September 12, 2018 Newsletter

Dear Friends,

Tangents:
How Newfoundland became a place of refuge on 9/11 and rolled out the welcome mat to passengers diverted by air traffic shutdown 
Go to article >>

This might be the oldest drawing ever found.

SEPTEMBER
   -by Louis Jenkins
One evening the breeze blowing in the window turns cold
and you pull the
blankets around you.  The leaves of the maples along Wallace Avenue have
already turned and whoever it was you loved does not come around anymore,
It’s all right.  Things change with the cycle of the seasons and evolve.  A mistake,
a wrong turn takes one elsewhere.  But perhaps there are forces other than
chance at work here…
PHOTOS OF THE DAY

The Virginia creeper covering the Tu Hwnt I’r Bont Tearoom on the banks of the River Conwy in Llanrwst, north Wales, begins to change colour as autumn sets in. Credit: Peter Byrne/PA

A Messerschmitt bubble car of the year 1958, left, and a BMW Isetta of the year 1958, right, are displayed at the “Automechanika” car supplier fair inFrankfurt, Germany. Credit: Michael Probst/AP

In this satellite image taken on Tuesday, Hurricane Florence churns through the Atlantic Ocean toward the U.S. East Coast. Followed to the east first by Hurricane Isaac and then Hurricane Helene. Florence is expected to make landfall by late Thursday to near Category 5 strength along the Virginia, North Carolina and South Carolina coastline. Credit: NOAA Via Getty Image
Market Closes for September 12^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks resumed losses, bucking a global trend, as trade uncertainty weighed on sentiment. Mexico’s chief Nafta negotiator is headed to Washington as the nation reiterated that it’s prepared to pursue a new trade deal with the U.S., even if it ends up excluding Canada. Meanwhile, Canadian Foreign Affairs Minister Freeland plans to return to Washington Wednesday night for a day of talks, Reuters reported.
     The S&P/TSX Composite Index fell 0.3 percent, dragged down by industrials, energy, financials and telecom shares. Materials was the second best-performing sector as precious metal prices surged on reports that the U.S. is proposing new round of trade talks with China.
                            Stocks
* New Gold Inc. rallied 22 percent on reports it’s working with BMO Capital Markets to help find a buyer and evaluate other options as the company explores a sale; earlier, New Gold named former Richmont Mines chief Renaud Adams its new CEO
* Bausch Health, formerly known as Valeant Pharmaceuticals, gained 13 percent after its patent for antibiotic Xifaxan was extended until 2029
* Transcontinental Inc rose 0.4 percent after National Bank Financial analyst Adam Shine upgraded it to outperform from sector perform
                            Commodities
* Western Canada Select crude oil traded at a $33.50 discount to WTI
* Gold gained 0.7 percent to $1,211 an ounce
                            FX/Bonds
* The Canadian dollar was gained 0.5 percent at C$1.3004 per U.S. dollar
* The Canada 10-year government bond yield fell 0.5 basis point to 2.333%
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks were mixed as a slump in technology and financial shares offset optimism that trade talks with China will resume before the Trump administration imposes another round of tariffs. Crude oil posted its best two-day increase since June.
     The Dow Jones Industrial Average was whipsawed by a Wall Street Journal report that the U.S. was reaching out to Chinese officials, fluctuating by over 200 points. Comments later from 3M’s chief financial officer on rising raw material costs helped to push the Dow into the red. The Nasdaq was lower much of the day, while the S&P 500 was little changed. Chipmakers dropped earlier after Goldman and Stifel downgraded several U.S. peers amid mounting industry concerns.
     Semiconductors are “a key indicator for the broader technology sector, and for the general stock market going forward,” Matt Maley, an equity strategist at Miller Tabak & Co., wrote in an email. “If the semis do indeed break-down from here as we move through the rest of September, it could/should lead to investors to rotate away from the tech stocks in a more meaningful fashion than they did last week.”
     Brent crude traded near a two-month high as shrinking oil inventories pointed to an increasingly tight global market. Meanwhile, Hurricane Florence threatens to disrupt fuel supplies as it moves toward North Carolina.
     Central banks are back in the spotlight this week. Market participants are watching for policy meetings scheduled for the European Central Bank and Bank of England, as well as Turkish and Russian central banks. Meanwhile, investors will be gauging the potential for extreme weather to disrupt economic activity, as threats from trade tension and Brexit negotiations linger.
     Here are some key events coming up this week:
* Policy decisions from the Bank of England and the European Central Bank on Thursday.
* 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 was little changed as of 4:08 p.m. in New York, while the Dow Jones Industrial Average rose 0.1 percent and the Nasdaq Composite Index slumped 0.2 percent.
* The Stoxx Europe 600 rose 0.5 percent.
* The U.K.’s FTSE 100 gained 0.6 percent.
* Germany’s DAX Index increased 0.5 percent.
* The MSCI Emerging Market Index rose 0.3 percent, rising from a 16 month low.
* The MSCI Asia Pacific Index rose 0.1 percent, after hitting the lowest in 13 months.
                            Currencies
* The Bloomberg Dollar Spot Index dropped 0.5 percent.
* The euro gained 0.2 percent to $1.1626.
* The British pound was little changed at $1.3049.
* The Japanese yen strengthened 0.3 percent to 111.27 per dollar.
                            Bonds
* The yield on 10-year Treasuries fell one basis points to 2.96 percent, while the two-year note yield was little changed at 2.75 percent.
* Germany’s 10-year yield fell two basis points to 0.41 percent.
* Britain’s 10-year yield fell two basis points to 1.48 percent.
* Italy’s 10-year yield rose one basis point to 2.94 percent.
                            Commodities
* West Texas Intermediate crude rose 1.4 percent to $70.25 a barrel.
* Gold gained 0.6 percent to $1,205.76 an ounce. 

Have a great night.

Be magnificent!

As ever,

Carolann

Forever is composed of nows.
-Emily Dickinson, 1830-1886

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