December 18, 2018 Newsletter

Dear Friends,

Tangents:
Antonio Stradivari, violinmaker, b. 1737
Steven Spielberg, film-maker, b. 1947

1987 Ivan F. Boesky was sentenced to three years in prison for plotting Wall Street’s biggest insider-trading scandal. Go to article »

What do curators do when a more-than-500-year-old marble Renaissance sculpture slips off its platform and smashers into hundreds of pieces?  Find out at the Metropolitan Museum of Art’s You Tube channel, where curators reveal the process behind restoration and curation.  Also featured are 360-degree tours of famous spots in the New York museum, explorations of unusual musical instruments, and a showcase of the museum’s Costume Institute, which hosts the annual Met Gala.  See more at www.youtube.com/user/metmuseum. -CSM, 12/10/18.

PHOTOS OF THE DAY

This incredible image shows the moment a British surfer is believed to have broke then world record for the biggest wave ever ridded. Credit: Jorge Leal/SWNS

People visit the exhibition “winter lights” with various illuminations trees and lakes in the Palmengarten in Frankfurt, Germany. Credit: AP Photo/Michael Probst

Snow covers the roofs of the so-called “Alter Flecken” (old spot), the historic core of downtown Freudenberg with its half-timbered houses from the 17^th century in the heart of the federal state of North Rhine-Westphalia near the city of Siegen, Germany. Credit” Reuters/Wolfgang Rattay
Market Closes for December 18^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1899, the Dow suffered its fifth-worst daily percentage loss of all time, rocked by news of heavy casualties in the battle against rebels in the Philippines. The index plunged 8.7%, or 5.57 points, to close the day at 58.27. [P.S. It’s 23,675 today]
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks opened higher, with the S&P/Toronto Stock Exchange Composite Index gaining 0.5 percent. Info tech and consumer discretionary stocks led the rise, while energy and health care fell.
     Aphria Inc. and Rapid Dose Therapeutics Inc. announced today that they have expanded the scope of a previously announced agreement that entails launching RDT’s QuickStrip in the German cannabis market. “Germany is one of the most sought- after cannabis markets today,” Aphria President Jakob Ripshtein said in a statement.
     The number of Canadian workers receiving unemployment benefits dropped for the third month, in part because of the expiry of an extended benefit imposed in the aftermath of the 2014 oil price drop, according to Statistics Canada. An estimated 439,600 Canadians received unemployment benefits in October, which is down 1.5 percent from September.
Stocks
* Advantage Oil & Gas (AAV CT) dropped 6.2 percent
* Aphria Inc. (APHA CT) jumped 4.5 percent after announcing it will work with Rapid Dose Therapeutics to introduce QuickStrip in Germany
* Baytex Energy Corp. (BTE CT) dropped 4.3 percent 
* Westshore Terminals Investment Corp. (WTE CT) rose 4.0 percent
Commodities
* Western Canada Select crude oil traded at a $17 discount to WTI
* Gold dropped 0.13 percent to $1,250 an ounce
FX/Bonds
* The Canadian dollar weakened by 0.15 percent to C$1.34264 per U.S. dollar
* The Canada 10-year government bond yield gained 0.4 basis points to 2.046 percent
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks held near a 14-month low in a volatile session that saw the gauge swing almost 2 percent from trough to peak. Oil tumbled.
     The S&P 500 Index ended virtually unchanged as investors braced for Wednesday’s Federal Reserve policy decision. Consumer and technology companies were the best performers, while energy shares sank along with crude. The benchmark U.S. oil grade dropped more than 8 percent at one point, tumbling past $46 a barrel as traders fretted about the outlook for growth.
     Treasuries and the Japanese yen advanced amid a lingering mood of caution after Chinese President Xi Jinping offered no fresh commitments to stimulate the world’s second-biggest economy in a keynote speech. Treasury Secretary Steven Mnuchin said the U.S. and China are planning to hold meetings next month to seek a trade truce. The dollar slipped and the euro strengthened.
     With equities beaten down in recent weeks, stock investors are increasingly pinning their hopes on the U.S. Federal Reserve taking a dovish turn Wednesday. While a rate hike is widely expected, historically the central bank has rarely raised borrowing costs during such market turmoil. President Donald Trump continued with his criticism of policy makers, warning them to avoid “yet another mistake” just hours before their two- day meeting begins.
     “We’re still in a very treacherous trading environment here, and I don’t think we’ve seen any signs yet that we’re getting out of that,” said Matt Forester, the chief investment officer at BNY Mellon’s Lockwood Advisors. “We have to continually be careful.”
     And beyond the Fed looms more trouble for markets: on Friday night, spending authority expires for a swathe of the U.S. government unless Trump and Congress reach a deal.
Here are some events investors will be watching in the days ahead:
* The Fed 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.
* The Bank of Japan’s monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also Thursday.
* A partial U.S. government shutdown could start this week if lawmakers and 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 was little changed at the close of trading in New York.
* The Stoxx Europe 600 Index dipped 0.8 percent.
* The Nikkei-225 Stock Average fell 1.8 percent to the lowest since March.
* The MSCI Emerging Market Index fell 0.5 percent.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent.
* The euro rose 0.1 percent to $1.1364.
* The Japanese yen strengthened 0.2 percent to 112.57 per dollar.
Bonds
* The yield on 10-year Treasuries declined three basis points to 2.82 percent.
* Germany’s 10-year yield dipped one basis point to 0.24 percent.
* Britain’s 10-year yield rose two basis points to 1.28 percent.
Commodities
* West Texas Intermediate crude declined 7.3 percent to $46.24 abarrel.
* Gold rose 0.3 percent to $1,249.17 an ounce.
–With assistance from Cormac Mullen, Andreea Papuc, Christopher Anstey,
Samuel Potter, Todd White, Lu Wang and Alex Nussbaum.

Have a great night.

Be magnificent!

As ever,

Carolann

He who awaits much can expect little.
  -Gabriel Garcia Márquez,  1927-2014

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