August 8, 2018 Newsletter

Dear Friends,

Tangents:
Anyone who has got a book collection and a garden wants for nothing. -Cicero.

August 8, 1588, Queen Elizabeth I, addresses her troops at Tilbury, at the mouth of the Thames, during the Armada conflict:

My loving people, we have been persuades by some that are careful of our safety to take heed how we commit ourselves to armed multitudes, for fear of treachery; but I do assure you, I do not desire to live to distrust my faithful and loving people.
  Let tyrants fear.  I have always so behaved myself that, under God, I have placed my chiefest strength and safeguard in the loyal hearts and goodwill of my subjects, and therefore I am come amongst you, as you see, at this time, not for my recreation and disport, but being resolved in the midst and heat of the battle to live or die amongst you all, to lay down for my God and for my kingdom, and for my people, my honour and my blood, even in the dust.
  I know I have the body of a weak and feeble woman, but I have the heart and stomach of a king, and of a king of England too, and think it foul scorn that Parma or Spain, or any prince o Europe, should dare invade the borders of my realm; to which, rather than any dishonour shall grow by me, I myself will take up arms, I myself will be your general, judge, and rewarder of every one of your virtues.

PHOTOS OF THE DAY

Hot air balloons, carrying tourists, rise into the sky at sunrise in Cappadocia, central Turkey. Cappadocia has become a favourite site for tourists in hot-air balloons who can slowly drift above the cone-shaped rock formations and then float up over rippled ravines for breathtaking views over the region. Credit: Emrah Gure/AP Photo

Yachts race in the Lendy Cowes Week Regatta. The annual Cowes Week Regatta has been held on the Solent in early August every year since 1826. The event sees around 7,500 competitors from 14 countries, sailing over 700 boats over eight days. Credit: Jack Taylor/Getty
Market Closes for August 8^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary
Canada
By Stefanie Marotta
     (Bloomberg) — Canadian stocks rose even as Saudi Arabia threatened more retaliation on Canada for criticizing the recent arrests of women’s rights activists.
     The S&P/TSX Composite Index advanced 0.2 percent to 16,315.08. Health-care stocks were the best performers, rising 1.4 percent to the highest in more than two weeks. Canopy Growth Corp. boosted the sector, climbing 4.5 percent as it was approved to research the effectiveness of cannabidiol for treating anxiety in certain animals.
     Auto suppliers tumbled amid second-quarter earnings updates and ongoing trade concerns. Magna International Inc. slumped 8 percent and Linamar Corp. dropped 6.3 percent, closing at its lowest level since November.
     In other moves:
* Maxar Technologies Ltd. fell 4.8 percent, its seventh consecutive session in decline, after Spruce Point issued a new short report, calling for as much as 100% downside
* MEG Energy Corp. jumped 5.8 percent after the Alberta Securities Commission granted a request by Highfields Capital Management to solicit shareholder proxies, communicate with 15 or fewer holders in advance of Meg Energy’s shareholder meeting
* Air Canada climbed 3.6 percent to its highest point since May amid news that Air France-KLM Group is trying to poach a top executive from Air Canada as its next chief executive officer
                            Commodities
* Western Canada Select crude oil traded at a $31.00 discount to WTI
* Gold rose 0.3 percent to $1,221.90 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 0.3 percent to C$1.30191 per U.S. dollar
* The Canada 10-year government bond yield fell one basis point to 2.363 percent
US
By Jeremy Herron and Olivia Schaber
     (Bloomberg) — U.S. stocks halted a four-day advance as trade tensions ratcheted higher and America slapped sanctions on Russia. Oil tumbled.
     The S&P 500 Index turned lower in the final minutes of trading to thwart what would have been the longest winning streak since February. It’s about half a percentage point shy of its all-time record. Equities swung between gains and losses throughout a light trading session, with energy producers leading declines after crude sank 4 percent. Markets opened lower after Washington and Beijing announced dates for fresh levies on billions in goods.
     Treasuries rose as investors scooped up a record $26 billion 10-year auction, showing that swelling U.S. government issuance has yet to put pressure on the nation’s long-term borrowing costs. The ruble slumped on the sanctions announcement. Canada’s dollar climbed and stocks edged higher even after Saudi Arabia threatened to sell the nation’s assets as part of a diplomatic dispute.
     U.S. stocks have churned higher in the past five weeks on the strength of blowout corporate earnings and signs economic growth has taken off. That’s helped offset growing concern that global trade tensions will hamstring the expansion at the same time that diplomatic skirmishes also increase.
     Elsewhere, Turkey’s lira erased most of Tuesday’s gains as investors said there’s no easy way to rescue its financial markets. Bitcoin tumbled, leading a sell-off in digital coins of all sizes, as a cryptocurrency market gauge dropped to its lowest level since November.
     Here are some key events coming up this week:
* Samsung Electronics is set to unveil its next Galaxy Note smartphone on Thursday.
* U.S. consumer prices probably rose in July from June, consistent with a pickup in inflation that’s projected to keep the Federal Reserve on a path of gradual interest-rate increases, economists forecast before Friday’s release.
     These are the main moves in markets:
                            Stocks
* The S&P 500 slipped less than one point to 2,857..72 as of 4 p.m. in New York. The index is within 1 percent of an all-time high.
* The Nasdaq 100 Index added 0.1 percent and the Dow Jones Industrial Average lost less 0.2 percent.
* The S&P/TSX Composite Index climbed 0.2 percent.
* The Stoxx Europe 600 Index fell 0.2 percent.
* The MSCI All-Country World Index was virtually unchanged.
                            Currencies
* The Bloomberg Dollar Spot Index was down 0.1 percent.
* The Japanese yen added 0.4 percent to 110.98 per dollar.
* The euro rose 0.1 percent to $1.1614.
* The Canadian dollar rose 0.3 percent.
                            Bonds
* The yield on 10-year Treasuries fell one basis point to 2.96 percent.
                            Commodities
* The Bloomberg Commodity Index retreated 0.4 percent.
* Gold futures added 0.2 percent to $1,220.90 an ounce.
* West Texas Intermediate crude fell 3.4 percent to $66.84 a barrel.
–With assistance from Eddie van der Walt, Liz Capo McCormick and Nick Wadhams. 

Have a great night.

Be magnificent!

As ever,

Carolann

A champion is afraid of losing.  Everyone else is afraid of winning.
                                                      -Bill Jean King, b.1943

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
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www.carolannsteinhoff.com