March 27, 2018 Newsletter

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A bird rests on a tree during sunset in San Jose Villanueva, El Salvador. 
Credit: Marvin Recino/AFP/Getty Images

A model prepares backstage before the show by Designer Mao Geping on day two of Mercedes-Benz China Fashion Week in Beijing, China. 
Credit: Lintao Zhang/Getty Images

An aerial view of cherry blossoms at the East Lake in Wuhan, central China’s Hubei Province. 
Credit: Xinhua/Alamy Live News
Market Closes for March 27th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell to the lowest in more than six weeks on a rollercoaster day that saw the benchmark gain as much as 0.5 percent and lose as much as 0.8 percent.
     The S&P/TSX Composite Index fell 82 points or 0.5 percent to 15,216.18, avoiding an even steeper decline in the U.S. The technology sector tumbled 3 percent, with Shopify Inc. down 5.9 percent and BlackBerry Ltd. losing 5.1 percent ahead of earnings due Wednesday morning.
     Materials fell 0.9 percent as gold prices retreated for the first time in five sessions. Torex Gold Resources Inc. tumbled 10 percent to the lowest since 2013.
     In other moves:
                          Stocks
* Corus Entertainment Inc. fell 11 percent to a record low as National Bank Financial downgraded and predicted a major dividend cut
* Sierra Wireless Inc. gained 7.4 percent, bucking the broader tech decline. Roth Capital said the company is “ideally positioned” for the Internet of Things revolution
* Labrador Iron Ore Royalty Corp. lost 3.6 percent after employees voted in favor of a strike
                          Commodities
* Western Canada Select crude oil traded at a $22.60 discount to WTI, the narrowest gap in six weeks
* Gold fell 1 percent to $1,342.00 an ounce, the biggest drop since March 1
                           FX/Bonds
* The Canadian dollar weakened 0.4 percent to C$1.2887 per U.S. dollar
* The Canada 10-year government bond yield fell nine basis points to 2.15 percent, the biggest decline since August, amid easing trade tensions
US
By Brendan Walsh
     (Bloomberg) — A rebound in global stocks faded in the U.S., with equities fluctuating amid speculation the U.S. would move to curb Chinese takeovers.
     The S&P 500 Index was weighed down by a report the Trump administration is considering a crackdown on Chinese investments in technologies the U.S. considers sensitive. That came after European and Asian equities rallied to catch up with Monday’s surge in the U.S., spurred by speculation the world will avoid an all-out trade war. The dollar strengthened Tuesday as both the pound and euro retreated, while Treasuries rose. The euro weakened as economic confidence in the region continued to slide in March.
     Stock bulls were looking for another catalyst for gains after the S&P 500’s bounce higher from its 200-day moving average — a key trend line that’s proven to be a support level for the past two years. Traders were encouraged by signs that the U.S. administration is pursuing dialogue with various countries in a bid to resolve simmering trade tensions. In a tweet President Donald Trump said that talks are ongoing and that “all will be happy.”
     “Our base case is that there won’t be an all-out trade war,” Craig MacDonald, the global head of fixed income at Aberdeen Standard Investments, said in a phone interview. “It’s a way of applying pressure to get some wins by Trump.”
     Still, it will lead to more volatility, MacDonald added. “It’s not something you can just dismiss. The tail risk is higher.”
     In Asia shares were green across the board, with Japan’s Topix Index jumping the most since November 2016. South Korea’s won was the best performer among major currencies as Kim Jong Un was said to be making an unannounced visit to Beijing, his first known trip outside North Korea since taking power in 2011.
     Elsewhere, China’s currency touched the highest level in almost three years. Bitcoin edged higher, nearing the $8,000 level. And copper broke out of a three-day trading slump, climbing as much as 1.8 percent.
     Here’s a list of of the main events coming up this week:
* The big four euro-area economies are due to release March CPI readings this week.
* U.S. personal income and spending data for February are due to be released on Thursday.
* There’s another $89 billion of U.S. bill sales set for Tuesday, and $35 billion of five-year notes. The Treasury will probably auction about $294 billion of bills and notes this week, its largest slate of supply ever.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 slipped less than 0.1 percent as of 10:14 a.m. in New York.
* The Stoxx Europe 600 Index surged 1.1 percent.
* The U.K.’s FTSE 100 Index surged 1.7 percent.
* The MSCI Emerging Market Index gained 0.6 percent.
                           Currencies
* The Bloomberg Dollar Spot Index jumped 0.3 percent.
* The euro fell 0.3 percent to $1.2404, the biggest fall in a week.
* The British pound decreased 0.6 percent to $1.4148.
* The South Korean Won increased 1 percent to 1,070.43 per dollar, the strongest in a week on the largest climb in three weeks.
                            Bonds
* The yield on 10-year Treasuries declined three basis points to 2.82 percent.
* Britain’s 10-year yield dipped two basis points to 1.42 percent.
* Germany’s 10-year yield decreased one basis point to 0.50 percent.
                            Commodities
* West Texas Intermediate crude fell 0.1 percent to $65.51 a barrel.
* Gold sank 0.8 percent to $1,342.54 an ounce, the biggest dip in four weeks.
* Copper gained 0.7 percent to $2.9895 a pound.

Have a great evening.

Be magnificent!

As ever,

Karen

 “Passion is energy. Feel the power that comes from focusing on what excites you”. Oprah Winfrey

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
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www.carolannsteinhoff.com