March 6, 2018 Newsletter

Dear Friends,

Tangents:
1834 – The former town of York was incorporated on March 6, 1834, reverting to the name Toronto to distinguish it from New York City.

1836 – Fall of the Alamo

On this day in 1959, executives of Texas Instruments demonstrated a new device at a press conference in New York City called an “integrated circuit.” That gadget, known today as a microchip, became the backbone of the modern technology industry.
PHOTOS OF THE DAY

The Dunnock bird sits on the back of a Cuckoo at Barling Magna Millenium Wildlife Park in Essex. This remarkable photo shows the very brief moment in which a small Dunnock bird feeds a cuckoo chick which has inhabited its nest and impersonated its chicks. The picture, which was taken by hobbyist photographer Alan Leeks, 60, won first prize in the Essex Wildlife Photography competition at the end of last year. Alan said: “ I got really lucky – it was the noise of the chick that first alerted me, screaming for more and more food”.
Credit: The Telegraph

The Truro town crier leads St. Piran’s Day march, which celebrates St. Piran, patron saint of tinners and regarded by many as Cornwall’s premier saint, through the centre of Truro in Cornwall, England. The march in the capital of the county was one of a number of events that are held annually on March 5^th for St. Piran. St. Piran’s day originally started as a tin miners holiday, but has grown in popularity over the years and is now seen as Cornwall’s national day and also marks the first day of spring in Cornwall.
Credit: The Telegraph

A Chinese hostess reacts at Tiananmen square during the opening session of the National People’s Congress, China’s legislature, in Beijing, China’s rubber-stamp.
Credit: The Telegraph
Market Closes for March 6th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks barely extended Monday’s first gain in five days as Trump used his steel tariff plans as a bargaining chip to seal a quick deal on Nafta. The loonie strengthened for the first time in almost a week after falling for six straight sessions to the lowest since July.
     The S&P/TSX Composite Index gained 3.9 points, or less than 0.1 percent, to 15,545.19. Consumer staples and materials companies gained the most, with the latter rising 0.6 percent, as metals and mining stocks were boosted following more pushback on Trump’s tariff plans.
     The industrials sector saw the largest decline, dipping 0.9 percent. Bombardier Inc. fell by as much as 9.3 percent, the most in five months, after announcing a plan to sell new shares in an effort to strengthen its balance sheet.
     In other moves:
                         Stocks
* Bombardier Inc. fell by 5.3 percent on $492 million share sale
* Crew Energy Inc. plunged by as much as 9.3 percent, the most in over two years, following a two-day jump of about 29 percent
* First Majestic Silver Corp. climbed by as much as 6.3 percent, leading gains among metals companies amid tariff opposition
                         Commodities
* Western Canada Select crude oil traded at a $26 discount to WTI
* Gold gained 1.2 percent to $1,335.70 an ounce
                         FX/Bonds
* The Canadian dollar strengthened to C$1.2877 after previously falling to the lowest since July
* The Canada 10-year government bond yield gained slightly to 2.23 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks rose for a third day as signs mounted that President Donald Trump may still be assessing the most severe protectionist policies. The dollar declined against peers.
     The S&P 500 advanced as comments by the president’s allies — including House Speaker Paul Ryan, White House economic adviser Gary Cohn and Senator David Perdue — have added to pressure on Trump to ease off implementing steep tariffs on steel and aluminum. During a news conference Tuesday, Trump didn’t back down from his tough trade talk. Chipmakers rallied after a positive research note from Goldman Sachs, while materials producers gained amid a rise in metals prices.
     Investors remained focused on the potential tariffs that have caused America’s largest trading partners to warn of a backlash. An apparent diplomatic breakthrough on the Korean Peninsula added to risk-on sentiment. Treasuries were flat after CVS Health Corp. kicked off the third largest corporate-debt financing ever.
     “Last year was a very unvolatile year, that was abnormal — normal is more volatility,” said Stephen? Lee?, a founding partner at Pennsylvania-based Logan Capital Management, which manages $1.9 billion. “You have to go through the knee jerk reactions, then step back and say, ‘Well is this a problem’? This tariff issue, it seems there’s a lot of noise, but our experience is with any sort of legislative thing it takes longer to get through.”
     Meanwhile, emerging-market stocks rose after five days of declines, and Europe’s peripheral bonds advanced. Italian stocks advanced alongside the country’s bonds as the potentially lengthy process of forming a new government got under way.
     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.
* Australia GDP data is 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 come Friday.
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.3 percent to 2,728.12 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index climbed 0.1 percent.
* The U.K.’s FTSE 100 Index rose 0.4 percent.
* The MSCI Emerging Market Index advanced 1.9 percent, the largest increase in almost three weeks.
                          Currencies
* The Bloomberg Dollar Spot Index declined 0.4 percent.
* The euro gained 0.6 percent to $1.24, the strongest in more than two weeks.
* The British pound rose 0.3 percent to $1.3896.
* The Japanese yen advanced 0.1 percent to 106.14 per dollar.
* The MSCI Emerging Markets Currency Index gained 0.7 percent to the highest in more than a month.
                          Bonds
* The yield on 10-year Treasuries were steady at 2.88 percent.
* Germany’s 10-year yield climbed three basis points to 0.68 percent.
* Britain’s 10-year yield climbed three basis points to 1.521 percent.
                          Commodities
* West Texas Intermediate crude fell 0.1 percent to $62.48 a barrel.
* Gold rose 1 percent to $1,333.77 an ounce.
–With assistance from Samuel Potter, Kailey Leinz and Sarah Ponczek.

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

Where there is no risk there can be no pride in achievement and consequently no happiness.
                                                         -Ray Kroc, 1902-1984, Grinding It Out

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
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www.carolannsteinhoff.com