March 28, 2019 Newsletter

Dear Friends,

Tangents:
On March 28, 1979, America’s worst commercial nuclear accident occurred inside the Unit Two reactor at the Three Mile Island plant near Middletown, Pa.
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Ours is a world of nuclear giants and ethical infants.  If we continue to develop our technology without wisdom or prudence, our servant may prove to be our executioner. –General Omar Bradley, 1893-1981

PHOTOS OF THE DAY

Museum staff members walks with mobile devices over a giant illuminated aerial photograph of Berlin, at the exhibition “The Stasi in Berlin” inside former Stasi prison in Hohenschoenhausen, Berlin  CREDIT: FABRIZIO BENSCH/REUTERS

A technician displays the Anthony “Tony’ C. Zemaitis Acoustic fretless Bass guitar, estimate $15-20,000 from the collection of David Gilmour, guitarist, singer and songwriter of Pink Floyd, during a press opportunity at Christie’s auction rooms in London. The collection of more that 120 guitars will be auctioned on June 20 in New York, with the process to benefit charity. CREDIT: JULIAN SIMMONDS FOR THE TELEGRAPH

A juvenile leopard cat, seized by authorities during an anti-smuggling operation, is seen past suspected smugglers during a press conference announcing the seizure of trafficked exotic animals in Surabaya, Indonesia. Authorities said they had seized five Komodo dragons and dozens of other animals being sold on Facebook, as the country battles to clamp down on the illegal wildlife trade. CREDIT: JUNI KRISIWANTO/AFP/GETTY IMAGES
Market Closes for March 28^th, 2019

International Markets

Bonds

Currencies

 Commodities

Market Commentary:
On this day in 1985, after 193 years, a sitting U.S. President visited the floor of the New York Stock Exchange for the first time when Ronald Reagan went to ring the bell that opens trading. 
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks climbed Thursday in a broader equity market rally as U.S. stocks also advanced.
     The S&P/TSX Composite Index rose 0.1 percent to 16,155.49. Information technology and industrials gained, while materials failed to rally.
     Separately, Ontario plans a “thoughtful” return to a balanced budget to ensure the Canadian province can maintain vital services, Finance Minister Victor Fedeli said.
In other moves:
Stocks
* Valener Inc. advanced 11% after being acquired by Noverco 
* Real Matters Inc. jumped 7% 
* BRP Inc. rose 6.3% 
* CCL Industries Inc. gained 4.3% 
* CannTrust Holdings Inc. fell 19% after 4Q earnings
* Detour Gold Corp. lost 8% as gold stocks fell 
Commodities
* Western Canada Select crude oil traded at a $9.30 discount to WTI
* Gold fell 1.6% to $1,296.40 an ounce 
FX/Bonds
* The Canadian dollar fell 0.3 percent to C$1.3442 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.556 percent
US
By Rita Nazareth, Vildana Hajric and Sarah Ponczek 
     (Bloomberg) — U.S. stocks advanced as the rally in Treasuries eased and investors looked to China for the latest developments in the standoff over trade. The dollar climbed.
     The S&P 500 Index remained on track for its best quarter since 2009, with commodity and financial shares leading gains on Thursday. The gauge briefly fell after White House economic adviser Larry Kudlow said the Trump administration is prepared to keep negotiating with Beijing for weeks or even months.
     Treasury 10-year yields rebounded from a 15-month low, while the greenback extended its advance into a third day. The pound slid as the U.K. government will put to a vote the Brexit withdrawal agreement only on Friday.
     The strong quarter for risk assets is coming to an end with a dose of caution after a furious surge in Treasuries raised concern the economy faced a sharp slowdown. Federal Reserve Bank of New York President John Williams said policy is well positioned where it is. Meantime, U.S. trade officials including Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer landed in Beijing Thursday for talks aimed at nailing down a deal with China.
     “Risk assets are being supported right now, in my view, by a dovish Fed, a China stabilization and better sentiment around geopolitical risks,” said Frances Donald, the head of macroeconomic strategy at Manulife Asset Management. “That probably gives this rally a little bit more juice.” 
     The markets are betting on a deal with China in the not- too-distant future, and they’re pricing that in, according to Chad Morganlander, a money manager at Washington Crossing Advisors.
     “Every day or every other day there is a headline or a rumor or a whisper about the China trade talks,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. “The market seems to move very temporarily on a short-term basis based on those movements.”
     Elsewhere, oil fell after President Donald Trump said that OPEC should lift crude production. Gold tumbled below $1,300 an ounce, while palladium had its biggest drop since 2010. The Turkish lira led declines among the world’s major currencies despite an organized effort to stem losses days before elections.
Here are some key events coming up:
* U.S.-China trade talks resume, with a cabinet-level American delegation due in China.
* Fed official Randal Quarles will speak Friday to the Shadow Open Market Committee on “Strategic Approaches to the Fed’s Balance Sheet and Communications.”
These are the main moves in markets:
Stocks
* The S&P 500 rose 0.4 percent to 2,815.44 at 4 p.m. in New York.
* The Stoxx Europe 600 Index dipped 0.1 percent.
* The MSCI Asia Pacific Index decreased 0.6 percent.
* The MSCI Emerging Market Index gained 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index advanced 0.4 percent.
* The euro declined 0.2 percent to $1.1222.
* The Japanese yen dipped 0.1 percent to 110.58 per dollar.
* The British pound slid 1 percent to $1.3055.
Bonds
* The yield on 10-year Treasuries rose one basis point to 2.38 percent.
* Germany’s 10-year yield advancedne basis point to -0.07 percent.
* Britain’s 10-year yield fell one basis point to 1 percent.
Commodities
* The Bloomberg Commodity Index declined 0.6 percent.
* West Texas Intermediate crude dipped 0.2 percent to $59.30 a barrel.
* Gold sank 1.6 percent to $1,295,30 an ounce.
–With assistance from Jan-Patrick Barnert, Adam Haigh, Andreea Papuc, Todd White, Yakob Peterseil and David Wilson.

Have a great night.

Be magnificent!

As ever,

Carolann

Only the paranoid survive.
-Andy Grove, 1936-2016
-dictum on which he ran his company, Intel.

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
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www.carolannsteinhoff.com