March 9, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!

PHOTOS OF THE DAY

Central Park lies under a blanket of snow in New York City.
Credit: The Telegraph

Tibetan Buddhist Monks of the Gelug or Yellow Hat school take part in prayers before unveiling a giant thangka at the Rongwo Monastery during the Great Prayer in Tongren, Huangnan Tibetan Autonomous Prefecture, China.
Credit: Kevin Frayer/Getty Images

A diver swims in front of wild killer whales in Kaldfjord, Norway.
Credit: Magnus News Agency/Svein Aasjor
Market Closes for March 9th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
$: On this day in 2009, the S&P 500 began its current bull market run. The stock market rally is now the second longest ever, behind the bull market between 1987 and 2000.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks extended Thursday’s gains with materials companies trading higher amid U.S. President Donald Trump’s tariff exemptions, even though Canada and Mexico are pledging they’re sticking to their Nafta plans. The loonie gained 0.6 percent as the country’s jobless rate returned to a four-decade low in February.
     The S&P/TSX Composite Index gained 39 points, or 0.3 percent, to 15,577.81 at market close in Toronto, the highest close since Feb. 27. The consumer staples, industrials and materials sectors gained the most while health care and telecoms fell.
     In other moves:
                         Stocks
* Ivanhoe Mines gained 6 percent after saying the mining industry and Democratic Republic of Congo will continue to have discussions to address miners’ concerns
* Dorel Industries Inc. climbed 5.7 percent to the highest intraday since Jan. 16, extending Thursday’s gains after fourth- quarter earnings beat expectations
* Spin Master fell as much as 5.2 percent after being downgraded at BMO amid uncertainty exacerbated by the Toys ’R’ Us bankruptcy; Raymond James said TOY share weakness is a buying opportunity
* Labrador Iron Ore Royalty Corp. fell as much as 7 percent as iron ore prices tumbled
                         Commodities
* Western Canada Select crude oil traded at a $25.5 discount to WTI
* Gold gained less than 0.2 percent to $1,323.90 an ounce
                          FX/Bonds
* The Canadian dollar gained 0.6 percent to C$1.28271
* The Canada 10-year government bond yield gained to 2.27 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks rose while Treasuries fell as the latest labor report showed the American economy continued to strengthen without the prior month’s rapid wage gains that stoked inflation fears. The dollar weakened against most peers.
     The S&P 500 rose to the highest since Feb. 1, capping a 3.5 percent rally in the week after employers hired the most workers in almost two years and wages remained stagnant, allaying fears the Federal Reserve may accelerate its rate-hike schedule. The measure sits 3 percent below its all-time high. Tech shares paced gains, taking the Nasdaq Composite to a fresh record as it capped an 12 percent rally since a February low.
     Ten-year Treasury yields headed for the first one-week advance in three, while the greenback slid against most major currencies except for the Japanese yen. West Texas crude advanced toward $62 a barrel.
     The U.S. employment data presented a “Goldilocks” picture of the economy for stock investors, giving the impression the Fed will have room to gradually increase rates this year. Shares also got a boost from news President Trump accepted an invitation to meet North Korean leader Kim Jong Un, which followed a narrower-than-expected tariff plan from the White House Thursday that eased speculation of a trade war.
     “It was a great jobs report — it tells a good story for the country, but it was as good or even better for the financial markets,” Rich Guerrini, the chief executive officer of PNC Investments, said by phone. “As we’ve looked at the past 30 days, really what started the volatility was a jobs report and the return of inflation due to wage growth. So you roll the calendar ahead a month, and you’re at a place getting another very good jobs report, but what the market loved was the wage inflationary issue really didn’t show itself.”
     Elsewhere, the Mexican peso and the Canadian dollar strengthened on news the two countries will be exempted from the U.S.’s metals tariffs, while Norway’s krone climbed after February inflation rose above the central bank’s target. Bitcoin fell below $9,000, heading for its worst weekly decline since the start of last month.
     Here are the remaining key events for 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.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 1.7 percent to 2,786.50 as of 4 p.m. New York time, its fifth gain in six days.
* The Stoxx Europe 600 Index climbed 0.4 percent, its fifth consecutive advance.
* The U.K.’s FTSE 100 Index gained 0.2 percent, touching the highest in more than a week.
* The MSCI Emerging Markets Index rose 1 percent.
                          Currencies
* The Bloomberg Dollar Spot Index decreased less than 0.1 percent.
* The euro rose less than 0.1 percent to $1.2313.
* The British pound climbed 0.3 percent to $1.3852.
* The Japanese yen decreased 0.6 percent to 106.85 per dollar, the biggest dip in more than two weeks.
                          Bonds
* The yield on 10-year Treasuries advanced four basis points to 2.89 percent, the biggest gain in a week.
* Germany’s 10-year yield climbed two basis points to 0.65 percent.
* Britain’s 10-year yield gained two basis points to 1.492 percent.
                          Commodities
* West Texas Intermediate crude climbed 3.2 percent to $62.05 a barrel.
* Gold was steady at $1,322.10 an ounce.
–With assistance from Sarah Ponczek, Kailey Leinz and Robert Brand.

Have a terrific weekend!

Be magnificent!

As ever,

Carolann

Painting is easy when you don’t know how, but very difficult when you do.
                                                      -Edgar Degas, 1834-1917

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