February 28, 2019 Newsletter

Dear Friends,

Tangents:
Scientists James D. Watson and Francis H.C. Crick announced they had discovered the double-helix structure of DNA, the molecule that contains the human genes, at Cambridge University.
Go to article »

‘Starry’ planet
Check out these photos. No, they’re not some recently unearthed van Gogh paintings. They’re new pics of Jupiter taken by NASA’s Juno spacecraft. – From CNN
PHOTOS OF THE DAY

A bee foraging around flowers on a warm winter’s day in Bern, Switzerland. The unseasonably warm weather seems to have brought the seasons forward by some weeks, revealing a spring view while still being in winter. Credit: Anthony Anex/Keystone

Tourist and office workers continue to enjoy the unseasonably warm weather in Hyde Park, London, as Britain could experience record-breaking temperatures this week. Credit: John Stillwell/PA

A view of the Ballroom and the Young Women and Men’s Committee during the rehearsal for the 2019 Opera Ball at the Vienna State Opera. – The Opera Ball 2019, the sumptuous highlight of the Austrian capital’s ball season. Credit: Photo by Herbert Neubaur/AFP
Market Closes for February 28^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1827, America’s first great growth industry was born. Two dozen business leaders incorporated the Baltimore and Ohio Railway to link Baltimore with Wheeling, W.Va., connecting the western frontier with the eastern seaboard.
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks ended a four-day winning streak, trending lower with the U.S. market on global risks.
     The S&P/TSX Composite Index dropped 0.5 percent to 15,999.01. Materials, financials, and industrials lagged, while health-care and real estate advanced. The S&P/TSX Composite Materials Sector GICS Level 1 Index (STMATR) dropped for a fourth straight session.
     Foreign direct investment in Canada rebounded in 2018, showing businesses may be regaining some of their confidence in an economy hampered by falling oil prices and trade uncertainty.
In other moves:
Stocks
* Jamieson Wellness gained 10.5% after earnings update and BMO upgrade
* Bombardier rose 6.5% after boosting its planned bond offering
* Transcontinental lost 12.2% after 1Q adj. EPS missed lowest estimate 
* Seven Generations Energy fell 9.1%; the company still looking at infrastructure options 
Commodities
* Western Canada Select crude oil traded at a $12 discount to WTI
* Gold fell about 0.1% to 1,325.10 an ounce
FX/Bonds
* The Canadian dollar gained fell about 0.1 percent to C$1.3162 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.943 percent
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — U.S. stocks fell for a third consecutive day for the first time this year as lingering concerns over trade and geopolitical risks offset a report showing the economy cooled by less than expected last quarter. The dollar climbed and Treasury yields increased.
     “With this positive momentum, investors are just looking for a little bit of a pause,” said Gene Goldman, chief investment officer at Cetera Investment Management. “Now on the docket is what’s next? We had some data reports and GDP today, but that’s still two month-old data, so investors need some more news.”
     After soaring 18 percent from Christmas to mid-February, the S&P 500 Index has been stuck treading water for the past seven sessions. The gauge did basically nothing the first three days this week, moving less than 3.5 points each day for a total journey of 7.2 points. The last time the gauge did that little over three sessions was 14 months ago.
     Equities received brief bumps higher after White House economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin gave optimistic outlooks on the status of trade negotiations with China. Stocks dropped earlier in Europe and Asia as disappointing manufacturing data out of China and an abrupt end to the U.S.-North Korea summit added to a litany of concerns facing investors.
     The 2.6 percent annualized rate of gains in gross domestic product from October to December compared with the 2.2 percent median estimate of economists surveyed by Bloomberg. It followed a 3.4 percent advance in the prior three months, according to a Commerce Department report that was delayed a month by the government shutdown.
     “This really helps at least reduce imminent recession fears and is just another indicator that the economy certainly slowed down but it looks less recessionary than just a mid-cycle slowdown at this point,” said Jim Paulsen, chief investment strategist at Leuthold Weeden Capital Management in Minneapolis.
     “And certainly the bond market’s initial reaction seems to be that way, with it lifting yields for example.” China’s economic worries and the abrupt end to the Hanoi summit, alongside escalating tensions between India and Pakistan add to a growing array of investor worries. The list also includes the trade war and the direction of monetary policy, potentially setting a high bar for further gains in stocks. U.S. Trade Representative Robert Lighthizer dialed back expectations for a sweeping deal with Beijing on Wednesday, putting a damper on hopes for a quick resolution to talks.
Here are some key events coming up:
* U.S. personal income and sending data is released Friday.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.3 percent as of 4:03 p.m. New York time, while the Nasdaq Composite Index dropped 0.3 percent and the Dow Jones Industrial Average eased 0.3 percent.
* The Stoxx Europe 600 was little changed. 
* The MSCI Emerging Market Index dropped 1 percent.
* The MSCI Asia Pacific Index fell 1 percent, the third straight decline. 
Currencies
* The Bloomberg Dollar Spot Index rose 0.1 percent.
* The euro rose less than 0.1 percent to $1.1374, while the yen weakened 0.4 percent to 111.46 per dollar.
* The British pound weakened 0.4 percent to $1.3262, the first decline in five days.
* The MSCI Emerging Markets Currency Index fell 0.2 percent.
Bonds
* The yield on 10-year Treasuries rose four basis points to 2.72 percent.
* Germany’s 10-year yield climbed four basis points to 0.18 percent.
* Britain’s 10-year yield rose three basis points to 1.30 percent, the fourth straight daily increase. 
Commodities
* West Texas Intermediate rose 0.5 percent to $57.21 a barrel.
* Gold fell 0.5 percent to $1,313 an ounce.
* The Bloomberg Commodity Index fell 0.3 percent. 
–With assistance from Elena Popina.

Have a great night.

Be magnificent!

As ever,

Carolann

Knowing others is intelligence; knowing yourself is true wisdom.
Mastering others is strength; mastering yourself is true power.
                                     -Lao Tzu, c. 6^th-4^th century B.C.

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