August 1, 2018 Newsletter

Dear Friends,

Tangents: LAMMAS, First harvest, Wicca.

1990: World Wide Web established.
On August 1, 1936, 100,000 saluted Adolf Hitler on his entrance at the opening of the Berlin Olympics. 
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Letter in The Times signed by a number of Oxford and Cambridge dons, August 1, 1914:
We regard Germany as a nation leading the way in the Arts and Sciences, and we have all learnt and are learning form German scholars.  War upon her in the interests of Serbia and Russia will be a sin against civilisation…We consider ourselves justified in protesting against being drawn into the struggle with a nation so near akin to our own, and with  whom we have so much in common.
PHOTOS OF THE DAY

Regional dancers perform at the Guelaguetza festival, Mexico. The annual Guelaguetza festival gathers music, dance, gastronomy and handicrafts of different ethnic groups and tribes of the state of Oaxaca. Credit: Patricia Castellanos/AFP

Artist Alex Chinneck unzips the walls of an empty office building for his latest public artwork ‘Open to the public’ in Ashford, Kent. The artwork creates the illusion that the walls of a 1960’s office building have been unzipped to reveal its interior. Credit: Kristy O’Connor/PA

People are sprayed with water to cool down as the temperature hovered over 37 degrees Celsius (98.6 degrees Fahrenheit), in Prague, Czech Republic. Credit: David W. Cerny/Reuters
Market Closes for August 1^st, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell as investors digested another escalation in trade rhetoric between the U.S. and China, while technology shares dropped to the lowest level since May.
     The S&P/TSX Composite Index lost 57 points, or 0.4 percent, to 16,376.77. The tech sector led the drop again, losing 1.5 percent even as U.S. counterparts gained. CGI Group Inc. slid 3.3 percent, the most since 2016, after results missed estimates.
     Materials fell 1.4 percent as trade tensions sent copper prices tumbling 3.3 percent. First Quantum Minerals Ltd. lost 7.9 percent, the most since March.
     In other moves:
                            Stocks
* Enercare Inc. soared 53 percent to a record high after Brookfield Infrastructure Partners LP said it would buy the company for C$4.3 billion including debt
* Hydropothecary Corp. jumped 13 percent, the most since February, and Molson Coors Canada Inc. gained 7.1 percent. The two companies are forming a joint venture to develop cannabis- infused beverages
* Stelco Holdings Inc. gained 5.7 percent, the most since March, after saying it would benefit from steel tariffs
                            Commodities
* Western Canada Select crude oil traded at a $29.50 discount to WTI, the widest gap since February
* Aeco natural gas traded at a $1.95 discount to Henry Hub
* Gold fell 0.5 percent to $1,217.90 an ounce, the lowest in more than a year, as investors focused on the outlook for further U.S. interest-rate increases this year
                            FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2998 per U.S. dollar
* The Canada 10-year government bond yield rose 6 basis points to 2.37 percent, the highest since May
US
By Sarah Ponczek and Olivia Schaber
     (Bloomberg) — U.S. stocks were mixed as worsening trade tensions between the world’s two largest economies stung manufacturers while tech shares rallied on the back of a positive earnings report for Apple Inc.
     The yield on 10-year Treasuries touched 3 percent for the first time since June and stayed at that level after the Federal Reserve held borrowing costs steady while signaling its intention to raise rates amid robust economic growth, as analysts had predicted. The S&P 500 Index edged lower, bogged down by industrial companies that would bear the brunt of expanded tariffs, while the tech-heavy Nasdaq Composite Index climbed as Apple jumped to a record.
     The Trump administration’s unpredictability on trade has been in the spotlight in the last 24 hours after reports that talks between Washington and Beijing were set to resume were quickly overtaken by a threat to raise tariffs. As investors weigh the impact of the trade dispute, Fed Chairman Jay Powell is trying to nurture the second-longest U.S. expansion on record by slowly reducing the amount of support that monetary policy provides to growth.
     “Powell wants to provide a clear and consistent message to markets on the policy outlook and not be swayed by short term data or the ebb and flow of markets,” said James McCann, senior global economist at Aberdeen Standard Investments. “Investors understand where Powell’s focus is, so they will largely shrug off today’s statement.”
     Elsewhere in markets, Shanghai stocks finished sharply lower and the Stoxx Europe 600 Index slid. Emerging-markets currencies and shares were steady.
     Here are some key events coming up this week:
* Earnings season continues with Berkshire Hathaway, Barclays, Tesla, Toyota and BMW among companies reporting results.
* Central banks in the U.K., Brazil and India are still to meet this week. The Bank of England is expected to hike even amid Brexit gloom. Brazil’s central bank is seen standing pat. The RBI will probably raise its benchmark at its meeting Wednesday.
* The U.S. jobs report is on Friday, and is predicted to show a healthy labor market, with 190,000 new jobs.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index fell 0.1 percent as the close of trading in New York.
* The Nasdaq Composite index rose 0.5 percent.
* The Stoxx Europe 600 Index dipped 0.5 percent to the lowest in a week.
* The MSCI Emerging Market Index fell 0.1 percent.
                            Currencies
* The Bloomberg Dollar Spot Index rose 0.1 percent.
* The euro slipped 0.3 percent to $1.1661.
* The British pound was little changed at $1.3123.
* Japan’s yen fell 0.2 percent to 111.64 per dollar.
                            Bonds
* The yield on 10-year Treasuries rose four basis points to 3 percent, the highest in 10 weeks.
* Germany’s 10-year yield rose three basis points to 0.47 percent, the highest in seven weeks.
* Britain’s 10-year yield climbed five basis points to 1.38 percent, the highest in seven weeks.
                            Commodities
* The Bloomberg Commodity Index fell 1.3 percent to the lowest in more than a week.
* West Texas Intermediate crude fell 1.4 percent to a two-week low of $67.81 a barrel.
* Copper tumbled 3.3 percent, the most in two weeks, to $2.738 a pound
* Gold declined 0.6 percent to $1,216.34 an ounce.
–With assistance from Cormac Mullen, Andreea Papuc, Adam Haigh, Matt Turner, Brandon Kochkodin, Christopher Anstey, Eddie van der Walt and Samuel Potter.

Have a great night.

Be magnificent!

As ever,

Carolann

Inspiration comes very slowly and quietly.
                –Brenda Ueland, 1891-1985

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