August 21, 2018 Newsletter

Dear Friends,

Tangents:
Today is Eid in many parts of the world.
On Aug. 21, 1959, President Eisenhower signed an executive order proclaiming Hawaii the 50th state of the union. 
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From The New York Times, August 21, 2018:

In 1968, the leader of Czechoslovakia’s Communist Party initiated a project that he said would offer “socialism with a human face.” What followed was a rebirth of political and cultural freedom that defied those loyal to Moscow. 

But 50 years ago today, the Soviets invaded, killing the dreams of the reformers and laying bare the totalitarian nature of the Communist regime. Our correspondent revisits the history from the city where it happened. 

Back Story:
Since the Louvre was closed on Mondays, the painting was missing for more than a day before anyone noticed. 

But when they did, visitors arrived in hordes to see the spot where “La Joconde,” better known as the Mona Lisa, once hung. Franz Kafka even made the trip to contemplate the space up close. 

The theft, on this day in 1911, “caused such a sensation that Parisians for the time being have forgotten the rumors of war,” The Times reported at the top of its front page. 

Sixty detectives were assigned to the case, and conspiracy theories abounded. “Possibly,” a police officer told The Times, “the theft was committed by a maniac.” 

The authorities didn’t pay enough attention to Vincenzo Peruggia, an Italian laborer who had created the protective glass around Leonardo da Vinci’s masterpiece. He was questioned twice and let go. 

Two years passed. 

Mr. Peruggia then tried to sell the painting to Giovanni Poggi, the director of the Uffizi Gallery in Florence, Italy. Mr. Poggi immediately called the police. 

The painting is now protected by bulletproof glass at the Louvre, and an alarm goes off if anyone tries to touch the frame.

Kathleen Massara wrote today’s Back Story.

PHOTOS OF THE DAY

The cast of ‘Swan Lake’ (London Coliseum) in London at Broad Court, Covent Garden where the beautiful ballerinas are introduced to the iconic British institution of the red telephone box. Credit: Geoff Pugh for The Telegraph

Beach chairs are lined up before sunrise in Timmendorfer Strand at the Baltic Sea, northern Germany. Credit: Michael Probst/AP

A ship sits on the Horizon of the North East coast during a drizzly day at Whitley Bay, Northumberland. Credit: Owen Humphreys/PA
Market Closes for August 21^st, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, a record price was paid for a membership seat on the New York Stock Exchange: $2.65 million. That was a substantial rise from the record low price for a seat, set in 1942, of $17,000.  
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks fell toward the end of the trading day, bucking the global trend, as the U.S. slapped preliminary anti-dumping duties on some pipes from Canada and other countries.
     The S&P/TSX Composite Index fell 0.2%, the most in a week, even as the S&P 500 briefly rose to an intraday record in the U.S. Technology and financial shares led losses, while optimism about cannabis stocks boosted health care, which was the best- performing sector on Tuesday.
     In other moves:
                            Stocks
* Just Energy Group, Inc. extended losses for a third week, falling 1.5%, after National Bank Financial analyst Endri Leno downgraded the stock sector perform from outperform.
* Ivanhoe Mines Ltd. bounced back from a seven-day streak of losses, gaining 10 percent, after the company said that it’s not aware of any specific reason that might be contributing to the recent decline in the share price.
* Raging River Exploration Inc. rose 3.6 percent after shareholders approved its merger with Baytex
                            Commodities
* Western Canada Select crude oil traded at a $29.25 discount to WTI
* Aeco natural gas traded at a $2.23 discount to Henry Hub
* Gold gained 0.6% percent to $1,201.20 an ounce.
                            FX/Bonds
* The Canadian dollar was little changed to C$1.3045 per U.S. dollar
* The Canada 10-year government bond yield gained 11 basis points to 2.26 percent
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks climbed, while the dollar and Treasuries retreated as investors speculated the Trump administration would ease trade tensions with China.
     The S&P 500 Index capped a fourth day of gains, briefly rising to an intraday record. The Russell 2000 Index closed at a record. The dollar extended its slide ahead of low-level trade talks with China. The 10-year Treasury yield rose for first time in three days before a meeting of central bankers later in the week.
     “This is an abnormally sentiment driven market that we’ve had all year, so a new high could cause on the margin some investors to either get nervous or to get bullish,” Max Gokhman, head of asset allocation for Pacific Life Fund Advisors, which manages $40 billion, said in an interview at Bloomberg’s New York headquarters. “I would argue probably more nervousness than bullishness at this point because we’re hitting a new high amidst failing trade talks with China, amidst peaking margins.”
     U.S. shares rose Tuesday amid signs that talks between Chinese and American trade representatives may lead to some cooling of rhetoric on the monthslong spat. The Trump administration plans to slap tariffs on $16 billion of goods on the same day and China is poised to retaliate. At the same time, investors await clues on monetary policy as central bankers gather in Jackson Hole Friday.
     Elsewhere, the Brazilian real fell to the weakest against the dollar in two and half years in the runup to the nation’s most uncertain election in more than 30 years. Turkey’s lira edged higher after two days of declines; the country’s markets are closed for most of this week. Futures in crude oil and industrial metals climbed, as emerging-market stocks and currencies advanced.
     Here are some key events coming up this week:
* Companies announcing earnings include Alibaba, Royal Bank of Canada, Lowe’s, Target, Qantas 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.
* Euro zone preliminary PMI data for August is due on Thursday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index rose 0.2 percent as of 4:02 p.m. New York time.
* The Russell 2000 Index rose 1.2 percent to an all-time record.
* The Stoxx Europe 600 Index gained 0.2 percent.
* The MSCI Emerging Market Index jumped 1.2 percent to the highest in more than a week.
* Germany’s DAX Index rose 0.4 percent to the highest in more than a week.
* The U.K.’s FTSE 100 Index fell 0.3 percent.
                            Currencies
* The Bloomberg Dollar Spot Index dropped 0.4 percent to the lowest in more than a week.
* The euro increased 0.8 percent to $1.1572.
* The Japanese yen fell 0.3 percent to 110.34 per dollar.
* Brazilian real dropped 1.4 percent to $4.03, the lowest in more than two years.
                            Bonds
* The yield on 10-year Treasuries gained three basis points to 2.84 percent.
* Germany’s 10-year yield gained three basis points to 0.33 percent, the highest in a more than a week.
                            Commodities
* Gold rose 0.3 percent at $1,193.63 an ounce.
* West Texas crude rose 1.3 percent to $67.32 per barrel.
* LME copper gained 0.9 percent to $6,046.50 per metric ton, the highest in more than a week.
–With assistance from Anna Edwards and Todd White. 

Have a great night.

Be magnificent!

As ever,

Carolann

Ambition can creep as well as soar.
       -Edmund Burke, 1729-1797

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
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www.carolannsteinhoff.com