August 20, 2018 Newsletter

Dear Friends,

Tangents:
On Aug. 20, 1968, the Soviet Union and other Warsaw Pact nations invaded Czechoslovakia to crush the ”Prague Spring” liberalization drive of Alexander Dubcek’s regime. 
Go to article »

PPRIME NUMBERS:
1
BILLION
Price (in dollars) of a 157-acre parcel of land on a summit overlooking Beverly Hills, the first 10-figure asking price in Los Angeles.

1,200
Percentage by which Amazon’s second quarter profit of $2.5 billion exceeded that of the corresponding quarter last year.

44
MILLION
Kangaroos that live in Australia, roughly twice the number of Australians.

35.8
MILLION
Distance (in miles) between Mars and Earth, the shortest distance in 15 years, when Mars glowed unusually brightly July 27-30.
Sources: NASA Quartz, Los Angeles Times, CNN.

PHOTOS OF THE DAY

Thousands of blazing torches set off from Bridport’s Bucky Doo Square in a procession to West Bay’s East Cliff where music, fireworks and a giant bonfire helped celebrate the end of Bridport’s Carnival week in Dorset, UK. Bridport Carnival first started in 1911, was abandoned in 1920 then resurrected in 1971 and has been a popular annual event for locals and visitors since. Credit: The Telegraph

Mumbai from the air. Amazing aerial images have captured the stark contrast and inequality where rich meets poor all across the world. The spectacular bird’s eye view pictures show the landscape as an affluent area gives way onto one where people may be suffering from poverty. The stunning shots show this crossover of the rich and poor all across South Africa, Kenya, Mexico and even the USA. Credit: Johnny Miller/Mediadrumimages

Simone Biles competes on the balance beam during day four of the U.S. Gymnastics Championships 2018 at TD Garden in Boston, Massachusetts. Credit: Tim Bradbury/Getty Images
Market Closes for August 20^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks closed higher Monday as shares of cannabis companies soared and Prime Minister Justin Trudeau said Canada looks forward to joining Nafta talks. Global markets rose on thin volume as investors held onto hopes for an easing of the trade war.
     The S&P/TSX Composite Index rose less than 0.1% to 16,331.03 in Toronto. Health care led the gains, up 7.2 percent, as cannabis shares extended last week’s rally. Aurora Cannabis Inc. climbed more than 17 percent as Canopy Growth Corp. gained about 11 percent. Consumer staples, tech and utilities fell most.
     In other moves:
                            Stocks
* Aphria Inc. climbed as much 7.8 percent, to the highest intraday since July 31, following other weed stocks higher; cannabis stocks were boosted by continued optimism following Constellation Brands Inc.’s $3.8 billion bet on Canopy Growth.
* Quebecor Inc. fell 4.7 percent after it issued a redemption notice to holders of currently outstanding 4.125% convertible unsecured subordinated debentures due Oct. 15
* New Gold Inc. rose as much as 8%, the most intraday since Feb. 14, after Canaccord upgraded to hold from sell, seeing a more balanced risk-reward for shares after the recent selloff
                            Commodities
* Western Canada Select crude oil traded at a $29.50 discount to WTI
* Gold gained 1.1 percent percent to $1,196.60 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.3045 per U.S. dollar after PM Trudeau weighed in on the 2019 election
* The Canada 10-year government bond yield fell 0.6 percent to 2.25 percent
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks rose in thin volume as investors held onto hopes for an easing of the trade war, while Treasuries advanced ahead of a meeting of central bankers later this week.
     The S&P 500 Index advanced for a third day to close within 15 points of a record. Equities pared gains in the final 15 minutes of trading after President Donald Trump said China and Europe manipulate their currencies, according to Reuters. Consumer-discretionary shares paced the day’s advance.
     Trump also hit the dollar with separate comments on the Federal Reserve, suggesting the central bank should refrain from raising rates. Chairman Jerome Powell speaks at a conference in Wyoming Friday. The 10-year Treasury yield declined to the lowest level in six weeks after Jeffrey Gundlach warned of a short squeeze.
     “Investors sentiment is on the bullish side, with investors figuring new all-time highs are just around the corner, especially if trade talks get going with China,” Paul Nolte, a portfolio manager at Kingsview Asset Management, wrote in a note to clients. “Another hot late summer week on Wall Street and trading levels should be relatively low. The path of least resistance now is higher, but as we have seen, news flow is important.”
     Markets appear to be striking a more optimistic tone after talks between the world’s biggest economies on trade made their way back onto the agenda. Meanwhile, investors will be closely watching this week’s Jackson Hole symposium for clues on monetary policy, and to see whether central bankers can do anything to help bring back stability after the recent bout of emerging market-led volatility.
     Elsewhere, the lira slipped for a second day. Turkish markets are closed for most of this week, which may mean low trading volumes and sharper currency swings than usual. Emerging-market stocks and currencies rose. The onshore yuan climbed amid signs China is propping up the currency.
     Here are some key events coming up this week:
* Companies announcing earnings include Alibaba, Royal Bank of Canada, Lowe’s, Target, BHP Billiton, Qantas, Ping An and China’s Bank of Communications.
* Central bankers gather at the Kansas City Fed’s annual Jackson Hole symposium, where Federal Reserve Chairman Jerome Powell speaks Friday.
* The Fed releases the minutes from latest FOMC meeting on Wednesday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index climbed 0.2 percent to 2,857.05 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index advanced 0.6 percent.
* The MSCI All-Country World Index increased 0.5 percent.
* The MSCI Emerging Market Index gained 1.2 percent, the biggest gain in nearly a month.
                            Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent, its third decline in a row.
* The euro rose 0.3 percent to $1.1467.
* The Japanese yen gained 0.2 percent to 110.24 per dollar.
* The Turkish lira fell 1.5 percent to 6.1063 per dollar.
* The MSCI Emerging Markets Currency Index gained 0.4 percent, the biggest rise in almost four weeks.
                            Bonds
* The yield on 10-year Treasuries declined four basis points to2.82 percent, the lowest since July 6.
* Germany’s 10-year yield was unchanged at 0.30 percent.
* Britain’s 10-year yield dipped two basis points to 1.22 percent.
                            Commodities
* The Bloomberg Commodity Index was little changed.
* West Texas Intermediate crude rose 0.9 percent to $66.47 a barrel.
* Gold climbed 0.4 percent to $1,189.30 an ounce.
–With assistance from Eddie van der Walt. 

Have a great night.

Be magnificent!

As ever,

Carolann

If you have knowledge, let others light their candles in it.
                                  -Margaret Fuller, 1810-1850

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