Category: Events

Dear Friends,

Tangents: Happy Wednesday!
2010 – Sydney’s Crosby’s overtime goal gives Canada to a 3-2 victory over the United States in the hockey Gold Medal Game at the Vancouver Olympics.

POSSIBILITY
     -by Charles Coe

The new snow covers everything.
This morning the world was bathed
in that sharp-edged light
that comes in winter
after a storm blows through.
Outside my window, on the street below,
a small child, an electric blue bundle,
lets go of an adult’s hand
to charge headfirst
into a towering snowdrift…
…People who pass each other without speaking
each morning on the way to work
are now laughing and shoveling together,
butts of Mother Nature’s joke… 

PHOTOS OF THE DAY

Snow covers Staithes on the Yorkshire Coast.
CREDIT: TOM WHITE/GETTY IMAGES

A horse stands in a snow covered field in Keele, Newcastle-under-Lyme.
CREDIT: CARL RECINE/REUTERS

A dog runs in the snow at Horse Guards Parade in London.
CREDIT: ALEX BURSTOW/GETTY IMAGES
Market Closes for February 28th, 2018

Market Index	Close	Change
Dow Jones	25029.20	-380.83    -1.50%
S&P 500	2713.83	-30.45   -1.11%
NASDAQ	7273.008	-57.347   -0.78%
TSX	15442.68	-228.47
		-1.46%

International Markets

Market Index	Close	Change
NIKKEI	22068.24	-321.62
		-1.44%
HANG SENG	30844.72	-423.94
		-1.36%
SENSEX	34184.04	-162.35
		-0.47%
FTSE 100*	7231.91	-50.54
		-0.69%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.235		2.275
CND. 30 Year Bond		2.375		2.434
U.S.    10 Year Bond		2.8606		2.8934
U.S. 30 Year Bond		3.1242		3.1588

Currencies

BOC Close	Today	Previous
Canadian $	0.77938	0.78311
US $	1.28306	1.27696
Euro Rate 1 Euro=		Inverse
Canadian $	1.56486	0.63904
US $	1.21958	0.81996

Commodities

Gold	Close	Previous
London Gold Fix	1317.85	1325.75
Oil
WTI Crude Future	61.64	63.01

Market Commentary:
On this day in 1827, two dozen business leaders in Baltimore incorporated the Baltimore and Ohio Railway Co. to link Baltimore with Wheeling, W. Va. and connect the western frontier with the eastern seaboard. America’s first great growth industry was born.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell 3.2 percent in February, their worst month since December 2015, after Wednesday’s losses accelerated through the afternoon.
     The S&P/TSX Composite Index lost 229 points or 1.5 percent to 15,442.58, the biggest drop in nearly three weeks. Energy stocks were the biggest culprit, tumbling 2.9 percent after government data showed U.S. crude stockpiles grew more than expected.
     The financial index retreated 1.3 percent as bank earnings season neared its end. Laurentian Bank of Canada fell 3.2 percent to the lowest since 2016 after earnings missed estimates, while National Bank of Canada lost 2.3 percent amid volatile trading revenues.
     In other moves:
                             Stocks
* Lithium X Energy Corp. fell 9.8 percent as speculation swirled that its prospective buyer may fail to come through
* Valeant Pharmaceuticals International Inc. lost 12 percent to the lowest since November after reporting lower revenue in all three of its major units
* Student Transportation Inc. jumped 26 percent to a record high after reaching a deal to be acquired by a group of investors led by the Caisse de depot et placement du Quebec
                          Commodities
* Western Canada Select crude oil traded at a $25.25 discount to WTI, the narrowest gap in more than two weeks
* Gold fell 0.1 percent to $1,317.90 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.4 percent to C$1.2832 per U.S. dollar, the lowest since December, following a federal budget that set no path to eliminating the deficit
* The Canada 10-year government bond yield fell four basis points to 2.23 percent, the lowest in more than a month
US
By Kailey Leinz and Sarah Ponczek
     (Bloomberg) — U.S. stocks tumbled in afternoon trading, adding to the worst month for equities in two years, while Treasuries climbed with the dollar.
     The S&P 500 Index dropped more than 1 percent, ending February with a decline of 3.9 percent in one of the wildest months in years. After a torrid January, the stock market sank into a recession a week later, only to claw back half of the rout just as quickly. Trading was heavier than normal Wednesday, with shares swinging between gains and losses for much of the day.
     “February finally cracked the volatility genie out of the bottle, and now the big question is: will he stay out for good?”
Ryan Detrick, senior market strategist at LPL Financial, wrote in a note to clients Wednesday. “The good news is that March kicks off two of the strongest months historically for equities, before we hit a period of seasonal weakness from May through October.”
     The 10-year Treasury yield held just below 2.9 percent, roughly where it began a month that saw it fall as low as 2.70 and come within five basis points of 3 percent, a level it hasn’t touched in four years. The dollar added to its monthly gain, strengthening versus major peers including the euro and pound. Crude plunged after an unexpectedly strong rise in inventories.
     Equities continued to fall one day after major indexes tanked based on a generally upbeat assessment of the U.S.
economy from Federal Reserve Chairman Jerome Powell. His comments left investors wondering if the central bank planned more interest rate hikes than expected in 2018.
     “We saw the treasury market catch a little bid here off of Powell’s comments,” said Sean Simko, head of fixed-income portfolio management at SEI Investments Co. “The market initially took it as a little more hawkish than expected, but I don’t really think he really was, it was just in line with what everybody’s been saying for the last number of meetings.”
     U.S. and European bond yields have soared in recent months amid speculation that the Fed’s monetary policy will be tightened at a faster pace. But in the equity markets that possibility is increasingly testing nerves, as traders try to divine how many increases are coming.
     “Yesterday’s Powell comments in our view were more noise,” said Mike Bailey, the director of research at FBB Capital Partners in Bethesda, Maryland. “You had Powell suggesting four rate hikes as opposed to three and on the margin that’s a little bit better if you’re looking for higher yields and a little worse for a lot of equities. Today, you’re seeing a reversal out of that and a lack of incremental news coming out of the Fed.”
     Miners led a decline in the Stoxx Europe 600 Index after China posted lower-than-expected manufacturing output. The U.K. pound extended a decline and the nation’s bonds rose after the European Union published a draft Brexit treaty, with Prime Minister Theresa May squaring off for a fight. The euro slipped while most bond yields in the region ticked lower.
          Here are some key events scheduled for this week:
* Fed Chairman Powell testifies before the Senate Banking Committee Thursday. Other Fed speakers this week are Neel Kashkari and Bill Dudley.
* In the euro region, investors will be watching manufacturing and jobs numbers Thursday.
* U.K. Prime Minister Theresa May delivers a speech Friday on Britain’s relationship with the European Union.
* Japan capital spending is out on Thursday.
     These are the main moves in markets:
                             Stocks
* The S&P 500 Index sank 1.1 percent, while the Dow Jones Industrial Average lost 1.5 percent.
* The Stoxx Europe 600 Index dropped 0.7 percent.
* Germany’s DAX Index declined 0.4 percent.
* The U.K.’s FTSE 100 Index slid 0.7 percent.
* The MSCI Asia Pacific Index fell 1 percent.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.2 percent.
* The euro slipped 0.3 percent to $1.22, the weakest in five weeks.
* The British pound dropped 1 percent to $1.3765, the lowest in almost seven weeks.
* The Japanese yen rose 0.6 percent to 106.69 per dollar.
                             Bonds
* The yield on 10-year Treasuries declined three basis points to 2.87 percent.
* Germany’s 10-year yield slid two basis points to 0.66 percent.
* Britain’s 10-year yield fell six basis points to 1.50 percent.
* Japan’s 10-year yield increased one basis point to 0.05 percent.
                          Commodities
* West Texas Intermediate crude plunged 2.4 percent to $61.48 a barrel.
* Gold slid 0.1 percent to $1,317.58 an ounce.
–With assistance from Adam Haigh and Robert Brand.

Have a wonderful evening everyone.

Be magnificent!

As ever, 

Carolann
All the flowers of all the tomorrows are in the seeds of today and yesterday.
                                                                              -Chinese Proverb 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President 

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 at a tax seminar today, I will be writing the newsletter on her behalf. 

PHOTOS OF THE DAY

A deer stag stands in heavy snowfall and freezing temperatures in Richmond park, west London, as a cold front sweeps in from the east. Up to 20cm of snow are expected in parts of the UK, with temperatures feeling as low as -15C in some places.
CREDIT: THE TELEGRAPH

Indian students smear coloured powder during an event to celebrate the Hindu festival of Holi in Kolkata. Holi, the popular Hindu spring festival of colours is observed in India at the end of the winter season on the last full moon of the lunar month, and will be celebrated on March 1 this year.
CREDIT: THE TELEGRAPH

Airbus Defence and Space of Cimon, a free-flying ball-shaped robot with a smiling face, who has an appreciation of music and a vocabulary of more than 1,000 sentences, as the white droid is set to join the crew of the International Space Station (ISS) later this year. Short for Crew Interactive Mobile Companion, Cimon is designed to float and fly around the ISS offering technical help, warning of system failures and dangers, and providing a source of entertainment.
CREDIT: THE TELEGRAPH
Market Closes for February 27th, 2018

Market Index	Close	Change
Dow Jones	25410.03	-299.24    -1.16%
S&P 500	2744.28	-35.32   -1.27%
NASDAQ	7330.355	-91.108   -1.23%
TSX	15671.15	-43.51
		-0.28%

International Markets

Market Index	Close	Change
NIKKEI	22389.86	+236.23
		+1.07%
HANG SENG	31268.66	-229.94
		-0.73%
SENSEX	34346.39	-99.36
		-0.29%
FTSE 100*	7282.45	-7.13
		-0.10%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.275		2.254
CND. 30 Year Bond		2.434		2.410
U.S.    10 Year Bond		2.8934		2.8623
U.S. 30 Year Bond		3.1588		3.1530

Currencies

BOC Close	Today	Previous
Canadian $	0.78311	0.78843
US $	1.27696	1.26834
Euro Rate 1 Euro=		Inverse
Canadian $	1.56242	0.64003
US $	1.22355	0.81729

Commodities

Gold	Close	Previous
London Gold Fix	1325.75	1333.50
Oil
WTI Crude Future	63.01	63.91

Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed lower after oil prices tumbled, while the loonie weakened to the lowest point of
2018 as investors awaited the federal budget.
     The S&P/TSX Composite Index lost 44 points or 0.3 percent to 15,671.15. Materials led to the downside, falling 1.4 percent as gold miners retreated. Detour Gold Corp. lost 5.3 percent and Agnico Eagle Mines Ltd. fell 3.8 percent.
     The energy index retreated 1.2 percent as crude prices weakened to the lowest level in more than two weeks. The International Energy Agency said “explosive” growth in U.S.
shale may extend beyond this year, threatening OPEC’s supply cuts.
     In other moves: 

                             Stocks 
* Bank of Nova Scotia added 1.4 percent, the most since September, after profit topped estimates thanks to record results from its international businesses
* Bank of Montreal fell 1 percent. Several of the bank’s divisions reported lower profits in the first quarter
* Aphria Inc. fell 3.3 percent and Canopy Growth Corp. lost 3 percent. Competitor Cronos Group Inc. because the first Canadian pot stock to list on the Nasdaq Tuesday 
                          Commodities
* Western Canada Select crude oil traded at a $25.40 discount to WTI, the narrowest gap in two weeks
* Gold fell 0.9 percent to $1,318.60 an ounce, the lowest in two and a half weeks
                            FX/Bonds
* The Canadian dollar weakened 0.7 percent to C$1.2775 per U.S. dollar, a 2018 low
* The Canada 10-year government bond yield rose two basis points to 2.28 percent
US
By Sarah Ponczek and Kailey Leinz
     (Bloomberg) — U.S. stocks sold off for the first time in three sessions and Treasuries slumped as investors weighed the potential for added interest rate hikes this year following Federal Reserve Chairman Jerome Powell’s assessment that the economy is strengthening and inflation could be gaining speed.
The dollar advanced.
     All major equity gauges finished lower. Shares of media companies led the way down following Comcast’s $31 billion proposal to buy Sky Plc, which could set off a bidding war with Walt Disney Co. and 21st Century Fox Inc. Automakers and real estate developers also struggled.
     Powell’s testimony raised the possibility that the Fed could rethink its plan for three interest rate hikes this year and potentially add a fourth. The 10-year Treasury yield initially spiked on Powell’s seemingly hawkish tone before drifting back below 2.9 percent.
     “The markets are skittish,” said Barry James, president and portfolio manager at James Investment Research in Xenia, Ohio.
“People are maybe a little bit oversensitive right now.”
     The pace of U.S. monetary policy tightening remains a hot debate on Wall Street, and traders have been betting that Powell won’t seek to shock financial markets by moving toward a more hawkish monetary policy. Fed Governor Randal Quarles made clear on Monday that he thought a sustained period of strong growth might require higher interest rates.
     “At some point rates do start to bite,” said Mona Mahajan, U.S. investment strategist for Allianz Global Investors. “And at some point if inflation does start to emerge more rapidly, which it can toward the end of the Fed cycle, we can start to see either the Fed making a policy mistake or equity markets start to price in a downward movement.”
     Elsewhere, German bunds and U.K. gilts led a retreat in European bonds. Most industry groups in the Euro Stoxx 600 Index declined after Japan led Asian equities higher. The won rose for a third day as the Bank of Korea left its benchmark interest rate unchanged. Oil slipped following a three-day rally as investors awaited U.S. inventory data. South Africa’s rand handed back recent gains amid a cabinet reshuffle.

     Here are some key events scheduled for this week:
* Companies announcing earnings this week include: Vale, Bayer and Lowe’s.
* The European Union will publish a draft Brexit treaty on Wednesday and U.K. Prime Minister Theresa May delivers a speech Friday on Britain’s relationship with the European Union.
* A barrage of data is expected out of Japan including retail sales and industrial production Wednesday, and capital spending Thursday.
* In China, the official and Caixin purchasing managers’ indexes on Wednesday and Thursday respectively may show growth momentum slowed slightly in February, though the signal may be clouded by the holidays. 

     These are the main moves in markets:
                             Stocks
* The S&P 500 Index plunged 1.3 percent to 2,744.27, its biggest decline in more than two weeks.
* The Nasdaq Composite Index dropped 1.2 percent.
* The Stoxx Europe 600 Index slipped 0.2 percent.
* The MSCI All-Country World Index retreated 0.9 percent.
                           Currencies
* The Bloomberg Dollar Spot Index climbed 0.6 percent.
* The euro fell 0.7 percent to $1.223.
* The Japanese yen declined 0.4 percent to 107.37 per dollar.
* South Africa’s rand plunged 1.7 percent to 11.7488 per dollar, the biggest drop in more than three weeks.
* The British pound slid 0.5 percent to $1.3904.
                             Bonds
* The yield on 10-year Treasuries rose three basis points to 2.89 percent.
* Germany’s 10-year yield gained three basis points to 0.68 percent.
* Britain’s 10-year yield added five basis points to 1.56 percent.
                          Commodities
* West Texas Intermediate crude slumped 1.6 percent to $62.89 a barrel, the largest decline in almost three weeks.
* Gold dropped 1.1 percent to $1,318.79 an ounce, the lowest in more than two weeks. 

–With assistance from Richard Richtmyer and Eddie van der Walt.

Have a wonderful evening everyone.

Be magnificent! 

As ever, 

Megan

“The Person Who Says It Cannot Be Done Should Not Interrupt The Person Who Is Doing It.” – Chinese Proverb

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President 

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!

PRIME NUMBERS:
16.5 TRILLION
Facebook messages sent in 2017, approximately 31.25 million per minute.
3.5 MILLION
Google searches made every minute (on average) during 2017.  Other “per minute” numbers include 70,017 Netflix hours watched and 1.8 million Snaps created on Snapchat.
5
Years until Sweden’s economy is expected to be essentially cash-free, according to a study.  The nation is on track to switch almost entirely to card and mobile payments by 2023.
Sources: CNET, CNN Money, world Economic Forum

PRINTING HOMES:
  3-D printing has been used to create everything from  jet airliner components to custom-fit shoes.  Many experts say the process of turning digital files into three-dimensional objects could ultimately usher in a  new industrial revolution.
  One of the latest manifestations of 3-D wizardry: building houses.  It’s an application that could transform construction practices that have remained unchanged for centuries. 
  Using a swiveling robotic arm that extrudes concrete, a San Francisco company, Apis Cor, 3-D printed the concrete walls for a 400-square foot house in Russia in less than 24 hours in 2017.  And researchers at the Massachusetts Institute of Technology in Cambridge have built a robotic arm and a vehicle that dispenses concrete for a 50-foot-diameter, 12-foot-high dome in less than 14 hours.
  The technology could greatly speed up the construction of homes and reduce the waste.  Construction refuse accounts for half of all solid waste in the United States.
  Robot-printed houses might also prove useful if humans ever try to colonize Mars or other areas of the cosmos.  In November, NASA opened the third phase of its 3D-Printed Habitat Challenge, offering a $2 million prize for inventors who can print a foundation and a small home using indigenous materials. -CSM.

PHOTOS OF THE DAY

Robots fight during the 32^nd ROBO-ONE tournament in Tokyo, Japan. According to the organizer, the ROBO-ONE, held by the Biped Robotics Association, is a robot fighting competition for bipedal walking robots, aiming to improve the robotic technology and spread the popularity of bipedal walking robots.
CREDIT: THE TELEGRAPH

Artists perform during the closing ceremony of the 2018 Winter Olympics in Pyeongchang.
CREDIT: THE TELEGRPAH

Drones are seen on the runway at the Dolce & Gabbana show during Milan Fashion Week Fall/Winter 2018/19 in Milan, Italy.
CREDIT: THE TELEGRAPH

People watch hundreds of thousands of starlings coming in to Roost at Westhay, Somerset.
CREDIT: THE TELEGRAPH
Market Closes for February 26th, 2018

Market Index	Close	Change
Dow Jones	25709.27	+399.28    +1.58%
S&P 500	2779.60	+32.30   +1.18%
NASDAQ	7421.465	+84.074   +1.15%
TSX	15714.66	+76.21
		+0.49%

International Markets

Market Index	Close	Change
NIKKEI	22153.63	+260.85
		+1.19%
HANG SENG	31498.60	+231.43
		+0.74%
SENSEX	34445.75	+303.60
		+0.89%
FTSE 100*	7289.58	+45.17
		+0.62%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.254		2.251
CND. 30 Year Bond		2.410		2.403
U.S.    10 Year Bond		2.8623		2.8678
U.S. 30 Year Bond		3.1530		3.1563

Currencies

BOC Close	Today	Previous
Canadian $	0.78843	0.79167
US $	1.26834	1.26316
Euro Rate 1 Euro=		Inverse
Canadian $	1.56171	0.64033
US $	1.23130	0.81215

Commodities

Gold	Close	Previous
London Gold Fix	1333.50	1327.95
Oil
WTI Crude Future	63.91	63.48

Market Commentary:
On this day in 1987, Templeton Emerging Markets Fund, the first portfolio of emerging markets stocks for retail investors, was launched.
Number of the Day
$642.8 billion
The amount retail and institutional investors have borrowed against their portfolios, according to the Financial Industry Regulatory Authority, as they try to pocket bigger gains by ramping up their exposure to stocks.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest since Feb. 1, the day before the recent rout began in earnest, as all but one sector gained.
     The S&P/TSX Composite Index added 76 points or 0.5 percent to 15,714.66, the benchmark’s second straight gain. Industrials rose 1.2 percent as Air Canada added 3.8 percent and Canadian National Railway Co. gained 2.2 percent.
     The energy index advanced 0.7 percent, matching the gain in the price of crude. Saudi Arabia’s oil minister said over the weekend that OPEC may begin easing output cuts in 2019.
     In other moves:
                             Stocks
* Lucara Diamond Corp. jumped 17 percent, the most since 2015. Lucara is buying a blockchain technology firm to track the quality and ethics of gems
* Boardwalk Real Estate Investment Trust rose 9.1 percent to the highest since August. Fourth-quarter funds from operations beat analyst estimates
* Maxar Technologies Ltd. fell 7.7 percent to the lowest since 2013 after the sudden departure of its chief financial officer
                          Commodities
* Western Canada Select crude oil traded at a $26.70 discount toWTI, the narrowest gap in more than a week
* Gold rose 0.2 percent to $1,330.70 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2674 per U.S. dollar as Nafta negotiations resumed in Mexico City
* The Canada 10-year government bond yield was little changed at 2.25 percent ahead of Tuesday’s federal budget
US
By Eric J. Weiner and Sarah Ponczek
     (Bloomberg) — U.S. stocks rose to a nearly four-week high Monday as continuing gains in Treasuries pushed yields further below 2.9 percent, alleviating investor angst that higher rates will accelerate fiscal tightening. Oil climbed with gold.
     The S&P 500 Index gained for a third day and the Dow Jones Industrial Average climbed to its highest level in almost a month, buoyed by strength in technology and financial shares.
Volume was lower than usual as investors await the first public comments from Federal Reserve Chairman Jerome Powell on Tuesday.
The 10-year yield fell for a third straight day, reaching a two- week low. The dollar was little changed.
     “There was a lot of talk from various Federal Reserve related folks last week and that provided to a certain extent a sense of calm that we won’t see rates spike in the second half of this year,” said Matt Schreiber, president and chief investment strategist at WBI Investments. “The market freaked out when they thought Jerome Powell might raise rates faster than expected — his first comments are eagerly anticipated here.”
     Powell may help set a new direction for investors at a time when some of the biggest names in markets are at odds over the implications of this month’s surge in U.S. bond yields. Morgan Stanley put out a bullish call on Treasuries Monday, countering warnings on the securities from Goldman Sachs Group Inc. and Warren Buffett.
     “Investors are starting to realize and understand that this former low rate, low inflation environment is evolving,” Erik Knutzen, multi-asset class chief investment officer at Neuberger Berman Group, said by phone. “Rates are going to higher levels, inflation is going to higher levels, and as long as rates and inflation, and to a certain extent the dollar, don’t move too far too fast, then this can continue to be a reasonably good environment for equities and for credit.”
     Overseas, the Stoxx 600 Index reached its highest level in three weeks. The pound and euro fluctuated, and Russia’s ruble appreciated the most among emerging market currencies after S&P Global Ratings boosted its credit score to investment grade.
     Meanwhile, Bank of Japan Governor Haruhiko Kuroda said the central bank has no plan to overhaul its current form of easing, adding that he saw no need to do another comprehensive assessment of the effectiveness of the bank’s policies. Oil futures edged lower after Saudi Oil Minister Khalid Al-Falih said OPEC and its allies may ease output curbs in 2019 in a way that won’t disturb the market. Bitcoin erased its decline and broke above $10,000.
     Here are some key events scheduled for this week:
* Powell testifies before a House panel on Tuesday. He’ll discuss the Fed’s Semi-Annual Monetary Policy Report and the state of the economy. Powell returns on March 1 before a Senate committee.
* Companies announcing earnings this week include: Vale, BASF, Standard Chartered, Bayer, Lowe’s, Galaxy Entertainment Group, Anheuser-Busch InBev, Peugeot, WPP, and London Stock Exchange Group.
* U.K. Prime Minister Theresa May delivers a speech on Britain’s relationship with the European Union after Brexit.
* A barrage of data is expected out of Japan including retail sales and industrial production Wednesday, and capital spending Thursday.
* Bank of Korea has policy decision and briefing on Tuesday.
* In China, the official and Caixin purchasing managers’ indexes on Wednesday and Thursday respectively may show growth momentum slowed slightly in February, though the signal may be clouded by the holidays. 

     These are the main moves in markets:
                            Stocks
* The S&P 500 rose 1.2 percent to 2,779.59, its highest level in almost a month.
* The Stoxx Europe 600 climbed 0.5 percent to the highest in more than three weeks.
* Germany’s DAX Index gained 0.4 percent to the highest in almost three weeks.
* The MSCI All-Country World Index added 0.9 percent.
                           Currencies
* The Bloomberg Dollar Spot Index was essentially flat.
* The euro added 0.1 percent to $1.2312.
* The Japanese yen was little changed at 106.92 per dollar.
* The British pound declined less than 0.1 percent to $1.3962.
                             Bonds
* The yield on 10-year Treasuries dropped one basis point tom2.86 percent, the lowest in almost two weeks.
* Germany’s 10-year yield slid less than a basis point to 0.65 percent, reaching the lowest in a month on its fifth straight decline.
                          Commodities
* West Texas Intermediate crude rose 0.7 percent to $63.98 a barrel, the highest in three weeks.
* Gold increased 0.4 percent to $1,333.46 an ounce.
–With assistance from Adam Haigh and Natasha Doff.

Have a great week ahead!

Be magnificent! 

As ever, 

Carolann

The beginning is always today.
-Mary Wollstonecraft Shelley, 1797-1851

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President 

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!

On Feb. 23, 1909, engineer J.A.D. McCurdy piloted the first powered airplane flight by a British subject in the British Empire – and made Canadian history. The plane was called the Silver Dart, and had been built by the Aerial Experiment Association, a group of like-minded aviation enthusiasts dedicated to creating a “practical aerodrome.” In this CBC radio clip, McCurdy – by then Lieutenant-Governor of Nova Scotia – looks back at the event on its 40th anniversary. The flight took place on the frozen Bras d’Or Lake at Baddeck on Cape Breton Island in Nova Scotia, near the home of AEA member Alexander Graham Bell. Before a crowd of astonished onlookers, McCurdy took off and piloted the plane for about half a kilometre along the shoreline before making a smooth landing.

Also on Feb. 23, 1954, the first mass inoculation of children against polio with the Salk vaccine began in Pittsburgh.

Go to article »

And on February 23^rd, 1861,  Abraham Lincoln made a covert arrival in Washington, D.C. amid concerns about plots to assassinate the president-elect. The Civil War began just two months later.

PHOTOS OF THE DAY

Swiss mountaineer and Mammut Pro Team athlete Dani Arnold opens a new ice-climbing route on the world-famous Helmcken Falls in British Columbia, Canada.
CREDIT: THOMAS SENF/PPR FOR MAMMUT/AP IMAGES

Artist Arabella Dorman puts the final touches to her piece called Suspended, which is displayed in the Nave of Canterbury Cathedral in Kent, and is made up of hundred of items of refugee clothing found largely on the beaches of the Greek island Lesbos.
CREDIT: GARETH FULLER/ PA WIRE

A woman walks in a forest covered by snow with a colourful umbrella near Ghisoni on the French Mediterranean island of Corsica.
CREDIT: PASCAL POCHARD-CASABIANCA/AFP/GETTY IMAGES

Masses of vehicles move slowly to leave the Haikou Xiuying Port in a traffic jam due to a heavy fog during the Chinese Lunar New Year in Haikou city, south China’s Hainan province.
CREDIT: IMAGINECHINA/REX/SHUTTERSTOCK
Market Closes for February 23^rd, 2018

Market Index	Close	Change
Dow Jones	25309.99	+347.51    +1.39%
S&P 500	2747.36	+43.40   +1.61%
NASDAQ	7337.391	+127.305   +1.77%
TSX	15632.46	+124.29
		+0.80%

International Markets

Market Index	Close	Change
NIKKEI	21892.78	+156.34
		+0.72%
HANG SENG	31267.17	+301.49
		+0.97%
SENSEX	34142.15	+322.65
		+0.95%
FTSE 100*	7244.41	-7.98
		-0.11%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.251		2.302
CND. 30 Year Bond		2.403		2.453
U.S.    10 Year Bond		2.8678		2.9207
U.S. 30 Year Bond		3.1563		3.2062

Currencies

BOC Close	Today	Previous
Canadian $	0.79167	0.78708
US $	1.26316	1.27053
Euro Rate 1 Euro=		Inverse
Canadian $	1.55302	0.64391
US $	1.22947	0.81336

Commodities

Gold	Close	Previous
London Gold Fix	1327.95	1328.35
Oil
WTI Crude Future	63.48	62.72

Market Commentary:
Number of the Day
$21 trillion
Assets under management across the private equity, hedge fund and alternatives industries are expected to more than double to $21 trillion by 2025, according to consultants PwC.  Private-equity firms have been on a fund-raising frenzy as insurers and pension funds hunt for yield.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose above their 200-day moving average for the first time since the market rout on Feb.2, led by commodity producers.
     The S&P/TSX Composite Index added 130 points or 0.8 percent to 15,638.45 Friday and gained 1.2 percent on the week. Energy stocks rose 1.5 percent, outpacing gains in the price of crude.
Enerplus Corp. jumped 8.8 percent to the highest since 2015 after reporting strong earnings.
     The materials index added 1.4 percent despite declines in gold and copper prices. Winpak Ltd. rose 12 percent, the most since 2008, after fourth-quarter earnings beat the highest analyst estimate.
     In other moves:
                             Stocks
* Maxar Technologies Ltd. tumbled 13 percent, the most since 2008. The company expects revenue to decline 2-4 percent this year
* Toromont Industries Ltd. closed up 7 percent after briefly hitting a record high earlier in the day. Fourth-quarter earnings beat the highest analyst estimate
* Royal Bank of Canada rose 0.4 percent to the highest in three weeks after first-quarter profit beat estimates
                          Commodities
* Western Canada Select crude oil traded at a $27.50 discount to WTI, the narrowest gap in a week
* Gold fell 0.2 percent to $1,328.20 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 0.5 percent to C$1.2639 per U.S. dollar, the first gain of the week, after January inflation was stronger than expected
* The Canada 10-year government bond yield fell five basis points to 2.25 percent, the lowest in a month
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks rallied, Treasuries advanced and the dollar slipped as investors grew confident that the Jerome Powell-led Federal Reserve won’t rush to raise interest rates as the economy picks up steam.
     The S&P 500 Index pushed past its average price for the past 50 days and erased losses for the week with its biggest gain in almost three weeks. The gauge extended gains in afternoon trading, reversing a four-day pattern had seen it swoon. The 10-year Treasury yield slipped to 2.87 percent, roughly where it started the week, as investors dissect the Fed’s semiannual monetary policy report to Congress. The dollar was flat versus major peers.
     The report indicated that the central bank sees the labor market at or beyond full employment, while some pockets of finance are showing signs of rising leverage and high valuation.
Concern that the Fed would step up the pace of rate hikes rattled markets earlier in the week.
     “Concerns about interest raters are overblown,” Don Townswick, the director of equities at Hartford, Connecticut- based Conning Inc, said by phone. “The markets will tend to remain strong. Historically markets have been strong during the first 18 to 24 months of rising interest rates as long as inflation is under control.”
     The Stoxx Europe 600 Index rose as gains in telecom shares offset declines in retailers. The MSCI Asia Pacific Index rose earlier, underpinned by gains from Sydney to Shanghai. Yields on 10-year German bunds dropped to the lowest since January. The common currency slipped.
     Traders seem unconvinced by the Federal Reserve’s hawkish tilt, with the market still pricing in less than the three quarter-point rate hikes that officials have signaled as likely this year. Minutes of the Fed’s January meeting indicated confidence the economy is strengthening amid signs inflation is rising. Meanwhile, bond investors took heart from an account of the European Central Bank’s most recent meeting, which showed policy makers aren’t yet ready to remove a pledge to expand its asset-buying program if needed.
Elsewhere, the pound gained after U.K. Prime Minister Theresa May won the backing of her divided cabinet to seek a trade deal with the European Union. WTI crude oil retreated, but remained on track for a second weekly increase that was supported by a surprise pullback in U.S. inventories.
     In China, the government seized temporary control of high- profile conglomerate Anbang Insurance Group Co. Markets took the news in stride, however, and the Shanghai Composite Index rose 0.6 percent.
          Here are some key events scheduled for the remainder of the week:
* Chairman Jerome Powell testifies before House and Senate committees next week 

     These are the main moves in markets:
                             Stocks
* The S&P 500 rose 1.6 percent at 4 p.m. in New York. It rose 0.6 percent on the week.
* The Nasdaq Composite climbed for the first time in five days.
It added 1.3 percent in the four days.
* The Stoxx Europe 600 Index increased 0.2 percent to finish the week higher.
* The MSCI Asia Pacific Index advanced 0.9 percent.
* Japan’s Topix index rose 0.8 percent, Hong Kong’s Hang Seng Index climbed 1 percent, and South Korea’s Kospi was up 1.5 percent.
* Australia’s S&P/ASX 200 Index gained 0.8 percent.
                           Currencies
* The Bloomberg Dollar Spot Index fell less than 0.1 percent.
* The euro decreased 0.2 percent to $1.2301.
* The British pound advanced 0.1 percent to $1.3971.
* The Japanese yen fell 0.1 percent to 106.826 per dollar.
                             Bonds
* The yield on 10-year Treasuries fell five basis points to 2.87 percent. It rose as high as 2.95 percent on Wednesday.
* The two-year yield was flat at 2.24 percent.
* Germany’s 10-year yield fell five basis points to 0.653 percent, the lowest in four weeks.
* Japan’s 10-year yield dipped less than one basis point to 0.05 percent.
                          Commodities
* West Texas Intermediate crude advanced 1.2 percent to $63.56 a barrel, capping a second weekly gain.
* Gold futures declined 0.1 percent to $1,331.30 an ounce.
–With assistance from Cormac Mullen, Vassilis Karamanis and Robert Brand.

Have a terrific weekend!

Be magnificent!

As ever,

Carolann

Your world is as big as you make it.
          -Georgia Douglas Johnson 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President 

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:
On Feb. 22, 1980, in a stunning upset, the United States Olympic hockey team defeated the Soviets at Lake Placid, N.Y., 4-to-3. (The U.S. team went on to win the gold medal.
Go to article »

PHOTOS OF THE DAY

The ruins of Little Bavington Tower rise above low lying mists rolling across the Northumberland countryside at sunrise this morning as temperatures dropped below zero overnight.
CREDIT: The Telegraph

Glenridding UK. A boat reflects into the calm water of Ullswater lake this morning on a sunny day in Cumbria.
CREDIT: The Telegraph

Drones are about to fly for a light show in Xi’an, capital of northwest China’s Shaanxi Province. A total of 300 drones in 2 groups performed a light show in Xi’an to celebrate the Spring Festival holiday.
CREDIT: The Telegraph

Artists perform during the 134^th Carnival parade in Nice, France.
CREDIT: The Telegraph
Market Closes for February 22^nd, 2018

Market Index	Close	Change
Dow Jones	24962.48	+164.70   +0.66%
S&P 500	2703.96	+2.63   +0.10%
NASDAQ	7210.086	-8.142   -0.11%
TSX	15508.17	-15.83
		-0.10%

International Markets

Market Index	Close	Change
NIKKEI	21736.44	-234.37
		-1.07%
HANG SENG	30965.68	-466.21
		-1.48%
SENSEX	33819.50	-25.36
		-0.07%
FTSE 100*	7252.39	-29.18
		-0.40%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.302		2.353
CND. 30 Year Bond		2.453		2.491
U.S.    10 Year Bond		2.9207		2.9500
U.S. 30 Year Bond		3.2062		3.2213

Currencies

BOC Close	Today	Previous
Canadian $	0.78708	0.78779
US $	1.27053	1.26937
Euro Rate 1 Euro=		Inverse
Canadian $	1.56647	0.63868
US $	1.23293	0.81107

Commodities

Gold	Close	Previous
London Gold Fix	1328.35	1330.50
Oil
WTI Crude Future	62.72	61.63

Market Commentary:
Number of the Day
27%
The surge in Amazon.com Inc. shares has driven 27% of the S&P 500 index’s gain this year through Tuesday. Tech titans Amazon, Microsoft Corp. and Netflix Inc. have driven nearly half of the S&P 500’s 1.6% gain this year, a worrying sign for investors who expected tech’s dominance to give way to cyclical sectors, like materials or industrials, as the economy improved.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were unable to hold onto earlier gains, closing lower as consumer staples and financials weighed on the benchmark and bond yields tumbled.
    The S&P/TSX Composite Index lost 16 points or 0.1 percent to 15,508.17 after earlier gaining as much as 0.7 percent. Consumer staples fell 0.5 percent as Loblaw Cos. fell 1.8 percent after reporting fourth-quarter results.
     Financials lost 0.3 percent despite strong results from Canadian Imperial Bank of Commerce, which rose 0.4 percent. Fairfax Financial Holdings Ltd. fell 1.7 percent.
     In other moves:
                         Stocks
* Stantec Inc. lost 11 percent, the most since 2015. The stock was downgraded at National Bank, which said it expects the shares to be range-bound after earnings missed the lowest estimate
* CCL Industries Inc. rose 9.3 percent to the highest since October after fourth-quarter earnings beat the highest estimate
* Iamgold Corp. lost 8.4 percent after reporting an unexpected loss for the fourth quarter
                        Commodities
* Western Canada Select crude oil traded at a $28.75 discount to WTI
* Gold rose 0.1 percent to $1,330.60 an ounce
                        FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.2715 per U.S. dollar
* The Canada 10-year government bond yield fell five basis points to 2.30 percent after retail sales missed forecasts
US
By Jeremy Herron and Kailey Leinz
     (Bloomberg) — U.S. stocks eked out a gain to halt a two- day slide, but not before erasing an advance that topped 1 percent as investors grappled with the threat from higher interest rates. Treasuries edged higher and the dollar slumped.
     The S&P 500 Index barely held above 2,700 after dipping below that round number in the final 15 minutes of trading. It’s faded from session highs in afternoon trading for a fourth straight day. ended in the green after briefly turning lower in last trading as the index coughed up its biggest advances for a fourth straight day. Energy producers led advances as crude jumped more than 1.5 percent. The 10-year Treasury yield interrupted its march toward 3 percent. The dollar snapped a four-day rally.
     Rate-hike jitters returned to the market after the Fed’s January meeting minutes showed a central bank confident the economy is poised to take off. Subsequent data confirmed that view, but also brought signs of rising inflation that central bank had warned might fall short of its targets.
     “Investors are just nervous about interest rates,” said Paul Nolte, a portfolio manager at Kingsview Asset Management in Chicago. “Everybody is waiting for more economic data to confirm or deny whatever the Fed position is. It’s a big case of the nerves.”
    With recent data underpinning the view that inflation is no longer lagging, the OIS space shows traders pricing in just shy of three U.S. rate hikes over the next 12 months. The S&P 500 remains more than 5 percent from its all-time high, as February shapes up as one of the worst months for global equities in more than a year. The Cboe Volatility Index slipped below 20, well above its average for the past year, when unprecedented calm gripped markets.
     “We’re in the clear from that initial correction,” Peter Jankovskis, co-chief investment officer at Oakbrook Investments, said by phone. “Right now the trend is going to be to continue a recovery from that absent some other upset in the marketplace. Whether we’re totally clear of volatility, I would come down on the opposite side of that.”
     In Europe the Stoxx 600 Index slid as almost all the major national equity gauges in the region fell. It was a similar picture across Asia, though China’s market bucked the trend as it reopened after a holiday.
     Elsewhere, gold erased a drop to trade little changed as most commodities retreated. The pound was weaker as data showed the U.K. economy expanded less than previously estimated in the fourth quarter, and the euro edged up as minutes from the European Central Bank showed officials continue to lay the ground for a shift in policy language in the first half of the year.
     Here are some key events scheduled for this week:
* U.K. PM Theresa May is locking down her ministers in a bid to agree what kind of post-Brexit trade deal they want from the EU.
* Companies announcing earnings include Woolworths and Royal Bank of Scotland.
     These are the main moves in markets:
                           Stocks
* The S&P 500 rose 0.1 percent at 4 p.m. in New York, paring a gain that reached 1.1 percent.
* The Nasdaq Composite Index ended lower, while the Dow Jones Industrial Average rose 165 points.
* The Stoxx Europe 600 Index decreased 0.2 percent.
* The MSCI Asia Pacific Index dipped 0.6 percent to the lowest in a week.
* The MSCI Emerging Market Index sank 0.7 percent, the largest decrease in almost two weeks.
                          Currencies
* The Bloomberg Dollar Spot Index dipped 0.4 percent, the first retreat in a week.
* The euro gained 0.3 percent to $1.2325, the largest advance in a week.
* The Japanese yen jumped 1 percent to 106.701 per dollar, the first advance in a week and the largest climb in more than two weeks.
* The MSCI Emerging Markets Currency Index rose 0.2 percent.
                          Bonds
* The yield on 10-year Treasuries fell three basis points to 2.92 percent.
* The two-year yield fell one basis point to 2.25 percent.
* Germany’s 10-year yield decreased two basis points to 0.706 percent.
                         Commodities
* West Texas Intermediate crude rose to the highest in two weeks as American supplies unexpectedly shrank. Futures rose 1.8 percent to settle at $62.77 a barrel.
* Gold futures climbed 0.1 percent to $1,333.60 an ounce, the first advance in a week.
–With assistance from Samuel Potter and Sarah Ponczek.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

As ever,

 

Carolann

 

All life is an experiment.  The more experiments you make the better.
                                           -Ralph Waldo Emerson, 1803-1882

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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:
-from today’s NY Times:

Gerald Holtom, the Briton who designed the peace symbol, was in “deep despair” when he created it on this day in 1958.

I drew myself,” wrote Mr. Holtom, a World War II conscientious objector who was alarmed by the nuclear arms race. “The representative of an individual in despair, with hands palm outstretched outward and downward in the manner of Goya’s peasant before the firing squad.”

An early sketch of the peace symbol designed by Gerald Holtom, on display at the Imperial War Museum in London. -Yui Mok/PA Wire, via Associated Press

The symbol also combined the semaphores, or flag-signaling codes, for the letters “N” and “D,” or “Nuclear Disarmament.” The circle around it represented the earth. 

Later that spring, the symbol appeared on buttons and signs in an antinuclear march to the Atomic Weapons Research Establishment, a warhead factory in Aldermaston, England. (The march became an annual event.) 

The symbol, which isn’t trademarked, was embraced by the broader antiwar movement and disparaged by critics as anti-Christian. 

Mr. Holtom is said to have later expressed a desire that the symbol be inverted so that it resembled hands reaching to the sky. Such a symbol, in addition to being more celebratory of peace, would also evoke the semaphore for the letter “U” — as in “Unilateral Disarmament.” 

The Campaign for Nuclear Disarmament, which still uses the symbol as its logo, is taking it on an anniversary tour around Britain this year. – Jennifer Jett contributed reporting.

Also on this day in…
1916- Battle of Verdun in France occurred: over 1 million men killed.
1925: New Yorker Magazine debuts.
1965: former Black Muslim leader Malcolm X was assassinated in New York City’s Washington Heights neighborhood. He was about to speak to the Organization of Afro-American Unity.  He was 39. Go to article »

PHOTOS OF THE DAY

Gallery assistants straighten Tigre jouant avec une tortue by Eugene Delacroix during a photo call for highlights from the collection of Peggy and David Rockefeller at Christie’s in London.
CREDIT: KRISTY O’CONNOR/PA WIRE

Rudolf Stingel’s monumental painting of the Tyrolean Alps in Italy, based on a historic photograph, is prepared for exhibition at Sotheby’s in London.
CREDIT: SAMIR HUSSEIN/GETTY IMAGES FOR SOTHEBYS

A restorer works on a portrait of Oopjen Coppit, one of two full-length wedding portraits, by Dutch painter Rembrandt Harmenszoon van Rijn (1606-1669) at the Rijksmuseum in Amsterdam, Netherlands.
CREDIT: DAVID VAN DAN/AFP/GETTY IMAGES
Market Closes for February 21^st, 2018

Market Index	Close	Change
Dow Jones	24797.78	-166.97   -0.67%
S&P 500	2701.33	-14.93   -0.55%
NASDAQ	7218.227	-16.082   -0.22%
TSX	15524.01	+84.58
		+0.55%

International Markets

Market Index	Close	Change
NIKKEI	21970.81	+45.71
		+0.21%
HANG SENG	31431.89	+558.26
		+1.81%
SENSEX	33844.86	+141.27
		+0.42%
FTSE 100*	7281.57	+34.80
		+0.48%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.353		2.321
CND. 30 Year Bond		2.491		2.464
U.S.    10 Year Bond		2.9500		2.8877
U.S. 30 Year Bond		3.2213		3.1513

Currencies

BOC Close	Today	Previous
Canadian $	0.78779	0.79051
US $	1.26937	1.26500
Euro Rate 1 Euro=		Inverse
Canadian $	1.55878	0.64153
US $	1.22799	0.81434

Commodities

Gold	Close	Previous
London Gold Fix	1330.50	1339.85
Oil
WTI Crude Future	61.63	61.90

Market Commentary:
Number of the Day
$18.5 billion
The California Public Employees’ Retirement System, the largest U.S. public pension fund, lost $18.5 billion over a 10-day trading period that ended Feb. 9 as markets fell into correction territory.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest level since Feb. 2 as financials gained the most since April ahead of bank reporting season, which kicks off Thursday morning.
     The S&P/TSX Composite Index added 85 points or 0.6 percent to 15,524.01 after earlier rising as much as 1.2 percent. Financials gained 1.3 percent as Royal Bank of Canada added 2 percent and Bank of Montreal rose 1.7 percent.
     The industrials index gained 1.6 percent to the highest in a month. TFI International Inc. jumped 10 percent, the most since 2014, after strong earnings prompted at least two analyst upgrades.
     In other moves:
                           Stocks
* Shopify Inc. fell 6.7 percent, the most since November. The company is offering 4.8 million shares for $137 per share
* Bombardier Inc. lost 1.8 percent after a major shareholder said the delays plaguing its Toronto streetcar contract are unacceptable
* Kirkland Lake Gold Ltd. jumped 8.8 percent after reporting adjusted earnings per share and revenue that beat the average analyst estimate
                          Commodities
* Western Canada Select crude oil traded at a $28.45 discount to WTI, the widest gap in two weeks
* Gold rose 0.1 percent to $1,330.00 an ounce
                          FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2687 per U.S. dollar, the lowest since December, after the U.S. dollar gained on speculation that the Fed will speed up its tightening schedule
* The Canada 10-year government bond yield rose two basis points to 2.35 percent
US
By Jeremy Herron and Kailey Leinz
     (Bloomberg) — U.S. stocks erased gains to end lower for a second day, while the dollar jumped with Treasury yields on speculation that the pickup in inflation signaled by data since the Federal Reserve’s last meeting will force a faster tightening schedule.
     The catalyst for the late-day selloff was Fed meeting minutes that painted the picture of a central bank increasingly confident that economic growth will pick up steam but still concerned inflation could miss targets. The initial reaction saw stocks jump with bonds, while the dollar fell.
     Assets reversed course as investors pointed to economic data subsequent to the gathering that upend the idea of lagging inflation. The S&P 500 Index erased a gain that topped 1 percent to finish at a one-week low and Bloomberg’s dollar index climbed a fourth day. The 10-year Treasury yield rose to 2.94 percent.
     “What we’re seeing on the committee on the growth side is consistent with the fact that there’s clear upside risks to the forecast that they have embedded from December,” James McCann, senior global economist at Aberdeen Standard Investments, said by phone. “A revision of those to be consistent would probably require them to put a little more policy tightening into the mix.”
     When officials next convene March 20, they will consider for the first time a January jobs report that indicated rising wages and consumer prices that surged faster than forecast last month, two data points that belie their concern that inflation will lag.
     Investors have also been watching a deluge of Treasury sales that are slated to put $258 billion up for auction this week. Surging rates gave impetus to one of the steepest equity selloffs in years two weeks ago. While investors seem to have adjusted to 10-year yields at a four-year high for now, the rush of fresh debt could push them higher, weakening the case for owning stocks at elevated valuations.
     European equities rose even after data showed a fading outlook for manufacturing and services in the region. Sterling slumped following a rise in unemployment. Stocks climbed in Hong Kong, cementing a rebound from one of the worst routs in years at the start of February.
     Elsewhere, the rand jumped as traders took South Africa’s budget positively. Oil in New York dropped ahead of U.S. government data that’s forecast to show crude inventories gained for a fourth week. Bitcoin fell below $11,000.
     Here are some key events scheduled for this week:
* Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the U.S. Monetary Policy Forum in New York City.
* Companies announcing earnings this week include Woolworths, Barclays and Royal Bank of Scotland.
* Shanghai’s market reopens on Thursday after holidays.
     These are the main moves in markets:
                           Stocks
* The S&P 500 fell 0.6 percent at 4 p.m. in New York.
* The Nasdaq 100 fell 0.3 percent, after rising as much as 1.5 percent.
* The Cboe Volatility Index fell 2.6 percent to 20.07.
* The Stoxx Europe 600 Index erased losses to close higher by 0.2 percent.
* The MSCI Asia Pacific Index gained 0.3 percent.
* The MSCI Emerging Market Index jumped 1.2 percent.
                           Currencies
* The Bloomberg Dollar Spot Index rose 0.4 percent for a fourth day of gains.
* The euro dipped 0.1 percent to $1.2329.
* The Japanese yen decreased 0.3 percent to 107.701 per dollar.
* South Africa’s rand jumped 0.7 percent to 11.654 per dollar.
* The MSCI Emerging Markets Currency Index advanced 0.1 percent.
                            Bonds
* The yield on 10-year Treasuries rose four basis points to 2.94 percent.
* The two-year rate jumped five basis points to 2.26 percent.
* Germany’s 10-year yield fell one basis point to 0.72 percent.
                            Commodities
* West Texas Intermediate crude decreased 0.3 percent to $61.58 a barrel, the first retreat in more than a week.
* Gold futures were little changed at $1,330.90 an ounce.
–With assistance from Sophie Caronello, Andreea Papuc, Kristine Aquino and Samuel Potter. 

Have a wonderful evening everyone.

 

Be magnificent!

As ever,

Carolann

God damn you all: I told you so.
             -H.G. Wells,1866-1946
-Suggestion for his own epitaph, 1939

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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:

On Feb. 20, 1962, astronaut John Glenn became the first American to orbit Earth as he flew aboard the Friendship 7 Mercury capsule.
Go to article »

PHOTOS OF THE DAY

Helen Tulloch walks past Darktown Turbo Taxi by artist Jonny Hannah and Caldera (top) by sculptor Tony Cragg at Yorkshire Sculpture Park.
CREDIT: DANNY LAWSON/PA WIRE

Dancing noses perform during a dress rehearsal for Shostakovich’s opera “The Nose” at the Sydney Opera House is Sydney, Australia.
CREDIT: RICK RYCROFT/AP
Market Closes for February 20^th, 2018

Market Index	Close	Change
Dow Jones	24964.75	-254.63   -1.01%
S&P 500	2716.26	-15.96   -0.58%
NASDAQ	7234.309	-5.157   -0.07%
TSX	15439.44	-13.20
		-0.09%

International Markets

Market Index	Close	Change
NIKKEI	21925.10	-224.11
		-1.01%
HANG SENG	30873.63	-241.80
		-0.78%
SENSEX	33703.59	-71.07
		-0.21%
FTSE 100*	7246.77	-0.89
		-0.01%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.321		2.377
CND. 30 Year Bond		2.464		2.507
U.S.    10 Year Bond		2.8877		2.9095
U.S. 30 Year Bond		3.1513		3.1637

Currencies

BOC Close	Today	Previous
Canadian $	0.79051	0.79668
US $	1.26500	1.25521
Euro Rate 1 Euro=		Inverse
Canadian $	1.56006	0.64100
US $	1.23325	0.81086

Commodities

Gold	Close	Previous
London Gold Fix	1339.85	1339.85
Oil
WTI Crude Future	61.90	61.90

Market Commentary:
On this day in 1959, the Dow Jones Industrial Average closed around 600 for the first time, less than three years after breaking the 500 mark.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell Tuesday, following their best week in nearly two years, as gold prices declined the most since July, weighing on miners.
     The S&P/TSX Composite Index lost 13 points or 0.1 percent to 15,439.44, the first drop in four trading days. Materials lost 1 percent as Barrick Gold Corp. fell 1.8 percent and Agnico Eagle Mines Ltd. lost 2.6 percent.
     Health-care stocks gained 2.8 percent as cannabis shares resumed their rally. Canopy Growth Corp. rose 12 percent and Aphria Inc. added 6.2 percent.
     In other moves:
                          Stocks
* Uni-Select Inc. fell 12 percent, the most since 2008, after fourth-quarter results missed estimates. RBC analysts said margins were “well below” their forecast
* Osisko Gold Royalties Ltd. lost 8.1 percent, the most in two years. Fourth-quarter earnings missed expectations
* West Fraser Timber Co. gained 1.5 percent and Canfor Corp. added 1.5 percent after lumber futures rose to a record
                          Commodities
* Western Canada Select crude oil traded at a $28 discount to WTI
* Gold fell 1.8 percent to $1,328.80 an ounce, the biggest decline since JulFX/Bonds
* The Canadian dollar weakened 0.7 percent to C$1.2647 per U.S. dollar, the lowest since December
* The Canada 10-year government bond yield was little changed at 2.32 percent
US
By Jeremy Herron and Brian Chappatta
     (Bloomberg) — U.S. stocks halted a six-day rally as disappointing results from Walmart Inc. weighed on major indexes as the dollar pushed higher. Treasuries fell amid a heavy slate of U.S. debt issuance, with short-end auctions drawing some of the highest yields in almost a decade.
     The S&P 500 Index slipped below its average price for the past 50 days. Walmart sank the most since 1988, while a rally in chipmakers boosted the Nasdaq 100 Index. The Treasury’s auctions of two-year notes and three- and six-month bills went off at rates unseen since 2008, while the 10-year rate was up to 2.89 percent. The greenback gained versus major peers.
     The U.S. Treasury on Tuesday sold $179 billion of securities as it works to rebuild its cash balance. Surging rates catalyzed one of the steepest equity selloffs in years two weeks ago. While investors seem to have adjusted to 10-year rates at a four-year high, the deluge of supply could push yields higher, weakening the case for owning stocks at elevated valuations.
     While speculators are turning bearish, money managers are looking at the highest U.S. yields in years as a buying opportunity in a world where shorter-term Japanese and German notes still carry negative yields. Investors will also get to parse minutes this week from the most recent meetings of both the Federal Reserve and the European Central Bank.
     The U.S. stock market only had a taste of the potential damage from higher bond yields, with the biggest test yet to come, according to Morgan Stanley. “Appetizer, not the main course,” is how the bank’s strategists described the correction of late January to early February.
     In Europe, the Stoxx 600 index edged higher after a pullback in equities emerged in Asia following several days of increases. Benchmarks in Japan and South Korea slid more than 1 percent. The yen weakened. Elsewhere, WTI oil traded in New York climbed above $62 a barrel for the first time in more than a week. Bitcoin broke above $11,500, almost double its intraday low from just two weeks ago.   
     Here are some key events scheduled for this week:
* The Federal Reserve will release minutes on Wednesday of its Jan. 30-31 meeting, Janet Yellen’s last as chair, where officials kept the rate unchanged.
* Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the U.S. Monetary Policy Forum in New York City.
* Companies announcing earnings this week include Glencore, Woolworths, Barclays and Royal Bank of Scotland.
* Chinese markets reopen on Thursday after holidays.
     These are the main moves in markets:

     Stocks
* The S&P 500 fell 0.6 percent as of 4 p.m. in New York.
* Walmart sank 10 percent and Home Depot was little changed after its results.
* The Nasdaq Composite Index added 0.2 percent.
* The Stoxx Europe 600 Index rose 0.6 percent.
* The MSCI Asia Pacific Index sank 0.8 percent, the first drop in more than a week.
* The MSCI Emerging Market Index declined 0.5 percent, the biggest decline in more than a week.
     Currencies
* The Bloomberg Dollar Spot Index increased 0.6 percent to the highest in a week.
* The euro sank 0.6 percent to $1.2337, the lowest in more than a week.
* The Japanese yen sank 0.6 percent to 107.262 per dollar.
* South Africa’s rand dipped 0.7 percent to 11.753 per dollar.
* The MSCI Emerging Markets Currency Index decreased 0.3 percent.
     Bonds
* The yield on 10-year Treasuries increased one basis point to 2.89 percent.
* The 2-year yield rose three basis points to 2.22 percent, the highest since 2008.
* Germany’s 10-year yield fell less than one basis point to 0.73 percent.
     Commodities
* West Texas Intermediate crude rose less than 0.4 percent to settle at $61.90 a barrel, the highest in two weeks.
* Gold futures decreased 1.7 percent to $1,332.70 an ounce.
–With assistance from Todd White and Kailey Leinz. 

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

Defeat is not the worst of failures.  Not to have tried is the true failure.
                                          -George Edward Woodberry, 1855-1930

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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!

POINTS OF PROGRESS:

VENEZUELA
Two hundred plundered artifacts are to be returned to Costa Rica.  The Venezuelan government has said that it will repatriate 196 pre-Columbian stone and ceramic archaeological artifacts to Costa Rica.  The items, which had been sculpted by indigenous people native to Costa Rica, were found being illegally held by the estate of a Venezuelan collector. -TELESUR.

BELIZE
The country is halting all oil exploration in its waters to protect its coral reefs.  Oil exports make up more than a quarter of the nation’s total exports.  But tourism accounts for 10% of Belize’s gross domestic product – with coral reefs at the top of the list of the nation’s tourist attractions. -QUARTZ

ICELAND
It is now illegal to pay women less than men for the same job.  A new law passed by Iceland’s Parliament states that as of Jan. 1^st, public and private employers with 25 employees or more must obtain government certification of equal pay policies.  The 2017 Global Gender Gap Report ranks Iceland as the country with the most gender equity in the world. –THINKPROGRESS

DENMARK
Wind power generated 43.4 % of Denmark’s electricity in 2017.  In March 2017, for one 24-hour period, the country was able to generate all of its electricity needs through wind power.  The push toward wind power – which is subsidized by the Danish government – is part of the country’s drive to be coal-free by 2030. –FUTURISM
PHOTOS OF THE DAY

Ethnic Malaysian-Chinese devotees arrive to offer prayers at the Thean Hou temple decorated with red lanterns in Kuala Lumpur, Malaysia, on the eve of the Lunar New Year.
CREDIT: Manan Vatsyayana

A wild camper watches the sun set in a snow covered Thirlmere Valley in the Lake District, Cumbria.
CREDIT: Paul Kingston/NNP

People perform a dragon dance to celebrate the Spring Festival in Yongcheng in central China’s Henan province.
CREDIT: FEATURE CHINA/BARCROFT IMAGES
Market Closes for February 16^th, 2018

Market Index	Close	Change
Dow Jones	25219.38	+19.01   +0.08%
S&P 500	2732.22	+1.02   +0.04%
NASDAQ	7239.465	-16.965   -0.23%
TSX	15452.64	+44.98
		+0.29%

International Markets

Market Index	Close	Change
NIKKEI	21720.25	+255.27
		+1.19%
HANG SENG	31115.43	+599.83
		+1.97%
SENSEX	34010.76	-286.71
		-0.84%
FTSE 100*	7294.70	+59.89
		+0.83%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.318		2.377
CND. 30 Year Bond		2.464		2.507
U.S.    10 Year Bond		2.8749		2.9095
U.S. 30 Year Bond		3.1316		3.1637

Currencies

BOC Close	Today	Previous
Canadian $	0.79668	0.80102
US $	1.25521	1.24840
Euro Rate 1 Euro=		Inverse
Canadian $	1.55776	0.64195
US $	1.24104	0.80578

Commodities

Gold	Close	Previous
London Gold Fix	1352.10	1352.45
Oil
WTI Crude Future	61.68	61.34

Market Commentary:
On this day in 1878, the Bland-Allison Act became law, allowing the U.S. to mint silver dollars again just five years after a Congressional act prioritizing gold over silver sparked outrage among miners and farmers.
Number of the Day
73%
The three-month correlation between S&P 500 sectors jumped Monday to 73%, according to Goldman Sachs data, nearly double last year’s average of 37%. Some investors fear stocks’ intertwined rally could lead to more turbulence ahead.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest in nearly two weeks and have retraced about one-third of the benchmark’s recent decline, boosted by strong earnings and deal activity.
     The S&P/TSX Composite Index added 79 points or 0.5 percent to 15,407.66. Real estate shares were the biggest gainers, rising 2 percent as Canadian Real Estate Investment Trust jumped 16 percent, the most ever. Choice Properties REIT is buying Canadian REIT for C$3.93 billion.
     The materials index was the only decliner, losing 0.4 percent amid concerns about gold miners’ ability to contain costs. Kinross Gold Corp. tumbled 7.3 percent, the most since 2016, after reporting weaker-than-expected quarterly results.
     In other moves:
                          Stocks
* Bombardier Inc. jumped 11 percent after reporting the highest cash flow in seven years
* Canadian Tire Corp. rose 6.6 percent to a record high. Fourth- quarter earnings per share beat the highest estimate
* Cenovus Energy Inc. fell 5.3 percent to the lowest since August. The company will consider selling more of its holdings to speed up efforts to repair its balance sheet, its CEO said
                          Commodities
* Western Canada Select crude oil traded at a $26.50 discount to WTI, the widest in eight trading days
* Gold fell 0.3 percent to $1,352.10 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2485 per U.S. dollar
* The Canada 10-year government bond yield was little changed at 2.38 percent
US
By Kailey Leinz
     (Bloomberg) — U.S. stocks held onto gains to cap their best week in five years while Treasuries climbed and the dollar broke a five-day losing streak.
     The S&P 500 was slightly higher at the close after a late- day slump as investors assessed the implications of new indictments related to Russian meddling in the 2016 presidential election. The gauge ended 4.3 percent higher for the week ahead of a holiday weekend. The 10-year Treasury yield pulled back below 2.9 percent and the dollar rose from a three-year low.
     The recovery in American equities has come quickly after the first correction in U.S. stocks in two years, and the S&P 500 is now down less than 5 percent from an all-time high reached Jan. 26. The Russia news distracted traders otherwise focused on the outlook for the credit markets and interest rates as economic growth accelerates and fans inflation.
     “As far as corrections go, while we’re not out of the woods yet, it’s starting to feel like the best possible one you can hope for: Short and sweet,” said Craig Birk, an executive vice president of portfolio management at Personal Capital. “All the basic economic fundamentals and earnings results still seem very solid.”
     Elsewhere, sterling slipped after U.K. retail sales missed estimates and gilts advanced. Crude oil reversed losses to trade near a one-week high. Bitcoin rose above $10,000.
     These are the main moves in markets:
                          Stocks
* The S&P 500 rose less than 0.1 percent at the close of trading in New York.
* The Stoxx Europe 600 Index increased 1.1 percent.
* The U.K.’s FTSE 100 Index climbed 0.8 percent.
* Japan’s Topix index rose 1.1 percent.
* Australia’s S&P/ASX 200 Index fell 0.1 percent.
                          Currencies
* The Bloomberg Dollar Spot Index rose 0.5 percent, the first advance in more than a week.
* The euro fell 0.8 percent to $1.2406.
* The British pound sank 0.6 percent to $1.4013, the first retreat in a week.
* The Japanese yen fell 0.2 percent to 106.35 per dollar.
                           Bonds
* The yield on 10-year Treasuries fell four basis points to 2.87 percent.
* Germany’s 10-year yield declined six basis points to 0.7 percent.
* Britain’s 10-year yield sank seven basis points to 1.58 percent.
                           Commodities
* West Texas Intermediate crude rose 0.5 percent to $61.62 a barrel.
* Gold fell 0.4 percent to $1,348.71 an ounce.
–With assistance from Adam Haigh, Robert Brand and Jeremy Herron.

 

Have a wonderful weekend everyone.

 

Be magnificent!

 

As ever,

 

Carolann

It is not disbelief that is dangerous to our society; it is belief.
                                      -George Bernard Shaw, 1856-1950

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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:
On this day in 1965, Canada raised its new national flag–featuring the red maple leaf–over Parliament Hill in the capital of Ottawa. Canada had formerly flown a flag featuring the U.K.’s Union Jack before then.

Also on this day in 1968 – Nancy Greene wins Gold in Giant Slalom at the 10th Winter Olympics in Grenoble.
PHOTOS OF THE DAY

Chinese people walk in a maze at the Tang Paradise Park in Xi’an, Shaanxi province, China, ahead of the coming Lunar New Year.
CREDIT: FRED DUFOUR/AFP/GETTY IMAGES

Mount Vesuvius is seen covered by snow in Naples, Italy.
CREDIT: TONY GENTILE/REUTERS

A red kite in the snow at Girgrin Farm in Rhayader, Wales.
CREDIT: SEAN WEEKLY/SWNS.COM
Market Closes for February 15^th, 2018

Market Index	Close	Change
Dow Jones	25200.37	+306.88 +1.23%
S&P 500	2731.20	+32.57   +1.21%
NASDAQ	7256.430	+112.814   +1.58%
TSX	15407.66	+79.39
		+0.52%

International Markets

Market Index	Close	Change
NIKKEI	21464.98	+310.81
		+1.47%
HANG SENG	31115.43	+599.83
		+1.97%
SENSEX	34297.47	+141.52
		+0.41%
FTSE 100*	7234.81	+20.84
		+0.29%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.377		2.373
CND. 30 Year Bond		2.507		2.507
U.S.    10 Year Bond		2.9095		2.9022
U.S. 30 Year Bond		3.1637		3.1620

Currencies

BOC Close	Today	Previous
Canadian $	0.80102	0.80061
US $	1.24840	1.24902
Euro Rate 1 Euro=		Inverse
Canadian $	1.56067	0.64075
US $	1.25014	0.79991

Commodities

Gold	Close	Previous
London Gold Fix	1352.45	1336.25
Oil
WTI Crude Future	61.34	60.60

Market Commentary:
Number of the Day
$3.82 trillion
Consumers are borrowing more on credit cards or through auto loans than they have in years, and lenders seeking growth are happy to oblige them.  In the fourth quarter, consumer debt, excluding mortgages and other home loans, rose 5.5% from a year earlier to $3.82 trillion.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest in nearly two weeks and have retraced about one-third of the benchmark’s recent decline, boosted by strong earnings and deal activity.
     The S&P/TSX Composite Index added 79 points or 0.5 percent to 15,407.66. Real estate shares were the biggest gainers, rising 2 percent as Canadian Real Estate Investment Trust jumped
16 percent, the most ever. Choice Properties REIT is buying Canadian REIT for C$3.93 billion.
     The materials index was the only decliner, losing 0.4 percent amid concerns about gold miners’ ability to contain costs. Kinross Gold Corp. tumbled 7.3 percent, the most since 2016, after reporting weaker-than-expected quarterly results.
     In other moves:
                          Stocks
* Bombardier Inc. jumped 11 percent after reporting the highest cash flow in seven years
* Canadian Tire Corp. rose 6.6 percent to a record high. Fourth- quarter earnings per share beat the highest estimate
* Cenovus Energy Inc. fell 5.3 percent to the lowest since August. The company will consider selling more of its holdings to speed up efforts to repair its balance sheet, its CEO said
                          Commodities
* Western Canada Select crude oil traded at a $26.50 discount to WTI, the widest in eight trading days
* Gold fell 0.3 percent to $1,352.10 an ounce
                          FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2485 per U.S. dollar
* The Canada 10-year government bond yield was little changed at 2.38 percent
US
By Kailey Leinz
     (Bloomberg) — U.S. stocks capped their best five-day run since 2011, extending a global rally as equities rebounded from the worst of this month’s correction. The dollar slumped to a three-year low and oil rallied.
     The S&P 500 topped the 2,700 level and the Dow Jones Industrial Average climbed above 25,000 following gains in Europe and Asia. The yield on 10-year Treasuries hovered near 2.9 percent. The yen ascended to a 15-month high, while South Africa’s rand traded at its strongest level in almost three years after President Jacob Zuma resigned.
     Stock investors brushed off a report on U.S. wholesale prices that underscored signs of stronger inflation even as a growing number of economists now expect the Federal Reserve to step up the pace of its interest-rate increases this year. A report yesterday showing faster consumer-price increases gave rise to debate on the breakdown in the greenback’s correlation to interest rates, as currency investors focused instead on the U.S.’s twin deficits.
     The S&P 500 closed at a two-week high and above its 50-day moving average after climbing 5.8 percent in the past five days. Equities remain cheap relative to bonds and won’t be affected by higher long-term interest rates as long as the 10-year Treasury yield stays below 4 percent, according to Gina Martin Adams and Peter Chung, equity strategists at Bloomberg Intelligence.
     “The market is figuring out that 3 percent is digestible on the 10-year yield,” said Leo Grohowski, the chief investment officer of BNY Mellon Wealth Management. “As long as the reason you’re getting to the 3 percent level is driven by a better feeling about economic growth, which therefore leads to a better feeling about corporate profits. And that’s what I sense taking place.”
     Japan’s Finance Minister Taro Aso’s comments that the yen’s gain isn’t abrupt enough to require intervention supported the Japanese currency’s rally. Hong Kong equities sealed their best three-day run in more than two years in shortened trading ahead of the Lunar New Year holiday. China, South Korea, Taiwan, Vietnam markets are closed Thursday.
     Here are some important things to watch out for this week:
* A handful of European Central Bank officials are due to speak Friday.
* Earnings season continues in full swing.
* Lunar New Year celebrations for the Year of the Dog begin, affecting China, Hong Kong, Taiwan, Singapore, Malaysia and Indonesia. Chinese mainland markets are closed Feb. 15-21.
     These are the main moves in markets:
                            Stocks
* The S&P 500 rose 1.2 percent at the close of trading in New York.
* The Stoxx Europe 600 Index climbed 0.5 percent.
* The MSCI All-Country World Index advanced 1.3 percent.
                            Currencies
* The Bloomberg Dollar Spot Index declined 0.5 percent to a three-year low.
* The euro gained 0.4 percent to $1.2507, reaching the strongest in two weeks.
* The Japanese yen climbed 0.9 percent to 106.05 per dollar.
* South Africa’s rand advanced 0.7 percent to 11.6314 per dollar.
                             Bonds
* The yield on 10-year Treasuries was little changed at 2.9 percent, near the highest in more than four years.
* Germany’s 10-year yield rose one basis point to 0.76 percent.
                             Commodities
* West Texas Intermediate crude rose 1.7 percent to $61.61 a barrel.
* Gold rose 0.3 percent to $1,354.26 an ounce.
* Copper futures rose 0.4 percent.
–With assistance from Adam Haigh, Nancy Moran, Natasha Doff, Todd White and Christopher Anstey.
 

Have a wonderful evening everyone.

Be magnificent!

As ever,

 

Carolann

 

It always seems impossible until it’s done.
-Nelson Rolihlahla Mandela, 1918-2013

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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 Valentine’s Day!

From The New York Times today:
Valentine’s Day is widely thought to mark a wine-fueled festival for courting couples in ancient Rome.
Today is also Ash Wednesday, which coincides with Valentine’s Day for the first time since 1945. It’s a dilemma for those observing Lent: extravagant displays of romantic love, or fasting and self-discipline?

On Feb. 14, 1929, the St. Valentine’s Day Massacre took place in a Chicago garage as seven rivals of Al Capone’s gang were gunned down.
Go to article »

Also on this day in 1886, the first trainload of oranges grown by farmers in Southern California departed Los Angeles on the transcontinental railroad.

PHOTOS OF THE DAY

Gabriela Atkins, 10 from Exeter, and Calum Morris, 12 from Bristol, who both born with heart conditions help the British Heart Foundation (BHF) break The Guinness World Records Title for the world’s longest chain of paper hearts.
CREDIT: IMAGEWISE LTD/REX/SHUTTERSTOCK

Chloe Kim of the United States warms up prior to the Women’s Halfpipe Final on day four of the PyeongChang 2018 Winter Olympic Games.
CREDIT: THE TELEGRAPH

A Taekwondo team gives a demonstration prior to the men’s 1,500 meters speedskating race at the Gangneung Oval at the 2018 Winter Olympics.
CREDIT: EUGENE HOSHIKO/AP
Market Closes for February 14^th, 2018

Market Index	Close	Change
Dow Jones	24893.49	+253.04   +1.03%
S&P 500	2698.63	+35.69   +1.34%
NASDAQ	7143.617	+130.107   +1.86%
TSX	15328.27	+111.80
		+0.73%

International Markets

Market Index	Close	Change
NIKKEI	21154.17	-90.51
		-0.43%
HANG SENG	30515.60	+676.07
		+2.27%
SENSEX	34155.95	-144.52
		-0.42%
FTSE 100*	7213.97	+45.96
		+0.64%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.373		2.327
CND. 30 Year Bond		2.507		2.477
U.S.    10 Year Bond		2.9022		2.8330
U.S. 30 Year Bond		3.1620		3.1184

Currencies

BOC Close	Today	Previous
Canadian $	0.80061	0.79421
US $	1.24902	1.25911
Euro Rate 1 Euro=		Inverse
Canadian $	1.55585	0.64274
US $	1.24564	0.80274

Commodities

Gold	Close	Previous
London Gold Fix	1336.25	1325.35
Oil
WTI Crude Future	60.60	59.19

Market Commentary:
Number of the Day
11 million
U.S. oil output could rise as high as 11 million barrels a day by 2019, rivaling that of Russia, the world’s biggest crude producer, according to analysts. Led by U.S. shale companies, crude output from non-OPEC nations is expected to outpace the growth in oil demand in 2018.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks climbed to their highest level in a week after another volatile trading day that saw the benchmark fall as much as 0.6 percent and rise as much as 1.2 percent.
     The S&P/TSX Composite Index added 112 points or 0.7 percent to 15,328.27, rallying with U.S. stocks as investors digested stronger-than-forecast inflation, which initially sent stocks tumbling, before weak retail sales tempered concerns that the Fed would raise rates faster.
     Materials stocks were the biggest gainers, adding 2.8 percent as gold miners rallied on higher prices. The technology index jumped 2.3 percent as Shopify Inc. rose 8.1 percent to a record high. Shopify reports earnings Thursday morning.
     In other moves:
                          Stocks
* BRP Inc. fell 4.9 percent, the most since September, after National Bank Financial downgraded the stock, citing its recent run-up
* Teck Resources Ltd. added 1.6 percent amid a positive coal outlook and comments that it may reopen a steelmaking coal mine in British Columbia
* Canopy Growth Gorp. rose 1.8 percent after third-quarter revenue and earnings beat analyst estimates
* Colliers International Group Inc. jumped 11 percent to a record high as fourth-quarter earnings and revenue beat the highest analyst estimate
                          Commodities
* Western Canada Select crude oil traded at a $25.50 discount to WTI
* Gold rose 2.1 percent to $1,355.50 an ounce, the biggest gain since last March
                          FX/Bonds
* The Canadian dollar strengthened 0.7 percent to $1.2503 per U.S. dollar as the greenback fell
* The Canada 10-year government bond yield rose five basis points to 2.37 percent
US
By Kailey Leinz
     (Bloomberg) — U.S. stocks extended a rebound while Treasury yields rose to a four-year high as economic data supported expectations that the Federal Reserve will maintain a gradual approach to raising interest rates.
     The S&P 500 Index climbed for a fourth day as banks and durable-goods makers rallied, returning the gauge to a gain for the year after it fell more than 10 percent from a January peak. Gold rallied and the dollar slumped as the 10-year yield topped 2.9 percent.
     Signs of an inflation pickup have roiled financial markets this month, and stock futures tumbled early Wednesday on concern the Fed would quicken its pace of tightening following data that showed faster-than-forecast inflation. Those fears receded as investors digested a separate report showing weak retail sales that raised questions about the economy’s strength.
     “We’re trying to weigh how much each data point is going to matter,” said Kristina Hooper, the chief global market strategist at Invesco Ltd. “It’s about building a case for the FOMC.”
     New Fed Chairman Jerome Powell suggested Tuesday that the Federal Open Market Committee would forge ahead with gradual tightening even as it keeps an eye on financial-system risks following the recent equity rout.
     Oil rallied past $60 a barrel after a smaller-than-expected increase in U.S. supplies in storage. In Europe, stocks advanced as investors traded on earnings from companies including Credit Suisse Group AG. The yen’s rise to a 15-month high weighed on Japan’s Topix index, while shares in Seoul, Hong Kong and Shanghai gained before a weeklong Lunar New Year holiday.
     South Africa’s rand headed for its strongest level against the dollar in almost three years as President Jacob Zuma resigned under pressure from the ruling African National Congress.
     Here are some important things to watch out for this week:
* Lunar new year celebrations for the Year of the Dog begin, affecting China, Hong Kong, Taiwan, Singapore, Malaysia and Indonesia. Chinese mainland markets are closed Feb. 15-21.
* Earnings season continues in full swing.    
     These are the main moves in markets:
                           Stocks
* The S&P 500 rose 1.3 percent at the close of trading in New York.
* The Stoxx Europe 600 Index increased 1.1 percent.
* The MSCI Asia Pacific Index rose 0.8 percent.
                           Currencies
* The Bloomberg Dollar Spot Index fell 0.8 percent.
* The euro rose 0.9 percent to $1.2459.
* The Japanese yen increased 0.8 percent to 106.97 per dollar.
* South Africa’s rand jumped 2.4 percent to 11.6869 per dollar.
                            Bonds
* The yield on 10-year Treasuries rose eight basis points to 2.91 percent.
* Germany’s 10-year yield rose one basis point to 0.75 percent.
                            Commodities
* West Texas Intermediate rose 2.5 percent to $60.68 a barrel.
* Gold rose 1.7 percent to $1,352.53 an ounce for the biggest gain since May.
–With assistance from Adam Haigh, Blaise Robinson, Divya Balji, Robert Brand, Todd White, Randall Jensen, Jeremy Herron, Sarah Ponczek and Cameron Crise.

Have a wonderful evening everyone.

Be magnificent!

 

As ever,

 

Carolann

 

Anyone can hold the helm when the sea is calm.
                        -Publilius Syrus, 85-43 BC

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
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