Category: Events

Dear Friends,

Tangents:

On this day in 1790, Treasury Secretary Alexander Hamilton submitted to Congress his “Report on the Public Credit,” which proposed buying up distressed bonds to consolidate the national debt. U.S. and state bonds, which had been trading at a fraction of their value, immediately surged in price. In one of the earliest cases of insider trading, several members of Congress hired sailboats and stagecoaches to take them south faster than the news could travel by foot. They snapped up bonds at bargain prices before Southern newspapers spread the news of Hamilton’s proposals.

Joan Baez, b. January 9, 1941 ~ Activist artist in the 1960s…at 18, Baez was introduced on stage a the 1959 Newport Folk Festival to sing in her pure, clear and flexible soprano, resulting in her first album with Vanguard….sang at the Lincoln Memorial as part of Martin Luther King’s march for civil rights and in the fields next to Cesar Chavez, paving the way for the Bonos and Springsteens of today. 

PHOTOS OF THE DAY

Geiko and maiko greet during the ceremony marking the New Year in Kyoto, Japan. Credit: The Asahi Shimbun/Getty Images

Iguanas from Seymour Norte island, being introduced to Santiago island as part of a conversation program in the Galapagos Islands, Ecuador. Credit: Christina Vega/AFP/Getty Images

A tiny Long Tongue bat licks nectar from a flower in Costa Rica. Credit: John Hudson/SWNS
Market Closes for January 9^th, 2019

Market Index	Close	Change
Dow Jones	23879.12	+91.67   +0.39%
S&P 500	2584.96	+10.55   +0.41%
NASDAQ	6957.078	+60.079   +0.87%
TSX	14804.73	+199.58
		+1.37%

International Markets

Market Index	Close	Change
NIKKEI	20427.06	+223.02
		+1.10%
HANG SENG	26462.32	+586.87
		+2.27%
SENSEX	36212.91	+231.98
		+0.64%
FTSE 100*	6906.63	+49.16
		+0.72%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.978		1.968
CND. 30 Year Bond		2.177		2.175
U.S.    10 Year Bond		2.7100		2.7280
U.S. 30 Year Bond		3.0029		3.0068

Currencies

BOC Close	Today	Previous
Canadian $	0.75688	0.75318
US $	1.32121	1.32771
Euro Rate 1 Euro=		Inverse
Canadian $	1.52511	0.65569
US $	1.15444	0.86622

Commodities

Gold	Close	Previous
London Gold Fix	1286.45	1292.20
Oil
WTI Crude Future	52.36	49.78

Market Commentary:
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 1.4 percent, or 199.58 to 14,804.73 in Toronto.
     The index advanced to the highest closing level since Dec. 6. Royal Bank of Canada contributed the most to the index gain, increasing 2.1 percent. Canopy Growth Corp. had the largest increase, rising 13.3 percent.
     Today, 212 of 240 shares rose, while 25 fell; all sectors were higher, led by financials stocks.
By Ross Marowits
     (Canadian Press) — TORONTO — Canada’s main stock index  posted its strongest four-day gain in three years Wednesday as it was propelled by a large increase in the price of crude oil  and the Bank of Canada’s latest rate announcement.
     The Toronto Stock Exchange continued its rebound from a dreadful autumn and tough December helped by positive news about the trade dispute between China and the U.S. and minutes from the Federal Reserve confirming its patience about raising interest rates, says Anish Chopra, managing director with Portfolio Management Corp.
     “A fantastic four-day stretch,” he said in an interview. The S&P/TSX composite index closed up 199.58 points to 14,804.73 in a broad-based rally that saw all sectors rise. It was the third day of triple-digit gains so far this year  and the best four-consecutive day performance since January  2016.
     “There seems to be a lot more optimism about a U.S.-China  trade deal and when it comes to Federal Reserve interest rate  hikes it appears to be that they’ll take a pause,” Chopra said  referring to minutes released from the central bank and recent  comments from several bank governors.
     The cannabis-heavy health care sector rose by 6.25 per cent  as Canopy Growth Corp. surged 13.3 per cent, while Aurora  Cannabis Inc. and Aphria Inc. gained 7.3 and 6.2 per cent  respectively.
     The key energy sector followed, with financials, industrials and materials also rising. Financial and energy stocks were the biggest gainers on the  day led by Sun Life Financial Inc., Royal Bank of Canada,  Manulife Financial and Suncor Energy Inc. Meanwhile, BCE Inc.  and Nutrien Ltd. lost ground while Imperial Oil and TransCanada  Corp. posted small gains.
     The energy sector was helped again by crude oil prices,  which rose on Saudi Arabia’s energy minister reassuring that its  oil production and exports are falling sharply. West Texas Intermediate prices are up 23 per cent from its December low.
     The February crude contract was up US$2.58 at US$52.36 per barrel Wednesday and the February natural gas contract was up 1.7 cents at US$2.98 per mmBTU.
     Canada’s financial sector was helped by the Bank of Canada’s decision to hold its key rate at 1.75 per cent while the economy absorbs softness from a 44 per cent drop in oil prices from its October peak.
     “The banks tend to be a play on Canadian GDP growth and with the Bank of Canada having a supportive stance to keep the Canadian economy running smoothly that’s certainly positive for the banks,” said Chopra.
     In New York, the Dow Jones industrial average gained 91.67 points at 23,879.12. The S&P 500 index was up 10.55 points at 2,584.96, while the Nasdaq composite was up 60.08 points at 6,957.08.
     The Canadian dollar traded at an average of 75.64 cents US compared with an average of 75.23 cents US on Tuesday.
     The February gold contract was up US$6.10 at US$1,292 an ounce and the March copper contract was up 0.1 of a cent at US$2.66 a pound.
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — Stocks rose as investors cheered the dovish approach discussed in minutes from the latest Federal Reserve meeting, but the gains were muted by concerns that the partial shutdown of the U.S. government will continue for some time. The dollar fell and Treasuries rose, while oil surged above $52 a barrel and entered a bull market.
     The S&P 500 Index was up for a fourth consecutive day led by energy producers, reaching the highest level in almost a month. The Nasdaq benchmarks were the strongest performers on strength in semiconductors and technology hardware manufacturers.
     The Fed minutes showed that many central bankers urged patience on future interest rate hikes, an indication that they’re attentive to recent financial-market volatility and risks to the economic outlook.
     “I’m happy to see that there was caution in the minutes because it means that the market didn’t mug the Fed,” Alicia Levine, chief strategist at BNY Mellon Investment Management chief strategist, said on Bloomberg TV. “You want it to be that this is what the FOMC really believes, that caution is warranted, that they’re going to be data-dependent, and there are alternative outcomes that they should be aware of. I take great comfort in these minutes.”
     Stocks surged as the minutes were released, but they quickly retreated as President Donald Trump emerged from a meeting with Senate Republicans. Trump said the GOP was “very unified” behind his plan to keep the government closed until he gets funding to build a wall along the Mexican border, which is at the center of the dispute. He then walked out of a meeting with Democratic congressional leaders Nancy Pelosi and Charles Schumer, calling it a “total waste of time,” which further ate away at the gains.
     If the shutdown goes on for months longer “we’re not going to have a budget, and I think we’re going to see a lot of fallout from that point,” said Rich Guerrini, chief executive officer of PNC Investments, which manages $50 billion. “But I don’t know that I see anything on the short-term other than partisan politics.”
     Earlier, equities gained after the Trump administration confirmed that China committed to buy more U.S. agricultural goods, energy and manufactured products. Trump is said to be eager to reach a trade agreement with China to help revive the flagging stock market. However, the countries remain far apart on some key issues. And Chinese and American officials are reportedly coordinating their messaging to make sure markets interpret the results of the meeting optimistically.
     Although concerns linger about how protectionist tensions and political instability in the world’s largest economy will affect global growth, they also set up a potential Goldilocks scenario for markets after Fed’s apparent dovish shift.
     “A softness in the economy or in some indicators would allow the Fed the space not necessarily to continue to raise,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh. “That is going to drive the market higher.”
     The Stoxx Europe 600 Index climbed to the highest in a month led by carmakers and miners, while Hong Kong stocks set the pace for Asian benchmarks. And most industrial metals advanced after the Asian nation signaled measures to spur consumption.
     Elsewhere, emerging-market stocks extended a rally that’s taken MSCI’s gauge to the highest in more than a month. The Bloomberg Commodity Index rose for a sixth straight day, and gold ticked higher.
Here are some events investors may focus on this week:
* Fed Chairman Jerome Powell will speak to the Economic Club of Washington D.C. on Thursday.
* Britain’s Parliament resumes a debate on the Brexit withdrawal bill, with Prime Minister Theresa May seeking to avoid defeat in a vote set for the week of Jan. 14.
These are the main moves in markets:
Stocks
* The S&P 500 rose 0.4 percent to 2,584.96, while the Nasdaq 100 Index gained 0.8 percent.
* The Stoxx Europe 600 Index increased 0.5 percent to the highest in almost four weeks.
* The MSCI All-Country World Index advanced 1 percent.
* The U.K.’s FTSE 100 Index climbed 0.7 percent to the highest in five weeks.
* The MSCI Emerging Market Index jumped 2.1 percent to the highest in more than a month.
Currencies
* The Bloomberg Dollar Spot Index dropped 0.8 percent.
* The euro gained 1 percent to $1.1552.
* The British pound climbed 0.7 percent to $1.2801.
* The Japanese yen rose 0.7 percent to 108.03 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 2.719 percent.
* Britain’s 10-year yield added one basis point to 1.2801 percent.
* Germany’s 10-year yield climbed five basis points to 0.279 percent.
Commodities
* The Bloomberg Commodity Index rose 1.2 percent.
* West Texas Intermediate crude advanced 5 percent to $52.28 a barrel, reaching the highest in a month on its eighth consecutive gain.
* Gold increased 0.7 percent to $1,293.71 an ounce.
–With assistance from Andreea Papuc, Heesu Lee and Robert Brand.

Have a great evening!

Be magnificent!

As ever,

Carolann

That brain of mine is something more than merely mortal, as time will show.
                                                                 -Ada Lovelace, 1815-1852

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

Dear Friends,

Tangents:
January 8, 1987:  The Dow Jones industrial average closed above 2,000 for the first time, ending the day at 2,002.25. Go to article »
The Dow Jones closed today at 23,787.45, an increase of +1088%  since that 1987 milestone.

1851: Earth’s rotation proved.
1935: Elvis Presley born.
1942: Stephen Hawking , physicist, born.
1947: David Bowie, musician, born.
PHOTOS OF THE DAY

Geese are seen on frozen Lake Buldan Yayla, in Denizli, Turkey. Credit: Sebahatdin Zeyrek/Anadolu Agency/Getty Image

A cheetah chasing a female impala in the Masai Mara National Reserve in Kenya. Credit: Reinhard and Gabi Radke/Caters

The moon is seen in the distance past a paraglider near Ma On Shan peak in Hong Kong. With most young Hong Kongers priced our of the city’s eye-watering property market – often living with parents in cramped flats well into their thirties – paragliding is one of a number of outdoor sports that offers release from the stress of the concrete jungle below. Credit: Anthony Wallace/AFP/Getty Images
Market Closes for January 8^th, 2019

Market Index	Close	Change
Dow Jones	23787.45	+256.10   +1.09%
S&P 500	2574.41	+24.72   +0.97%
NASDAQ	6897.000	+73.529   +1.08%
TSX	14605.15	+101.02
		+0.70%

International Markets

Market Index	Close	Change
NIKKEI	20204.04	+165.07
		+0.82%
HANG SENG	25875.45	+39.75
		+0.15%
SENSEX	35980.93	+130.77
		+0.36%
FTSE 100*	6861.60	+71.78
		+1.05%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.968		1.955
CND. 30 Year Bond		2.175		2.159
U.S.    10 Year Bond		2.7280		2.6960
U.S. 30 Year Bond		3.0068		2.9878

Currencies

BOC Close	Today	Previous
Canadian $	0.75318	0.75219
US $	1.32771	1.32946
Euro Rate 1 Euro=		Inverse
Canadian $	1.51901	0.65832
US $	1.14414	0.87402

Commodities

Gold	Close	Previous
London Gold Fix	1292.20	1279.90
Oil
WTI Crude Future	49.78	48.52

Market Commentary:
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks gained with the S&P/TSX Composite Index up almost 1 percent in early trading. U.S. stock futures and European equities jumped Tuesday as investors awaited developments on trade talks between the world’s largest economies. All sectors were climbing as of 9:42 a.m. in Toronto, with information technology and consumer discretionary shares gaining most.
     Canada’s merchandise trade deficit widened to the largest in six months in November as crude oil prices fell, Statistics Canada reported Tuesday in Ottawa. The nation posted a C$2.1 billion ($1.6 billion) shortfall during the month, more than double the C$851 million trade gap in October. Exports fell 2.9 percent in November, for the biggest one-month decline in over a year, as oil shipments plunged 18 percent.
Stocks
* New Gold Inc. climbed close to 11 percent on Tuesday morning as J.P. Morgan analyst upgraded the recommendation to neutral form underweight; the company’s Rainy River Mine recorded its best ever quarterly gold production in 4Q
* Toromont Industries fell as much as 4.6 percent, the most in more than two years, as a Canaccord Genuity analyst downgraded the stock to hold from buy
* First Quantum Minerals climbed more than 8 percent
Commodities
* Western Canada Select crude oil traded at a $10.15 discount to WTI
* Gold gained 0.6 percent to $1,277.30 an ounce
FX/Bonds
* The Canadian dollar gained less than 0.1 percent to C$1.3296 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.961%
US
By Reade Pickert and Sarah Ponczek
     (Bloomberg) — U.S. stocks rallied Tuesday as the possibility of progress in trade talks with China overwhelmed skepticism about the financial sector. The dollar rose, Treasuries slumped and crude surged toward $50 a barrel on expectations the market will be tightened by OPEC’s output cuts.
     All major indexes were higher, led by the small-cap Russell 2000 Index for a second day. The S&P 500 Index gained 1 percent on strength in transportation companies, carmakers and telephone stocks. Financials were only major industry group in the benchmark that didn’t rise. Boeing Co. helped lift large-caps with a strong fourth-quarter delivery report. PG&E Corp. was the biggest decliner, dropping 9 percent amid reports that the California utility giant is considering bankruptcy.
     “Talks with China are going very well!” Trump tweeted on Tuesday morning as the countries wrapped up the meetings. However, other reports indicated that the two weren’t closing in on a trade deal. “Any incremental headlines that we receive that imply U.S.- China trade relationships are going better is going to substantially help current sentiment,” said Frances Donald, the head of macro strategy at Manulife Asset Management in Toronto. “From a forward looking perspective, if expectations about US- China trade wars diminish then this will encourage a risk-on environment.”
     In Asia, the MSCI Asia Pacific Index and the MSCI China Index rose slightly. Japanese shares and Hong Kong stocks gained, though equities slid in South Korea. Meanwhile, European shares shrugged off unexpectedly weak German industrial production numbers and worsening euro-area consumer confidence to climb on strength among retailers and carmakers. The common currency remained lower after the data.
     While 2019 is off to an optimistic start, risks remain. The outcome of U.S.-China trade relations still hangs in the balance. Meanwhile, parts of the American government are shut down with lawmakers unable to agree on a budget proposal that President Donald Trump will sign. Trump will deliver a prime- time televised address on Tuesday evening about his demand for a wall along the Mexican border, which is at the heart of the dispute. And in Europe, machinations over Brexit continue.
     “Investors are happy to go with the positive trend in the current environment but remain wary of sharp downside reactions given the moves we’ve seen over the last few weeks and months,” Nick Twidale, chief operating officer at Rakuten Securities Australia, wrote in a note. “Traders are still very much aware that the various geopolitical factors that have been so prevalent in influencing market moves over the last 12 months are still relevant.”
Here are some events investors may focus on this week:
* North Korea’s Kim Jong Un is visiting China ahead of a potential summit with President Trump.
* Wednesday sees the release of minutes from the Federal Reserve’s Dec. 18-19 policy meeting. Chairman Jerome Powell will speak to the Economic Club of Washington D.C. on Thursday.
* Britain’s Parliament resumes a debate on the Brexit withdrawal bill, with Prime Minister Theresa May seeking to avoid defeat in a vote set for the week of Jan. 14.
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1 percent to 2,574.41, while the Russell 2000 Index gained 1.5 percent.
* The Stoxx Europe 600 Index advanced 0.9 percent to the highest in three weeks.
* The MSCI All-Country World Index climbed 0.7 percent to the highest in more than three weeks.
* The MSCI Emerging Market Index dipped 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index gained 0.2 percent.
* The euro fell 0.3 percent to $1.1441.
* The Japanese yen was little changed at 108.74 per dollar.
* The British pound declined 0.5 percent to $1.2717.
* The MSCI Emerging Markets Currency Index fell 0.2 percent.
Bonds
* The yield on 10-year Treasuries advanced three basis points to 2.7244 percent.
* Germany’s 10-year yield rose one basis point to 0.226 percent.
* Britain’s 10-year yield added two basis points to 1.274 percent.
Commodities
* The Bloomberg Commodity Index gained 0.5 percent to the highest in almost three weeks on its fifth
straight advance.
* West Texas Intermediate crude advanced 2.4 percent to $49.70 a barrel, the highest in three weeks with its seventh consecutive advance.
* Gold dipped 0.3 percent to $1,285.45 an ounce.
–With assistance from Cormac Mullen, Andreea Papuc and Eddie van der Walt.

Have a great night.

Be magnificent!

As ever,

Carolann

 

Hope is being able to see that there is light despite all of the darkness.
                                             -Archbishop Desmond Tutu, b. 1931

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

Dear Friends,

Tangents: Happy Monday!

On this day1999 President Bill Clinton’s impeachment trial began in the Senate. Go to article »
PHOTOS OF THE DAY

The sun sets on Bosham Harbour in West Sussex, reputedly the spot where King Canute commanded the waves to retreat. Credit: Chris Gorman/Bigladder

The Lions, part of a group of professional performers on Bankside, appear during the annual Twelfth Night celebrations on the South Bank in central London. Credit: Yui Mok/PA

A partial solar eclipse is seen through a silhouette of a bird setting on tree branches in Yinchuan, China. Credit: Reuters
Market Closes for January 7^th, 2019

Market Index	Close	Change
Dow Jones	23531.35	+175.00   +0.75%
S&P 500	2549.69	+17.75   +0.70%
NASDAQ	6823.473	+84.616   +1.26%
TSX	14504.13	+77.51
		+0.54%

International Markets

Market Index	Close	Change
NIKKEI	20038.97	+477.01
		+2.44%
HANG SENG	25835.70	+209.67
		+0.82%
SENSEX	35850.16	+155.06
		+0.43%
FTSE 100*	6810.88	-26.54
		-0.39%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.955		1.930
CND. 30 Year Bond		2.159		2.136
U.S.    10 Year Bond		2.6960		2.6677
U.S. 30 Year Bond		2.9878		2.9810

Currencies

BOC Close	Today	Previous
Canadian $	0.75219	0.74791
US $	1.32946	1.33705
Euro Rate 1 Euro=		Inverse
Canadian $	1.52616	0.65524
US $	1.14795	0.87112

Commodities

Gold	Close	Previous
London Gold Fix	1279.90	1290.45
Oil
WTI Crude Future	48.52	47.96

Market Commentary:
On this day in 1992, the technology-heavy Nasdaq Composite eclipsed the 600 threshold, finishing the day at 602.29.  (Nasdaq closed today at 6823.473).
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks ended Monday in the green after a weak start, with the S&P/TSX Composite Index gaining 0.5 percent. Information technology and consumer discretionary led the way while materials underperformed.
     Heavy Canadian crude surged to the strongest level in more than a year as rail shipments keep rising even as production was curtailed, while AltaCorp Capital was bullish on the marijuana sector.
Stocks
* Neptune Wellness Solutions Inc. rose 12 percent after getting license to process cannabis from Health Canada 
* Green Thumb Industries Inc. gained 11.4 percent after deal to buy Advanced Grow Labs 
* Maxar Technologies Inc. lost 33 percent after one of its imaging satellites, WorldView-4, failed 
Commodities
* Western Canada Select crude oil traded at a $10.50 discount to WTI
* Gold gained 0.3 percent to $1,289.90 an ounce
FX/Bonds
* The Canadian dollar rose 0.6 percent to C$1.32979 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.944%
US
By Reade Pickert and Sarah Ponczek
     (Bloomberg) — U.S. stocks rallied Monday but gave back some early gains as small-caps and technology shares led the way amid the resumption of trade talks with China. The dollar fell to its lowest level since October and Treasury yields ticked higher with traders assessing the seemingly dovish remarks from
     Federal Reserve chairman Jerome Powell on Friday. All major U.S. equity benchmarks ended higher. The S&P 500 Index added 0.7 percent after rising as much as 1.4 percent earlier in the session on strength in retailers, automakers and clothing companies. Amazon.com Inc. jumped 3.4 percent, pushing its market cap to $796.8 billion. It surpassed Microsoft Corp. as the most valuable company after the software firm only edged higher by 0.1 percent for a value of $788.9 billion
     The biggest jump among major gauges came from the small- capitalization Russell 2000 Index, which picked up 1.8 percent.
     Meanwhile, the Nasdaq benchmarks rose more than 1 percent with telecommunications services and semiconductor shares pacing gains, giving the Nasdaq 100 Index its first back-to-back 1 percent gains since November.
     “What you really, really want to see, are things like the Russell 2000 outperforming — and it is massively right now,” said Michael Antonelli, equity sales trader at Robert W. Baird.
     “You want to see the risky, risky stuff bouncing hard.” Despite the enthusiasm, investors remain in a quandary after the wild end to 2018 in which the S&P 500 lost more than 9 percent in a month. Powell’s soothing comments on Friday and China’s moves to shore up its economy lifted sentiment somewhat, sending the S&P 500 up 1.9 percent last week, but risks remain.
     And U.S. lawmakers are still unable to reach agreement on a budget, leaving the federal government shut down for a third week. “We have a respectable probability that Friday’s rally and the last week-and-a-half’s rally has more legs behind it,” said David Sowerby, managing director and portfolio manager at the investment firm Ancora, which manages $6.9 billion. “It’s Fed policy right now, that’s first and foremost the most important gauge impacting the market today. Trade issues, number two. A very distant number three is the government shutdown.”
     Fresh trade talks between the U.S. and China helped sap demand for the greenback, while Treasuries slipped after a substantial retreat on Friday. The pound slid against the euro as U.K. lawmakers sought to avoid a no-deal Brexit. The common currency remained solidly up even as data showed German factory orders fell more than expected in November.
     Elsewhere, emerging-market shares jumped, and the Indonesian rupiah led gains in major developing-nation currencies. Oil rose to the highest in three weeks, and gold climbed after China reported increased holdings.
Here are some events investors may focus on this week:
* A U.S. delegation is in Beijing for trade talks with Chinese officials, the first face-to-face encounter since Trump and Xi agreed to a temporary truce on Dec. 1.
* Wednesday sees the release of minutes from the Fed’s Dec. 18-19 policy meeting. Powell will speak to the Economic Club of Washington D.C. on Thursday. 
* U.K. Parliament resumes a debate on the Brexit withdrawal bill, with Prime Minister Theresa May seeking to avoid defeat in a vote set for the week of Jan. 14.
These are the main moves in markets:
Stocks
* The S&P 500 rose 0.7 percent to 2,548.71, while the Russell 2000 climbed 1.8 percent and Nasdaq 100 gained 1 percent.
* The Stoxx Europe 600 Index added 0.4 percent.
* The MSCI All-Country World Index increased 0.9 percent.
* The MSCI Emerging Market Index advanced 1.3 percent.
Currencies
* The Bloomberg Dollar Spot Index declined 0.4 percent to the lowest since October.
* The euro gained 0.7 percent to $1.1475, the most in more than a week.
* The Japanese yen slipped 0.2 percent to 108.72 per dollar.
* The British pound increased 0.4 percent to $1.2768, the strongest in a month.
* The MSCI Emerging Markets Currency Index advanced 0.3 percent to the highest since July.
Bonds
* The yield on 10-year Treasuries gained two basis points to 2.6924 percent.
* Germany’s 10-year yield rose one basis point to 0.221 percent. 
* Britain’s 10-year yield fell two basis points to 1.254 percent.
Commodities
* The Bloomberg Commodity Index climbed 0.3 percent.
* West Texas Intermediate crude advanced 1.5 percent to $48.66 a barrel, the highest in three weeks on its sixth consecutive gain.
* Gold rose 0.2 percent to $1,288.94 an ounce.
–With assistance from Andreea Papuc, John Ainger, Eddie van der Walt and Randall Jensen.

Have a great night.

Be magnificent!

As ever,

Carolann

Adventure is worthwhile in itself.
  -Amelia Earhart, 1897-1937

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

Dear Friends,

Tangents:

Carolann is out of the office today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Lookout Studio in Grand Canyon Village on the South Rim of Grand Canyon National Park, in Arizona. A winter storm has covered cactus with snow in parts of the American Southwest as temperatures in the desert fall below those of Anchorage, Alaska. Credit: AP Photo/Anna Johnson

Boats are pictured in Dal lake during sunset in Srinagar, India. Credit: Tauseef Mustafa/AFP/Getty Images

At dawn on a very cold morning in January, the cloud slowly gathers over the River Torridge estuary at Appledore, as sunny intervals and a gentle breeze are forecast for North Devon, UK. Credit: Terry Matthews/Alamy Live News
Market Closes for January 4^th, 2019

Market Index	Close	Change
Dow Jones	23433.16	+746.94   +3.29%
S&P 500	2531.94	+84.05   +3.43%
NASDAQ	6738.859	+275.355   +4.26%
TSX	14426.62	+213.87
		+1.50%

International Markets

Market Index	Close	Change
NIKKEI	19561.96	-452.81
		-2.26%
HANG SENG	25626.03	+561.67
		+2.24%
SENSEX	35695.10	+181.39
		+0.51%
FTSE 100*	6837.42	+144.76
		+2.16%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.930		1.826
CND. 30 Year Bond		2.136		2.063
U.S.    10 Year Bond		2.6677		2.5605
U.S. 30 Year Bond		2.9810		2.9033

Currencies

BOC Close	Today	Previous
Canadian $	0.74791	0.74150
US $	1.33705	1.34861
Euro Rate 1 Euro=		Inverse
Canadian $	1.52384	0.65624
US $	1.13972	0.87741

Commodities

Gold	Close	Previous
London Gold Fix	1290.45	1290.45
Oil
WTI Crude Future	47.96	47.09

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at their highest level in three weeks, buoyed by strength south of the border, while the loonie and bond yields jumped despite a slowdown in hiring.
     The S&P/TSX Composite Index rose 1.5 percent to 14,426.62 Friday amid strong jobs growth in the U.S., bringing its gain for the holiday-shortened week to 1.4 percent. Technology stocks led the way, rising 2.7 percent after losing 5.1 percent in the previous two sessions. Shopify Inc. added 5.8 percent.
     The energy sector jumped 2.5 percent as crude prices closed out their best week since June. Torc Oil & Gas Ltd. posted the biggest gain, adding 7.4 percent.
In other moves:
Stocks
* Hudson’s Bay Co. jumped 16 percent, the most since early 2015. Chairman Richard Baker bought a 9.8 percent stake in the retailer from a Canadian pension fund at a 29 percent premium from Thursday’s close
* Lundin Mining Corp. added 8.4 percent as a trifecta of good news on the economy, interest rates and trade tensions boosted investor confidence in industrial metals
* Quarterhill Inc. rose 8.9 percent. A U.S. federal judge declined to overturn a jury verdict that Apple infringed two patents, but lowered the damages
Commodities
* Western Canada Select crude oil traded at a $12.60 discount to WTI
* Gold fell 0.7 percent to $1,285.80 an ounce FX/Bonds
* The Canadian dollar strengthened 0.7 percent to C$1.3394 per U.S. dollar
* The Canada 10-year government bond yield rose 10 basis points to 1.93 percent, the biggest gain since mid-2017
US
By Jeremy Herron and Vildana Hajric
(Bloomberg) — U.S. stocks surged the most in a week and the dollar erased gains after Jerome Powell signaled the latest market turbulence will keep the Federal Reserve in a dovish stance.
The S&P 500 jumped to a three-week high after the central bank chairman said Fed policy is flexible and officials are “listening carefully” to the financial markets. Equities started the day in rally mode after data showed a spike in hiring last month that was accompanied by faster wage growth and an increase in participation. A reading on the services sectors topped estimates, adding to optimism a day after stocks plunged on concern growth was slowing.
The 10-year Treasury yield rose back above 2.6 percent. The dollar gave back gains sparked by jobs data. Gold fell and oil rose.
Powell’s remarks added to the debate over whether the Fed should adopt a full-on dovish stance just a day after factory data weakened by the most since the recession — fueling speculation the central bank might actually cut rates this year.
While the jobs report may ease immediate concern that the world’s biggest economy is careening toward a recession, investors are also keeping an eye on a host of other risks.
Trade remains in focus, with mid-level officials from the U.S traveling to China for talks next week just as tariff effects have started to show up in corporate profit warnings. China moved to secure liquidity for its slowing economy, and political drama in Washington persists, with the shutdown
showing no signs of resolution.
“The strong December jobs report is a net positive for stocks because investors’ biggest concern has been slowing growth,” said Alec Young, managing director of global markets research at FTSE Russell. “December’s strong job gains help ease that concern. It’s hard to square recession worries with the
strongest job growth we’ve seen in years.”
Friday’s optimism over the economy and trade did little to dent the rout that’s hit global equities in the past month, with major averages off well over 10 percent from previous highs.
Treasury yields that topped 3.2 percent in November now sit 60 basis points lower as investors reassess the prospects for growth in 2019. Gold has surged to multimonth highs and crude has plunged, adding to angst that demand is flagging.
Here are some events investors may focus on in coming days:
* Fed Chair Powell is interviewed with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association Friday. Atlanta Fed President Raphael Bostic joins a
panel on long-run macroeconomic performance.
And these are the main moves in markets:
Stocks
* The S&P 500 Index climbed 2.7 percent as of 10:38 a.m. New York time.
* The Dow Jones Industrial Average advanced 600 points, and the Nasdaq 100 added 3.4 percent.
* The Stoxx Europe 600 Index rose 2 percent to the highest in more than two weeks on the biggest advance in a week.
* Germany’s DAX Index surged 1.8 percent to the highest in two weeks on the biggest jump in more than a month.
* The MSCI Asia Pacific Index fell 0.2 percent.
* The MSCI Emerging Market Index rose 0.9 percent, the biggest advance in a week.
Currencies
* The Bloomberg Dollar Spot Index rose 0.3 percent.
* The euro fell 0.4 percent to $1.1353.
* The British pound was flat at $1.2626.
* The Japanese yen decreased 0.8 percent to 108.483 per dollar.
Bonds
* The yield on 10-year Treasuries climbed eight basis points to 2.64 percent, the largest increase in more than a week.
* The two-year rate jumped nine basis points to 2.47 percent.
* Germany’s 10-year yield climbed four basis points to 0.196
percent.
* The spread of Italy’s 10-year bonds over Germany’s fell two
basis points to 2.683 percentage points.
Commodities
* West Texas Intermediate crude climbed 2.3 percent to $48.16 a barrel, hitting the highest in more than two weeks with its fifth consecutive advance.
* Gold futures plunged 0.8 percent to $1,284.60 an ounce, the first retreat in more than a week and the biggest dip in two weeks.

Have a great evening.

Be magnificent!

As ever,

Karen

“Peace is when times doesn’t matter as it passes by”. Maria Margarethe Anna Schell

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

Dear Friends,

Tangents:

Carolann is out of the office today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Visitors walk past the art installation Gaia, a seven-metre scale model of Earth created by artist Luke Jerram at the Helix Park in Falkirk. The park will be transformed into an extraordinary spectacle of fire performances, interactive light installations, breath-taking puppetry, enchanting sculptures, and animated projections depicting the zodiac signs. Credit: Andrew Milligan/PA Wire

Walkers in the morning sun at Tynemouth beach on the North East coast. Credit: Owen Humphreys/PA Wire

A snowman on the riverbank of Songhua River in Harbin, capital of northeast China’s Heilongjiang Province. Altogether 2,019 cute snowmen were displayed here to greet the year 2019. Credit:  Wang Jianwei/Barcroft Images
Market Closes for January 3^rd, 2019

Market Index	Close	Change
Dow Jones	22686.22	-660.02   -2.83%
S&P 500	2447.89	-62.14   -2.48%
NASDAQ	6463.504	-202.434   -3.04%
TSX	14212.75	-134.41
		-0.94%

International Markets

Market Index	Close	Change
NIKKEI	20014.77	-62.85
		-0.31%
HANG SENG	25064.36	-65.99
		-0.26%
SENSEX	35513.71	-377.81
		-1.05%
FTSE 100*	6692.66	-41.57
		-0.62%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.826		1.901
CND. 30 Year Bond		2.063		2.120
U.S.    10 Year Bond		2.5605		2.6204
U.S. 30 Year Bond		2.9033		2.9518

Currencies

BOC Close	Today	Previous
Canadian $	0.74150	0.73300
US $	1.34861	1.36426
Euro Rate 1 Euro=		Inverse
Canadian $	1.53667	0.65076
US $	1.13936	0.87769

Commodities

Gold	Close	Previous
London Gold Fix	1290.45	1279.00
Oil
WTI Crude Future	47.09	46.54

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks retreated, led by tech stocks after Apple Inc. cut its sales outlook, but avoided the deeper losses experienced south of the border.
     The S&P/TSX Composite Index fell 0.9 percent to 14,212.75, the most since the market’s Christmas Eve selloff, but that paled in comparison to the 2.5 percent drop on the S&P 500.
     Tech stocks were the biggest decliners, losing 4 percent. The sector took a drubbing along with Apple, which fell the most since 2013 after cutting its revenue outlook for the first time in almost two decades. In Canada, Shopify Inc. lost 6.5 percent. Defensive stocks were the only sectors in positive territory, with the communication services sector up 0.2 percent and utilities gaining 0.1 percent.
In other moves:
Stocks
* New Gold Inc. jumped 11 percent, the most since October, as bullion prices posted a sixth straight advance
* EnWave Corp. rose 4.6 percent. The company has signed a pact to sub-license its cannabis dehydration technology to The Green Organic Dutchman Holdings Ltd.
* Charlotte’s Web Holdings Inc. lost 1.2 percent after the hemp- focused company said it plans to hire a new CEO this year
Commodities
* Western Canada Select crude oil traded at a $12.50 discount to WTI
* Aeco natural gas traded at a $1.73 discount to Henry Hub
* Gold rose 0.8 percent to $1,294.80 an ounce, the highest since June
FX/Bonds
* The Canadian dollar strengthened 0.8 percent to C$1.3481 per U.S. dollar as oil prices rose
* The Canada 10-year government bond yield fell 7 basis points to 1.83 percent, the lowest since 2017
US
By Vildana Hajric and Reade Pickert
     (Bloomberg) — U.S. stocks sank after a factory gauge dropped the most in a decade and Apple cut its sales outlook, adding to concern that global growth is slowing. Treasuries rallied and the yen strengthened.
     The S&P 500 Index tumbled 2.5 percent for the steepest sell-off since Christmas Eve, when the gauge fell within a few points of a bear market before embarking on a 6.8 percent rally over the next five sessions. Apple plunged the most since 2013 after citing an unforeseen slowdown in China for its woes. Ten- year Treasury yields sank to an 11-month low after a measure of U.S. manufacturing plunged last month by the most since October 2008. Bristol-Myers Squibb’s bid to buy Celgene and a strong reading on private hiring for December were shrugged off by bearish investors.
     “Corporate America is getting cold feet about the outlook,” said Chris Rupkey, the chief financial economist at MUFG Union Bank in New York. “That’s what the stock market is saying with new selling and new lows after the manufacturing survey’s release.’
Here are the major stocks moves:
* Apple ended the day down 10 percent.
* Twenty-nine of 30 chipmakers in the Philadelphia Semi index fell, with Qorvo, Skyworks and Broadcom each off at least 8 percent.
* 3M, Caterpillar and DowDuPont dropped at least 3 percent.
* Bristol-Myers sank 14 percent, while Celgene jumped to the highest since October.
* Airlines tumbled after Delta cut its revenue forecast. American was off 7.5 percent.
     In currency markets, the yen jumped as algorithmic programs amplified sharp gyrations amid thin liquidity during a Japanese holiday. Bloomberg’s dollar index fell.
     The weak ISM factory reading adds to anxiety spurred by poor data from China and Europe a day earlier, stoking fear that a recession looms larger than previously thought. Apple and Delta join a growing list of companies warning that the trade war and political turmoil may be weighing on corporate profits.
     Dysfunction in Washington continues, meanwhile, with leaders unable to strike a deal to end a partial shutdown of the federal government.
     “Trade disputes are seeping into the real economy globally,” said Brett Ryan, senior U.S. economist for Deutsche Bank Securities. “The policy uncertainty will eventually cause a slowdown, and you’re finally at that point now.”
Here are some events investors may focus on in coming days:
* The U.S. December jobs report is due Friday
* Fed Chair Powell is interviewed with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association Friday. Atlanta Fed President Raphael Bostic joins a panel on long-run macroeconomic performance.
And these are the main moves in markets:
Stocks
* The S&P 500 fell 2.5 percent at the close of trading in New York.
* The Nasdaq 100 retreated 3.4 percent, while the Dow Jones Industrial Average slid 662 points.
* The Stoxx Europe 600 Index lost 1 percent.
* Germany’s DAX Index sank 1.6 percent on the first retreat in a week.
* The MSCI Emerging Market Index declined 0.6 percent.
* The Nikkei-225 Stock Average fell 0.3 percent.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.5 percent.
* The euro advanced 0.5 percent to $1.1399.
* The British pound rose 0.2 percent to $1.2636.
* The Japanese yen jumped 1.2 percent to 107.57 per dollar, the strongest in more than eight months.
Bonds
* The yield on 10-year Treasuries fell six basis points to 2.56 percent.
* Germany’s 10-year yield fell one basis point to 0.15 percent. 
* Italy’s 10-year yield climbed 17 basis points to 2.86 percent.
Commodities
* West Texas Intermediate crude rose 1.3 percent to $47.16 a
barrel.
* Gold advanced 0.7 percent to $1,293.61 an ounce, reaching the highest in almost seven months on its sixth consecutive advance.

Have a great evening.

Be magnificent!

As ever,

Karen

“With the new day comes new strength and new thoughts.” Eleanor Roosevelt

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

Dear Friends,

Tangents:

Carolann is out of the office today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

A man watches the fireworks exploding over Copacabana Beach during the New Year’s celebrations in Rio de Janeiro, Brazil. Credit: AP Photo/Leo Correa

A woman flies a kite on the beach on New Year’s Day morning in Saltburn By the Sea, England. Credit: Ian Forsyth/Getty Images

Revellers brave stormy conditions as they participate in the annual New Year’s polar bear dip in Charlottetown harbour, Canada. Credit: Andrew Vaughan/The Canadian Press/AP
Market Closes for January 2^nd, 2019

Market Index	Close	Change
Dow Jones	23346.24	+24.30   +0.17%
S&P 500	2510.03	+3.18   +0.13%
NASDAQ	6665.938	+30.661   +0.46%
TSX	14347.16	+24.30
		+0.17%

International Markets

Market Index	Close	Change
NIKKEI	20014.77	-62.85
		-0.31%
HANG SENG	25130.35	-715.35
		-2.77%
SENSEX	35891.52	-363.05
		-1.00%
FTSE 100*	6734.23	+6.10
		+0.09%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.901		1.953
CND. 30 Year Bond		2.120		2.146
U.S.    10 Year Bond		2.6204		2.7182
U.S. 30 Year Bond		2.9518		3.0222

Currencies

BOC Close	Today	Previous
Canadian $	0.73300	0.73334
US $	1.36426	1.36362
Euro Rate 1 Euro=		Inverse
Canadian $	1.54668	0.64655
US $	1.13362	0.88205

Commodities

Gold	Close	Previous
London Gold Fix	1279.00	1268.00
Oil
WTI Crude Future	46.54	45.33

Market Commentary:
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks tumbled into the new year, with the S&P/TSX Composite Index dropping as much as 1.5 percent before paring losses. Industrials and consumer discretionary stocks led the fall, with health-care stocks being the only sector rising.
     The Canadian dollar extended last year’s losses to start the new year, slumping amid broad strength in the greenback and falling oil prices as weak Chinese manufacturing data boosted worries over slowing demand. The loonie pared some of its losses as oil prices spiked around 10:00 a.m. in New York.
     A group of Guyana Goldfields investors is seeking a complete overhaul of the company’s board. The miner’s former chief executive officer, Northfield Capital and other investors, who together own more than 5 percent of the miner, plan to seek a mandate from shareholders to replace the gold producer’s directors.
Stocks
* Norbord Inc. (OSB CT) fell 6 percent after Bank of America Merrill Lynch said the first three months may prove pivotal for forest products equities 
* Maxar Technologies Inc. (MAXR CT) dropped 5 percent after announcing completion of U.S. domestication
* Bausch Health Cos. Inc. (BHC CT) gained 5 percent as the company is scheduled to present at 37th annual J.P. Morgan Healthcare conference
* Turquoise Hill Resources (TRQ CT) dropped 4 percent
Commodities
* Western Canada Select crude oil traded at a $15.75 discount to WTI
* Gold gained 0.4 percent to $1,285.90 an ounce
FX/Bonds
* The Canadian dollar reversed earlier weakness, trading around C$1.36 per U.S. dollar
* The Canada 10-year government bond yield dropped 4.5 basis points to 1.92 percent
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks started the new year with a modest rebound from the worst December rout since the Depression. Oil rallied as Saudi Arabia cut exports.
     The S&P 500 Index ended an up-and-down session higher by three points, while the Dow Jones Industrial Average eked out a gain and the Nasdaq indexes climbed. Banks rallied, and energy producers surged after a report that Saudi Arabia lowered oil exports fueled a surge in the price of crude. Stocks with high dividend yields fell the most as the 10-year Treasury yield tumbled. Equities started the day lower on poor sentiment sparked by a weak reading on Chinese manufacturing, which added to concern that global growth is slowing.
     “The overall theme that’s been driving the market down is concerns about future economic growth and future earnings growth,” Peter Jankovskis, co-chief investment officer at Oakbrook Investments, said by phone. “The concern is that the tariff action, while it hasn’t had a significant impact to date here in the U.S., is going to start weighing on things. And when we get these economic reports from overseas, principally from China, that provides some evidence that, yeah, it is starting to bite, and that makes people nervous.”
     The risk-off tone that gripped markets in December eased a bit at the start 2019, with the threat of rising rates, an escalating trade war and slowing growth still looming. While President Donald Trump made positive noises about reaching a trade deal with his counterpart Xi Jinping over the weekend, the Chinese data are a stark example to investors that the protectionist showdown is starting to have an impact on economic activity.
Here’s (Almost) Everything Wall Street Is Expecting in 2019
     “The trend remains lower for now,” Kyle Rodda, an analyst at IG Group Holdings Plc, told Bloomberg Television. “We’ve had rate hikes from the Fed effectively priced out, so we are looking at a situation when markets are thinking that we are entering a period of slower growth.”
     Elsewhere, the dollar rose as the euro and pound slid — the latter falling even as U.K. manufacturing growth unexpectedly improved. Emerging-market equities slumped.
Here are some events investors may focus on in coming days:
* The U.S. December jobs report is due Friday.
* Fed Chair Powell is interviewed with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association Friday. Atlanta Fed President Raphael Bostic joins a panel on long-run macroeconomic performance.
And these are the main moves in markets Wednesday:
Stocks
* The S&P 500 rose 0.1 percent as of 4 p.m. in New York.
* The Stoxx Europe 600 Index decreased 0.1 percent.
* The MSCI Asia Pacific Index declined 1 percent, hitting the lowest in a week with the first retreat in more than a week.
* The MSCI Emerging Market Index sank 1 percent, reaching the lowest in two months.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.4 percent, the first advance in a week and the largest increase in more than a week.
* The euro sank 1.1 percent to $1.1343.
* The British pound sank 1 percent to $1.2611, the weakest in two weeks on the largest decrease in more than three weeks.
* The Japanese yen gained 0.6 percent to 109.123 per dollar, the strongest in seven months on the biggest rise in more than a week.
Bonds
* The yield on 10-year Treasuries fell three basis points to 2.66 percent, its fifth straight decline.
* The two-year yield rose one basis point to 2.50 percent
* Germany’s 10-year yield sank nine basis points to 0.15 percent, the lowest in more than two years on the biggest tumble in more than two years.
Commodities
* West Texas Intermediate crude rose 2.5 percent to $46.55 a barrel.
* Gold futures rose 0.2 percent to $1,283.50 an ounce, reaching the highest in almost seven months on its fifth consecutive advance.

Have a great evening.

Be magnificent!

As ever,

Karen

“Inspiration comes very slowly and quietly”. Brenda Ueland

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

Dear Friends,

Tangents:

Carolann is out of the office today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

A child looks at African penguins during the opening of a new area reserved for them at Bioparco in Rome. Credit:  Tizana Fabi/AFP

A boy enjoys elephant bathing during the 15^th Elephant Festival in Sauraha, a tourism hub in southwest Nepal’s Chitwan district. Credit: Sunil Sharma/Alamy

The main building of China’s Taishan Station in Antarctica. China started the work of the second phase of the Taishan Station in Antarctica. Credit: Liu Shiping/Barcroft
Market Closes for December 28th, 2018

Market Index	Close	Change
Dow Jones	23062.40	-76.42   -0.33%
S&P 500	2485.74	-3.09   -0.12%
NASDAQ	6584.523	+5.031   +0.08%
TSX	14222.00	+56.79
		+0.40%

International Markets

Market Index	Close	Change
NIKKEI	20014.77	-62.85
		-0.31%
HANG SENG	25504.20	+25.32
		+0.10%
SENSEX	36076.72	+269.44
		+0.75%
FTSE 100*	6733.97	+149.29
		+2.27%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.953		1.994
CND. 30 Year Bond		2.146		2.169
U.S.    10 Year Bond		2.7182		2.7666
U.S. 30 Year Bond		3.0222		3.0560

Currencies

BOC Close	Today	Previous
Canadian $	0.73334	0.73428
US $	1.36362	1.36188
Euro Rate 1 Euro=		Inverse
Canadian $	1.55998	0.64103
US $	1.14400	0.87413

Commodities

Gold	Close	Previous
London Gold Fix	1268.00	1258.15
Oil
WTI Crude Future	45.33	44.61

Market Commentary:
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks extended gains for a second day, with the S&P/TSX Composite Index advancing 0.4 percent, led by health care. It was the first back-to-back advance since Dec. 3.
     Marijuana M&A was the focal point in the wake of U.S. cannabis retailer Green Growth Brands Ltd.’s hostile offer for Aphria Inc., which pushed up Aphria’s peers. Energy stocks also outperformed while materials lagged.
Stocks
* MJardin Group Inc. rose 35 percent after getting its first cannabis sales license from Health Canada 
* Green Organic Dutchmen Holding climbed 15.8 percent 
* Paramount Resources gained 15.9 percent, a top performer among energy stocks 
* Maxar Technologies Ltd. added 15.4 percent; shares are down about 80 percent year-to-date 
* Barrick Gold Corp. dropped 5.5 percent 
Commodities
* Western Canada Select crude oil traded at a $16.00 discount to WTI
* Gold rose 0.1 percent to $1,282.50 an ounce
FX/Bonds
* The Canadian dollar fell 0.3 percent to C$1.3655 per U.S. dollar
* The Canada 10-year government bond yield dropped 4 basis points to 1.956 percent
US
By Jeremy Herron and Vildana Hajric
     (Bloomberg) — U.S. stocks halted a two-day rally as thin trading added to already-volatile markets ahead of the weekend. Treasuries rose. The S&P 500 ended the session lower, but held onto its first weekly gain in a month. Trading was still volatile after a roller-coaster session Thursday that saw the biggest reversal since 2010. The holiday-shortened week began with the worst pre- Christmas day on record before stocks notched the biggest one- day surge in almost a decade. The benchmark is on track for its worst year of the bull market.
     “You’re in a period of high unknown right now,” Jeremy Bryan, portfolio manager at Gradient Investments, said in an interview. “It’s the market trying to find bottoms and trying to find its footing. That’s why we’re seeing such volatile swings in this tape. It’s just right now there seems to be a lot more consternation, which is why you’re seeing markets reacting violently both ways.”
     Global stocks are set for the worst year since 2008 and oil is mired in its steepest quarterly slump since 2014. Plenty of event risks loom in the coming year, from the U.K. vote on the Brexit deal to U.S.-China trade talks to the continuing showdown between President Donald Trump and Congress over the budget.
     “We’re heading into a period of higher volatility,” said Manpreet Gill, head of fixed income, currency and commodities strategy at Standard Chartered Plc in Singapore. “You need to have some dry powder on the side to take advantage of that. That’s where we particularly think that cash plays a bit of a role.”
     In Europe, the Stoxx 600 saw its largest one-day rally since April. Japanese shares declined, while stocks in China saw modest advances. Japanese 10-year yields dipped below zero. West Texas intermediate crude bounced with emerging market equities.
     Japan and China had their final trading day of the year Friday. Aside from any further developments on the American political front — where departures of senior officials and tensions at the White House over the Federal Reserve have unsettled investors, upcoming manufacturing PMIs from China and the U.S. may be a focus in the coming week.
Here’s a look at how some key assets have done this year:
* The S&P 500 is down 7.5%
* Japan’s Topix is down 18%
* The Stoxx Europe 600 is down almost 14%
* The MSCI Emerging Markets Index dropped about 16%
* The Bloomberg Dollar Spot Index rose more than 3%
* The Bloomberg Commodity Index fell almost 12%
     Thursday’s reversal rings of a bear-market bounceTraders are getting used to sharp swingsInvestors keep bailing out of leveraged loansAnd they’re piling into goldBond traders gird for more Fed press conferences China has the worst equity market
Here are some events investors may focus on in coming days:
* China releases its official PMIs on Monday, the last day of 2018.
* Brazil’s new president is sworn in on Tuesday.
* The U.S. ISM manufacturing PMI is due Friday, Jan. 4.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.1 percent as of 4 p.m. in New York.
* The Stoxx Europe 600 Index jumped 2 percent, the biggest surge in about nine months.
* The MSCI All-Country World Index increased 1.2 percent.
* The MSCI Emerging Market Index increased 1.2 percent to the highest in more than a week.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.2 percent.
* The euro climbed 0.1 percent to $1.1442.
* The Japanese yen jumped 0.6 percent to 110.40 per dollar.
* The British pound advanced 0.4 percent to $1.2692.
* The MSCI Emerging Markets Currency Index gained 0.3 percent to the highest in more than three weeks.
Bonds
* The yield on 10-year Treasuries dipped three basis points to 2.74 percent.
* Germany’s 10-year yield one basis point to 0.24 percent, the largest gain in a week.
* Britain’s 10-year yield fell four basis points to 1.269 percent.
Commodities
* The Bloomberg Commodity Index decreased 0.3 percent.
* West Texas Intermediate crude gained 1.7 percent to $45.38 a barrel.
* Gold was little changed at $1,281.50 an ounce.

Have a great weekend.

Be magnificent!

As ever,

Karen

“You cannot shake hands with a clenched fist”. Indira Gandhi

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

Dear Friends,

Tangents:

Carolann is out of the office today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Wildlife enthusiast Darren Chisholm, 33, captured this image in Culloden Woods, Inverness. “It reminds me of Superman, the way the body is spread out” he said. Credit: Darren Chisholm/SWNS.COM

A participant in a Santa Claus costume jumps into the water during the 109th edition of the ‘Copa Nadal’ (Christmas Cup) swimming competition in Barcelona’s Port Vell. Credit: Josep Lago/AFP/Getty Images

People enjoy interactive visual installations themed on Van Gogh’s art at an exhibition in Hangzhou, China. Credit: Sipa Asia/Zuma Wire/Alamy Live News
Market Closes for December 27th, 2018

Market Index	Close	Change
Dow Jones	23138.82	+260.37   +1.14%
S&P 500	2488.83	+21.13   +0.86%
NASDAQ	6579.492	+25.137   +0.38%
TSX	14165.21	+385.02
		+2.79%

International Markets

Market Index	Close	Change
NIKKEI	20077.62	+750.56
		+3.88%
HANG SENG	25478.88	-172.50
		-0.67%
SENSEX	35807.28	+157.34
		+0.44%
FTSE 100*	6584.68	-101.31
		-1.52%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.994		2.026
CND. 30 Year Bond		2.169		2.181
U.S.    10 Year Bond		2.7666		2.7902
U.S. 30 Year Bond		3.0560		3.0308

Currencies

BOC Close	Today	Previous
Canadian $	0.73428	0.73508
US $	1.36188	1.36040
Euro Rate 1 Euro=		Inverse
Canadian $	1.55730	0.64214
US $	1.14349	0.87452

Commodities

Gold	Close	Previous
London Gold Fix	1258.15	1259.75
Oil
WTI Crude Future	44.61	45.39

Market Commentary:
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks rallied into the close, ending a four-day slide, as their U.S. peers in the S&P 500 rallied from early lows in what became the biggest reversal since 2010.
     The S&P/TSX Composite Index rose 2.8 percent, the most since January 2016, closing at 14,165.21. Canadian stocks didn’t trade Wednesday for the Boxing Day holiday, when U.S. stocks soared 5 percent. Tech and energy led the way Thursday as all eleven sectors gained.
     The loonie was down against most of its Group-of-10 peers amid greenback weakness and a resurgence of weaker oil prices.
Stocks
* Shopify Inc. jumped 11.6 percent amid a strong holiday shopping season 
* Air Canada rose 9.4 percent 
* Encana Corp. rose 14.6 percent 
* BCE Inc. jumped 7.5 percent 
* West Fraser Timber Co. fell 3.2 percent 
* Stelco Holdings Inc. fell 1.9 percent 
Commodities
* Western Canada Select crude oil traded at a $16.50 discount to WTI
* Gold rose 0.4 percent to $1,277.70 an ounce
FX/Bonds
* The Canadian dollar fell 0.3 percent to C$1.3613 per U.S. dollar
* The Canada 10-year government bond yield gained 1 basis point to 1.993 percent
US
By Vildana Hajric
(Bloomberg) — Volatility returned to U.S. markets, with stocks roaring back from the lows of the day to close higher after flirting with a bear market. Treasuries rose and oil slipped below $46 a barrel.
     The S&P 500 and Dow Jones Industrial Average turned green in a late surge after trading negative for most of the day, with a more than 800 point swing up by the Dow in less than two hours. On top of Wednesday’s 5 percent surge, it was the biggest two-day rally in the S&P since August 2015.
     “It’s hard to explain moves like today and yesterday and the last month,” said Sean O’Hara, president at Pacer ETFs. “From a time perspective, it’s a historic bull market and when you get that far into the cycle, people get more jittery.”
     The S&P 500 has been careening toward its worst month of the record bull run and is down about 15 percent in the quarter as everything from higher interest rates to political turmoil in Washington to concern about global growth hammer at investor sentiment. Havens came back in vogue, with Treasury 10-year yields slipping below 2.8 percent, and gold climbing with the yen.
     The euphoria of equity investors evaporated earlier from Wednesday, when investors cheered a reminder of the American consumer’s strength and got reassurance on the tenure of the Federal Reserve chief and progress on U.S.-China trade talks.
     While there was no obvious catalyst for the return to selling that took stocks within a whisker of a bear market, the moves of the past few days sent volatility soaring.
     Elsewhere, WTI crude oil prices gave up a slice of the more than 8 percent gain from the previous day. Losses in utility companies and carmakers dragged the Stoxx Europe 600 Index into the red. Asian shares were mixed, though Tokyo’s Topix Index posted the biggest advance in two years.
     “After a day like yesterday, you’d like to say, ‘Oh, that’s it. That kind of a move, that’s got to be the bottom.’ But you know what?” Michael Antonelli, equity sales trader at Robert W. Baird, said on Bloomberg TV. “We just don’t know yet.”
     Plenty of big rallies occurred during a bear-market downturnA history of U.S. presidential comments on stocksInsiders are pouring money into equitiesThree crazy statistics on a wild day of tradingValuations tumbled before the Wednesday rally
Here are some events investors may focus on in coming days:
* Baker Hughes releases its weekly data on active U.S. oil rigs on Friday.
* Monday is year end.
* Brazil’s new president is sworn in on Tuesday.
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.9 percent as of 4:10 p.m. New York time.
* The Nasdaq 100 rose 0.4 percent and the Dow Jones Industrial Average cut its decline from more than 600 points to close up 1.1 percent.
* The Stoxx Europe 600 Index fell 1.7 percent to the lowest in more than two years on the biggest fall in more than a week.
* The MSCI All-Country World Index dropped 0.2 percent.
* The MSCI Emerging Market Index climbed less than 0.1 percent, the first advance in a week.
Currencies
* The Bloomberg Dollar Spot Index declined 0.4 percent.
* The euro rose 0.8 percent to $1.1438.
* The Japanese yen jumped 0.4 percent to 110.90 per dollar.
* The British pound rose less than 0.1 percent to $1.2638.
* The MSCI Emerging Markets Currency Index gained 0.2 percent, the largest rise in more than a week.
Bonds
* The yield on 10-year Treasuries fell four basis points to 2.76 percent.
* Germany’s 10-year yield decreased two basis points to 0.23 percent, the lowest in a week on the largest dip in almost two weeks.
* Britain’s 10-year yield increased five basis points to 1.31 percent.
Commodities
* The Bloomberg Commodity Index decreased 0.5 percent.
* Crude oil fell 2.3 percent to $45.18 a barrel.
* LME copper jumped 0.6 percent to $5,969 per metric ton, reaching the highest in more than a week on the first advance in more than a week and the biggest increase in more than two weeks.
* Gold increased 0.7 percent to $1,275 an ounce, the highest in more than six months.

Have a great evening.

Be magnificent!

As ever,

Karen

“The work of today is the history of tomorrow and we are its makers”. Juliette Gordon Low

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

Dear Friends,

Tangents: Happy Friday!

Carolann is out of the office today, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Dancers from Semaphore Ballet Company perform at Tower Hill in the last evening light before the winter solstice. Credit: Guy Corbishley/Alamy News

A halo rings the moon at night in Turkey’s eastern Van province. Credit: Ozkan Bilgin/Anadolu/Getty Images

A man dressed as Santa Claus waves as he walks along Jerusalem’s Old City Ottoman walls. Credit: Gali Tibbon/AFP
Market Closes for December 21st, 2018

Market Index	Close	Change
Dow Jones	22445.37	-414.23   -1.81%
S&P 500	2416.58	-50.84   -2.06%
NASDAQ	6332.996	-195.411   -2.99%
TSX	13935.44	-206.33
		-1.46%

International Markets

Market Index	Close	Change
NIKKEI	20166.19	-226.39
		-1.11%
HANG SENG	25753.42	+129.89
		+0.51%
SENSEX	35742.07	-689.60
		-1.89%
FTSE 100*	6721.17	+9.24
		+0.14%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.026		2.014
CND. 30 Year Bond		2.181		2.165
U.S.    10 Year Bond		2.7902		2.8065
U.S. 30 Year Bond		3.0308		3.0484

Currencies

BOC Close	Today	Previous
Canadian $	0.73508	0.74082
US $	1.36040	1.34986
Euro Rate 1 Euro=		Inverse
Canadian $	1.54750	0.64620
US $	1.13756	0.87907

Commodities

Gold	Close	Previous
London Gold Fix	1259.75	1255.00
Oil
WTI Crude Future	45.39	45.63

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks ended their worst week since August 2015 with another volatile day that started positive and ended with a significant decline.
     The S&P/TSX Composite Index fell 1.5 percent to 13,935.67 Friday, bringing its weekly loss to 4.5 percent. Higher-than- average volume as a result of expiring futures and options exacerbated the selling on the last full trading day before Christmas, as did the growing likelihood of a U.S. government shutdown.
     All sectors closed in the red, with technology and health- care stocks leading the decline. Cannabis company Aphria Inc. fell 7.4 percent and BlackBerry Ltd. lost 8.1 percent a day after better-than-expected revenue sent its shares higher.
In other moves:
Stocks
* The Stars Group Inc. gained 7.3 percent after the company won a reversal of an $870 million judgement in the Kentucky Court of Appeals
* Canada Goose Holdings Inc. fell 8.2 percent amid ongoing concerns about Canada-China relations following the arrest of Huawei Technologies Co.’s chief financial officer in Vancouver
* Fiera Capital Corp. rose 1.6 percent. The company is acquiring 80 percent of Palmer Capital Partners Ltd., a U.K.-focused real estate investment manager with over 800 million pounds in assets under management
Commodities
* Western Canada Select crude oil traded at a $16.50 discount to WTI
* Gold fell 0.7 percent to $1,258.80 an ounce 
FX/Bonds
* The Canadian dollar weakened 0.7 percent to C$1.3598 per U.S. dollar despite stronger economic growth, as the U.S. dollar advanced
* The Canada 10-year government bond yield rose 1 basis point to 2.03 percent
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — U.S. stocks sank to a 17-month low to close out their worst week since August 2011, with every sector losing ground and heavy selling in technology shares driving the Nasdaq indexes into a bear market. Treasuries edged higher.
     Heavy volume sparked by the simultaneous expiration of futures and options lashed stocks that have been under pressure all week from concern over rising interest rates and the threat of slower global growth. Renewed personnel turmoil in the White House and the growing likelihood of a government shutdown added to investor anxiety before the holidays.
     Dovish comments from a Fed official gave an early boost to the S&P 500, but renewed selling in some of the bull market’s biggest winners sent the index lower. It’s now down over 17 percent from its record.
     The Nasdaq indexes fared even worse, each sliding more than 2 percent Friday to bring routs since summer records past 20 percent. Every member of the FANG cohort lost more than 2.5 percent, while Twitter plunged more than 6 percent. The Cboe Volatility Index, known as the “fear gauge,” rose above 30 to hit a 10-month high. The dollar advanced as China signaled an easier monetary policy, and bonds retreated across Europe.
     The Powell Put Misplaced: Bloomberg Reporters Talk Markets “It’s a convergence of various factors, from global growth, to quantitative tightening concerns, as well as political risk in the U.S. and across the globe,” said Chad Morganlander, portfolio manager at Washington Crossing Advisors. “It’s like ‘Wow, man.’ It’s unbelievable — it’s the polar opposite of what you had in 2017. Investors don’t necessarily need to dive into the pool until you see some of these various issues subside.”
     The MSCI Asia Pacific Index dropped for the fourth session in six. The Stoxx Europe 600 Index finished little changed.
     Treasuries rose, but European bonds fell ahead of the Christmas break. The dollar climbed against the yuan and most major currencies after China’s top policy makers said “significant” cuts to taxes and fees will be enacted in 2019, while signaling an easier monetary policy stance. The moves are the latest by leaders in world’s second-biggest economy as they grapple with a domestic slowdown and a trade war with America.
     Elsewhere, orders placed with U.S. factories for business equipment fell in November, missing forecasts for an increase and adding to signs that demand is slowing amid risks from the trade war with China.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell 2.1 percent as of 4:01 p.m. New York time.
* The Stoxx Europe 600 Index gained less than 0.05 percent.
* The U.K.’s FTSE 100 Index declined less than 0.05 percent.
* Germany’s DAX Index rose 0.2 percent.
* The MSCI Emerging Market Index fell 0.6 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.6 percent.
* The euro declined 0.8 percent to $1.1358, the first retreat in a week.
* The British pound declined 0.3 percent to $1.2625.
* The Japanese yen fell less than 0.05 percent to 111.33 per dollar.
Bonds
* The yield on 10-year Treasuries dipped two basis points to 2.78 percent.
* Germany’s 10-year yield increased two basis points to 0.25 percent, the biggest climb in more than a week.
* Britain’s 10-year yield gained five basis points to 1.321 percent, the highest in three weeks.
Commodities
* West Texas Intermediate crude fell 1.1 percent to $45.41 a barrel.
* Gold fell 0.4 percent to $1,255.45 an ounce.

Have a great weekend!

Be magnificent!

As ever,

Karen

“All the arts we practice are apprenticeship. The big art is our life.” Mary Caroline Richards.

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

Dear Friends,

Tangents: Full moon for the weekend! 🙂 

1879 Thomas Edison privately demonstrated his incandescent light at Menlo Park, N.J.  Go to article >>

ICYMI

When Christmas went electric:

It was in 1882, just three years after Thomas Edison filed a patent for his light bulb. The tree became a fixture in the experiment-filled home of an executive at his company.

The tree in Rockefeller Center sparkled after its 7,500 bulbs were lit for the first time in 1949.  Tom Fitzsimmons/Associated Press

Eighty walnut-size red, white and blue bulbs covered the tree, which sat on a revolving box. A newspaper article described it: “As the tree turned, the colors alternated, all the lamps going out and being relit at every revolution. The result was a continuous twinkling of dancing colors, red, white, blue, white, red, blue, all evening.”

President Grover Cleveland popularized electric Christmas lights in the 1890s by installing them on the White House tree.

But it wasn’t until (relatively) inexpensive strings of Christmas lights became available a few years later that the tradition really caught on. -from the New York Times, December 20, 2018

PHOTOS OF THE DAY

The Indian military communication satellite GSAT-7A is pictured next to the moon as it is launched into orbit on the Indian Space Research Organization (ISRO)’s Geosynchronous Satellite Launch Vehicle (GSLV) in Sriharikota in the state of Andhra Pradesh. Credit: Arun Sankar/AFP/Getty Images

People ice skate on the rink at the glass-roofed central hall of the Grand Palais in Paris. Credit: Geoffroy Van Der Hasselt/AFP

A modified Tesla Model X electric vehicle carrying Elon Musk, co-founder executive officer of Tesla Inc. drives though the tunnel as it arrives for an unveiling event for the Boring Co. Hawthorne test tunnel in Hawthorne, California, U.S. Credit: Robyn Beck/Pool via Bloomberg
Market Closes for December 20^th, 2018

Market Index	Close	Change
Dow Jones	22859.60	-342.45   -1.47%
S&P 500	2467.42	-27.37   -1.09%
NASDAQ	6528.406	-108.421   -1.63%
TSX	14141.77	-122.29
		-0.86%

International Markets

Market Index	Close	Change
NIKKEI	20392.58	-595.34
		-2.84%
HANG SENG	25623.53	-241.86
		-0.94%
SENSEX	36431.67	-52.66
		-0.14%
FTSE 100*	6711.93	-54.01
		-0.80%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.014		1.959
CND. 30 Year Bond		2.165		2.123
U.S.    10 Year Bond		2.8065		2.7548
U.S. 30 Year Bond		3.0484		2.9807

Currencies

BOC Close	Today	Previous
Canadian $	0.74082	0.74184
US $	1.34986	1.34800
Euro Rate 1 Euro=		Inverse
Canadian $	1.54627	0.64670
US $	1.14555	0.87294

Commodities

Gold	Close	Previous
London Gold Fix	1255.00	1246.30
Oil
WTI Crude Future	45.63	47.20

Market Commentary:
On this day in 1994, Mexico devalued its currency and announced that the peso would be allowed to float freely in value. Stock and bond markets in emerging economies around the world collapsed, and U.S. bank stocks dropped 2% on fears that defaulting loans would decimate their profits. Over the next six weeks, the Mexican peso would lose 40% of its value—choking the Mexican economy in the short run, but in the long run setting it free.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell sharply on another volatile trading day, buffeted by headwinds from the United States.
     The S&P/TSX Composite Index lost 0.9 percent to 14,141.77 as investors continued to fret over whether the U.S. Federal Reserve is on the right track and as the U.S. government looked increasingly likely to shut down.
     Only the materials sector was positive, gaining 2.1 percent, as gold stocks rose after the metal’s spot price broke above its 200-day moving average. Guyana Goldfields Inc. jumped 18 percent, the most since 2009.
     Energy stocks fell 2 percent as crude oil prices headed for their worst quarterly loss in four years. Nuvista Energy Ltd. lost 5.9 percent and Baytex Energy Corp. slid 5.1 percent.
In other moves:
Stocks
* BlackBerry Ltd. rose 2.9 percent after quarterly sales beat analyst forecasts, extending a run of positive surprises
* ATS Automation Tooling Systems Inc. slid 11 percent to the lowest since October 2017. The stock was cut to sector perform by National Bank Financial on the “vast” differential between its multiple and what it paid to acquire Comecer
* Bombardier Inc. gained 7 percent. The company announced two train orders and said it hired Accenture to help it streamline its procurement process
Commodities
* Western Canada Select crude oil traded at a $15.75 discount to WTI
* Aeco natural gas traded at a $1.55 discount to Henry Hub
* Gold rose 0.9 percent to $1,263.60 an ounce, the highest since June
FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.3488 per U.S. dollar
* The Canada 10-year government bond yield rose 4 basis points to 2.00 percent, the first gain this week
US
By Vildana Hajric and Jeremy Herron
(Bloomberg) — Volatility gripped financial markets a day after the Federal Reserve sent shock waves across assets, with the rising threat of a government shutdown adding to a litany of concerns buffeting equities. The dollar sank with crude oil.
     The S&P 500 Index whipsawed throughout the day in heavy trading before closing at a 15-month low as investors debated whether the Fed set up the central bank for a policy error. 
     Shares turned sharply lower after President Donald Trump hardened his demands in the showdown with Congress over funding the government. “I’ve made my position very clear — any measure that funds the government must include border security,” the president said at White House event.
     The Nasdaq Composite index slumped to the brink of a bear market, finishing almost 20 percent off its August record. The S&P 500 is down more than 10 percent in December, on track for its worst month of the record bull run.
Among the major stock moves:
* The broader FAANG cohort of shares plunged more than 3 percent
and the group is now 25 percent below its record. Twitter tumbled 11 percent in the biggest rout since July.
* Tech high fliers GoPro and Snap skidded to all-time lows, each down at least 5 percent. 
* Walgreens Boots Alliance lost as much as 6.6 percent to lead all but one of 30 Dow components lower.
* The S&P 500 has lost about 15 percent this quarter, the most during the record bull run. 
     Currency traders took the Fed’s lowering of expectations for future hikes as a somewhat dovish turn. The weak greenback spurred a rally in developing-nation assets, sending an ETF that tracks the emerging equities to its best gain in a week. Treasury investors remained on edge after the Fed said quantitative easing was on “autopilot.” The front end of the yield curve rose, while longer-dated bonds saw rates holding steady near multi-month lows.
     Crude added to anxiety on financial markets, with the American benchmark sinking below $47 a barrel. And a renewed U.S. push against alleged intellectual property theft by Chinese nationals is contributing to uncertainty over the direction of the simmering trade conflict.
     The Stoxx Europe 600 recovered some losses but closed broadly lower, while Japanese shares slid into a bear market. The pound trimmed a gain after Britain’s central bank said it now sees inflation slowing to below the 2 percent target as soon as January. Benchmark 10-year Treasuries retreated after steep gains on Wednesday. The greenback slid against almost every major counterpart, helping the yen score its biggest gain since November 2017.
     In Japan, 10-year bond yields fell to within three basis points of zero percent. Bank of Japan Governor Haruhiko Kuroda said in a press conference Thursday that there was no problem if yields fell into negative territory, suggesting he has no plan to intensify the central bank’s tapering of asset purchases.
Here are some events investors will focus on in the comingdays:
* U.S. personal income and spending data are due Friday, along with a gauge of inflation.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.6 percent as of 4:03 p.m. New York time.
* The Nasdaq Composite lost 1.6 percent, a 15-month low.
* The Stoxx Europe 600 Index declined 1.5 percent to the lowest in more than two years.
* MSCI’s emerging market index slid 0.8 percent.
Currencies
* The Bloomberg Dollar Spot Index sank 0.7 percent to the lowest in six weeks.
* The euro climbed 0.7 percent to $1.1458, the strongest in almost two months.
* The British pound advanced 0.4 percent to $1.2662, the strongest in almost two weeks.
* The Japanese yen jumped 1.1 percent to 111.26 per dollar, its biggest jump in 13 months.
Bonds
* The yield on 10-year Treasuries gained four basis points to 2.80 percent.
* Germany’s 10-year yield fell one basis point to 0.23 percent.
* Britain’s 10-year yield dropped one basis point to 1.266 percent.
Commodities
* West Texas Intermediate crude decreased 4.2 percent to $46.14 a barrel.
* Gold jumped 1.4 percent to $1,260.24 an ounce, the highest in six months.
–With assistance from Adam Haigh, Andreea Papuc and Todd White.

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

The best time to make friends is before you need them.
                                  -Ethel Barrymore, 1879-1959

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