May 30, 2018 Newsletter

Dear Friends,

Tangents:
May 30, 1431: The execution of Joan of Arc, from the official contemporary account:

After the sentence was read, the bishop, the Inquisitor, and many of the judges went away, leaving Jeanne upon the scaffold. 
  Then the Bailli of Rouen, an Englishman, who was there, without any legal formality and without reading any sentence against her, ordered that she should be taken to the place where she was to be burned.
  When Jeanne heard this order given, she began to weep and lament in such a way that all the people present were themselves moved to tears.
  The said Bailli immediately ordered that the fire should be lighted, which was done. 
  And she was there burned and martyred tragically, an act of unparalleled cruelty.
  And many, both noble and peasant, murmured greatly against the English. 
Peter the Great, Russian tsar, b.  1672
1783: First U.S, newspaper published
May 30, 1832 – Rideau Canal officially opened to traffic, with 47 locks linking the Ottawa River at Ottawa with Lake Ontario at Kingston, Ontario; First proposed as a military route between the two cities; 50 dams built to control water levels along the route. Ottawa, Ontario
PHOTOS OF THE DAY

Walkers admire the sunrise from Swirrel Edge on Helvellyn in the Lake District. Credit: Paul Kingston/NNP

Subtropical Storm Alberto arrives at Orange Beach in Alabama, US. Credit: David Green/Reuters

Two people take a selfie beside Hartshead Pike as the Flower Moon rises on in Manchester, England. Credit: Anthony Devlin/Getty Image
Market Closes for May 30^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
~$On this day in 1974, the first money-market mutual fund with checkwriting privileges, Fidelity Daily Income Trust, opened for business. Instead of having to wait seven days to receive a redemption, investors could now use a mutual fund just like a checking account.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose the most in a month as investor concern faded about Italy and the state of the EU, while the Canadian dollar spiked after the central bank paved the way for a new round of rate increases.
     The S&P/TSX Composite Index added 126 points, or 0.8 percent, to 16,048.66, snapping a six-day decline. Energy stocks rose 1.6 percent, the most in six weeks, as crude prices rebounded after a week of declines.
     Financials gained 0.4 percent even as Laurentian Bank of Canada tumbled 4.7 percent to the lowest since 2016. The bank disclosed further problems with its mortgage book, prompting a downgrade at CIBC World Markets.
     In other moves:
                          Stocks
* Canadian Pacific Railway Ltd. rose 2.2 percent to a record. A short-lived strike ended after the carrier reached a tentative deal with conductors and engineers
* Bombardier Inc. added 4.7 percent to the highest since 2013. The plane maker signed a letter of intent to sell up to 18 business jets worth as much as $1.14 billion
* Calfrac Well Services Ltd. gained 5.1 percent. The company is suing its biggest outside shareholder, accusing it of curbing interest in its recent note offering
                           Commodities
* Western Canada Select crude oil traded at a $25.25 discount to WTI, the biggest gap since March, after Enbridge Inc. said it will cap the amount of oil each shipper may send on its Mainline pipeline
* Gold rose 0.2 percent to $1,301.50 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 1.1 percent to C$1.2880 per U.S. dollar, the biggest gain in more than two months
* The Canada 10-year government bond yield rose six basis points to 2.25 percent
US
By Samuel Potter and Randall Jensen
     (Bloomberg) — Stocks rebounded along with Treasury yields as investors judged the market reaction to Italy’s political turmoil overwrought. The dollar dropped and oil climbed.
     The S&P 500 Index gained the most in more than three weeks as U.S. 10-year yields pushed above 2.84 percent, boosting financial shares that had sold off on Tuesday amid fears Italy may leave the euro. West Texas crude surged above $68 a barrel, lifting energy companies. The greenback saw the biggest decline in nearly three weeks.
     In Europe, Italy’s 10-year yield fell as much as 32 basis points after the country successfully passed a key test of appetite for its debt and as politicians made a last ditch attempt to form a government. The euro rose, as German jobs data topped estimates and strong CPI readings across Europe added to the sentiment.
     Traders are catching their breath after the unprecedented Italian bond slump spilled over into global risk assets. While the prospect of snap Italian elections — which could effectively become a referendum on the euro — continues to loom, some investors see the selloff as overdone while the timing of any vote remains unclear. Still, the concerns add to a growing list that includes the strength of the global economy, North Korea and simmering trade tensions.
     “Italy failing to form a government, the markets were on edge and it happened to just crack and perhaps the reaction was a little bit out-sized,” Aaron Clark, portfolio manager at Boston-based GW&K Investment Management, said by phone. “We’re seeing a little bit of a reversal today, not a full reversal, but there’s still some lingering concerns to be sure.”
     Investors are also keeping an eye on the White House, with the Trump administration plowing ahead with plans for tariffs on Chinese goods and giving conflicting signals on talks with North Korea.
     Elsewhere, oil rose after a string of declines in the wake of major producers’ plans to step up output. Saudi Arabia, Kuwait and the U.A.E. will meet in Kuwait City on Saturday to discuss supply.
     These are some key events to watch this week:
* EU trade chief Cecilia Malmstrom and U.S. Commerce Secretary Wilbur Ross are scheduled to meet Wednesday in an informal World Trade Organization ministerial in Paris.
* The U.S. employment report for May is due Friday. It’s the last before the June Fed meeting.
* Automakers report May U.S. sales the same day.
* Also Friday: some onshore Chinese stocks join MSCI Inc.’s global indexes.
* On Saturday U.S. Secretary of Commerce Wilbur Ross will travel to Beijing for more talks with Vice Premier Liu He on topics including ZTE Corp. and trade.
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 1.3 percent to 2,724 as of 4 p.m. New York time, the most since May 4.
* The Nasdaq Composite Index gained 0.9 percent.
* The Stoxx Europe 600 Index advanced 0.3 percent.
* The MSCI Emerging Market Index sank 1.1 percent to the lowest in almost six months.
                           Currencies
* The Bloomberg Dollar Spot Index fell 0.6 percent, the largest decrease in almost three weeks.
* The euro climbed 1 percent to $1.1660.
* The British pound advanced 0.3 percent to $1.3282.
* The Japanese yen dipped 0.1 percent to 108.90 per dollar.
* The Turkish lira jumped 1.7 percent to 4.4721 per dollar, the strongest in almost two weeks.
                            Bonds
* The yield on 10-year Treasuries gained six basis points to 2.84 percent, biggest rise in two weeks.
* Germany’s 10-year yield rose 11 basis points to 0.37 percent.
* Britain’s 10-year yield gained six basis points to 1.257 percent.
* Italy’s 10-year yield sank 25 basis points to 2.916 percent.
                            Commodities
* West Texas Intermediate crude gained 2.5 percent to $68.39 a barrel, the first advance in more than a week.
* Gold increased 0.3 percent to $1,302.64 an ounce.
–With assistance from Andreea Papuc, Cecile Vannucci and Sarah Ponczek. 

Have a great night.

Be magnificent!

As ever,

Carolann

If you want to understand today, you have to search yesterday.
                                                   -Pearl Buck, 1892-1973

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
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