November 5, 2018 Newsletter

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Swans fly over a lake in Rongcheng, east China’s Shandong Province. Credit: Xinhua/Alamy Live News

Hot-air balloons rise up in the sky during early morning hours over the hills of scenic historical Cappadocia region, a UNESCO world heritage site, in Central Anatolia’s Nevsehir province, Turkey. Credit: Behcet Alkan/Anadolu Agency/Getty Images

Local villagers perform traditional dance for tourists at a chrysanthemum base in Yaogujiang Village, Majiang County, southwest China’s Guizhou Province. Credit: Xinhua/Barcroft Images
Market Closes for November 5^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for a fourth day in five as natural gas prices boosted energy stocks and cannabis shares rose ahead of the U.S. midterm elections. The S&P/TSX Composite Index added 98 points or 0.7 percent to 15,217.70, the highest in nearly two weeks. Health-care stocks led the gains, up 4.6 percent, as Canopy Growth Corp. rose 7.4 percent. Cannabis legalization is on the ballot in four states and the outcome of the midterms could determine the path for legalization south of the Canadian border.
     The energy sector added 2.2 percent as natural gas futures posted their biggest gain in two years. Advantage Oil & Gas Ltd. rose 12 percent and Birchcliff Energy Ltd. gained 8.3 percent. In other moves:
Stocks
* NexGen Energy Ltd. jumped 14 percent and Cameco Corp. added 8.5 percent after the U.S. Supreme Court supported a Virginia ban on uranium mining 
* Green Organic Dutchman Holdings Ltd. surged 37 percent, adding to Friday’s 21 percent gain. A post-IPO lockup on the company’s shares expired Friday
* Ensign Energy Services Inc. rose 7.1 percent, the most since March. The company’s third-quarter loss was narrower than estimated
Commodities
* Western Canada Select crude oil traded at a $42 discount to WTI
* Aeco natural gas traded at a 84 cent discount to Henry Hub, the narrowest gap in a month
* Gold fell 0.1 percent to $1,232.30 an ounce FX/Bonds
* The Canadian dollar was little changed at C$1.3109 per U.S. dollar
* The Canada 10-year government bond yield fell 2 basis points to 2.52 percent
US
By Vildana Hajric
     (Bloomberg) — U.S. stocks climbed, with Warren Buffett’s Berkshire Hathaway Inc. powering gains in the S&P 500 Index. Treasury yields edged lower. The U.S. conglomerate rose the most since July after the world’s most famous stock-picker revealed he’d been buying back his firm’s own shares. Investors were also hunting bargains after last month’s downtown and weighing the outlook for Tuesday’s midterm elections. Financial and energy shares climbed, while Apple slumped on a report it wouldn’t boost iPhone production. Facebook and Amazon also sank. Oil fell for a sixth straight day.
     Tech’s underperformance continued a trend seen in the past few weeks, with the S&P 500 Index down less than 6 percent since the end of August, compared with drop of almost 10 percent for the Nasdaq 100. For the full year, tech indexes are still faring better.
     Politics and central banks loom large in a busy week for global markets. U.S. congressional elections, seen as a referendum on the policies of President Donald Trump, take place Tuesday. Investors also are on alert for any trade developments after White House economic adviser Larry Kudlow last week downplayed the potential for a quick deal between the U.S. and China. Up ahead is the Federal Reserve policy meeting Thursday, when officials are expected to keep the benchmark rate unchanged but give clues for moves into 2019.
     “Early this week here, people are trying to resolve some of the uncertainty with this election,” said Jerry Braakman, the chief investment officer at Santa Ana, California-based First American Trust. “There’s not a great deal of value anywhere in the market, and that’s why were seeing increased volatility.”
     Elsewhere, crude climbed as sanctions on Iran oil snapped back into place Monday. The pound strengthened a third day in four on signs of further progress in Brexit negotiations. Emerging-market currencies and shares fell after stocks in Asia closed mostly lower. The Stoxx Europe 600 Index fell into the red in relatively thin trading.
Here are some key events coming up this week:
* On Tuesday, U.S. mid-term elections will determine whether Republicans keep control of Congress, and set the stage for Trump’s 2020 re-election bid
* Reserve Bank of Australia November policy decision Tuesday 
* Federal Reserve policy makers are expected to leave the main interest rate unchanged Thursday at their penultimate gathering of 2018
* Trump plans to meet Russian President Vladimir Putin on the sidelines of Armistice Day celebrations Nov. 11
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.6 percent as of 4 p.m. in New York; the Nasdaq Composite slumped 0.4 percent; the Dow Jones Industrial Average rose 0.8 percent.
* The Stoxx Europe 600 Index fell 0.2 percent.
* The MSCI Emerging Market Index declined 0.4 percent, the first retreat in a week.
Currencies
* The Bloomberg Dollar Spot Index slipped 0.1 percent.
* The euro climbed 0.2 percent to $1.1409.
* The Japanese yen was little changed at 113.2 per dollar.
* The British pound jumped 0.6 percent to $1.3041.
* The MSCI Emerging Markets Currency Index sank 0.1 percent.
Bonds
* The yield on 10-year Treasuries fell one basis point to 3.2 percent.
* Germany’s 10-year yield was little changed at 0.42 percent.
* Britain’s 10-year yield rose one basis point to 1.5 percent, its sixth straight increase.
Commodities
* The Bloomberg Commodity Index rose 0.4 percent to the highest in a week.
* West Texas Intermediate crude fell 0.5 percent to $62.80 a barrel.
* Copper decreased 1.9 percent to $2.755 a pound.
* Gold slipped 0.2 percent to $1,231.04 an ounce.

Have a wonderful evening.  

Be magnificent!

As ever,

Karen

“If you cannot do great things, do small things in a great way.” –Napoleon Hill

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