February 19, 2019 Newsletter

Dear Friends,

Tangents:
On Feb. 19, 1945, during World War II, some 30,000 United States Marines landed on the Western Pacific island of Iwo Jima, where they encountered ferocious resistance from Japanese forces. The Americans took control of the strategically important island after a month-long battle. Go to article »
PHOTOS OF THE DAY

A veterinarian from the zoo of Besancon, in eastern France feeds “Soa”, a female crowned sifaka. The crowned sifaka is a critically endangered species from Madagascar. There were only 6 females and only 20 individuals living in 7 zoos worldwide. Credit: Sebastien Bozon/AFP

A reveler poses for a photo before a pre-carnival event called Saturnalia Festival in Rio de Janeiro, Brazil. The world famous Rio de Janeiro Carnival will run from March 2 – 9, 2019. Credit: Carl De Souza/AFP

People take to the Rideau Canal on Family Day in Ottawa, Ontario. Credit: Sean Kilpatrick/The Canadian Press Via AP
Market Closes for February 19^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The tech-heavy Nasdaq ended its fourth-shortest bear market ever Friday, climbing more than 20% above its Christmas Eve lows to start a new bull market. The index closed at its highest level since Nov. 8 but is still 7.9% below last August’s record. 
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.6 percent, or 99.2 to 15,937.44 in Toronto. The index advanced to the highest closing level since Oct. 5. Barrick Gold Corp. contributed the most to the index gain, increasing 4.6 percent. Pretium Resources Inc. had the largest increase, rising 11.1 percent.
Today, 162 of 239 shares rose, while 72 fell.
================================================================
| |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Barrick Gold | 9.7830| 4.6| 53.1| -2.8
Enbridge Inc | 7.0380| 1.0| 15.4| 12.9
Suncor Energy | 7.0130| 1.4| 43.4| 19.3
Fairfax Financial | | | |
Holdings | -1.9340| -1.5| 79.3| 6.7
CCL Industries | -2.5750| -4.2| 115.6| 13.6
Canopy Growth | -2.6550| -2.8| -7.0| 66.8
================================================================
| | Index | |
| | Points | Volume VS |YTD Change
Biggest Gainers | % Change | Move |20D AVG (%) | (%)
================================================================
Pretium Resources | 11.1| 1.3820| 93.4| -8.0
Bombardier | 10.4| 3.9270| 99.2| 36.0
Turquoise Hill | 9.8| 1.5420| 9,139.6| 9.8
================================================================
| | |Volume VS |
| |Index Points| 20D AVG |YTD Change
Biggest Losers | % Change | Move | (%) | (%)
================================================================
CCL Industries | -4.2| -2.5750| 115.6| 13.6
Superior Plus | -4.2| -0.6090| 67.2| 16.0
Cameco | -4.2| -1.9130| 20.1| 1.0
* The benchmark 10-year bond rose and the yield fell 0.3 basis points to 1.891 percent
US
By Randall Jensen and Reade Pickert
     (Bloomberg) — U.S. stocks rose in thin trading as Walmart Inc.’s stellar earnings boosted consumer shares, while Treasuries advanced as investors assessed the prospects for a trade deal with China.
     The S&P 500 gained for the sixth time in seven sessions, pushing to the highest since early December. Walmart’s best holiday quarter in a decade lifted retailers and homebuilders got a boost from a positive sentiment report. The 10-year Treasury yield slid below 2.64 percent as concerns remain that the trade truce will end March 1 without a deal, leading to fresh tariffs.
     The dollar fell against major currencies ahead of speeches from Federal Reserve officials this week and the release of meeting minutes Wednesday that should shed more light on the central bank’s turn to a more dovish tone. China’s yuan traded offshore strengthened against the greenback after a Bloomberg News report saying the U.S. is said to press for a stable Chinese currency as part of negotiations.
“There’s a lot going on out there and I think for the most part investors are looking at China and the trade talks,” Kim Forrest, senior portfolio manager at Fort Pitt Capital, said on Bloomberg Television. “We’ve been down this road a couple of times before — not just this year, but last year as well — and this March deadline is really approaching quickly. That’s really where companies are focused, as we heard today on Walmart, but also investors.”
     With earnings season nearing its end, the latest minutes from both the Federal Reserve and European Central Bank due this week and U.S. President Donald Trump weighing an extension of the deadline for a trade deal with China, investors have plenty to ponder right now. Uncertainty over the outlook for global growth hangs over everything, and traders will be hoping for some good news from the world’s two largest economies when talks resume in Washington on Tuesday.
     Elsewhere, the pound advanced as U.K. and European officials work on new legal text for the contentious Irish border backstop. Gold traded at the highest since May amid increasing bullishness and West Texas crude advanced to trade at about its highest in almost three months.
Here are some key events coming up:
* The Federal Reserve will on Wednesday publish minutes from its recent meeting, with the European Central Bank following suit on Thursday.
* Bank of Canada Governor Stephen Poloz speaks on Thursday; ECB President Mario Draghi speaks on Friday, the same day Reserve Bank of Australia Governor Philip Lowe gives parliamentary testimony.
* An Indonesian rate decision is due Thursday.
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.2 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dropped 0.2 percent.
* The MSCI All-Country World Index rose 0.3 percent.
* The MSCI Emerging Market Index gained 0.1 percent.
Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent.
* The euro rose 0.3 percent to $1.1347.
* The Japanese yen declined less than 0.1 percent to 110.55 per dollar.
* The British pound rose 1.1 percent to $1.3064, the strongest in more than a week.
* The MSCI Emerging Markets Currency Index gained 0.3 percent.
Bonds
* The yield on 10-year Treasuries fell two basis points to 2.64 percent, the lowest in more than a week.
* Germany’s 10-year yield declined less than one basis point to 0.105 percent, the lowest in more than a week.
* Britain’s 10-year yield was steady at 1.169 percent.
Commodities
* The Bloomberg Commodity Index climbed 0.4 percent to the highest about two weeks.
* West Texas crude rose 0.9 percent to $56.09 a barrel.
* Gold rose 1.6 percent to $1,343.40 an ounce, the highest in nine months. 
–With assistance from Anna Edwards, Eddie van der Walt and Sarah Ponczek.

Have a great night.

Be magnificent!

As ever,

Carolann

The beginning is always today.
      Mary Shelley, 1797-1851

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
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www.carolannsteinhoff.com