April 23, 2018 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

The French national air display team, Patrouille de France, performs during the 2018 Red Bull Air Race World Championship in Cannes. 
Credit: The Telegraph

The sun rises over Bass Rock lighthouse in the Firth of Forth near North Berwick, East Lothian. 
Credit: The Telegraph

Stratford-upon-Avon played host to the UK’s first National Living Statue Championship as part of the annual Shakespeare’s birthday celebrations in the Warwickshire town. 
Credit: The Telegraph
Market Closes for April 23^rd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were mixed as Rogers Communications Inc. rose the most in 15 months, offsetting declines in energy.
     The S&P/TSX Composite Index rose two points or less than 0.1 percent to 15,456.44 at 9:49 a.m. in Toronto. Telecom shares rose 1.4 percent as Rogers jumped 4.2 percent on better-than- expected first-quarter results and strong wireless subscriber numbers.
     The energy index fell 0.7 percent after U.S. President Donald Trump tweeted that oil prices are “artificially very high,” sending West Texas Intermediate down by 1 percent.
     In other moves:
                          Stocks
* Advantage Oil & Gas Ltd. fell 3.8 percent. It now expects second-quarter production to be lower than earlier estimates
* Cascades Inc. lost 2.4 percent after competitor Clearwater Paper Corp. earnings missed the lowest estimate due to a soft tissue market
* Boralex Inc. rose 2 percent. The company is buying a wind- power unit from Ardian Infrastructure for C$202 million
                          Commodities
* Western Canada Select crude oil traded at a $17.25 discount to WTI
* Aeco natural gas traded at a $2.39 discount to Henry Hub
* Gold fell 0.8 percent to $1,338.70 an ounce, the lowest in two weeks
                           FX/Bonds
* The Canadian dollar weakened 0.4 percent to C$1.2720 per U.S. dollar, the weakest in two weeks
* The Canada 10-year government bond yield rose two basis points to 2.34 percent, the highest since February
US
By Katherine Greifeld and Sarah Ponczek
     (Bloomberg) — U.S. stocks ended mixed, with a slump in shares of technology companies weighing on major indexes. The dollar rallied to its highest level in more than three months as the prospect of yields on benchmark U.S. Treasuries reaching 3 percent reignites demand.
     The fluctuations in equities were probably caused by “the 10-year bumping up against 3 percent,” Gary Bradshaw, a portfolio manager at Hodges Capital Management in Dallas, said by phone. “There’s just been the volatility in the market that’s got investors a little bit nervous. And there’s the news on Apple and the chip stocks causing some consternation.”
     The greenback strengthened against major peers as the yield on the U.S. 10-year note hit 2.99 percent for the first time since 2014 before paring the increase. The pound joined major currencies retreating against the dollar as U.K. Prime Minister Theresa May battled to avert a cabinet revolt over Brexit. Aluminum prices plunged after the U.S. softened its position on sanctions against Russia’s United Co. Rusal.
     Semiconductor stocks continued their slide from last week as another chipmaker reported weak earnings. The Philadelphia Stock Exchange Semiconductor Index fell 1.3 percent Monday, extending its four-day slide past 6 percent.
     The 60-day correlation between the Bloomberg Dollar Spot Index and benchmark Treasury 10-year yields has turned positive again, after dipping into negative territory during the past few months for the first time since 2016.
     “The entire market is watching that rates move and if we manage to break and extend higher the dollar will follow,” wrote Brad Bechtel, global head of FX at Jefferies, in a note Monday. “If we fail and resume lower again the dollar will likely follow that too.”
     Elsewhere, aluminum plunged as much as 9.4 percent after the U.S. Treasury said it would provide sanctions relief to Rusal if Oleg Deripaska relinquished control, according to statement on Monday. It also extended the deadline for companies to wind down dealings with the Russian aluminum producer by almost five months.
     These are some important events coming up this week:
* French President Emmanuel Macron begins a three-day visit to the U.S. Monday
* U.S. GDP and jobless claims.
* Earnings season continues. Among those reporting: Alphabet/Google, Amazon.com, Samsung and Credit Suisse.
* The European Central Bank has a rate decision on Thursday. Investors will watch for any sign that officials are preparing a shift in stimulus plans for their June meeting.
* Bank of Japan announces its latest policy decision Friday and releases a quarterly outlook report.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index was little changed at 2,670.29 as of 4:06 p.m. New York time, while the Dow Jones Industrial Average dropped 0.1 percent and the Nasdaq Composite Index slumped 0.3 percent.
* The Stoxx Europe 600 Index rose 0.4 percent and the MSCI Asia Pacific Index fell 0.9 percent.
* The U.K.’s FTSE 100 Index gained 0.4 percent.
* The MSCI Emerging Market Index dropped 1.2 percent, touching the lowest in almost three weeks.
                           Currencies
* The Bloomberg Dollar Spot Index rose 0.8 percent, reaching the highest in almost 14 weeks on its fifth straight advance.
* The euro weakened 0.7 percent to $1.2208, dropping to the weakest in almost eight weeks.
* The British pound dropped 0.4 percent to $1.3943.
* The Japanese yen sank 1 percent to 108.72 per dollar, touching the weakest level in 10 weeks.
                            Bonds
* The yield on 10-year Treasuries rose one basis points to 2.97 percent, after reaching the highest in more than four years.
* Germany’s 10-year yield increased five basis points to 0.63 percent, the highest in six weeks.
* Britain’s 10-year yield climbed six basis points to 1.54 percent.
                            Commodities
* West Texas Intermediate crude rose 0.9 percent to $69.02 a barrel.
* Gold dropped 0.9 percent to $1,324.20 an ounce, after reaching the least in more than three weeks. 

Have a great evening.

Be magnificent!

As ever,

Karen

“If life were predictable it would cease to be life, and be without flavor.”
– Eleanor Roosevelt

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