April 26, 2018 Newsletter

Dear Friends,

Tangents:

“It’s a dictatorship at the door and a democracy on the dance floor.”  

That’s what Andy Warhol said was the key to success for Studio 54, the famously wild New York City nightclub that opened its doors on this day in 1977. 

1986: Chernobyl nuclear reactor disaster.
1937: Massacre, Guernica, Spain

Artist Chrisoffer Relander utilizes double exposures to make it look as if real places are inside jars.  Recent images include a snowy landscape in Sweden and a wooded farm.  Check out his work – and marvel at how he accomplishes it – at www.instagram.com/christ_of_ferrelander.

PHOTOS OF THE DAY

Children play indoor football at Sportivo Pereyra de Barracas football club in Buenos Aires, Argentina, where local artist Santiago Barbeito created a football version of Michelangelo’s “Creation of Adam” on the ceiling of the pitch. In the painting that represents the long lasting tradition of Argentinian football, Adam is depicted by Argentine Barcelona’s football star Lionel Messi, former footballer Diego Maradona stands for God, and the apostles are depicted by footballer Sergio Aguero, former footballers, Mario Kempes, Ricardo Bochini, Gabriel Batistuta, Claudio Caniggia, Juan Roman Riquelme and Ariel Ortega. Credit: Juan Mabromata/AFP/Getty Images
Market Closes for April 26^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
$~On this day in 1973, the Chicago Board Options Exchange opened for trading, with call options available on 16 U.S. common stocks.  For the first time, stock options were on a dedicated exchange and registered for trading in standardized form.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest in more than five weeks with all sectors gaining amid strong earnings on both sides of the border.
     The S&P/TSX Composite Index added 128 points or 0.8 percent to 15,637.59, the highest since March 21. Technology shares rallied along with their counterparts in the U.S., gaining 1.4 percent after strong earnings from the likes of Facebook Inc.
     The financial index rose 1.1 percent, boosted by Fairfax Financial Holdings Ltd., which rose 2.9 percent. Fairfax CEO Prem Watsa is looking to deploy his large cash stockpile.
     In other moves:
                          Stocks
* Husky Energy Inc. lost 8.1 percent, the most in two years, after an explosion at its refinery in Superior, Wisconsin
* West Fraser Timber Co. Ltd. slid 3.7 percent. First-quarter shipments were hurt by rail-car shortages in Western Canada
* Stantec Inc. added 3.9 percent, the most since August. The engineering firm is conducting a strategic review of its MWH Constructors business
                          Commodities
* Western Canada Select crude oil traded at a $17.40 discount to WTI
* Gold fell 0.4 percent to $1,316.30 an ounce, the lowest in more than five weeks
                          FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2885 per U.S. dollar, the weakest since April 2
* The Canada 10-year government bond yield fell two basis points to 2.35 percent
US
By Sarah Ponczek and Janine Wolf
     (Bloomberg) — U.S. equities rose, with technology shares rallying after strong earnings from Facebook Inc. and Advanced Micro Devices Inc. offered a reprieve for bulls. The yield on 10-year Treasuries fell below 3 percent.
     The Nasdaq 100 Index surged 2.1 percent, with Facebook notching its best day in two years and AMD lifting beleaguered chipmakers. Intel Corp. reports after the U.S. close. Rate- sensitive shares advanced as the 10-year yield fell for the first time in nine days. Crude oil rose and gold declined.
    “The wave of earnings are finally getting to the right place,” said Omar Aguilar, chief investment officer for equities at Charles Schwab Investment Management. “It has been a market where the good news on earnings and the good news on the economy have been offset by these rising yields on the fixed income side, and it’s just that that has created extra volatility.”
     “Everyone is surprised at how well these companies are posting their performance through this earnings period,” said Kevin Miller, chief executive officer of Minnesota-based E- Valuator Funds. “Two things drive markets: One is fundamentals, and two is emotion.”
     In Europe, the common currency declined after the central kept interest rates unchanged and ECB President Mario Draghi said growth in the euro area is expected to remain solid, albeit with some moderation. European bonds tracked the jump in Treasuries, while the Stoxx Europe 600 Index posted its first increase in three days. Earlier in Asia, shares in Korea and Japan rose as those in China and Hong Kong fell.
     Elsewhere, aluminum climbed and Alcoa Corp. gained. Oleg Deripaska plans to keep control of United Co. Rusal even as the Russian aluminum giant battles for survival in the face of harsh U.S. sanctions, according to people familiar with the matter.
     These are some important events remaining this week:
* U.S. GDP data are due Friday.
* Earnings season continues, with Amazon.com among those due to report.
* The Bank of Japan announces its latest policy decision Friday and releases updated economic projections.
* The leaders of North and South Korea meet Friday.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 1 percent as of 4:03 p.m. New York time, while the Dow Jones Industrial Average gained 1 percent and the Nasdaq Composite Index increased 1.6 percent.
* The Stoxx Europe 600 Index climbed 0.9 percent and the MSCI Asia Pacific Index rose less than 0.1 percent.
* The U.K.’s FTSE 100 Index increased 0.6 percent.
* The MSCI Emerging Market Index jumped 0.5 percent, the first advance in a week.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.2 percent, reaching another three-month high.
* The euro eased 0.5 percent to $1.2105.
* The British pound fell less than 0.1 percent to $1.3919.
* The Japanese yen gained less than 0.1 percent to 109.34 per dollar, the first advance in more than a week.
                           Bonds
* The yield on 10-year Treasuries decreased four basis points to 2.99 percent, the first retreat in more than a week and the biggest tumble in almost three weeks.
* Germany’s 10-year yield sank four basis points to 0.59 percent.
* Britain’s 10-year yield decreased four basis points to 1.50 percent.
                           Commodities
* West Texas Intermediate crude rose 0.2 percent to $68.20 a barrel.
* Gold fell 0.4 percent to $1,318 an ounce. 

Have a great night.

Be magnificent!

As ever,

Carolann

The history of the world is none other than the progress
of the consciousness of freedom.
                                           -G.W.F. Hegel, 1770-1831

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