December 13, 2018 Newsletter

Dear Friends,

Tangents:
Today is Saint Lucia Day:  Lucia was a Sicilian girl caught up in the persecutions of Diocletian.  For refusing to marry a pagan, she was tormented and killed.  Her name derives from Latin lux, or light; she is patron saint of sufferers of eye trouble (as well as writers, known to be susceptible to eye strain!).
  In Sicily, Lucia is still honored by bonfires and torchlight parades.  In Sweden the observance of her day begins before sunrise.  The eldest daughter of the house is the Lussibruden, or Lucia Bride.  She wears a white dress with a red sash, and an evergreen wreath with lighted candles atop her head.  She serves saffron buns and coffee, first to her mother and then to the household.  She is followed by her sisters, carrying candles, and by her brothers in tall, pointed hats decorated with stars.  All sing carols offering thanks to the Queen of Light.
  Lucia’s attributes may derive from pagan traditions.  The feminine elements of midwinter and night are complemented by the starboys who follow her.  Like the moon, she brings radiance amidst the darkness.  She wears white to show…becoming a bride.  But, as the oldest girl, she is ready for marriage and childbearing (hence her red sash).  Her gifts of food and drink give evidence of earth’s abundance.
  However one may understand Luciadagen, the spectacle is breathtaking and the ritual is particularly joyful for children. ~John Miller
For more information on St. Lucia and Luciadagen, see www.umkc.edu/imc/stlucia.htm.

December 13^th, 2000 – Republican George W. Bush claimed the presidency 36 days after Election Day. Go to article »

PHOTOS OF THE DAY

Weather service technician Rene Sosna uses snowshoes as he walks back to the station of the German Meteorological Service after measuring the snow depth, in the Harz region, central Germany. Credit: Klaus-Dietmar Gabbert/AFP/Getty Images

A Mary Poppins stunt double rides on top of the Coca-Cola London Eye ahead of the European premiere of Mary Poppins Returns at the Royal Albert Hall. Credit: Kirsty O’Connor/PA

102-year-old great-grandmother Irene O’Shea during her skydive tandem jump in the South Australia town of Wellington, she is now believed to have become the world’s oldest skydiver after plunging 14,000 feet (4,300 metres) through the South Australian sky. Credit: Bryce Sellick/AGP/Getty Images
Market Closes for December 13^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1961, the longest bull market ever for the Dow industrials ground to a halt. The index peaked at 734.91, up 0.89 point for the day and 355% for the previous 12 1/2 years. Within six months, the Dow would bottom at 535.76, a 27% plunge. The blue-chip index closed at 24527.27 Wednesday.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks lost their earlier gains and closed the session 0.2 percent lower, led mostly by two-day decline in pot stocks. The Horizons Marijuana Life Sciences ETF fell 8 percent in last two days, ahead of potential legalization in New Jersey on December 17. Aphria Inc. was among the worst performing pot stocks, with two-day slump of 14 percent.
     Canada’s mining sector received much investor attention after Paulson & Co. convinced shareholders of Detour Gold Corp. to overthrow the bulk of the Canadian miner’s board of directors, including its interim CEO, ending a nasty six-month proxy battle. Meanwhile Private equity firm Waterton Global Resource Management plans to nominate a majority slate of directors and propose a new CEO at Hudbay Minerals Inc. in an effort to improve its performance.
     On the economic data side, Toronto new home prices dropped the fastest in more than two decades in October, adding further evidence that tighter mortgage lending has slowed a boom in the city. Statistics Canada’s price index for new Toronto homes fell 1.4 percent in October from a year earlier, the most since September 1996. Across the country, the price increase of 0.1 percent was the slowest since 2010.
Stocks
* Empire Co. rose 11 percent as it posted second-quarter adjusted EPS that beat the highest estimate 
* AltaGas rose 10 percent after reporting a cut to dividend, and further asset sales 
* Baytex Energy Corp. climbed 8.4 percent. Cormark Securities Inc. said Canadian energy companies are garnering investors’ attention. 
* Alamos Gold Inc. fell 6.4 percent after Desjardins downgraded the stock on reports from local press in Turkey that development activities have slowed at company’s Kirazl? project
* Aurora Cannabis Inc. fell 6.6 percent, after company said it will invest C$10 million in High Tide
Commodities
* Western Canada Select crude oil traded at a $12 discount to WTI
* Gold dropped 0.2 percent to $1,247.10 an ounce FX/Bonds
* The Canadian dollar remained flat around C$1.3353 per U.S. dollar
* The Canada 10-year government bond yield dropped 2.4 basis points to 2.15 percent
US
By Vildana Hajric and Sarah Ponczek
(Bloomberg) — U.S. equities languished Thursday, with small caps leading declines, as trade tensions continued to weigh on financial markets. The dollar jumped after the European Central Bank sounded a cautious note on growth.
     The S&P 500 Index finished the session little changed, with about three decliners in the benchmark for every two that rose.
     Utilities advanced, while banks came under pressure. The Dow Jones Industrial Average eked out a gain, led by Procter & Gamble and McDonald’s. The greenback edged higher as U.S. jobless claims came in below estimates. Treasuries were little changed.
     Investors are studying the latest moves in the global trade tug of war, after Chinese importers resumed buying U.S. soybeans and Beijing reiterated that its officials were in close contact with Washington counterparts on negotiating details of a broader deal.
     But worries remain: China detained a second citizen of Canada for questioning, further heightening tensions between the two countries, and Trump administration officials on Wednesday signaled that Beijing will have to do more to end the tariff war. U.S. Commerce Secretary Wilbur Ross said on Thursday that there have been “frequent conversations” with China, which gave a good road map to resolving many issues.
     “On the fixed-income side, investors are focused on economic growth and what the Fed is thinking about for next year,” said Jim Barnes, director of fixed income at Bryn Mawr Trust. “On the equity side, it continues to trade on headline news related to trade. That’s been happening for a while and it continues to happen.”
     The ECB kept interest rates unchanged, confirmed an end to its asset-purchase program and provided more details on its reinvestment plan. Speaking after the decision, President Mario Draghi said the balance of risks to the euro area had moved to the downside.
     The pound gained after European Union leaders were said to be set to discuss issuing a declaration on the Irish backstop that would help Prime Minister Theresa May get a Brexit deal through Parliament. The Stoxx Europe 600 Index finished lower, while Hong Kong and Chinese shares outperformed as equities across Asia extended their rebound.
     West Texas crude climbed above $53 a barrel after Saudi Arabia was said to be planning to slash exports to the U.S. in the coming weeks. Gold declined.
Still to come this week:
* China industrial production, retail sales data for November is due Friday.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell less than 0.05 percent as of 4:02 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.2 percent.
* The U.K.’s FTSE 100 Index declined less than 0.05 percent.
* Germany’s DAX Index fell less than 0.05 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2 percent.
* The euro declined 0.1 percent to $1.1361.
* The British pound climbed 0.3 percent to $1.2664.
* The Japanese yen dipped 0.3 percent to 113.60 per dollar.
Bonds
* The yield on 10-year Treasuries gained less than one basis point to 2.91 percent.
* Germany’s 10-year yield rose one basis point to 0.29 percent.
* Britain’s 10-year yield climbed one basis point to 1.289 percent.
Commodities
* West Texas Intermediate crude rose 3.7 percent to $53.04 a barrel, its biggest gain in more than a week.
* Gold fell 0.2 percent to $1,242.78 an ounce.
–With assistance from Luke Kawa, Sydney Maki, Austin Weinstein, Sarah Ponczek, Adam Haigh and Todd White.

Have a great night.

Be magnificent!

As ever,

Carolann

Never be afraid to sit awhile and think.
     -Lorraine Hansberry,  1930-1965

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