October 30, 2018 Newsletter

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

The Scillonian passenger ferry passes through a rainbow in Mounts Bay, Mousehole, Cornwall, UK. Credit:  Simon Maycock/Alamy Lives News

East Village Annual Halloween Dog Parade In New York Original description: Dogs dressed in costume compete at the East Village annual Halloween dog parade at the East River Park Amphitheatre in New York City. Credit: UPI/Barcroft Images

A woodpecker made by Chilean artist Mauricio Garcia and winner of the public art contest “IdeasTorreEntel” is seen in Santiago as part of the “Hecho en Casa” (Made at Home) art installation. Credit: Martin Bernetti/AFP
Market Closes for October 30^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks opened Tuesday trading mostly higher, with about two-thirds of issues rising in the S&P/Toronto Stock Exchange Composite Index. U.S. stocks also gained, led by real estate and consumer staples, after 7 declines in 8 days. The S&P/TSX Composite rose about 0.5 percent, led by health care and industrials. Only energy and utilities weakened.
     The Canadian dollar held its ground against the greenback Tuesday following 3 days of declines ahead of planned parliamentary testimony by Bank of Canada Governor Stephen Poloz. The loonie trailed other commodity-related currencies such as the Australian and New Zealand dollars as oil dipped, but outperformed most G-10 peers.
     Pot stocks accounted for more than a third of the 11 percent decline in the S&P/TSX Venture Composite Index so far this quarter, with cannabis companies making up 10 of the 15 biggest contributors to the benchmark’s downside through Oct. 29. This has exacerbated a longer-term slump in the commodity- heavy, small-cap index that has seen it lose about 80 percent from its 2007 high amid weakness in Canadian crude and metals prices.
Stocks
* Guyana Goldfields Inc. plunged about 53 percent, with trading halted two minutes into trading 
* Aphria Inc. was up 8.8 percent after announcing approval of common shares for listing on the New York Stock Exchange and the start of trading Nov. 2
* Manulife Financial Corp. jumped 5.8 percent, saying it was “confident it would prevail” in suit related to Mosten
* Waste Connections Inc. dropped 4.9 percent after third-quarter revenue met analyst estimates 
Commodities
* Western Canada Select crude oil traded at a $42 discount to WTI
* Gold gained 1.4 percent to $1,226.5 an ounce FX/Bonds
* The Canadian dollar was little changed at C$1.31285 per U.S. dollar
* The Canada 10-year government bond yield fell to 2.412%
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks ended a tumultuous day sharply higher, with all major averages rising at least 1.4 percent as volatility continues to grip equity markets during earnings season. Treasuries fell and the dollar rose.
     The S&P 500 Index twice erased gains that topped 1 percent before finally securing a rebound in the final hour of trading. All 11 main groups rose, with consumer and commodity shares pacing gains. The average flirted with a correction earlier Tuesday and is still down more than 8 percent in October, on track for its worst month of the bull market. More than four shares rose for every one that fell in the S&P 500. Earnings drove some of the biggest moves. Take-Two Interactive and Under Armour surged on strong results. General Electric slumped to the lowest since 2009. Facebook edged higher in after-hours trading following its report. An ETF tracking homebuilders surged the most since April.
     The Tuesday rally was welcomed by U.S. stock investors on edge after largely stellar earnings have failed to provide sustained relief to selling that began amid concern that rising rates will crimp economic growth. Attention will turn to major tech results including from Apple and Friday’s jobs report. Trade also remains in focus, while the American midterm elections on Nov. 6 have started creeping into the calculus.
     “The largest risks are the trade war and rising rates,” said Michael O’Rourke, JonesTrading’s chief market strategist. “When it comes to the midterm elections, most people are looking at them optimistically in the sense that usually after midterms the stock market rallies. The stock market is going to do what it’s going to do whether you vote Republican or Democrat.”
     The Stoxx Europe 600 Index failed to sustain momentum from Asia — it opened higher after good earnings for BP and Volkswagen, but corporate results were mixed overall before ending little changed. The euro edged down after underwhelming economic data.
     The MSCI Asia Pacific Index halted a five-day losing streak after Trump held out the possibility of a trade deal with China, even as his administration prepares for a possible expansion of tariffs. China’s stocks climbed as authorities said they’d encourage long-term funds to invest. The yuan was little changed after earlier hitting its weakest against the greenback in a decade.
Here are some key events coming up this week:
* This week’s earnings season highlights include: Facebook, Komatsu, Macquarie, Apple, Alibaba, China Telecom, Fanuc, Airbus, Credit Suisse, Exxon Mobil, and Shell.
* Monetary policy decisions are due in Japan and the U.K.
* On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved as payrolls rose about 190,000, and the unemployment rate held at a 48-year low of 3.7 percent, analysts forecast.
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 1.6 percent at 4 p.m. in New York.
* The Nasdaq 100 rose 1.4 percent. The Dow Jones Industrial Average was higher by 1.8 percent.
* The Stoxx Europe 600 Index rose 0.1 percent.
* The MSCI Asia Pacific Index increased 0.5 percent, the first advance in more than a week and the largest climb in almost two weeks.
* The MSCI Emerging Market Index declined 0.2 percent, reaching the lowest in almost 20 months on its sixth straight decline.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.1 percent to the highest in more than 17 months.
* The euro fell 0.1 percent to $1.1367, the weakest in almost 11 weeks.
* The British pound dipped 0.5 percent to $1.2732.
* The Japanese yen sank 0.4 percent to 112.79 per dollar.
Bonds
* The yield on 10-year Treasuries gained two basis points to 3.11 percent.
* The two-year rate rose two basis points to 2.84 percent.
* Germany’s 10-year yield was unchanged at 0.37 percent.
Commodities
* West Texas Intermediate crude fell 0.5 percent to $66.75 a barrel.
* Gold futures sank 0.1 percent to $1,226.30 an ounce.

Have a wonderful evening. 

Be magnificent!

As ever,

Karen

“The most wasted day of all is that on which we have not laughed”. Nicholas Chamfort

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