April 16, 2018 Newsletter

Dear Friends,

Tangents:

Good news.  Racing in cold, wet, windy weather, Desiree Linden, above, became the first American woman to win the Boston Marathon in 33 years. It was her first major marathon victory.

The men’s race also had an upset winner, Yuki Kawauchi of Japan. Defying elite runners’ custom of entering just two or three marathons a year, he was running in his fourth such race of 2018. (He’s won all four.) – The NY Times

The Rolling Stones first album was released on this day in 1964.  Recorded at Regent Sound Studios in London over the course of five days in January and February 1964, The Rolling Stones was produced by then-managers Andrew Loog Oldham and Eric Easton. The album was originally released by Decca Records in the UK, while the US version appeared on the London Records label.

PHOTOS OF THE DAY

A Historic Royal Palaces conservator examines the famous pained ceiling of The Apotheosis of King James I by Peter Paul Rubens, at the Banqueting House in Whitehall, London. Credit: Victoria Jones

A visitor photographs azaleas in full bloom at Nagushiyama Park in Sasebo, Nagasaki Prefecture, southwestern Japan. Some 100,000 different kinds of azaleas are blooming at the park. Credit: Eugene Hoshiko

Thousands of people marched in Barcelona to protest against the jailing of nine Catalan separatist leaders facing trial on “rebellion” charges. Many chanted “Freedom for the political prisoners” as they massed on the Parallel Avenue, one of the city’s main streets, wearing yellow scarves, sweaters or jackets. Credit: Lluis Gene
Market Closes for April 16^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for a third day as gains in cannabis, industrial and technology shares offset declines in commodity producers.
     The S&P/TSX Composite Index added 26 points or 0.2 percent to 15,300.38, the highest close in seven trading days. Pot stocks posted strong gains for a second day after U.S. President Donald Trump said Friday he’d support states that have legalized marijuana. Aphria Inc. rose 7.4 percent.
     Industrials added 0.8 percent and technology shares rose 0.7 percent as investors turned their attention from geopolitical tensions to earnings. Materials lost 0.2 percent and the energy index fell 0.4 percent as crude prices retreated following the weekend’s missile attack on Syria.
     In other moves:
                          Stocks
* Vermilion Energy Inc. fell 2.9 percent, the most since March 1, after it agreed to buy Spartan Energy Corp. for C$1.08 billion. Spartan lost 0.3 percent
* Paramount Resources Ltd. slid 3.3 percent following a pipeline leak in Alberta
* Bombardier Inc. rose 1.7 percent. CEO Alain Bellemare said he’s confident the company will secure another C Series order this year
                          Commodities
* Western Canada Select crude oil traded at a $15.00 discount to WTI
* Gold rose 0.2 percent to $1,347.50 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.3 percent to C$1.2567 per U.S. dollar, the highest since mid-February
* The Canada 10-year government bond yield rose three basis points to 2.27 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks rose as geopolitical tensions faded and investors turned to what’s expected to be a blowout corporate earnings season. The dollar fell against most peers.
     The S&P 500 Index gained to the highest in almost a month and erased its loss for the year as investors eyed the earnings season after there was no immediate reprisal to the U.S.-led missile strike in Syria and trade concerns took a back seat. The benchmark got a boost from health-care supply companies after a report said Amazon Inc. shelved a plan to sell drugs. Netflix Inc. shares rose more than 5 percent in after-hours trading after the company reported results.
     Treasuries were little changed, while the greenback fell to the lowest since March after President Donald Trump accused China and Russia of devaluing their currencies. West Texas crude futures dropped below $67 a barrel.
     “Earnings are going to be very good, probably up in the 15 to 20 percent neighborhood year over year. We felt that that would drive stocks higher over the course of the next two months,” Phil Orlando, chief equity market strategist at Federated Investors Inc., said by phone. “We’re not looking for an earnings-related or economic-related impact from the Syria bombings.”
     While geopolitical concerns linger, the focus this week is back on earnings from American corporations and a slew of Federal Reserve officials who are due to speak, including the incoming head of the New York Fed, John Williams.
     Elsewhere, aluminum resumed its rally, adding to what was its biggest weekly increase on record Friday. The yen edged higher as polls showed falling support for Japanese Prime Minister Shinzo Abe’s government.
     Here’s what to watch out for this week:
* Goldman Sachs Group Inc. and Morgan Stanley among companies reporting results
* John Williams, soon to be president of the New York Fed, speaks on economic outlook in Madrid on Tuesday.
* China GDP and Japanese inflation are the featured data points in Asia.
* Trump welcomes Japan Prime Minister Shinzo Abe to Mar-a-Lago on Tuesday. North Korea and trade will probably be discussed.
* Mining investors will get to take the pulse of the global industry this week, with Vale, Rio Tinto and BHP offering quarterly production reports.
     Here are the main moves in markets:
                          Stocks
* The S&P 500 Index gained 0.8 percent to 2,677.84 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index decreased 0.4 percent.
* The MSCI All-Country World Index rose 0.3 percent.
* The U.K.’s FTSE 100 Index fell 0.9 percent to the lowest in a week.
                          Currencies
* The Bloomberg Dollar Spot Index declined 0.3 percent to the lowest in three weeks.
* The euro gained 0.4 percent to $1.2375.
* The British pound rose 0.7 percent to $1.4333, hitting the strongest in about 22 months.
* The Japanese yen advanced 0.2 percent to 107.14 per dollar.
                           Bonds
* The yield on 10-year Treasuries were little changed at 2.83 percent.
* Britain’s 10-year yield increased three basis points to 1.463 percent.
* Germany’s 10-year yield rose one basis point to 0.525 percent.
                           Commodities
* Gold was steady at $1,365.37 an ounce.
* West Texas Intermediate crude dipped 1.5 percent to $66.39 a barrel, the first retreat in more than a week.
* LME aluminum gained 4.99 percent to $2,399.00 per metric ton, the highest in more than six years.
–With assistance from Ivan Levingston, Janine Wolf and Sarah Ponczek.

Have a great evening.

Be magnificent!

As ever,

Carolann

I never lose sight of the fact that just being is fun.
                           -Katharine Hepburn, 1907-2003

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