April 10, 2018 Newsletter

Dear Friends,

Tangents:
Safety pin patented, April 10^th, 1849.
April 10^th, 1942: Bataan Death March.

PRIME NUMBERS:
2
Northern white rhinoceroses remaining in the world (both female) after Sudan, the last male, died.  Scientists see in vitro fertilization as the only hope of preserving the subspecies.
7
Countries where the United States is currently fighting wars.  A recent White House report revealed a US military presence in Afghanistan, Iraq, Syria, Yemen, Somalia, Libya, and Niger.
10,000
Distance (in miles) a German shepherd, Irgo, traveled March 13 on a United Airlines flight after he was mistakenly put on a plane from Oregon to Tokyo, instead of Wichita, Kansas.  The dog returned on a corporate jet and was reunited with his owners about 48 hours later.
Sources: Defense One, Newsweek & Forbes.
PHOTOS OF THE DAY

A wonderful view over the still waters of Buttermere as valleys in the Lake District are shrouded in mist leaving only the highest fells clear from the spectacle this morning. 
Credit: The Telegraph

A stuntman performs a test ride on a motorcycle inside the “Well of Death” arena during a fair in Bhaktapur, Nepal. 
Credit: The Telegraph

The Prince of Wales arrives for a Welcome to Country Ceremony in Gove, Northern Territory Australia. The Prince of Wales and Duchess of Cornwall are on a seven-day tour of Australia, visiting Queensland and the Northern Territory. 
Credit: The Telegraph
Market Closes for April 10^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1822, the merchant ship Cambria docked in New York harbor carrying news that the Bank of England had lowered its discount rate from 5% to 4%. Bank stocks fell 14% in two hours as Wall Street digested the news, which took two weeks to cross the ocean.
Number of the Day
$804 billion
The Congressional Budget Office said Monday that the federal budget deficit would total $804 billion this year, 43% higher than it had projected last summer, and exceed $1 trillion a year starting in 2020.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for a second day but closed below their intraday highs as gains in commodity stocks offset declines in most other sectors.
     The S&P/TSX Composite Index added 34 points or 0.2 percent to 15,262.14 after earlier rising as much as 0.7 percent. Energy shares gained 1.6 percent as crude prices jumped the most since July, boosted by China’s conciliatory tone on trade.
     The materials sector added 0.9 percent as metals prices also gained on easing trade tensions. Ivanhoe Mines Ltd. rose 8.8 percent and First Quantum Minerals Ltd. added 5.6 percent.
     In other moves:
                          Stocks
* Cannabis stocks halted a multi-day slide, with Canopy Growth Corp. rising 6.9 percent and Aurora Cannabis Inc. adding 6.6 percent
* Kinder Morgan Canada Ltd. rose 3 percent, rebounding from Monday’s 13 percent decline that was spurred by the company’s decision to halt most work on a pipeline expansion project
* Equitable Group Inc. rose 2.5 percent after the stock was initiated with an outperform rating at BMO Capital Markets
                          Commodities
* Western Canada Select crude oil traded at a $15.75 discount to WTI, the narrowest gap since November
* Gold rose 0.4 percent to $1,342.00 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.7 percent to C$1.2610 per U.S. dollar, the strongest since February, boosted by rising commodity prices
* The Canada 10-year government bond yield rose four basis points to 2.18 percent
US
By Eric J. Weiner and Janine Wolf
     (Bloomberg) — Stocks surged after conciliatory comments from U.S. President Donald Trump and Chinese President Xi Jinping aimed at releasing some pressure from the trade tensions between the world’s biggest economies. Treasuries fell with the dollar.
     Major U.S. equity indexes spiked higher Tuesday afternoon following Trump praise of Xi’s “kind words on tariffs and automobile barriers.” Earlier, in a keynote address before the Boao Forum for Asia, China’s leader backed free trade and dialog to resolve disputes and pledged to open the nation’s banking and auto manufacturing sectors.
     With the newly friendly tone, investors began weighing whether fears of an outright trade war had become overblown. That, in turn, reinvigorated faith in the synchronized global- growth story ahead of earnings season, even after a Federal Reserve official cautioned that the spat won’t be resolved soon.
     Stocks continued their advance despite a midday hiccup when additional revelations arose about Monday’s raid on the office of Trump’s personal lawyer, Michael D. Cohen, by the Federal Bureau of Investigation.
     “Without the underlining dynamism of momentum in the markets and supported by improving fundamentals, there is going to be a tendency for the market to be knocked around by headlines,” said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors. “As we go to the next week or so, this back and forth on trade probably dominates.”
     Elsewhere, European stocks climbed with shares from Sydney to Hong Kong. Gold gained. WTI crude shot past $65 a barrel, and Brent futures reached their highest level since December 2014. European government bonds edged lower, while the single currency rose after somewhat hawkish remarks by a European Central Bank official. And the yen declined.
     Russian assets remained in focus following a fresh round of U.S. sanctions. The ruble extended its decline, dropping to the lowest level since December 2016, and equities fluctuated.
     Here’s what is coming up this week:
* Facebook Inc. Chief Executive Officer Mark Zuckerberg testifies at two Congressional hearings Tuesday and Wednesday.
* U.S. CPI data and FOMC minutes due Wednesday.
* JPMorgan Chase & Co. and Citigroup Inc. report first-quarter earnings Friday.
     These are the main moves in markets:
                          Stocks
* The S&P 500 Index rose 1.7 percent to 2,656.86.
* The Nasdaq 100 Index jumped 2.2 percent and the Dow Jones Industrial Average added 1.8 percent.
* The Stoxx Europe 600 climbed 0.8 percent to the highest in a month.
* The MSCI All-Country World Index increased 1.4 percent.
* The MSCI Emerging Market Index gained 1.1 percent.
* The MSCI Asia Pacific Index advanced 0.9 percent.
                          Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent to the lowest in two weeks.
* The Japanese yen decreased 0.4 percent to 107.16 per dollar.
* The euro gained 0.3 percent to $1.2353, the highest in two weeks.
* The British pound increased 0.3 percent to $1.4177, the strongest in more than two weeks.
                          Bonds
* The yield on 10-year Treasuries rose two basis points to 2.7972 percent.
* Germany’s 10-year yield added one basis point to 0.516 percent.
* Britain’s 10-year yield was little changed at 1.407 percent.
                          Commodities
* Gold gained 0.3 percent to $1,340.46 an ounce.
* West Texas Intermediate crude increased 3.7 percent to $65.77 a barrel.
–With assistance from David Wilson, Sid Verma and Samuel Potter.

Have a great evening.

Be magnificent!

As ever,

Carolann

I keep six honest serving men
(They taught me all I knew);
Their names are What and Why and
When
And How and Where and Who.
   –Rudyard Kipling, 1865-1936

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

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