December 14, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!

1503 – Astronomer Nostradamus is born.
1911 – Amundsen reaches the South Pole.
1979 – The album “London Calling” by the Clash was released. Go to article »
PHOTOS OF THE DAY

Visitors stand in front of monumental silk lanterns depicting a palace, installed at the Foucaud Park in Gaillac, southwestern France, during the Lantern Festival. Monumental silk sculptures are exhibited in Gaillac from December 1, 2018 to February 6, 2019, as part of the Chinese traditional Lantern Festival marking the end of celebrations for the Chinese Lunar New Year period. Credit: Eric Cabanis/AFP/Getty Images

Dawn breaks and silhouettes Tower Bridge and commuters crossing the River Thames in London, UK. Credit: Reuters/Henry Nicholls

The Nutcracker performed by The English National Ballet at the London Coliseum. London, UK. Rina Kanehara as Clare, Fernando Carratala Coloma The Nutcracker. Credit: Alastair Muir

A 26 foot Christmas tree that Colin Furze has put in his house in Stamford, Lincolnshire, UK. The tree starts in his lounge (pictured) goes into his bedroom and then out through the roof. The 38-year-old YouTuber cut down the huge Norway Spruce fir tree, cut it in to three sections, and remarkably managed to squeeze into his three-bedroom house-with the tip of the tree poking out of the roof. Credit: The Telegraph
Market Closes for December 14^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The desire to get rich fast is pretty dangerous. – Charlie Munger
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks headed lower on rising concern over the health of the global economy. The S&P/Toronto Stock Exchange Composite Index fell 1.1 percent, led by tech and energy stocks, while health care, boosted by pot stocks, was the only outperformer.
     The mining royalty company Wheaton Precious Metals Corp. was the best performing stock within the S&P/TSX. The stock surged the most since 2008 as investors breathed a sigh of relief after it reached a settlement with the Canadian government that will mean a lower tax bill than many feared.
     Meanwhile, the Canadian e-commerce company, Shopify Inc. was the worst performing stock on the TSX, after announcing its second capital raise this year. The stock fell as the company planned a sale of 2.6 million Class A subordinate voting shares to strengthen its balance sheet, which follows a 4.8-million share offering earlier this year.
Stocks
* Wheaton Precious Metals Corp. rose 14 percent
* Shopify Inc. plunged 13 percent
* Weed stocks Aphria Inc. and Aurora Cannabis Inc. rose after Ontario said it will open cannabis retail stores in phases in response to a national supply shortage of marijuana,
* Alamos Gold Inc. dropped 6.6 percent, after announcing two employees are feared dead after a mining accident. The news comes after the miner’s stock slumped yesterday on Turkey challenges.
* Detour Gold Corp. fell 9.6 percent one day after a shakeup to its board Thursday 
Commodities
* Western Canada Select crude oil traded at a $12.50 discount to WTI
* Gold dropped 0.4 percent to $1,242.30 an ounce
FX/Bonds
* The Canadian dollar weakened by 0.3 percent to C$1.33905 per U.S. dollar
* The Canada 10-year government bond yield dropped 5.8 basis points to 2.096 percent
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks closed at their lowest level since April, with Treasuries rising alongside the yen, as mounting concern over the health of the global economy overshadowed positive trade developments and signs of strength from the American consumer.
     The S&P 500 Index tumbled 1.9 percent Friday, after testing February lows, erasing the week’s gains. Health-care and technology stocks were among the biggest decliners. The Dow Jones Industrial Average sank almost 500 points, led by Johnson & Johnson’s biggest rout in years amid mounting legal peril.
     Retailers retreated even after monthly data indicated U.S. consumers are still spending. Oil and gold fell. The sour mood on Wall Street came after equities slumped from Asia to Europe on concern that Chinese growth is slowing. President Donald Trump attributed the latest data to his trade war, even suggesting a deal could come soon. Investors took little solace in that, and earlier signs that trade tension was easing didn’t do much to calm nerves.
     “People see the challenges into 2019, and it’s the same litany of fundamental challenges with revenue growth, global growth, all of these questions,” said Yousef Abbasi, director of U.S. institutional equities and global market strategist at INTL FCStone. “They want to see something positive, but at the same time, they’re hesitant to react when it’s a small positive. It almost seems like they want the whole kit and caboodle.”
     Lackluster data also sent the euro down, as France’s “Yellow Vests” movement exacerbated a decline in the region’s PMI data to the lowest in more than four years. The pound slid after European leaders rebuffed Prime Minister Theresa May’s pleas to help her sell her Brexit agreement to a skeptical British parliament.
     Growth concerns came back into focus midweek after European Central Bank President Mario Draghi said economic risks were moving to the downside, while in China retail sales and industrial production figures for November fell significantly short of estimates. The weak readings from Europe on car sales and manufacturing simply added to the gloom.
Here are some key events for investors in the days ahead:
* The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with Chairman Jerome Powell. 
* A partial U.S. government shutdown could start next week if lawmakers and President Trump fail to resolve how much money to allocate for Trump’s wall along the Mexican border.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.9 percent as of 4 p.m. New York time, the biggest drop in a week.
* The Stoxx Europe 600 Index dipped 0.6 percent.
* The U.K.’s FTSE 100 Index decreased 0.5 percent.
* Germany’s DAX Index fell 0.5 percent.
* The MSCI Emerging Markets Index gained 0.7 percent.
Currencies
* The Bloomberg Dollar Spot Index jumped 0.3 percent to the highest in over a month.
* The euro sank 0.5 percent to $1.1303.
* The British pound dipped 0.5 percent to $1.2582.
* The Japanese yen rose 0.2 percent to 113.39 per dollar, its biggest climb in over a week.
Bonds
* The yield on 10-year Treasuries dipped two basis points to 2.89 percent, the first retreat in a week.
* Germany’s 10-year yield declined three basis points to 0.25 percent, the biggest decrease in more than a week.
* Britain’s 10-year yield declined five basis points to 1.24 percent.
Commodities
* West Texas Intermediate crude decreased 2.8 percent to $51.09 a barrel.
* Gold decreased 0.3 percent to $1,238.42 an ounce.
–With assistance from Matt Turner, Adam Haigh and Yakob Peterseil.

Have a wonderful weekend.

Be magnificent!

As ever,

Carolann

The secret of success is to know something nobody else knows.
                              -Aristotle Socrates Onassis, 1906-1975

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