March 5, 2018 Newsletter

Dear Friends,

Tangents: Happy Monday!
1770 – Boston Massacre
1844 – George Brown starts publishing his Toronto Globe newspaper.
1963 – the Hula-Hoop was patented. The hip-swiveling toy became a huge fad across America when it was first marketed. An estimated 25 million were sold in the first four months of production alone.

PHOTOS OF THE DAY

Newborn lambs sports woolly jumpers as the bitterly cold weather continues to bite at Doe Park Farm in Teesdale, County Durham.
CREDIT: THE TELEGRAPH

A woman sits on a pier to watch the northern lights (Aurora borealis), on the Lofoten Islands, in Bostad, in the arctic circle in northern Norway.
CREDIT: THE TELEGRAPH

Hundreds of skiers and snowboarders hold lit torches and flashlights while descending from a slope during an annual festival in the Siberian town of Zheleznogorsk near Krasnoyarsk, Russia.
CREDIT: THE TELEGRAPH
Market Closes for March 5th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
50
Percentage by which the overall cryptocurrency market capitalization has fallen from an all-time high of $830 billion in early January. -Market Watch
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks gained for the first time in five days, brushing off rhetoric from U.S. President Donald Trump on the threat of a global trade war. The Canadian dollar extended declines, falling for the sixth straight session to the lowest level since July.
     The S&P/TSX Composite Index gained 156.7 points, or 1 percent, to 15,541.28, with all sectors rising except consumer staples. Health care stocks were the biggest advancers, climbing
5.6 percent as U.S. regulators granted Prometic Life Sciences Inc. a rare pediatric disease designation. Energy companies rose on positive fourth-quarter earnings results.
     In other moves:
                             Stocks
* Crew Energy Inc. climbed by a record 17 percent, extending a two-day gain that began when the company reported fourth-quarter results
* Ensign Energy Services Inc. rose 7.2 percent after reporting an unexpected fourth quarter profit
* Valeant Pharmaceuticals International Inc. climbed 4.7 percent, the most in about a month, after being upgraded to buy at Deutsche Bank
* Canopy Growth Corp. climbed 12 percent; the chief executive officer said last week that he’s planning a Nasdaq listing
                          Commodities
* Western Canada Select crude oil traded at a $25.50 discount to WTI
* Gold fell 0.2 percent to $1,320.90 an ounce
                            FX/Bonds
* The Canadian dollar weakened to C$1.29685 per U.S. dollar, the lowest since July, amid trade fears and a second consecutive month of cooling consumer confidence
* The Canada 10-year government bond yield fell slightly to 2.19 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks rose with the dollar, while Treasuries fell as signs mounted that President Donald Trump’s tough tariff talk may not translate into the most severe protectionist policies.
     The Dow Jones Industrial Average added more than 300 points as megacaps that bore the brunt of the selling late last week led gains, while domestically-focused small caps lagged behind.
The S&P 500 Index advanced for a second day after hedge fund billionaire Ray Dalio called the threat of a trade war “political show” and House Speaker Paul Ryan urged the president to reconsider tariffs on steel and aluminum. Trump when asked about the congressman’s comment said he won’t back down on trade.
     Ten-year Treasury yields advanced toward 2.90 percent, while the greenback rose against most peers with the Canadian dollar leading declines. West Texas crude rose past $62 a barrel.
     “The positive story today is the lack of anything bad happening,” Kevin Caron, a senior portfolio manager at Washington Crossing Advisors, said by phone. “The bad news would have been if [Trump] announced more tariffs, or if there was some kind of reciprocal action from another country.”
     Trump’s surprise announcement Thursday that he intends to implement tough tariffs on steel and aluminum imports roiled global financial markets. Trump kept pushing the protectionist stance in a series of tweets, even as leading Republican lawmakers and donors began to publicly question the wisdom of upending the global trading order.
     In Europe, the broadest measure of the region’s equities halted a four-day slide after a major breakthrough on the path to a German government. Italy’s stocks and bonds were the standout losers as anti-establishment political groups surged in Sunday’s election.
     The Italian election result and Germany’s move toward a coalition kick off a busy week for macro events. Both the Bank of Japan and European Central Bank will meet to decide on interest rate policy, while China hosts its National People’s Congress.
     Elsewhere, West Texas oil advanced as geopolitical risk resurfaced, with a halt at Libya’s biggest crude field sparking speculation that supply will tighten and help reduce a global glut.
     Here are some key events coming up this week:
* The Chinese People’s Political Consultative Conference runs through March 15 and overlaps with the National People’s Congress meetings in Beijing, through March 20.
* The Bank of Japan deputy governors’ confirmation hearings will be held Monday.
* Reserve Bank of Australia monetary policy decision on Tuesday, with GDP data due Wednesday.
* The ECB isn’t expected to change policy on Thursday, but the Governing Council may discuss a change to pave the way for the end of quantitative easing.
* BOJ monetary policy decision and briefing on Friday.
* U.S. monthly payrolls data.
     These are the main moves in markets:
                             Stocks
* The S&P 500 Index rose 1.1 percent to 2,720.94 as of 4 p.m. New York time, the biggest gain in a week.
* The Stoxx Europe 600 Index increased 1 percent, the first advance in a week.
* The MSCI Emerging Market Index fell 0.4 percent with its fifth consecutive decline.
* The U.K.’s FTSE 100 Index rose 0.7 percent, its first gain in four days.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.1 percent, ending a two-day slide.
* The euro rose 0.1 percent to $1.2330, its third advance in a row.
* The British pound advanced 0.3 percent to $1.3842.
* The Japanese yen fell 0.4 percent to 106.19 per dollar.
                             Bonds
* The yield on 10-year Treasuries rose two basis points to 2.88 percent.
* Germany’s 10-year yield declined one basis point to 0.64 percent.
* Britain’s 10-year yield rose two basis points to 1.495 percent.
                          Commodities
* West Texas Intermediate crude advanced 2.2 percent, the biggest gain in more than a week, to $62.61 a barrel.
* Gold fell 0.3 percent to $1,319.20 an ounce.
–With assistance from Kailey Leinz, Sarah Ponczek and Samuel Potter.

Have a wonderful evening everyone. 

Be magnificent!

As ever,

Carolann

In spit of everything, I still believe people are good at heart.
                                              -Anne Frank, 1929-1945 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President 

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

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