August 9, 2018 Newsletter

Dear Friends,

Tangents:
On Aug. 9, 1945, the United States exploded a nuclear device over Nagasaki, Japan, instantly killing an estimated 39,000 people. The explosion came three days after the atomic bombing of Hiroshima. 
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If you go on with this nuclear arms race, all you are going to do is make the rubble bounce. – Sir Winston Churchill

1974: Nixon resigns.
1883: Coco Chanel born
PHOTOS OF THE DAY

People look at the Amiens Cathedral in France, which is lit up on the eve of a service to mark the centenary of the Battle of Amiens and the subsequent ‘Hundred Days Offensive’ which was a decisive point in the First World War. Credit: Victoria Jones/PA

Standard-bearers stand near the Menin Gate as veterans, current members of the armed forces and family members take part in the British Legion’s “One Hundred Days” ceremony in Ypres, Belgium. Credit: Leon Neal/Getty Images

The Duke of Cambridge and Florence Parly, France’s Minister to the Armed Forces, laying wreaths in the Chapel of the Allies at Amiens Cathedral, France, during a service to mark the centenary of the Battle of Amiens and the subsequent ‘Hundred Days Offensive’ which was a decisive point in the First World War. Credit: PA

The rare flock of Andean flamingos had unusual parenting instincts triggered by the hot weather spell, causing six birds to lay nine eggs for the first time since 2003. Credit: WWT Slimbridge/SWNS.COM
Market Closes for August 9^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks rose, with all but two sectors climbing, even as diplomatic and trade tensions mounted between Canada and Saudi Arabia. The loonie still fell, erasing most of Wednesday’s gains.
     The S&P/TSX Composite Index rose 0.6 percent to 16,416.98 on Thursday, the highest this week. The Information Technology sector gained most, up 1.6 percent, as shares of all but one company closed higher. Materials also climbed, with Pan American Silver Corp. advancing 9.3 percent after profit and sales beat analyst estimates.
     Consumer discretionary slumped the most, falling 0.2 percent, weighed down by Canadian Tire Corp Ltd., which sank the most in three years after disappointing second-quarter earnings results.
     In other moves:
* Parex Resources Inc. plunged as much as 16.5 percent, the most intraday in six years, after 2Q earnings missed analyst expectations
* Pason Systems Inc. jumped 9.4 percent after reporting higher sales than estimated
* Computer Modelling Group fell 11.7 percent, the most intraday since November 2015, after 1Q earnings-per-share missed the lowest analyst estimate; GMP downgraded its rating on the stock to reduce
* MEG Energy Corp. fell 8.3 percent after Highfields granted a request for proxy solicitation; MEG named Derek Evans CEO Aug. 8 to help raise production
                            Commodities
* Western Canada Select crude oil traded at a $27.50 discount to WTI
* Aeco natural gas traded at a $2.25 discount to Henry Hub
* Gold fell 0.1 percent to $1,219.70 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.30446 per U.S. dollar
* The Canada 10-year government bond yield fell to 2.333 percent
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks faded into the close to cap a second day of losses amid selling in industrial and financial shares. The dollar and Treasuries rallied as investors assessed the latest salvos in the trade war with China and sanctions that torpedoed the Russian ruble.
     The S&P 500 Index turned lower in the final 15 minutes of trading that was more than 10 percent below the 30-day average. The Nasdaq indexes pared erased gains to end little changed. Tesla Inc. slumped under reports of regulatory scrutiny. The 10- year Treasury yield fell to 2.92 percent after producer prices stagnated last month. The greenback climbed, while emerging- market currencies weakened for a second day.
     Geopolitical tensions between the U.S. and other countries are setting the tone for markets, with China responding to the Trump administration’s latest trade war volley with additional tariffs of its own. The ruble hit a two-year low after the U.S. announced new sanctions on Russia over the March 4 nerve-agent attack on a former double agent in the U.K. Turkey’s lira plunged to a record and bond yields climbed as a dispute over the detention of an American pastor dragged on.
     Here are some key events coming up this week:
* U.S. consumer prices probably rose in July from June, consistent with a pickup in inflation that’s projected to keep the Federal Reserve on a path of gradual interest-rate increases, economists forecast before Friday’s release.
     These are the main moves in markets:
                            Stocks
* The S&P 500 fell 0.1 percent to 2,853.59 as of 4 p.m. in New York.
* The Nasdaq 100 Index was flat. Viacom rose 6 percent.
* The Stoxx Europe 600 Index ended higher by 0.1 percent.
* Germany’s DAX Index rose 0.3 percent.
* Emerging-market equities fell 0.2 percent.
                            Currencies
* The Bloomberg Dollar Spot Index rose 0.5 percent.
* The euro dipped 0.7 percent to $1.1533.
* The Japanese yen lost 0.1 percent to 111.062 per dollar.
                            Bonds
* The yield on 10-year Treasuries declined three basis points to 2.9258 percent.
* Germany’s 10-year yield fell two basis points to 0.375 percent, the lowest in almost three weeks.
* Japan’s 10-year yield climbed less than one basis point to 0.115 percent.
                            Commodities
* West Texas Intermediate crude fell 0.3 percent to $66.72 a barrel.
* Gold futures slipped 0.1 percent to $1,220.20 an ounce.
* The Bloomberg Commodity Index lost 0.2 percent.
–With assistance from Robert Brand. 

Have a great night.

Be magnificent!

As ever,

Carolann

Character is power.
-Booker T. Washington, 1856-1915 

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
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www.carolannsteinhoff.com