via Getty Images

Nest Light Artwork ‘Welcome to The Forest’ celebrating Waltham Forest becoming Borough of Culture, London, UK. Credit: Jack Dredd/Rex
Market Closes for January 15^th, 2019

Market Index	Close	Change
Dow Jones	24065.59	+155.75   +0.65%
S&P 500	2610.30	+27.69   +1.07%
NASDAQ	7023.836	+117.920   +1.71%
TSX	15046.28	+70.75
		+0.47%

International Markets

Market Index	Close	Change
NIKKEI	20555.29	+195.59
		+0.96%
HANG SENG	26830.29	+531.96
		+2.02%
SENSEX	36318.33	+464.77
		+1.30%
FTSE 100*	6895.02	+44.46
		+0.65%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.969		1.961
CND. 30 Year Bond		2.194		2.171
U.S.    10 Year Bond		2.7112		2.7006
U.S. 30 Year Bond		3.0734		3.0503

Currencies

BOC Close	Today	Previous
Canadian $	0.75380	0.75324
US $	1.32660	1.32761
Euro Rate 1 Euro=		Inverse
Canadian $	1.51331	0.66081
US $	1.14074	0.87663

Commodities

Gold	Close	Previous
London Gold Fix	1292.75	1288.95
Oil
WTI Crude Future	52.11	51.23

Market Commentary:
On this day in 2008, in the depths of the financial crisis, Citigroup eliminated 4,200 jobs and secured $14.5 billion in fresh capital from a group of investors after it announced a fourth-quarter loss of $9.8 billion.
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose for the eighth day, climbing 0.5 percent, or 70.75 to 15,046.28 in Toronto. The index advanced to the highest closing level since Dec. 5. 
     Enbridge Inc. contributed the most to the index gain, increasing 2.0 percent. Precision Drilling Corp. had the largest increase, rising 6.8 percent.
     Today, 140 of 239 shares rose, while 95 fell; 7 of 11 sectors were higher, led by energy stocks.
===============================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 49.4416| 1.8| 37/6
Financials | 24.3232| 0.5| 14/12
Information Technology | 8.9959| 1.5| 9/0
Utilities | 7.5023| 1.3| 11/4
Industrials | 1.3255| 0.1| 18/10
Consumer Staples | 0.6751| 0.1| 5/5
Communication Services | 0.0816| 0.0| 3/4
Consumer Discretionary | -0.5108| -0.1| 9/8
Real Estate | -0.5700| -0.1| 12/9
Health Care | -1.3097| -0.5| 6/3
Materials | -19.1927| -1.2| 16/34
================================================================
Top Contributors |Index Points Move| % Change
================================================================
Enbridge Inc | 13.3800| 2.0
Suncor Energy | 9.1010| 2.0
TD Bank | 8.8820| 1.0
Canadian National | -2.1260| -0.4
Canopy Growth | -2.3840| -2.8
Barrick Gold | -7.5700| -3.7
================================================================
Biggest Gainers | % Change |Index Points Move
================================================================
Precision Drilling | 6.8| 0.3980
CES Energy | 5.2| 0.3150
Husky Energy | 4.7| 1.5030
================================================================
Biggest Losers | % Change | Index Points Move
================================================================
First Majestic | -10.1| -0.9600
Aphria | -5.0| -0.7190
New Gold | -4.9| -0.2890
* The Canadian dollar fell 0.08 percent to 1.3275 against the U.S. dollar
* The benchmark 10-year bond fell and the yield rose 0.5 basis points to 1.969 percent
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — Technology stocks fueled a rally after China ratcheted up stimulus to combat slowing growth. The pound turned higher after U.K. politicians voted down a Brexit deal.
     The S&P 500 gained the most in more than a week, rising above the key 2,600 level — which it failed to breach on three occasions last week — for the first time in a month. The tech- heavy Nasdaq 100 recouped two days of losses after China announced more measures to boost its economy, easing concerns about the impact of the trade war. Netflix Inc. surged after saying it planned to raise prices, while the rest of the FAANG cohort rose by at least 2 percent.
     The pound erased a decline against the dollar after British lawmakers overwhelmingly voted down a Brexit deal and planned a confidence vote on Prime Minister Theresa May’s government, spurring speculation Britain’s exit from the European Union could be derailed. The 10-year Treasury yield traded around 2.71 percent, while the dollar advanced against major peers. The euro dropped after European Central Bank President Mario Draghi said the economy is weaker than expected.
     “The market today is reacting favorably to the second-largest economy in the world actually doing stimulus rather than trying to throttle their economy,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co. “Tech has a lot to do with what happens in China also. The tech sector has more revenues coming from China than any other sector in the U.S.”
     The potential stimulus in China and warm welcome it received from markets reflects the delicate balance underpinning 2019’s risk-asset rebound: The same weak macro data that prompted a sell-off at the end of last year has the potential to spur looser monetary policies and therefore ignite a rally.
     Plenty of risks are clouding the outlook, not least the ongoing U.S. shutdown and the increasingly frantic countdown to Brexit.
     Investors must also factor in corporate earnings as the results season gets underway.
Here are some important events coming up:
* Some of the world’s biggest banks announce earnings, including Bank of America, Morgan Stanley and Goldman Sachs. Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express and BlackRock also post results. 
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1.1 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index advanced 0.4 percent.
* Germany’s DAX Index gained 0.3 percent.
* The MSCI Asia Pacific Index rose 1.1 percent.
* The MSCI Emerging Market Index gained 1.2 percent.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.2 percent.
* The euro declined 0.5 percent to $1.1407.
* The British pound rose 0.2 percent at $1.284 after falling as much as 1.5 percent.
* The Japanese yen dropped 0.5 percent to 108.67 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 2.71 percent.
* Germany’s 10-year yield decreased two basis points to 0.21 percent, the lowest in more than a week.
* Britain’s 10-year yield declined four basis points to 1.258 percent.
Commodities
* West Texas Intermediate crude climbed 3.1 percent to $52.08 a barrel.
* Gold fell 0.2 percent to $1,289.10 an ounce.
–With assistance from Cormac Mullen, Arie Shapira, Samuel Potter, Reade Pickert and Brendan Walsh.

Have a great night.

Be magnificent!

As ever,

Carolann

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

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
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:
1784: End of the American Revolution.
January 14^th, 2004 President George W. Bush unveiled a plan to send astronauts to the moon, Mars and beyond.  Go to article »

Albert Schweitzer, philosopher, b. 1869
You must give some time to your fellow men.  Even if it’s a little thing, do something for others- something for which you get no pay but the privilege  of doing it. –Albert Schweitzer.

ICYMI
Our nice neighbors from the north proved it again. Canadian air traffic controllers sent pizza to their US counterparts hit by the shutdown. -CNN
PHOTOS OF THE DAY

A dog enjoys a balmy day out in a carrier on the back of a red Vespa scooter motorcycle in Muswell Hill, North, London. Credit: Jon Rosenthal/Alamy Live News

An Amazigh (Berber) girl participates in a rally to celebrate their new year known as Yennayer in Rabat, Morocco. Credit: Xinhua/Rex

People wearing loin cloths pray as they bathe in ice-cold water in a ceremony to purify their souls and wish for good health in the new year at the Teppozu Inari shrine in Tokyo, Japan. Credit: Issei Kato/Reuters
Market Closes for January 14^th, 2019

Market Index	Close	Change
Dow Jones	23909.84	-86.11   -0.36%
US S&P 500	2581.69	-14.57   -0.36%
NASDAQ	6905.914	-65.562   -0.94%
TSX	14969.69	+30.51
		+0.20%

International Markets

Market Index	Close	Change
NIKKEI	20359.70	+195.90
		+0.97%
HANG SENG	26298.33	-368.94
		-1.38%
SENSEX	35853.56	-156.28
		-0.43%
FTSE 100*	6855.02	-63.16
		-0.91%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.961		1.957
CND. 30 Year Bond		2.171		2.163
U.S.    10 Year Bond		2.7006		2.6954
U.S. 30 Year Bond		3.0503		3.0296

Currencies

BOC Close	Today	Previous
Canadian $	0.75324	0.75391
US $	1.32761	1.32643
Euro Rate 1 Euro=		Inverse
Canadian $	1.52264	0.65676
US $	1.14691	0.87191

Commodities

Gold	Close	Previous
London Gold Fix	1288.95	1291.90
Oil
WTI Crude Future	51.23	51.59

Market Commentary:
On this day in 1982, Ford announced that it would skip paying a quarterly dividend for the first time since the company went public in 1956, a move that would save it $36 million per quarter. Late last week, Ford said it is launching an overhaul of its money-losing European business that is expected to include thousands of job cuts, plant closures and the cancellation of low-profit models.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks edged higher Monday morning as investors watched to see whether they can extend their winning streak to seven sessions.
     Communication services and industrials were the biggest gainers among industry groups in Toronto while information technology and utilities declined the most. Prime Minister Justin Trudeau shuffled his cabinet after one of his senior ministers decided not to seek re-election this fall.
Stocks
* Goldcorp Inc. surged as much as 12 percent after rival Newmont Mining Corp. agreed to buy the company in a deal valued at $10 billion, creating the world’s largest gold miner
* Eldorado Gold Corp. fell as much as 6.4 percent after National Bank Financial downgraded its rating to sector perform from outperform
Commodities
* Western Canada Select crude oil traded at a $6.95 discount to WTI
* Gold rose 0.1 percent to $1,291.72 an ounce; London gold closed at $1288.95.
FX/Bonds
* The Canadian dollar strengthened less than 0.1 percent to C$1.32608 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.961%
US
By Randall Jensen and Reade Pickert
     (Bloomberg) — U.S. stocks declined as weak Chinese trade data fueled concerns about slowing global growth. Treasuries were little changed and the dollar dropped.
     The S&P 500 fell for only the third time this month, led by technology companies after China’s slumping exports fueled worries about the growing impact of the U.S.-China trade war on worldwide growth. Drugmakers slid amid a probe by U.S. lawmakers into pricing, while PG&E plunged 54 percent after the utility said it will file for bankruptcy. Citigroup said the trading environment was starting to improve, helping to boost the bank’s stock and other financial shares.
     The 10-year Treasury yield pared an early decline to trade higher, while the dollar fell against most major currencies. In Europe, the Stoxx Europe 600 Index snapped four days of gains, also dragged lower by tech. The euro was steady following data showing industrial output slowed, and the pound rose before Tuesday’s crucial vote on Brexit.
     “There are two macro events that continue to weigh on market perspective,” Frances Donald, head of macroeconomic strategy at Manulife Asset Management, said in an interview. “The first is where is global growth heading next, and weak Chinese trade data would suggest that global growth is certainly not bottomed as of yet. And the second issue is the persistence of the U.S. government shutdown and how that muddies our perspective about what happens next.”
     This month’s buoyancy in global equities, triggered by signs of progress in U.S.-China trade talks and dovish commentary from Federal Reserve officials, faces a test with the Chinese data underscoring the impact of the trade spat. The next hurdles to clear will be a slew of U.S. bank profit reports at the start of the earnings season, amid worries global growth is slowing. Also weighing on sentiment is the partial U.S government shutdown that’s entered its fourth week.
     Elsewhere, West Texas Intermediate crude traded around $51 a barrel. Emerging-market currencies and shares fell.
Here are some important events coming up:
* Some of the world’s biggest banks announce earnings, including JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs. Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express and BlackRock also post results. 
These are the main moves in markets:
Stocks
* The S&P 500 Index declined 0.5 percent as of 4 p.m. New York time.
* The Nasdaq Composite Index dropped 0.9 percent, falling for a second session. 
* The Stoxx Europe 600 Index fell 0.5 percent, the first retreat in a week.
* The MSCI All-Country World Index decreased 0.4 percent, the first retreat in more than a week.
* The MSCI Emerging Market Index sank 0.8 percent, the biggest drop in more than a week.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent.
* The euro was steady at $1.1467.
* The Japanese yen gained 0.3 percent to 108.20 per dollar.
* The British pound gained 0.1 percent at $1.2861.
* The MSCI Emerging Markets Currency Index sank 0.1 percent.
Bonds
* The yield on 10-year Treasuries were steady at 2.70 percent
* Germany’s 10-year yield decreased one basis point to 0.23 percent.
* Britain’s 10-year rose basis point to 1.297 percent.
Commodities
* The Bloomberg Commodity Index rose 0.3 percent.
* West Texas Intermediate crude fell 1.9 percent at $50.60 a barrel.
* Gold increased 0.2 percent to $1,291.70 an ounce.
–With assistance from Sarah Ponczek and Eddie van der Walt.

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

All the mind’s activity is easy if it is not subjected to reality.
                                           -Marcel Proust, 1871-1922

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!

On Jan. 11, 1964, the United States surgeon general reported that cigarettes cause lung cancer. Go to article »

“When Breath Becomes Air” by Paul Kalanithi

A 36-year-old neurosurgeon gets diagnosed with Stage IV lung cancer. Turns out, the surgeon is also a brilliant writer who will make you cry in public. This book, published posthumously, will make sure you don’t take your health for granted. -as recommended in the Skimm, January 11, 2019

I read When Breath Becomes Air when it was first published a few years ago and I highly recommend it, a worthwhile selection on this auspicious anniversary day.

PHOTOS OF THE DAY

People watch an immersive video introduction to Qualcomm 5G technology at the Las Vegas Convention Center during CES 2019 Las Vegas. Credit: David McNew/AFP/Getty Images

A highway in southwest China has become an “undersea tunnel”. Supported by the soothing lighting technology, the 700 metre long middle part of the Liupanshui-Weining (Expressway presents a dreamy “undersea world” on top of the tunnel. Patterns of sea water, sharks, shells and corals change dynamically as the vehicle moves forward. It is said it can effectively alleviate the fatigue of drivers. Credit: Imaginechina/Rex

Surfer Nick Wapner poses with his shark bitten surfboard Wednesday in Morrow Bay, California, USA. The 19-year-old California Polytechnic Sate of University was attacked by a great white shark at Montana de Oro State Park. Wapner kicked free and got himself to a hospital, where he received 50 stiches. Credit: David Middlecamp/The Tibune (of San Luis Obispo)
Market Closes for January 11^th, 2019

Market Index	Close	Change
Dow Jones	23995.95	-5.97   -0.02%
S&P 500	2596.13	-0.51   -0.02%
NASDAQ	6971.477	-14.591   -0.21%
TSX	14935.17	+31.68
		+0.21%

International Markets

Market Index	Close	Change
NIKKEI	20359.70	+195.90
		+0.97%
HANG SENG	26667.27	+145.84
		+0.55%
SENSEX	36009.84	-96.66
		-0.27%
FTSE 100*	6918.18	-30.50
		-0.44%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.957		1.9888
CND. 30 Year Bond		2.163		2.191
U.S.    10 Year Bond		2.6954		2.7421
U.S. 30 Year Bond		3.0296		3.0627

Currencies

BOC Close	Today	Previous
Canadian $	0.75391	0.75540
US $	1.32643	1.32381
Euro Rate 1 Euro=		Inverse
Canadian $	1.52067	0.65761
US $	1.14644	0.87227

Commodities

Gold	Close	Previous
London Gold Fix	1291.90	1288.60
Oil
WTI Crude Future	51.59	52.59

Market Commentary:
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose for the sixth day, climbing 0.2 percent, or 35.69 to 14,939.18 in Toronto. The index advanced to the highest closing level since Dec. 5. Aurora Cannabis Inc. contributed the most to the index gain, increasing 7.5 percent. Cogeco Communications Inc. had the largest increase, rising 7.5 percent.
     Today, 133 of 240 shares rose, while 99 fell; 8 of 11 sectors were higher, led by financials stocks.
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 9.7774| 0.2| 18/7
Health Care | 7.9777| 2.9| 8/1
Communication Services | 6.0634| 0.7| 7/0
Real Estate | 5.0204| 1.1| 18/4
Consumer Staples | 3.1971| 0.5| 7/3
Materials | 2.6917| 0.2| 23/27
Consumer Discretionary | 2.6850| 0.4| 11/6
Information Technology | 1.7588| 0.3| 8/2
Utilities | -0.9265| -0.2| 7/9
Energy | -1.2527| 0.0| 12/28
Industrials | -1.3093| -0.1| 14/12
================================================================
Top Contributors |Index Points Move| % Change
================================================================
Aurora Cannabis | 4.1840| 7.5
Canadian Natural Resources | 3.8620| 1.3
Restaurant Brands | 3.1820| 2.4
Canadian Tire | -1.2280| -1.9
Canadian National | -2.2800| -0.4
Suncor Energy | -3.3380| -0.7
================================================================
| | Index Points
Biggest Gainers | % Change | Move
================================================================
Cogeco Communications | 7.5| 0.8460
Aurora Cannabis | 7.5| 4.1840
Aphria | 5.4| 0.7180
================================================================
Biggest Losers | % Change |Index Points Move
================================================================
NexGen Energy | -5.0| -0.2920
Seven Generations Energy | -4.9| -1.0770 New Gold | -4.7| -0.2880
* The Canadian dollar rose 0.26 percent to 1.3270 against the U.S. dollar
* The benchmark 10-year bond rose and the yield fell 3 basis points to 1.957 percent
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — Stocks finished down slightly Friday as a drop in energy shares and mounting concerns about the ongoing government shutdown balanced out strength among carmakers following an optimistic earnings forecast from General Motors Co. Treasuries rose and the dollar was flat, putting it on track for a fourth straight week of declines.
     All major equity benchmarks were lower — barely. The S&P 500 Index saw a late day surge that left it down less than 0.05 percent, its first day in the red in more than a week, as utilities and energy companies retreated with oil tumbling below $52 a barrel. Meanwhile, auto companies gained around 3 percent on GM’s encouraging outlook. The gauge still posted its third straight weekly advance, climbing 2.5 percent. The post- Christmas rally had reached 10 percent before stalling at 2,600, a level it hasn’t topped since mid-December.
     “Perhaps we’re seeing a bit of a pause here as bulls and bears fight it out at this key technical level,” said Matthew Miskin, a market strategist at John Hancock Investments in Boston.
     The dollar rose early in the session before giving back the gains as investors appeared to be trimming positions heading into the weekend. It’s been pressured, and bonds have been boosted, by the Federal Reserve’s message of patience on further interest-rate hikes. That case was bolstered by U.S. price data showing inflation slowing in line with expectations.
     “The saving grace of all of this is that the U.S. economy has actually withstood the test of 12 months of challenges without buckling over,” said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors.
     The Stoxx Europe 600 Index retreated from an earlier gain to trade lower. In Asia, shares rose in Shanghai, Tokyo, Seoul and Hong Kong amid hopes for a breakthrough on the trade dispute between China and U.S. European debt tracked Treasuries higher.
     The pound advanced even as Prime Minister Theresa May’s office countered reports that Brexit may be delayed.
     Stocks are still on track for big gains this week on signs of progress between the world’s two biggest economies on trade and the Fed’s dovish commentary. Nevertheless, worries remain about economic growth and earnings prospects, while there’s also uncertainty as the U.S. partial government shutdown threatens to extend into a fourth week.
     Chinese Vice Premier Liu He is set to visit Washington on Jan. 30 and 31 for further trade talks. China’s yuan, which slumped last year as trade tensions worsened, is heading for its best week since 2005 — back when the country dropped a fixed peg to the dollar.
These are the main moves in markets:
Stocks
* The S&P 500 Index was down less than 0.05 percent after falling as much as 0.7 percent earlier in the session.
* The Stoxx Europe 600 Index declined 0.1 percent.
* The MSCI All-Country World Index climbed 0.3 percent to the highest in a month.
* The MSCI Emerging Market Index advanced 0.2 percent to the highest in more than five weeks.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro fell 0.3 percent to $1.1466.
* The Japanese yen dipped 0.1 percent to 108.53 per dollar.
* The British pound jumped 0.8 percent to $1.2848, the strongest since November. Bonds
* The yield on 10-year Treasuries tumbled five basis points to 2.6954 percent, the biggest fall in more than a week.
* Germany’s 10-year yield decreased two basis points to 0.239 percent.
* Britain’s 10-year yield increased two basis point to 1.29 percent.
Commodities
* The Bloomberg Commodity Index added 0.2 percent.
* West Texas Intermediate crude fell 1.7 percent to $51.69 a barrel, the first retreat in more than two weeks.
* Gold gained 0.1 percent to $1,288.42 an ounce.
–With assistance from Adam Haigh, Tian Chen and Eddie van der Walt.

Have a wonderful weekend.

Be magnificent!

As ever,

 

Carolann

 

Our attitude towards others determines their attitude towards us.
                                          –Earl Nightingale, 1921-1989

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, 2000 America Online agreed to buy Time-Warner for $165 billion. (Time-Warner decided to spin off AOL in 2009.) Go to article »

Mark Knopfler has a new album, called Down the Road Wherever.    We downloaded it and listened to it  last night – and I think it’s terrific.  It’s an album of varied complexity, some jazz-like tracks, some Celtic laments, and his incredible voice and laconic guitar licks shine through every track – a nostalgic reflection of the old Dire Straits.

PHOTOS OF THE DAY

Attendees take photographs of a curved electronic display wall at the entrance to the LG Electronics Inc. booth at the 2019 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S. Credit: Patrick T. Fallon/Bloomberg

A combination of pictures showing Vietnamese motorists riding under the rain along a street in Hanoi, Vietnam. Credit: Manan Vatsyayana/AFP/Getty Images

A swan transforms into an unusual shape while cleaning itself near Wimpole, Cambridgeshire. Credit: John Brackenbury/Solent News & Photo Agency
Market Closes for January 10^th, 2019

Market Index	Close	Change
Dow Jones	24001.92	+122.80   +0.51%
S&P 500	2596.64	+11.68   +0.45%
NASDAQ	6986.066	+28.989   +0.42%
TSX	14903.49	+98.76
		+0.67%

International Markets

Market Index	Close	Change
NIKKEI	20163.80	-263.26
		-1.29%
HANG SENG	26521.43	+59.11
		+0.22%
SENSEX	36106.50	-106.41
		-0.29%
FTSE 100*	6942.87	+40.96
		+0.59%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.9888		1.978
CND. 30 Year Bond		2.191		2.177
U.S.    10 Year Bond		2.7421		2.7100
U.S. 30 Year Bond		3.0627		3.0029

Currencies

BOC Close	Today	Previous
Canadian $	0.75540	0.75318
US $	1.32381	1.32771
Euro Rate 1 Euro=		Inverse
Canadian $	1.52241	0.65685
US $	1.15000	0.86956

Commodities

Gold	Close	Previous
London Gold Fix	1288.60	1286.45
Oil
WTI Crude Future	52.59	52.36

Market Commentary:
On this day in 1870, John D. Rockefeller founded Standard Oil with $1 million in capital and control of a tenth of the nation’s oil refining.
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose for the fifth day, climbing 0.7 percent, or 98.76 to 14,903.49 in Toronto. The index advanced to the highest closing level since Dec. 6. Royal Bank of Canada contributed the most to the index gain, increasing 0.9 percent. Canopy Growth Corp. had the largest increase, rising 12.0 percent.
     Today, 146 of 240 shares rose, while 91 fell; 10 of 11 sectors were higher, led by financials stocks.
================================================================
Top Contributors |Index Points Move| % Change
================================================================
Royal Bank of Canada | 9.0240| 0.9
TD Bank | 8.6140| 1.0
Canopy Growth | 8.1740| 12.0
First Quantum Minerals | -1.4230| -2.6
Agnico Eagle Mines | -1.6020| -1.8
Bausch Health | -2.2560| -3.3
================================================================
Biggest Gainers | % Change |Index Points Move
================================================================
Canopy Growth | 12.0| 8.1740
Aurora Cannabis | 9.9| 5.0350
Pason Systems | 4.3| 0.4390
================================================================
Biggest Losers | % Change | Index Points Move
================================================================
New Gold | -6.8| -0.4530
Pretium Resources | -6.8| -0.9140
Eldorado Gold | -5.9| -0.2830
* The Canadian dollar rose 0.21 percent to 1.3237 against the U.S. dollar
* The benchmark 10-year bond rose and the yield fell 0.1 basis points to 1.976 percent
* The S&P 500 Index advanced 0.5 percent
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — Stocks rose Thursday after dipping briefly following Federal Reserve Chairman Jerome Powell’s remarks about shrinking the central bank’s balance sheet. Treasury yields
advanced with the dollar, and West Texas crude continued its bull market surge past $52 a barrel.
     The S&P 500 Index rallied as gains in utilities, industrials and real estate shares overwhelmed weakness in retailers sparked by concerns about a sales slowdown and fears about the potential consequences of the ongoing partial government shutdown. Alcohol distributor Constellation Brands Inc. rebounded from Wednesday’s decline to lead the benchmark on positive comments from analysts at Goldman Sachs Group Inc. and Guggenheim Securities. Macy’s Inc. plunged 18 percent, making it the biggest decliner, after reporting disappointing seasonal sales and earnings.
     “The stronger retailers keep winning, the weaker retailers not so much,” said Hank Smith, co-chief investment officer at Haverford Trust. “I do not think it is a reflection on the consumer. The consumer is strong right now. We’ve had the best wage growth in this cycle, unemployment trends continue to be positive, just look at weekly jobless claims.”
     But to equity investors, Powell’s cryptic comments at the Economic Club of Washington, D.C. about returning the Fed’s balance sheet to a normal level — which were taken to mean that the central bank will be reducing it aggressively in the near future — were the attention grabber.
     “When asked where the Fed’s balance sheet should go from here, he said it should be ‘substantially smaller’ than it is now,” Peter Boockvar, the chief investment officer of Bleakley Financial Group, wrote in an email. “I guess we’ll then wait for his next speech so everyone can then ask him what ‘substantially smaller’ means.”
     With the S&P 500 having gained more than 5 percent in a week following dovish comments on interest rates from the Fed, the lack of any concrete details from trade discussions between China and the U.S. has left few catalysts to drive equity benchmarks significantly higher. And as the fight continues over the proposal to build a wall along the Mexican border, which President Donald Trump visited Thursday to rally support for his plan, worries about the impact of a prolonged government shutdown in America are starting to take hold.
     “In the beginning, we hadn’t gotten much investors calling us or talking about this as a risk,” Mandy Xu, Credit Suisse’s chief equity derivatives strategist, said on Bloomberg Television. “But now as it drags on, definitely we’re seeing more concern.”
     How Bank of America Figures Out What’s Driving the Stock Market The Stoxx Europe 600 Index and U.K.’s FTSE 100 Index rose slightly after Jaguar Land Rover said it plans to slash 4,500 jobs worldwide in response to a sales slowdown caused by Brexit.
     The euro struggled for traction after underwhelming economic data from France. Japanese stocks paced declines across many Asian markets, although the MSCI Asia Pacific Index declined as China inflation figures showed slowing growth. The offshore yuan climbed to the strongest since August.
     Elsewhere, the pound weakened as British Prime Minister Theresa May mulled options for a Brexit “Plan B.”
Here are some events investors may focus on this week:
* Britain’s Parliament this week resumes a debate on the Brexit withdrawal bill, with Prime Minister Theresa May seeking to avoid defeat in a vote set for the week of Jan. 14.
These are the main moves in markets:
Stocks
* The S&P 500 Index climbed 0.5 percent to 2,596.49.
* The Stoxx Europe 600 Index rose 0.1 percent.
* The U.K.’s FTSE 100 Index added 0.3 percent.
* The MSCI Asia Pacific Index fell 0.2 percent, the first retreat in more than a week.
* The MSCI Emerging Market Index jumped 0.4 percent to the highest in five weeks.
Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent.
* The euro dipped 0.4 percent to $1.1499.
* The British pound declined 0.3 percent to $1.2745.
* The Japanese yen fell 0.3 percent to 108.47 per dollar.
Bonds
* The yield on 10-year Treasuries rose two basis point to 2.7314 percent.
* Germany’s 10-year yield slid two basis points to 0.255 percent, the first retreat in a week and the biggest decrease in more than a week.
* Britain’s 10-year yield climbed one basis points to 1.274 percent.
Commodities
* The Bloomberg Commodity Index dropped 0.5 percent.
* West Texas Intermediate crude increased 0.3 percent to $52.54 a barrel after entering a bull market on Wednesday.
* Gold fell 0.6 percent to $1,286.30 an ounce.
–With assistance from Andreea Papuc, Samuel Potter and Richard Frost.

Have a great night!

Be magnificent!

As ever,

Carolann

Friendship multiplies the good of life and divides the evil.
                                  -Balthasar Gracian, 1601-1658

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 1790, Treasury Secretary Alexander Hamilton submitted to Congress his “Report on the Public Credit,” which proposed buying up distressed bonds to consolidate the national debt. U.S. and state bonds, which had been trading at a fraction of their value, immediately surged in price. In one of the earliest cases of insider trading, several members of Congress hired sailboats and stagecoaches to take them south faster than the news could travel by foot. They snapped up bonds at bargain prices before Southern newspapers spread the news of Hamilton’s proposals.

Joan Baez, b. January 9, 1941 ~ Activist artist in the 1960s…at 18, Baez was introduced on stage a the 1959 Newport Folk Festival to sing in her pure, clear and flexible soprano, resulting in her first album with Vanguard….sang at the Lincoln Memorial as part of Martin Luther King’s march for civil rights and in the fields next to Cesar Chavez, paving the way for the Bonos and Springsteens of today. 

PHOTOS OF THE DAY

Geiko and maiko greet during the ceremony marking the New Year in Kyoto, Japan. Credit: The Asahi Shimbun/Getty Images

Iguanas from Seymour Norte island, being introduced to Santiago island as part of a conversation program in the Galapagos Islands, Ecuador. Credit: Christina Vega/AFP/Getty Images

A tiny Long Tongue bat licks nectar from a flower in Costa Rica. Credit: John Hudson/SWNS
Market Closes for January 9^th, 2019

Market Index	Close	Change
Dow Jones	23879.12	+91.67   +0.39%
S&P 500	2584.96	+10.55   +0.41%
NASDAQ	6957.078	+60.079   +0.87%
TSX	14804.73	+199.58
		+1.37%

International Markets

Market Index	Close	Change
NIKKEI	20427.06	+223.02
		+1.10%
HANG SENG	26462.32	+586.87
		+2.27%
SENSEX	36212.91	+231.98
		+0.64%
FTSE 100*	6906.63	+49.16
		+0.72%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.978		1.968
CND. 30 Year Bond		2.177		2.175
U.S.    10 Year Bond		2.7100		2.7280
U.S. 30 Year Bond		3.0029		3.0068

Currencies

BOC Close	Today	Previous
Canadian $	0.75688	0.75318
US $	1.32121	1.32771
Euro Rate 1 Euro=		Inverse
Canadian $	1.52511	0.65569
US $	1.15444	0.86622

Commodities

Gold	Close	Previous
London Gold Fix	1286.45	1292.20
Oil
WTI Crude Future	52.36	49.78

Market Commentary:
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 1.4 percent, or 199.58 to 14,804.73 in Toronto.
     The index advanced to the highest closing level since Dec. 6. Royal Bank of Canada contributed the most to the index gain, increasing 2.1 percent. Canopy Growth Corp. had the largest increase, rising 13.3 percent.
     Today, 212 of 240 shares rose, while 25 fell; all sectors were higher, led by financials stocks.
By Ross Marowits
     (Canadian Press) — TORONTO — Canada’s main stock index  posted its strongest four-day gain in three years Wednesday as it was propelled by a large increase in the price of crude oil  and the Bank of Canada’s latest rate announcement.
     The Toronto Stock Exchange continued its rebound from a dreadful autumn and tough December helped by positive news about the trade dispute between China and the U.S. and minutes from the Federal Reserve confirming its patience about raising interest rates, says Anish Chopra, managing director with Portfolio Management Corp.
     “A fantastic four-day stretch,” he said in an interview. The S&P/TSX composite index closed up 199.58 points to 14,804.73 in a broad-based rally that saw all sectors rise. It was the third day of triple-digit gains so far this year  and the best four-consecutive day performance since January  2016.
     “There seems to be a lot more optimism about a U.S.-China  trade deal and when it comes to Federal Reserve interest rate  hikes it appears to be that they’ll take a pause,” Chopra said  referring to minutes released from the central bank and recent  comments from several bank governors.
     The cannabis-heavy health care sector rose by 6.25 per cent  as Canopy Growth Corp. surged 13.3 per cent, while Aurora  Cannabis Inc. and Aphria Inc. gained 7.3 and 6.2 per cent  respectively.
     The key energy sector followed, with financials, industrials and materials also rising. Financial and energy stocks were the biggest gainers on the  day led by Sun Life Financial Inc., Royal Bank of Canada,  Manulife Financial and Suncor Energy Inc. Meanwhile, BCE Inc.  and Nutrien Ltd. lost ground while Imperial Oil and TransCanada  Corp. posted small gains.
     The energy sector was helped again by crude oil prices,  which rose on Saudi Arabia’s energy minister reassuring that its  oil production and exports are falling sharply. West Texas Intermediate prices are up 23 per cent from its December low.
     The February crude contract was up US$2.58 at US$52.36 per barrel Wednesday and the February natural gas contract was up 1.7 cents at US$2.98 per mmBTU.
     Canada’s financial sector was helped by the Bank of Canada’s decision to hold its key rate at 1.75 per cent while the economy absorbs softness from a 44 per cent drop in oil prices from its October peak.
     “The banks tend to be a play on Canadian GDP growth and with the Bank of Canada having a supportive stance to keep the Canadian economy running smoothly that’s certainly positive for the banks,” said Chopra.
     In New York, the Dow Jones industrial average gained 91.67 points at 23,879.12. The S&P 500 index was up 10.55 points at 2,584.96, while the Nasdaq composite was up 60.08 points at 6,957.08.
     The Canadian dollar traded at an average of 75.64 cents US compared with an average of 75.23 cents US on Tuesday.
     The February gold contract was up US$6.10 at US$1,292 an ounce and the March copper contract was up 0.1 of a cent at US$2.66 a pound.
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — Stocks rose as investors cheered the dovish approach discussed in minutes from the latest Federal Reserve meeting, but the gains were muted by concerns that the partial shutdown of the U.S. government will continue for some time. The dollar fell and Treasuries rose, while oil surged above $52 a barrel and entered a bull market.
     The S&P 500 Index was up for a fourth consecutive day led by energy producers, reaching the highest level in almost a month. The Nasdaq benchmarks were the strongest performers on strength in semiconductors and technology hardware manufacturers.
     The Fed minutes showed that many central bankers urged patience on future interest rate hikes, an indication that they’re attentive to recent financial-market volatility and risks to the economic outlook.
     “I’m happy to see that there was caution in the minutes because it means that the market didn’t mug the Fed,” Alicia Levine, chief strategist at BNY Mellon Investment Management chief strategist, said on Bloomberg TV. “You want it to be that this is what the FOMC really believes, that caution is warranted, that they’re going to be data-dependent, and there are alternative outcomes that they should be aware of. I take great comfort in these minutes.”
     Stocks surged as the minutes were released, but they quickly retreated as President Donald Trump emerged from a meeting with Senate Republicans. Trump said the GOP was “very unified” behind his plan to keep the government closed until he gets funding to build a wall along the Mexican border, which is at the center of the dispute. He then walked out of a meeting with Democratic congressional leaders Nancy Pelosi and Charles Schumer, calling it a “total waste of time,” which further ate away at the gains.
     If the shutdown goes on for months longer “we’re not going to have a budget, and I think we’re going to see a lot of fallout from that point,” said Rich Guerrini, chief executive officer of PNC Investments, which manages $50 billion. “But I don’t know that I see anything on the short-term other than partisan politics.”
     Earlier, equities gained after the Trump administration confirmed that China committed to buy more U.S. agricultural goods, energy and manufactured products. Trump is said to be eager to reach a trade agreement with China to help revive the flagging stock market. However, the countries remain far apart on some key issues. And Chinese and American officials are reportedly coordinating their messaging to make sure markets interpret the results of the meeting optimistically.
     Although concerns linger about how protectionist tensions and political instability in the world’s largest economy will affect global growth, they also set up a potential Goldilocks scenario for markets after Fed’s apparent dovish shift.
     “A softness in the economy or in some indicators would allow the Fed the space not necessarily to continue to raise,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh. “That is going to drive the market higher.”
     The Stoxx Europe 600 Index climbed to the highest in a month led by carmakers and miners, while Hong Kong stocks set the pace for Asian benchmarks. And most industrial metals advanced after the Asian nation signaled measures to spur consumption.
     Elsewhere, emerging-market stocks extended a rally that’s taken MSCI’s gauge to the highest in more than a month. The Bloomberg Commodity Index rose for a sixth straight day, and gold ticked higher.
Here are some events investors may focus on this week:
* Fed Chairman Jerome Powell will speak to the Economic Club of Washington D.C. on Thursday.
* Britain’s Parliament resumes a debate on the Brexit withdrawal bill, with Prime Minister Theresa May seeking to avoid defeat in a vote set for the week of Jan. 14.
These are the main moves in markets:
Stocks
* The S&P 500 rose 0.4 percent to 2,584.96, while the Nasdaq 100 Index gained 0.8 percent.
* The Stoxx Europe 600 Index increased 0.5 percent to the highest in almost four weeks.
* The MSCI All-Country World Index advanced 1 percent.
* The U.K.’s FTSE 100 Index climbed 0.7 percent to the highest in five weeks.
* The MSCI Emerging Market Index jumped 2.1 percent to the highest in more than a month.
Currencies
* The Bloomberg Dollar Spot Index dropped 0.8 percent.
* The euro gained 1 percent to $1.1552.
* The British pound climbed 0.7 percent to $1.2801.
* The Japanese yen rose 0.7 percent to 108.03 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 2.719 percent.
* Britain’s 10-year yield added one basis point to 1.2801 percent.
* Germany’s 10-year yield climbed five basis points to 0.279 percent.
Commodities
* The Bloomberg Commodity Index rose 1.2 percent.
* West Texas Intermediate crude advanced 5 percent to $52.28 a barrel, reaching the highest in a month on its eighth consecutive gain.
* Gold increased 0.7 percent to $1,293.71 an ounce.
–With assistance from Andreea Papuc, Heesu Lee and Robert Brand.

Have a great evening!

Be magnificent!

As ever,

Carolann

That brain of mine is something more than merely mortal, as time will show.
                                                                 -Ada Lovelace, 1815-1852

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:
January 8, 1987:  The Dow Jones industrial average closed above 2,000 for the first time, ending the day at 2,002.25. Go to article »
The Dow Jones closed today at 23,787.45, an increase of +1088%  since that 1987 milestone.

1851: Earth’s rotation proved.
1935: Elvis Presley born.
1942: Stephen Hawking , physicist, born.
1947: David Bowie, musician, born.
PHOTOS OF THE DAY

Geese are seen on frozen Lake Buldan Yayla, in Denizli, Turkey. Credit: Sebahatdin Zeyrek/Anadolu Agency/Getty Image

A cheetah chasing a female impala in the Masai Mara National Reserve in Kenya. Credit: Reinhard and Gabi Radke/Caters

The moon is seen in the distance past a paraglider near Ma On Shan peak in Hong Kong. With most young Hong Kongers priced our of the city’s eye-watering property market – often living with parents in cramped flats well into their thirties – paragliding is one of a number of outdoor sports that offers release from the stress of the concrete jungle below. Credit: Anthony Wallace/AFP/Getty Images
Market Closes for January 8^th, 2019

Market Index	Close	Change
Dow Jones	23787.45	+256.10   +1.09%
S&P 500	2574.41	+24.72   +0.97%
NASDAQ	6897.000	+73.529   +1.08%
TSX	14605.15	+101.02
		+0.70%

International Markets

Market Index	Close	Change
NIKKEI	20204.04	+165.07
		+0.82%
HANG SENG	25875.45	+39.75
		+0.15%
SENSEX	35980.93	+130.77
		+0.36%
FTSE 100*	6861.60	+71.78
		+1.05%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.968		1.955
CND. 30 Year Bond		2.175		2.159
U.S.    10 Year Bond		2.7280		2.6960
U.S. 30 Year Bond		3.0068		2.9878

Currencies

BOC Close	Today	Previous
Canadian $	0.75318	0.75219
US $	1.32771	1.32946
Euro Rate 1 Euro=		Inverse
Canadian $	1.51901	0.65832
US $	1.14414	0.87402

Commodities

Gold	Close	Previous
London Gold Fix	1292.20	1279.90
Oil
WTI Crude Future	49.78	48.52

Market Commentary:
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks gained with the S&P/TSX Composite Index up almost 1 percent in early trading. U.S. stock futures and European equities jumped Tuesday as investors awaited developments on trade talks between the world’s largest economies. All sectors were climbing as of 9:42 a.m. in Toronto, with information technology and consumer discretionary shares gaining most.
     Canada’s merchandise trade deficit widened to the largest in six months in November as crude oil prices fell, Statistics Canada reported Tuesday in Ottawa. The nation posted a C$2.1 billion ($1.6 billion) shortfall during the month, more than double the C$851 million trade gap in October. Exports fell 2.9 percent in November, for the biggest one-month decline in over a year, as oil shipments plunged 18 percent.
Stocks
* New Gold Inc. climbed close to 11 percent on Tuesday morning as J.P. Morgan analyst upgraded the recommendation to neutral form underweight; the company’s Rainy River Mine recorded its best ever quarterly gold production in 4Q
* Toromont Industries fell as much as 4.6 percent, the most in more than two years, as a Canaccord Genuity analyst downgraded the stock to hold from buy
* First Quantum Minerals climbed more than 8 percent
Commodities
* Western Canada Select crude oil traded at a $10.15 discount to WTI
* Gold gained 0.6 percent to $1,277.30 an ounce
FX/Bonds
* The Canadian dollar gained less than 0.1 percent to C$1.3296 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.961%
US
By Reade Pickert and Sarah Ponczek
     (Bloomberg) — U.S. stocks rallied Tuesday as the possibility of progress in trade talks with China overwhelmed skepticism about the financial sector. The dollar rose, Treasuries slumped and crude surged toward $50 a barrel on expectations the market will be tightened by OPEC’s output cuts.
     All major indexes were higher, led by the small-cap Russell 2000 Index for a second day. The S&P 500 Index gained 1 percent on strength in transportation companies, carmakers and telephone stocks. Financials were only major industry group in the benchmark that didn’t rise. Boeing Co. helped lift large-caps with a strong fourth-quarter delivery report. PG&E Corp. was the biggest decliner, dropping 9 percent amid reports that the California utility giant is considering bankruptcy.
     “Talks with China are going very well!” Trump tweeted on Tuesday morning as the countries wrapped up the meetings. However, other reports indicated that the two weren’t closing in on a trade deal. “Any incremental headlines that we receive that imply U.S.- China trade relationships are going better is going to substantially help current sentiment,” said Frances Donald, the head of macro strategy at Manulife Asset Management in Toronto. “From a forward looking perspective, if expectations about US- China trade wars diminish then this will encourage a risk-on environment.”
     In Asia, the MSCI Asia Pacific Index and the MSCI China Index rose slightly. Japanese shares and Hong Kong stocks gained, though equities slid in South Korea. Meanwhile, European shares shrugged off unexpectedly weak German industrial production numbers and worsening euro-area consumer confidence to climb on strength among retailers and carmakers. The common currency remained lower after the data.
     While 2019 is off to an optimistic start, risks remain. The outcome of U.S.-China trade relations still hangs in the balance. Meanwhile, parts of the American government are shut down with lawmakers unable to agree on a budget proposal that President Donald Trump will sign. Trump will deliver a prime- time televised address on Tuesday evening about his demand for a wall along the Mexican border, which is at the heart of the dispute. And in Europe, machinations over Brexit continue.
     “Investors are happy to go with the positive trend in the current environment but remain wary of sharp downside reactions given the moves we’ve seen over the last few weeks and months,” Nick Twidale, chief operating officer at Rakuten Securities Australia, wrote in a note. “Traders are still very much aware that the various geopolitical factors that have been so prevalent in influencing market moves over the last 12 months are still relevant.”
Here are some events investors may focus on this week:
* North Korea’s Kim Jong Un is visiting China ahead of a potential summit with President Trump.
* Wednesday sees the release of minutes from the Federal Reserve’s Dec. 18-19 policy meeting. Chairman Jerome Powell will speak to the Economic Club of Washington D.C. on Thursday.
* Britain’s Parliament resumes a debate on the Brexit withdrawal bill, with Prime Minister Theresa May seeking to avoid defeat in a vote set for the week of Jan. 14.
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1 percent to 2,574.41, while the Russell 2000 Index gained 1.5 percent.
* The Stoxx Europe 600 Index advanced 0.9 percent to the highest in three weeks.
* The MSCI All-Country World Index climbed 0.7 percent to the highest in more than three weeks.
* The MSCI Emerging Market Index dipped 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index gained 0.2 percent.
* The euro fell 0.3 percent to $1.1441.
* The Japanese yen was little changed at 108.74 per dollar.
* The British pound declined 0.5 percent to $1.2717.
* The MSCI Emerging Markets Currency Index fell 0.2 percent.
Bonds
* The yield on 10-year Treasuries advanced three basis points to 2.7244 percent.
* Germany’s 10-year yield rose one basis point to 0.226 percent.
* Britain’s 10-year yield added two basis points to 1.274 percent.
Commodities
* The Bloomberg Commodity Index gained 0.5 percent to the highest in almost three weeks on its fifth
straight advance.
* West Texas Intermediate crude advanced 2.4 percent to $49.70 a barrel, the highest in three weeks with its seventh consecutive advance.
* Gold dipped 0.3 percent to $1,285.45 an ounce.
–With assistance from Cormac Mullen, Andreea Papuc and Eddie van der Walt.

Have a great night.

Be magnificent!

As ever,

Carolann

 

Hope is being able to see that there is light despite all of the darkness.
                                             -Archbishop Desmond Tutu, b. 1931

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

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

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

Dear Friends,

Tangents: Happy Monday!

On this day1999 President Bill Clinton’s impeachment trial began in the Senate. Go to article »
PHOTOS OF THE DAY

The sun sets on Bosham Harbour in West Sussex, reputedly the spot where King Canute commanded the waves to retreat. Credit: Chris Gorman/Bigladder

The Lions, part of a group of professional performers on Bankside, appear during the annual Twelfth Night celebrations on the South Bank in central London. Credit: Yui Mok/PA

A partial solar eclipse is seen through a silhouette of a bird setting on tree branches in Yinchuan, China. Credit: Reuters
Market Closes for January 7^th, 2019

Market Index	Close	Change
Dow Jones	23531.35	+175.00   +0.75%
S&P 500	2549.69	+17.75   +0.70%
NASDAQ	6823.473	+84.616   +1.26%
TSX	14504.13	+77.51
		+0.54%

International Markets

Market Index	Close	Change
NIKKEI	20038.97	+477.01
		+2.44%
HANG SENG	25835.70	+209.67
		+0.82%
SENSEX	35850.16	+155.06
		+0.43%
FTSE 100*	6810.88	-26.54
		-0.39%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.955		1.930
CND. 30 Year Bond		2.159		2.136
U.S.    10 Year Bond		2.6960		2.6677
U.S. 30 Year Bond		2.9878		2.9810

Currencies

BOC Close	Today	Previous
Canadian $	0.75219	0.74791
US $	1.32946	1.33705
Euro Rate 1 Euro=		Inverse
Canadian $	1.52616	0.65524
US $	1.14795	0.87112

Commodities

Gold	Close	Previous
London Gold Fix	1279.90	1290.45
Oil
WTI Crude Future	48.52	47.96

Market Commentary:
On this day in 1992, the technology-heavy Nasdaq Composite eclipsed the 600 threshold, finishing the day at 602.29.  (Nasdaq closed today at 6823.473).
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks ended Monday in the green after a weak start, with the S&P/TSX Composite Index gaining 0.5 percent. Information technology and consumer discretionary led the way while materials underperformed.
     Heavy Canadian crude surged to the strongest level in more than a year as rail shipments keep rising even as production was curtailed, while AltaCorp Capital was bullish on the marijuana sector.
Stocks
* Neptune Wellness Solutions Inc. rose 12 percent after getting license to process cannabis from Health Canada 
* Green Thumb Industries Inc. gained 11.4 percent after deal to buy Advanced Grow Labs 
* Maxar Technologies Inc. lost 33 percent after one of its imaging satellites, WorldView-4, failed 
Commodities
* Western Canada Select crude oil traded at a $10.50 discount to WTI
* Gold gained 0.3 percent to $1,289.90 an ounce
FX/Bonds
* The Canadian dollar rose 0.6 percent to C$1.32979 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.944%
US
By Reade Pickert and Sarah Ponczek
     (Bloomberg) — U.S. stocks rallied Monday but gave back some early gains as small-caps and technology shares led the way amid the resumption of trade talks with China. The dollar fell to its lowest level since October and Treasury yields ticked higher with traders assessing the seemingly dovish remarks from
     Federal Reserve chairman Jerome Powell on Friday. All major U.S. equity benchmarks ended higher. The S&P 500 Index added 0.7 percent after rising as much as 1.4 percent earlier in the session on strength in retailers, automakers and clothing companies. Amazon.com Inc. jumped 3.4 percent, pushing its market cap to $796.8 billion. It surpassed Microsoft Corp. as the most valuable company after the software firm only edged higher by 0.1 percent for a value of $788.9 billion
     The biggest jump among major gauges came from the small- capitalization Russell 2000 Index, which picked up 1.8 percent.
     Meanwhile, the Nasdaq benchmarks rose more than 1 percent with telecommunications services and semiconductor shares pacing gains, giving the Nasdaq 100 Index its first back-to-back 1 percent gains since November.
     “What you really, really want to see, are things like the Russell 2000 outperforming — and it is massively right now,” said Michael Antonelli, equity sales trader at Robert W. Baird.
     “You want to see the risky, risky stuff bouncing hard.” Despite the enthusiasm, investors remain in a quandary after the wild end to 2018 in which the S&P 500 lost more than 9 percent in a month. Powell’s soothing comments on Friday and China’s moves to shore up its economy lifted sentiment somewhat, sending the S&P 500 up 1.9 percent last week, but risks remain.
     And U.S. lawmakers are still unable to reach agreement on a budget, leaving the federal government shut down for a third week. “We have a respectable probability that Friday’s rally and the last week-and-a-half’s rally has more legs behind it,” said David Sowerby, managing director and portfolio manager at the investment firm Ancora, which manages $6.9 billion. “It’s Fed policy right now, that’s first and foremost the most important gauge impacting the market today. Trade issues, number two. A very distant number three is the government shutdown.”
     Fresh trade talks between the U.S. and China helped sap demand for the greenback, while Treasuries slipped after a substantial retreat on Friday. The pound slid against the euro as U.K. lawmakers sought to avoid a no-deal Brexit. The common currency remained solidly up even as data showed German factory orders fell more than expected in November.
     Elsewhere, emerging-market shares jumped, and the Indonesian rupiah led gains in major developing-nation currencies. Oil rose to the highest in three weeks, and gold climbed after China reported increased holdings.
Here are some events investors may focus on this week:
* A U.S. delegation is in Beijing for trade talks with Chinese officials, the first face-to-face encounter since Trump and Xi agreed to a temporary truce on Dec. 1.
* Wednesday sees the release of minutes from the Fed’s Dec. 18-19 policy meeting. Powell will speak to the Economic Club of Washington D.C. on Thursday. 
* U.K. Parliament resumes a debate on the Brexit withdrawal bill, with Prime Minister Theresa May seeking to avoid defeat in a vote set for the week of Jan. 14.
These are the main moves in markets:
Stocks
* The S&P 500 rose 0.7 percent to 2,548.71, while the Russell 2000 climbed 1.8 percent and Nasdaq 100 gained 1 percent.
* The Stoxx Europe 600 Index added 0.4 percent.
* The MSCI All-Country World Index increased 0.9 percent.
* The MSCI Emerging Market Index advanced 1.3 percent.
Currencies
* The Bloomberg Dollar Spot Index declined 0.4 percent to the lowest since October.
* The euro gained 0.7 percent to $1.1475, the most in more than a week.
* The Japanese yen slipped 0.2 percent to 108.72 per dollar.
* The British pound increased 0.4 percent to $1.2768, the strongest in a month.
* The MSCI Emerging Markets Currency Index advanced 0.3 percent to the highest since July.
Bonds
* The yield on 10-year Treasuries gained two basis points to 2.6924 percent.
* Germany’s 10-year yield rose one basis point to 0.221 percent. 
* Britain’s 10-year yield fell two basis points to 1.254 percent.
Commodities
* The Bloomberg Commodity Index climbed 0.3 percent.
* West Texas Intermediate crude advanced 1.5 percent to $48.66 a barrel, the highest in three weeks on its sixth consecutive gain.
* Gold rose 0.2 percent to $1,288.94 an ounce.
–With assistance from Andreea Papuc, John Ainger, Eddie van der Walt and Randall Jensen.

Have a great night.

Be magnificent!

As ever,

Carolann

Adventure is worthwhile in itself.
  -Amelia Earhart, 1897-1937

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

Lookout Studio in Grand Canyon Village on the South Rim of Grand Canyon National Park, in Arizona. A winter storm has covered cactus with snow in parts of the American Southwest as temperatures in the desert fall below those of Anchorage, Alaska. Credit: AP Photo/Anna Johnson

Boats are pictured in Dal lake during sunset in Srinagar, India. Credit: Tauseef Mustafa/AFP/Getty Images

At dawn on a very cold morning in January, the cloud slowly gathers over the River Torridge estuary at Appledore, as sunny intervals and a gentle breeze are forecast for North Devon, UK. Credit: Terry Matthews/Alamy Live News
Market Closes for January 4^th, 2019

Market Index	Close	Change
Dow Jones	23433.16	+746.94   +3.29%
S&P 500	2531.94	+84.05   +3.43%
NASDAQ	6738.859	+275.355   +4.26%
TSX	14426.62	+213.87
		+1.50%

International Markets

Market Index	Close	Change
NIKKEI	19561.96	-452.81
		-2.26%
HANG SENG	25626.03	+561.67
		+2.24%
SENSEX	35695.10	+181.39
		+0.51%
FTSE 100*	6837.42	+144.76
		+2.16%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.930		1.826
CND. 30 Year Bond		2.136		2.063
U.S.    10 Year Bond		2.6677		2.5605
U.S. 30 Year Bond		2.9810		2.9033

Currencies

BOC Close	Today	Previous
Canadian $	0.74791	0.74150
US $	1.33705	1.34861
Euro Rate 1 Euro=		Inverse
Canadian $	1.52384	0.65624
US $	1.13972	0.87741

Commodities

Gold	Close	Previous
London Gold Fix	1290.45	1290.45
Oil
WTI Crude Future	47.96	47.09

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at their highest level in three weeks, buoyed by strength south of the border, while the loonie and bond yields jumped despite a slowdown in hiring.
     The S&P/TSX Composite Index rose 1.5 percent to 14,426.62 Friday amid strong jobs growth in the U.S., bringing its gain for the holiday-shortened week to 1.4 percent. Technology stocks led the way, rising 2.7 percent after losing 5.1 percent in the previous two sessions. Shopify Inc. added 5.8 percent.
     The energy sector jumped 2.5 percent as crude prices closed out their best week since June. Torc Oil & Gas Ltd. posted the biggest gain, adding 7.4 percent.
In other moves:
Stocks
* Hudson’s Bay Co. jumped 16 percent, the most since early 2015. Chairman Richard Baker bought a 9.8 percent stake in the retailer from a Canadian pension fund at a 29 percent premium from Thursday’s close
* Lundin Mining Corp. added 8.4 percent as a trifecta of good news on the economy, interest rates and trade tensions boosted investor confidence in industrial metals
* Quarterhill Inc. rose 8.9 percent. A U.S. federal judge declined to overturn a jury verdict that Apple infringed two patents, but lowered the damages
Commodities
* Western Canada Select crude oil traded at a $12.60 discount to WTI
* Gold fell 0.7 percent to $1,285.80 an ounce FX/Bonds
* The Canadian dollar strengthened 0.7 percent to C$1.3394 per U.S. dollar
* The Canada 10-year government bond yield rose 10 basis points to 1.93 percent, the biggest gain since mid-2017
US
By Jeremy Herron and Vildana Hajric
(Bloomberg) — U.S. stocks surged the most in a week and the dollar erased gains after Jerome Powell signaled the latest market turbulence will keep the Federal Reserve in a dovish stance.
The S&P 500 jumped to a three-week high after the central bank chairman said Fed policy is flexible and officials are “listening carefully” to the financial markets. Equities started the day in rally mode after data showed a spike in hiring last month that was accompanied by faster wage growth and an increase in participation. A reading on the services sectors topped estimates, adding to optimism a day after stocks plunged on concern growth was slowing.
The 10-year Treasury yield rose back above 2.6 percent. The dollar gave back gains sparked by jobs data. Gold fell and oil rose.
Powell’s remarks added to the debate over whether the Fed should adopt a full-on dovish stance just a day after factory data weakened by the most since the recession — fueling speculation the central bank might actually cut rates this year.
While the jobs report may ease immediate concern that the world’s biggest economy is careening toward a recession, investors are also keeping an eye on a host of other risks.
Trade remains in focus, with mid-level officials from the U.S traveling to China for talks next week just as tariff effects have started to show up in corporate profit warnings. China moved to secure liquidity for its slowing economy, and political drama in Washington persists, with the shutdown
showing no signs of resolution.
“The strong December jobs report is a net positive for stocks because investors’ biggest concern has been slowing growth,” said Alec Young, managing director of global markets research at FTSE Russell. “December’s strong job gains help ease that concern. It’s hard to square recession worries with the
strongest job growth we’ve seen in years.”
Friday’s optimism over the economy and trade did little to dent the rout that’s hit global equities in the past month, with major averages off well over 10 percent from previous highs.
Treasury yields that topped 3.2 percent in November now sit 60 basis points lower as investors reassess the prospects for growth in 2019. Gold has surged to multimonth highs and crude has plunged, adding to angst that demand is flagging.
Here are some events investors may focus on in coming days:
* Fed Chair Powell is interviewed with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association Friday. Atlanta Fed President Raphael Bostic joins a
panel on long-run macroeconomic performance.
And these are the main moves in markets:
Stocks
* The S&P 500 Index climbed 2.7 percent as of 10:38 a.m. New York time.
* The Dow Jones Industrial Average advanced 600 points, and the Nasdaq 100 added 3.4 percent.
* The Stoxx Europe 600 Index rose 2 percent to the highest in more than two weeks on the biggest advance in a week.
* Germany’s DAX Index surged 1.8 percent to the highest in two weeks on the biggest jump in more than a month.
* The MSCI Asia Pacific Index fell 0.2 percent.
* The MSCI Emerging Market Index rose 0.9 percent, the biggest advance in a week.
Currencies
* The Bloomberg Dollar Spot Index rose 0.3 percent.
* The euro fell 0.4 percent to $1.1353.
* The British pound was flat at $1.2626.
* The Japanese yen decreased 0.8 percent to 108.483 per dollar.
Bonds
* The yield on 10-year Treasuries climbed eight basis points to 2.64 percent, the largest increase in more than a week.
* The two-year rate jumped nine basis points to 2.47 percent.
* Germany’s 10-year yield climbed four basis points to 0.196
percent.
* The spread of Italy’s 10-year bonds over Germany’s fell two
basis points to 2.683 percentage points.
Commodities
* West Texas Intermediate crude climbed 2.3 percent to $48.16 a barrel, hitting the highest in more than two weeks with its fifth consecutive advance.
* Gold futures plunged 0.8 percent to $1,284.60 an ounce, the first retreat in more than a week and the biggest dip in two weeks.

Have a great evening.

Be magnificent!

As ever,

Karen

“Peace is when times doesn’t matter as it passes by”. Maria Margarethe Anna Schell

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

Visitors walk past the art installation Gaia, a seven-metre scale model of Earth created by artist Luke Jerram at the Helix Park in Falkirk. The park will be transformed into an extraordinary spectacle of fire performances, interactive light installations, breath-taking puppetry, enchanting sculptures, and animated projections depicting the zodiac signs. Credit: Andrew Milligan/PA Wire

Walkers in the morning sun at Tynemouth beach on the North East coast. Credit: Owen Humphreys/PA Wire

A snowman on the riverbank of Songhua River in Harbin, capital of northeast China’s Heilongjiang Province. Altogether 2,019 cute snowmen were displayed here to greet the year 2019. Credit:  Wang Jianwei/Barcroft Images
Market Closes for January 3^rd, 2019

Market Index	Close	Change
Dow Jones	22686.22	-660.02   -2.83%
S&P 500	2447.89	-62.14   -2.48%
NASDAQ	6463.504	-202.434   -3.04%
TSX	14212.75	-134.41
		-0.94%

International Markets

Market Index	Close	Change
NIKKEI	20014.77	-62.85
		-0.31%
HANG SENG	25064.36	-65.99
		-0.26%
SENSEX	35513.71	-377.81
		-1.05%
FTSE 100*	6692.66	-41.57
		-0.62%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.826		1.901
CND. 30 Year Bond		2.063		2.120
U.S.    10 Year Bond		2.5605		2.6204
U.S. 30 Year Bond		2.9033		2.9518

Currencies

BOC Close	Today	Previous
Canadian $	0.74150	0.73300
US $	1.34861	1.36426
Euro Rate 1 Euro=		Inverse
Canadian $	1.53667	0.65076
US $	1.13936	0.87769

Commodities

Gold	Close	Previous
London Gold Fix	1290.45	1279.00
Oil
WTI Crude Future	47.09	46.54

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks retreated, led by tech stocks after Apple Inc. cut its sales outlook, but avoided the deeper losses experienced south of the border.
     The S&P/TSX Composite Index fell 0.9 percent to 14,212.75, the most since the market’s Christmas Eve selloff, but that paled in comparison to the 2.5 percent drop on the S&P 500.
     Tech stocks were the biggest decliners, losing 4 percent. The sector took a drubbing along with Apple, which fell the most since 2013 after cutting its revenue outlook for the first time in almost two decades. In Canada, Shopify Inc. lost 6.5 percent. Defensive stocks were the only sectors in positive territory, with the communication services sector up 0.2 percent and utilities gaining 0.1 percent.
In other moves:
Stocks
* New Gold Inc. jumped 11 percent, the most since October, as bullion prices posted a sixth straight advance
* EnWave Corp. rose 4.6 percent. The company has signed a pact to sub-license its cannabis dehydration technology to The Green Organic Dutchman Holdings Ltd.
* Charlotte’s Web Holdings Inc. lost 1.2 percent after the hemp- focused company said it plans to hire a new CEO this year
Commodities
* Western Canada Select crude oil traded at a $12.50 discount to WTI
* Aeco natural gas traded at a $1.73 discount to Henry Hub
* Gold rose 0.8 percent to $1,294.80 an ounce, the highest since June
FX/Bonds
* The Canadian dollar strengthened 0.8 percent to C$1.3481 per U.S. dollar as oil prices rose
* The Canada 10-year government bond yield fell 7 basis points to 1.83 percent, the lowest since 2017
US
By Vildana Hajric and Reade Pickert
     (Bloomberg) — U.S. stocks sank after a factory gauge dropped the most in a decade and Apple cut its sales outlook, adding to concern that global growth is slowing. Treasuries rallied and the yen strengthened.
     The S&P 500 Index tumbled 2.5 percent for the steepest sell-off since Christmas Eve, when the gauge fell within a few points of a bear market before embarking on a 6.8 percent rally over the next five sessions. Apple plunged the most since 2013 after citing an unforeseen slowdown in China for its woes. Ten- year Treasury yields sank to an 11-month low after a measure of U.S. manufacturing plunged last month by the most since October 2008. Bristol-Myers Squibb’s bid to buy Celgene and a strong reading on private hiring for December were shrugged off by bearish investors.
     “Corporate America is getting cold feet about the outlook,” said Chris Rupkey, the chief financial economist at MUFG Union Bank in New York. “That’s what the stock market is saying with new selling and new lows after the manufacturing survey’s release.’
Here are the major stocks moves:
* Apple ended the day down 10 percent.
* Twenty-nine of 30 chipmakers in the Philadelphia Semi index fell, with Qorvo, Skyworks and Broadcom each off at least 8 percent.
* 3M, Caterpillar and DowDuPont dropped at least 3 percent.
* Bristol-Myers sank 14 percent, while Celgene jumped to the highest since October.
* Airlines tumbled after Delta cut its revenue forecast. American was off 7.5 percent.
     In currency markets, the yen jumped as algorithmic programs amplified sharp gyrations amid thin liquidity during a Japanese holiday. Bloomberg’s dollar index fell.
     The weak ISM factory reading adds to anxiety spurred by poor data from China and Europe a day earlier, stoking fear that a recession looms larger than previously thought. Apple and Delta join a growing list of companies warning that the trade war and political turmoil may be weighing on corporate profits.
     Dysfunction in Washington continues, meanwhile, with leaders unable to strike a deal to end a partial shutdown of the federal government.
     “Trade disputes are seeping into the real economy globally,” said Brett Ryan, senior U.S. economist for Deutsche Bank Securities. “The policy uncertainty will eventually cause a slowdown, and you’re finally at that point now.”
Here are some events investors may focus on in coming days:
* The U.S. December jobs report is due Friday
* Fed Chair Powell is interviewed with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association Friday. Atlanta Fed President Raphael Bostic joins a panel on long-run macroeconomic performance.
And these are the main moves in markets:
Stocks
* The S&P 500 fell 2.5 percent at the close of trading in New York.
* The Nasdaq 100 retreated 3.4 percent, while the Dow Jones Industrial Average slid 662 points.
* The Stoxx Europe 600 Index lost 1 percent.
* Germany’s DAX Index sank 1.6 percent on the first retreat in a week.
* The MSCI Emerging Market Index declined 0.6 percent.
* The Nikkei-225 Stock Average fell 0.3 percent.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.5 percent.
* The euro advanced 0.5 percent to $1.1399.
* The British pound rose 0.2 percent to $1.2636.
* The Japanese yen jumped 1.2 percent to 107.57 per dollar, the strongest in more than eight months.
Bonds
* The yield on 10-year Treasuries fell six basis points to 2.56 percent.
* Germany’s 10-year yield fell one basis point to 0.15 percent. 
* Italy’s 10-year yield climbed 17 basis points to 2.86 percent.
Commodities
* West Texas Intermediate crude rose 1.3 percent to $47.16 a
barrel.
* Gold advanced 0.7 percent to $1,293.61 an ounce, reaching the highest in almost seven months on its sixth consecutive advance.

Have a great evening.

Be magnificent!

As ever,

Karen

“With the new day comes new strength and new thoughts.” Eleanor Roosevelt

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
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