January 30, 2019 Newsletter

Dear Friends,

Tangents:
On Jan. 30, 1948, Indian political and spiritual leader Mahatma Gandhi was murdered by a Hindu extremist. 
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GIZA, EGYPT: a 4400 year-old tomb was found in extraordinarily good condition.  The tomb is so pristine that painted colors on its reliefs and statues are still visible – a one-of-a-kind find in an area that’s been thoroughly looted and explored.  Archaeologists speculate that the tomb was left undisturbed because it was buried under a ridge and had to be excavated.  The tomb belonged to a priest named Watye; inside are four sealed shafts that haven’t been opened yet but which archaeologists believe will contain the sarcophagus and other artifacts. -CSM, January 14, 2019.
PHOTOS OF THE DAY

Boatman rows his boat during a cold foggy morning at Narmada River in Jabalpur in the Indian state of Madhya Pradesh on January 29, 2019. The Narmada river, also known as the Rewa, is the fifth longest river in the Indian subcontinent. Credit: Uma Shankar Mishra/AFP

A man looks at a car hit by a post after a tornado ripped through a neighbourhood in Havana, Cuba. Credit:  Fernando Medina/Reuters

Snow covered sheep in a field near Ingleton in the Yorkshire Dales as heavy snow falls. Credit: Andrew McCaren/LNP
Market Closes for January 30^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2000, 17 dot-com companies each spent $73,000 per second for network television ads—a total of nearly $38 million—during Super Bowl XXXIV. By the time the big game had rolled around the next year, at least three had filed for Chapter 11 bankruptcy protection, thanks largely to the money they spent promoting themselves.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks rebounded from early losses to close the day on another positive note, after the U.S. Federal Reserve signaled a stark dovish turn in its latest policy statement. The S&P/TSX 500 rose 0.1 percent, to continue its winning streak for the 5th day, led by materials and information technology stocks.
     The biggest gainers among Canadian stocks were Precision Drilling, which received an upgrade from Raymond James on its 2019 capital plans. NexGen Energy was among the worst performers as the world’s top uranium miner said it will boost uranium production.
     Vancouver home sales were the lowest in nearly two decades last year as a slew of new taxes, rising interest rates, and tighter lending rules weighed on the market. Gone are the days of bidding wars and all-cash unconditional offers for multi-million-dollar mansions. Prices have begun to edge down, and the steepest declines have been at the high end of the market.
Stocks
* Precision Drilling Corp. surged 14 percent after being upgraded to strong buy at Raymond James on 2019 capital plan guidance
* Labrador Iron Ore Royalty Corp. gained almost 12 percent as iron ore price estimates were raised by most analysts on Vale disaster 
* Ivanhoe Mines up 8.8 percent after reporting 22.3 meter intersection of 13% copper at Kamoa 
* WSP Global Inc. rose 4.8 percent after the company said it expects its three-year strategic plan to boost adjusted Ebitda by 50 percent 
* Cameco fell 3.2 percent on Kazakhstan production boost
Commodities
* Western Canada Select crude oil traded at a $8.60 discount to WTI
* Gold jumped 0.5 percent to $1,318.90 an ounce
FX/Bonds
* The Canadian dollar rose about 0.9 percent to C$1.3150 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.923%
US
By Reade Pickert
     (Bloomberg) — U.S. stocks surged and the dollar tumbled after the Federal Reserve signaled a stark dovish turn in its latest policy statement.
     The S&P 500 Index rallied to an eight-week high, the Dow Jones Industrial Average jumped 400 points and the Nasdaq 100 Index added more than 2.5 percent after the Fed said it will be “patient” on future interest-rate moves and signaled flexibility on the path for reducing its balance sheet. Major gauges were already higher on the day as technology shares rallied after
     Apple Inc.’s results beat estimates and Boeing Co. helped boost industrial stocks.
     The dollar weakened to a four-month low. The Treasury yield curve steepened as the two-year rate crashed while the 10-year level fell less sharply.
     The Federal Open Market Committee “will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support” a strong labor market and inflation near 2 percent, policy makers said Wednesday.
     The dovish statement helped ease fears that policy makers would continue with plans to raise interest rates even in the face of data suggesting the economy is cooling. The latest corporate earnings offered some reassurance after a series of lackluster results in January. All eyes will now be on tech giants including Facebook and Microsoft when they report later today. Meanwhile, Chinese negotiators are meeting U.S. counterparts in Washington for talks to resolve the ongoing trade dispute. Policy makers took “a step in a very dovish direction,” said Brett Ryan, a U.S. economist at Deutsche Bank AG. “They’re going to be on hold for a little bit.”
     The pound gained after losses Tuesday when lawmakers voted against a key proposal that sought to rule out the prospect of the U.K. crashing out of the European Union without a deal. The Stoxx Europe 600 Index’s gains were led by U.K. companies. 
     Members of Parliament including Prime Minister Theresa May instead backed a proposal to strip out the most difficult part of her proposed divorce package and re-open talks with the European Union.
     Elsewhere, iron ore surged after Brazil’s Vale SA, the world’s largest producer, outlined plans to cut output after a deadly dam breach. Oil rose above $54 a barrel as a government report showed a steep drop in imports from Saudi Arabia. Stocks in Japan and China slid, while they increased in South Korea, Australia and Hong Kong.
Among key events in the coming days:
* Chinese President Xi Jinping’s top economic aide, Vice Premier Liu He, meets with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Wednesday and Thursday.
* Tech giants Microsoft, Facebook, Qualcomm, Tesla, Samsung and Sony announce earnings. These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1.6 percent at the close of trading in New York.
* The Stoxx Europe 600 Index climbed 0.4 percent to the highest in eight weeks.
* The U.K.’s FTSE 100 Index gained 1.6 percent.
* The MSCI Emerging Market Index rose 1 percent to a four-month high.
Currencies
* The Bloomberg Dollar Spot Index fell 0.4 percent.
* The euro gained 0.4 percent to $1.1477.
* The British pound rose 0.3 percent to $1.3104.
* The Japanese yen rose 0.4 percent to 108.96 per dollar.
Bonds
* The yield on 10-year Treasuries fell two basis points to 2.69 percent.
* Germany’s 10-year yield fell one basis point to 0.19 percent.
* Britain’s 10-year yield decreased one basis point to 1.25 percent.
Commodities
* West Texas Intermediate crude rose 1.8 percent to $54.27 a barrel.
* Gold rose 0.5 percent to $1,318.10 an ounce.
–With assistance from Adam Haigh, Julie Johnsson, Robert Brand and Samuel Potter.

Have a great night.

Be magnificent!

As ever,

Carolann

Don’t look back.  Something may be gaining on you.
A baseball pitcher’s advice.
                                    -Satchel Paige, 1906-82    

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