February 7, 2019 Newsletter

Dear Friends,

Tangents:
On Feb. 7, 1964, the Beatles arrived in the United States for the first time, giving rise to Beatlemania. Go to article »

On this day in 1804, John Deere was born in Rutland, Vt. In 1837, he threw the American frontier wide open by inventing the world’s first self-cleaning steel plow.

1812- Charles Dickens was born.

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way. -Charles Dicken, A Tale of Two Cities.
PHOTOS OF THE DAY

People watch the sun rise from the Treaty Grounds in Waitangi, New Zealand. The Waitangi Day national holiday celebrates the signing of the treaty of Waitangi on February 6, 1840 by Maori chiefs and the British Crown, that granted the Maori people the rights of British Citizens and ownership of their lands and other properties. Credit: Phil Walter/Getty Images

A robot wearing a nurse costume carries medical documents at Mongkutwattana General Hospital in Bangkok, Thailand. Credit: Athit Perawongmetha/Reuters

A dog is seen in a snow covered park in Kiev, Ukraine. Credit: Gleb Garanich/Reuters
Market Closes for February 7^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks fell for the first day this week, pacing U.S. stocks while Treasuries rallied after concern mounted that a slowdown in the global economy is spreading.
     The Canadian benchmark fell about 0.1 percent. Consumer discretionary and energy shares underperformed, weighing on the index. Marijuana stocks traded higher.
     Meanwhile, Hydro Quebec plans to issue almost twice as much debt this year than last as Canada’s largest electric utility looks to refinance upcoming maturities. The provincially owned company plans to issue between C$3 billion ($2.27 billion) and C$3.5 billion of debt in 2019, Jean-Francois Pepin, senior director for financing, treasury and pension fund said Wednesday. That compares with the C$1.8 billion that Hydro-Quebec borrowed last year.
Stocks
* Mullen Group fell more than 7 percent after reporting earnings below analyst consensus
* Nuvista Energy declined about 5 percent after cutting 2019 capex and production outlook
* BCE Inc. fell as much as 1.1 percent after its annual forecast missed estimates
* Cronos Group Inc. gained about 7 percent
* Brookfield Property Partners gained after reporting fourth quarter figures that beat analyst estimates
Commodities
* Western Canada Select crude oil traded at a $9.25 discount to WTI
* Gold rose about 0.1 percent to $1,307.67 an ounce
FX/Bonds
* The Canadian dollar fell 0.4 percent to C$1.32608 per U.S.dollar
* The Canada 10-year government bond yield climbed to 1.882%
US
By Jeremy Herron and Reade Pickert
     (Bloomberg) — U.S. stocks slid as investors grew anxious that the Trump administration won’t reach a trade deal with China before a March deadline for escalating the war. Treasuries surged.
     The post-Christmas rally that added 16 percent to the S&P 500 came under increasing pressure amid reports the two trading partners remained far apart on a deal and that the nations’ presidents won’t meet before higher tariffs are slated to take effect on Chinese goods next month.
     Stocks opened lower after official European forecasts signaled a slowdown in the region’s economy and amid concern the American government remains on track for a shutdown next week.
     The news from Europe slammed German assets, sending the DAX Index by the most since October and bund yields to the lowest since 2016.
     “When you get these numbers coming out of Europe, it just reminds you, ‘Well, gee, that’s an issue and it’s symptomatic of all of this prevailing view that the global economy is slowing down,’’’ said David Joy, chief market strategist at Ameriprise Financial. “I would consider China and what happens with China to be the major macro issue confronting U.S. stocks in the short term.”
     Investors are struggling to find fresh impetus for extending the 2019 rally in risk assets ahead of U.S.-China trade discussions next week. In Washington, there was little progress on the domestic front with the deadline approaching for Congress and the White House to reach a deal on keeping the government open. Asian traders remain hamstrung by a dearth of activity as many markets remained shut for Lunar New Year.
     In corporate news, Twitter retreated on a tepid sales forecast, Chipotle rallied after an earnings beat and SunTrust Banks surged after agreeing to sell itself to BB&T in biggest bank takeover in a decade.
     Crude slumped below $53 a barrel in New York and the 10- year Treasury rate slipped to 2.66 percent. The pound reversed losses after the Bank of England left rates unchanged and cut its growth forecast for the U.K. economy. Earlier in Japan, shares fell amid a raft of corporate earnings.
Among key events in the coming days:
* China, Taiwan, Hong Kong and Vietnam are among markets closed for holidays
These are the main moves in markets:
Stocks
* The S&P 500 fell 0.9 percent at 4 p.m. in New York. 
* The Nasdaq 100 slid 1.3 percent and the Dow Jones Industrial Average lost more than 200 points.
* The Stoxx Europe 600 Index fell 1.5 percent, the first retreat in more than a week.
* The MSCI World Index of developed countries decreased 1.1 percent, the largest dip in more than a week.
* The MSCI Asia Pacific Index fell 0.4 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2 percent with its sixth straight advance.
* The euro fell 0.2 percent to $1.1343.
* The British pound added 0.2 percent to $1.2951.
* The MSCI Emerging Markets Currency Index fell 0.3 percent, reaching the lowest in more than a week.
Bonds
* The yield on 10-year Treasuries fell four basis points to 2.65 percent, the lowest in a week on the largest fall in a week.
* Germany’s 10-year yield fell five basis points to 0.11 percent.
* Italy’s 10-year yield rose nine basis points to 2.945 percent.
Commodities
* Gold futures were little changed at $1,313.60 an ounce.
* West Texas Intermediate crude decreased 2.5 percent to $52.65 a barrel.
* Bloomberg’s commodity index lost 1.2 percent.
–With assistance from Todd White.

Have a great night.

Be magnificent!

As ever,

Carolann

Anger makes dull men witty, but it keeps them poor.
                          -Queen Elizabeth I, 1533-1603

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