March 7, 2018 Newsletter

Dear Friends,

Tangents:
1869 – Suez Canal opens.
1878 – Toronto Stock Exchange incorporates on receipt of an Ontario charter.
1876 – Alexander Graham Bell received U.S. Patent No. 174,465 for his “Improvement in Telegraphy,” or the telephone.
1933 – Monopoly invented.

Florian Nick traveled through Alberta and British Columbia, taking more than 50,000 photos, and has assembled them into a time-lapse movie.  You can find the film at vimeo.com/flonick.
PHOTOS OF THE DAY

Ballet British Columbia perform 16+ a room at Sadler’s Wells Theatre in London.
Credit: Alastair Muir For The Telegraph

Circus artists perform acrobatic tricks on Westminster Bridge to mark the 250^th anniversary of the modern-day circus, ahead of a reception in the Houses of Parliament in London.
Credit: Leon Neal/Getty Images

People visit the autonomous urban concept car Renault EZ-GO during the first press day of the Geneva International Motor Show in Switzerland.
Credit: Fabrice Coffrini/AFP/Getty Images
Market Closes for March 7th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$355 million
TransUnion says a record $355 million in outstanding credit-card balances was owed by people who it suspects didn’t exist in 2017. Synthetic-identity fraud is one of the fastest growing forms of identity crimes.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks pared this week’s gains as growing tariff concerns pressed Prime Minister Justin Trudeau to say it “makes no sense” to impose metals tariffs on a close military ally and the Bank of Canada kept borrowing costs on hold.
     The S&P/TSX Composite Index fell 72.6 points, or almost 0.5 percent, to 15,472.61. All sectors fell except information technology and real estate, with health-care stocks leading in declines. Materials and energy companies also took a dip, with each index falling more than 1 percent.
     Shares of tech companies gained most, led by Descartes Systems Group Inc., which climbed after the stock was rated a new buy at Laurentian Bank Securities following 4Q earnings and sales that topped estimates for the quarter on Monday.
     In other moves:
                          Stocks
* Great Canadian Gaming Corp. climbed 12.3 percent to a record high after its post-market earnings call yesterday and as an RBC analyst said there are growth opportunities for the firm
* Crew Energy Inc. fell by as much as 8.2 percent, extending Monday’s plunge and almost erasing the previous two-day jump of about 29 percent
* Enercare Inc. declined by as much as 6.5 percent, the most intraday since Nov. 14, after reporting 4Q basic EPS that missed the lowest analyst estimate on Tuesday
* Raging River Exploration Inc. fell 5.6 percent, the most intraday since August, after initiating a strategic review
                          Commodities
* Western Canada Select crude oil traded at a $27 discount to WTI
* Gold fell 0.7 percent to $1,326.40 an ounce
                           FX/Bonds
* The Canadian dollar fell almost 0.2 percent to C$1.29016 on trade rhetoric before the Bank of Canada decided to leave rates unchanged
* The Canada 10-year government bond yield rose slightly to 2.24 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks erased deep losses to end the day mixed as White House officials left open the possibility that President Donald Trump’s tariff proposals will spare neighbors from the most severe penalties. The dollar and Treasuries erased gains.
     The S&P 500 Index was little changed after falling as much as 1 percent during a session marked by thin trading. Investors spooked by the departure of pro-trade adviser Gary Cohn took solace in comments from White House Council of Economic Advisers Chairman Kevin Hassett that indicated the trade policy is not yet finalized.
     Trade angst still set the tone in U.S. equities, with multinationals in the Dow Jones Industrial Average leading declines, while domestically focused small caps paced gains. Treasuries pared an advance to trade little changed, while Bloomberg’s dollar index fell versus the Canadian dollar after White House spokesperson Sarah Sanders said “there are potential carve outs” for the northern nation in the coming tariffs.
     Elsewhere, crude fell toward $61 a barrel in New York. Investors also have their sights fixed on upcoming central bank decisions in Europe and Japan, ahead of Friday’s U.S. jobs report.
     “I think markets are taking a wait and see attitude. But I do believe markets will selloff a lot more if it becomes clear that we are going to start tariffs.” Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance, said by phone. “And if other countries are going to retaliate and people start to wonder how far this is going to go, I think that then there will be more of an impact on the market.”
     While the imposition of severe levies on steel and aluminum may come as soon as this week, speculation remains that the tariffs may not spark a broader trade conflagration. The European Union has said it will retaliate in kind, while China has so far remained largely quiet. At the same time, Republican leaders in Congress have urged Trump to target only specific items and countries, adding to hope that a broader crackdown on trade will be avoided.
    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 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.
     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index fell less than 0.1 percent to 2,726.80 as of 4 p.m. New York time after dropping as much as 1 percent earlier in the session.
* The Dow Jones Industrial Average dropped 83 points to 24,801.
* The Russell 2000 Index rose 0.8 percent.
* The Stoxx Europe 600 Index gained 0.4 percent, third rise in a row.
* The MSCI Emerging Market Index dipped 0.4 percent.
                          Currencies
* The Bloomberg Dollar Spot Index was steady.
* The euro rose 0.1 percent at $1.2412.
* The British pound gained 0.1 percent to $1.3906.
* The Japanese yen advanced 0.1 percent at 106.07 per dollar.
* The MSCI Emerging Markets Currency Index increased 0.1 percent to the highest in more than a week.
                           Bonds
* The yield on 10-year Treasuries was little changed at 2.88 percent.
* Germany’s 10-year yield decreased two basis points to 0.66 percent.
* Britain’s 10-year yield fell three basis points to 1.494 percent.
                           Commodities
* West Texas Intermediate crude slid 2 percent to $61.37 a barrel.
* Gold slipped 0.7 percent to $1,325 an ounce.
–With assistance from Sarah Ponczek, Todd White and Kailey Leinz.

Have a wonderful evening!

Be magnificent!

As ever,

Carolann

If only we’d stop trying to be happy we’d have a pretty good time.
                                   -Edith Wharton, 1862-1937

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