February 12, 2019 Newsletter

Dear Friends,

Tangents:

Carolann is out of the office this afternoon, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Visitors walk across a bridge as water cascades over the Caban-coch dam, at Elan Valley village near Rhayader in Powys, Wales, UK after recent torrential rain in Powys has filled the complex of Elan valley dams and taken river levels to the tops of river banks in Powys, Wales, UK. Elan Valley dams supply Birmingham in the West Midlands UK with water via a gravity feed. Credit: Graham M. Lawrence/LNP

Wildlife photographer Paul Dibben captured stunning shots of starlings in his garden in Sherborne, Dorset, UK. He explains: “The starlings were hovering like hummingbirds under a bell feeder in our garden. This is new behaviour for me, they are quick learners when there is food on the end of it. Their oily-coloured plumage was reflecting the low winter sun”. Credit: Paul Dibben/Cover Images

A painted 3-D cube in the night sky, created via a drone light painting by photographer Russell Klimas in Colorado Springs, USA. Credit: @LIGHTNLENSE/News Dog Media
Market Closes for February 12^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks gained for the first time in four sessions amid a broader global rally kickstarted by optimism over trade talks and a possible deal to avoid a U.S. government shutdown.
     The S&P/TSX Composite Index added 0.5 percent to 15,642.10. Information technology was one of the strongest sectors, gaining 0.8 percent as Shopify Inc. reversed earlier losses to rise 1.1 percent. The company earlier lost as much as 7.4 percent after its full-year operating profit guidance missed analyst estimates by a wide margin.
     Health-care stocks added 1.1 percent as pot stocks rebounded from a two-day selloff. Aphria Inc. gained 7.9 percent, while Aurora Cannabis Inc. slipped 0.8 percent after reporting weaker quarterly margins.
In other moves:
Stocks
* Enbridge Inc. fell 2.2 percent. The company’s Line 3 pipeline project is facing a challenge from Minnesota’s new governor
* Onex Corp. rose 1.9 percent. The private equity firm is said to be planning a sale of Advanced Integration Technology that could fetch more than $1.5 billion
* Constellation Software Inc. added 2.1 percent after the stock was upgraded to outperform at BMO on its growth prospects
Commodities
* Western Canada Select crude oil traded at a $10.50 discount to WTI
* Gold rose 0.2 percent to $1,309.20 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.5 percent to C$1.3242 per U.S. dollar
* The Canada 10-year government bond yield rose 1 basis point to 1.92 percent
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — U.S. stocks shook off their malaise Tuesday, boosted by optimism over trade talks and a tentative deal among American lawmakers to avert a government shutdown. Treasuries and the dollar edged lower.
     After four sessions of losses or whisker-thin gains, the S&P 500 Index registered its biggest one-day increase this month, breaking through its 200-day moving average. The rally was broad-based: Materials stocks led the charge, but financials and the FAANG cohort of tech stocks also advanced, and energy companies gained as oil rebounded from a two-week low after Saudi Arabia pledged to deepen production cuts. The Dow Jones Industrial Average hit a 10-week high. 
U.S. lawmakers said they have reached an “agreement in principle” on border security funding that would forestall a second shutdown. President Donald Trump said he’ll hold a meeting Tuesday to discuss the proposal. He said the preliminary agreement is “not doing the trick” but also said he has to study it and can add to it. On trade, the U.S. president said that he’s open to letting slide a March 1 deadline for China tariffs if a deal appears close.
     “None of the worries that people had in the fourth quarter have really gone away,” said John Carey, managing director and portfolio manager at Amundi Pioneer Asset Management. “But people are maybe a little less concerned now and a little bit more positive about the ability of the economy to continue in a growth trajectory over the next couple of years, and that should be good for earnings.”
     The prospect of a deal to keep the U.S. government open together with hints that Trump may reach an accord with China appear to be rekindling the rally in riskier assets after a turbo-charged start to the year showed signs of ebbing last week. A dovish shift by the world’s central banks has also helped, but at the same time has underscored the dilemma facing investors — join the chase for late-cycle gains, or gird for a looming slowdown in growth.
     Elsewhere, carmakers led the advance in the Stoxx Europe 600 Index, while West Texas intermediate crude futures and gold advanced. Emerging-market shares climbed and their currencies edged higher. The pound gained as U.K. Prime Minister Theresa May updated lawmakers on the progress of Brexit talks with the EU. The offshore yuan strengthened for the first time in five days.
Here are some key events coming up:
* Chinese Vice Premier Liu He was expected to join U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in high-level trade talks Thursday and Friday.
* Earnings season continues with reports from companies including Cisco, Vivendi, Nvidia, Nestle, Coca-Cola and Credit Suisse.
* Sweden’s Riksbank is expected to keep interest rates at minus 0.25 percent on Wednesday after the first increase in more than seven years in December.
* Data Wednesday is expected to show U.S. consumer prices rose 0.1 percent in January, after falling 0.1 percent in December.
These are the main moves in markets:
Stocks
* The S&P 500 Index climbed 1.3 percent, to a 10-week high, as of 4:01 p.m. New York time.
* The Dow Jones Industrial Average rose 1.5 percent; the Nasdaq 100 gained 1.5 percent.
* The Stoxx Europe 600 Index increased 0.5 percent.
* The MSCI Emerging Market Index climbed 0.8 percent, the first advance in a week and the biggest increase in more than a week.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.3 percent, the first retreat in almost two weeks.
* The euro climbed 0.5 percent to $1.1331.
* The British pound jumped 0.3 percent to $1.2896, the biggest increase in almost two weeks.
* The Japanese yen fell 0.1 percent to 110.47 per dollar.
Bonds
* The yield on 10-year Treasuries advanced two basis points to 2.68 percent, the biggest gain in over a week.
* Germany’s 10-year yield increased one basis point to 0.13 percent.
* Britain’s 10-year yield increased one basis point to 1.185 percent.
Commodities
* The Bloomberg Commodity Index jumped 0.6 percent, its biggest increase in two weeks.
* West Texas intermediate crude increased 1.3 percent to $53.10 a barrel.
* Gold jumped 0.2 percent to $1,311.27 an ounce.
–With assistance from Todd White, Andreea Papuc, Eddie van der Walt and Luke Kawa.

Have a great evening.

Be magnificent!

As ever,

Karen

“If opportunity doesn’t knock, build a door”. Milton Berle

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