September 11, 2018 Newsletter

Dear Friends,

Tangents:
On Sept. 11, 2001, suicide hijackers crashed two airliners into the World Trade Center in New York, causing the 110-story twin towers to collapse. Another hijacked airliner hit the Pentagon and a fourth crashed in a field in Pennsylvania. 
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PHOTOS OF THE DAY

Bianca Burton (left) and Erin Schultheis walk around the Pepperdine University’s annual display of flags honouring the victims on the 9/11 terrorist attacks, Monday, Sept. 10, 2018, in Malibu Calif. Terrorists used hijacked planes to crash Sept. 11, 2001, into the World Trade Centers, the Pentagon and a field in Pennsylvania. Nearly 3,000 people were killed in the attacks. Credit: AP Photo/Jae C. Hong

People wait for a train on the platform at the newly opened Cortland Street 1 train station in New York City, US. The Cortland Street 1 train station was buried in debris following the 9/11 terrorist attacks and had been closed since that day 17 years ago. Credit: Drew Angerer/Getty Images

Dancers perform the Abbots Bromley Horn Dance, an English folk dance whose origins date back to the middle ages, in the Village of Abbots Bromley in Staffordshire. Credit: Aaron Chown/PA Wire
Market Closes for September 11^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks rose for the first time in eight sessions, following U.S. shares higher as technology companies rebounded. The Canadian government is poised to release a blueprint to reform the World Trade Organization as countries adjust to a newly protectionist America that has threatened to leave the organization entirely.
     “We had a very productive, constructive conversation. The atmosphere continues to be cordial. There continues to be goodwill on both sides,” Foreign Affairs Minister Chrystia Freeland said Tuesday after meeting U.S. Trade Representative Robert Lighthizer in Washington. “It is a truism of trade negotiations that nothing is done until everything is done.”
     The S&P/TSX Composite Index rose 0.2 percent to 15,094.25, with all sectors but one climbing. Technology and health-care companies were the best performers. Utilities fell.
     In other moves:
                            Stocks
* Aurora Cannabis soared more than 10 percent after the firm reached a deal on Monday to acquire South America-focused ICC Labs Inc.
* Precision Drilling climbed 5.4 percent as the U.S. rig count held steady in the week ended Sept. 7 with completion crews starting to recover
* Parex Resources kept rising after reporting a Capachos Andina discovery on Monday
* Northland Power gained as much as 5.4 percent after BMO upgraded to outperform from market perform (PT to C$28 from C$25), seeing a positive outlook for significant free cash flow per share growth in 2020 when DeBu project comes online
                            Commodities
* Western Canada Select crude oil traded at a $31 discount to WTI
* Gold rose 0.2 percent to $1,202.40 an ounce
                            FX/Bonds
* The Canadian dollar strengthened to C$1.3080 per U.S. dollar, the highest intraday in over a week
* The Canada 10-year government bond yield gained 2.9 basis points to 2.333%
US
By Sarah Ponczek
     (Bloomberg) — Stocks gained as the technology sector rebounded and energy-related shares rallied with crude oil. Treasury two-year note yields rose to a decade high with the U.S. selling debt and expectations becoming cemented for more Federal Reserve rate increases.
     The S&P 500 and Nasdaq rose for a second day, while the Dow recovered from Monday’s losses after investors shook off lingering anxiety about U.S. and Chinese trade relations. Apple, Microsoft, Facebook, Amazon and Google parent Alphabet pushed the tech heavy Nasdaq 100 Index up the most in about two weeks. European shares ended mostly flat. In emerging markets, shares fell while a gauge of currencies erased earlier gains.
     “Tech is strong, rebounding from that selloff it had,” said Gary Bradshaw, a portfolio manager at Hodges Capital Management in Dallas. “It goes back to second quarter earnings that were exceptionally strong. Obviously we still have trade that hasn’t been worked out, but in spite of a few negatives, this market wants to continue to go higher.”
     Crude rose the most since June as Hurricane Florence threatened U.S. East Coast gasoline markets and sanctions began crimping Iranian oil exports. East Coast motorists may see “dramatic” spikes in gasoline prices, according to AAA, as mass evacuations stretch supplies and Florence’s heavy rains imperil major fuel pipelines.
     Shares fell earlier after the World Trade Organization said China would ask for permission to retaliate against the U.S. due to its failure to modify anti-dumping methodologies.
     Worsening relations between the U.S. and China have been at the top of the agenda, with the Trump administration ready to boost tariffs on even more goods. That’s overshadowed optimism for a trade deal between the EU and the world’s biggest economy. The memory of summertime volatility and weakness in commodities also still provides plenty of reasons for caution as investors brace for meetings of central banks of Argentina, Turkey and Russia this week.
     “People are waiting for some additional news on the trade front,” said Peter Jankovskis, co-chief investment officer at Oakbrook Investments. “That’s a big thing that’s overhanging the market right now.”
     Here are some key events coming up this week:
* Policy decisions from the Bank of England and the European Central Bank on Thursday.
* Russian President Vladimir Putin and Japanese Prime Minister Shinzo Abe will meet.
* Apple unveils its latest iPhones on Wednesday.
* Australia employment is due Thursday.
* China releases August industrial production, retail sales data on Friday.
* U.S. retail sales, industrial production, consumer sentiment on Friday
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index climbed 0.4 percent as of 4:03 p.m. in New York, while the Dow Jones Industrial Average gained 0.4 percent and the Nasdaq Composite Index increased 0.6 percent.
* The Stoxx Europe 600 Index dropped less than 0.1 percent.
* The U.K.’s FTSE 100 Index was little changed.
* Germany’s DAX Index eased 01. percent.
* The MSCI Emerging Market Index sank 0.7 percent to the lowest in about 14 months.
* The MSCI Asia Pacific Index declined 0.1 percent, reaching the lowest in about 13 months on its ninth consecutive decline.
                            Currencies
* The Bloomberg Dollar Spot Index was little changed, after rising as much as 0.2 percent.
* The euro was little changed at $1.1588.
* The British pound fell 0.1 percent to $1.3016.
* The Japanese yen weakened 0.4 percent to 111.60 per dollar.
                            Bonds
* The yield on 10-year Treasuries rose five basis points to 2.98 percent, while the two-year note yield increased four basis points to 2.75 percent.
* Germany’s 10-year yield increased three basis points to 0.43 percent, the highest in a month.
* Britain’s 10-year yield rose three basis points to 1.50 percent.
* Italy’s 10-year yield rose four basis points to 2.94 percent.
                            Commodities
* West Texas Intermediate crude rose 2.8 percent to $69.44 a barrel.
* Gold was little changed at $1,196.25 an ounce.
–With assistance from Eddie van der Walt. 

Have a great night.

Be magnificent!

As ever,

Carolann

Failure is not fatal, but failure to change might be.
                    -John Robert Wooden, 1910-2010

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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