Category: Events

Dear Friends,

Tangents: Happy Mardi Gras!
On this day in 1633, Galileo Galilei arrived in Rome to face heresy charges related to his advocacy for the Copernican theory, which said that the Earth revolves around the sun. The Italian philosopher, astronomer and mathematician pled guilty and was placed under indefinite house arrest.

February 13^th, 1840, Queen Victoria wrote in her Journal, the third day of her marriage:
My dearest Albert put on my stockings for me.  I went and saw him shave, a great delight for me.
PHOTOS OF THE DAY

Snowy mountains reflected in Buttermere Lake in the Lake District, Cumbria.
CREDIT: OWEN HUMPHRYS/PA WIRE

Nika Kriznar of Slovenia soars through the air during the women’s normal hill individual ski jumping competition at the 2018 Winter Olympics in Pyeongchang.
CREDIT: MATTHIAS SCHRADER/AP

People wearing protection helmets and costumes pelt each other with oranges as part of Carnival celebrations in the northern Italian Piedmont town of Ivrea.
CREDIT: ANTONIO CALANNI/AP
Market Closes for February 13^th, 2018

Market Index	Close	Change
Dow Jones	24640.45	+39.18   +0.16%
S&P 500	2662.94	+6.94   +0.26%
NASDAQ	7013.512	+31.547   +0.45%
TSX	15216.47	-25.41
		-0.17%

International Markets

Market Index	Close	Change
NIKKEI	21244.68	-137.94
		-0.65%
HANG SENG	29839.53	+379.90
		+1.29%
SENSEX	34300.47	+294.71
		+0.87%
FTSE 100*	7168.01	-9.05
		-0.13%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.327		2.342
CND. 30 Year Bond		2.477		2.489
U.S.    10 Year Bond		2.8330		2.8566
U.S. 30 Year Bond		3.1184		3.1431

Currencies

BOC Close	Today	Previous
Canadian $	0.79421	0.79276
US $	1.25911	1.26141
Euro Rate 1 Euro=		Inverse
Canadian $	1.55524	1.54728
US $	0.64299	1.22662

Commodities

Gold	Close	Previous
London Gold Fix	1325.35	1322.30
Oil
WTI Crude Future	59.19	59.29

Market Commentary:
Number of the Day
$984 Billion
The budget request sent by President Donald Trump on Monday would widen the federal budget deficit to $984 billion in the next fiscal year, nearly double what last year’s budget estimated for 2019.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were unable to hang onto early gains, losing ground for the 10th of 12 trading days as most sectors fell.
     The S&P/TSX Composite Index lost 25 points or 0.2 percent to 15,216.47. Rate-sensitive telecom and utility shares lost 0.8 percent ahead of Wednesday’s January U.S. inflation report.
     The consumer discretionary index also lost 0.8 percent as Restaurant Brands International Inc. fell 3.5 percent, giving up some of Monday’s 6.2 percent gain.
     In other moves:
                         Stocks
* TMX Group Ltd. rose 1 percent after the exchange operator’s fourth-quarter earnings beat analyst estimates
* Emera Inc. fell 3.9 percent to the lowest since 2015. Analysts at RBC Capital Markets said the weakness reflects funding uncertainty
* NuVista Energy Ltd. rose 3 percent after the company’s preliminary fourth-quarter cash flow beat analyst estimates
                         Commodities
* Western Canada Select crude oil traded at a $20.90 discount to WTI, the narrowest gap in more than two months
* Gold rose 0.3 percent to $1,328.10 an ounce
                         FX/Bonds
* The Canadian dollar weakened 0.1 percent to $1.2593 per U.S. dollar
* The Canada 10-year government bond yield fell two basis points to 2.32 percent
US
By Kailey Leinz
     (Bloomberg) — U.S. stocks advanced while the dollar fell and Treasuries rose as financial markets looked ahead to Wednesday’s inflation report. 
     The S&P 500 Index climbed for a third day, it’s longest winning streak since mid-January, amid a rally in financial shares and food retailers. Assets seen as safe havens gained as last week’s surge in volatility continued to weigh on traders, with the yen set for the strongest close since November 2016 and the Swiss franc up with gold. The dollar’s three-day loss left it at the lowest in more than a week.
     Volatility levels remained elevated even after stocks’ modest recovery of the past few days, showing continued unease after the rout that wiped $2 trillion from U.S. shares last week. Consumer-price data due Wednesday could give some clues on where markets are heading, given that pressure on equities has been emanating from the outlook for inflation.
     “As we move through the rest of this economic cycle and market cycle, higher volatility is going to be normal,” said Jeffrey Schulze, the chief investment strategist at Clearbridge Investments. “And a lot of that has to do with the normalization of interest rates.”
     Hedge funds and other large speculators have boosted bets on Treasury futures to a record, indicating they expect the 2018 bond-market rout will resume in the days ahead. An investor at Goldman Sachs Asset Management warned 10-year yields could rise to as high as 3.5 percent in the next six months as the market prices in a steeper pace of Federal Reserve tightening.
     Elsewhere, European shares dropped following a late downswing in Asia. South Africa’s rand fluctuated as President Jacob Zuma refused to obey his ruling African National Congress’s order for him to resign voluntarily.
     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. India is out Tuesday for a public holiday.
* The U.S. consumer-price index probably increased at a moderate pace in January, economists project. Retail sales in the U.S., also out Wednesday, probably increased for a fifth straight month.
* Japan is expected to extend the longest stretch of economic growth since the mid-1990s when it reports fourth-quarter gross domestic product on Wednesday.
* Earnings season continues in full swing with reports from Bunge, TripAdvisor, SunPower, Con Edison, Bombardier, MetLife, Cisco, Japan Post Bank, Credit Suisse, Nestle, Airbus, Allianz, Telstra and Coca-Cola.
     These are the main moves in markets:
                           Stocks
* The S&P 500 rose 0.3 percent at the close of trading in New York.
* The Stoxx Europe 600 Index fell 0.6 percent.
* The MSCI All-Country World Index rose 0.3 percent.
* The MSCI Asia Pacific Index added 0.6 percent.
                           Currencies
* The Bloomberg Dollar Spot Index sank 0.4 percent to the lowest in more than a week.
* The euro climbed 0.5 percent to $1.2358.
* The Japanese yen gained 0.8 percent to 107.8 per dollar.
* South Africa’s rand weakened 0.1 percent to 11.9442 per dollar.
                           Bonds
* The yield on 10-year Treasuries fell three basis points to 2.83 percent.
* Germany’s 10-year yield fell one basis point to 0.74 percent.
* Britain’s 10-year yield rose one basis point to 1.61 percent.
                          Commodities
* West Texas Intermediate crude slipped 0.2 percent to $59.20 a barrel.
* Gold rose 0.5 percent to $1,329.64 an ounce.
* Copper futures gained 2.5 percent.
 

Have a wonderful evening everyone.

 

Be magnificent!

 

As ever,

 

Carolann

 

We are so made, that we can only derive intense enjoyment
from a contrast, and only very little from a state of things.
                                       -Sigmund Freud, 1856-1939

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: 

          SEASON TO SEASON 

I have been fooled before, and just because
This summer seems so long, it might not be
My last. Winter could come again, and pause
The sky like a taped tactical descent
Of pocket paratroopers. Things to see
Could happen yet, and life prove not quite spent
But still abundant, still the main event.

The trick, I’m learning, is to stay in doubt,
Season to season, of what time might bring,
And patiently await how things turn out.
Eventually time tells you everything.
If it takes time to do so, no surprise
In that. You fold your arms, you scan the skies,
And tell yourself that life has made you wise,

If only by the way it ebbs away.
But still it takes an age, and after all,
Though nearly gone, life didn’t end today,
And you might be here when the first leaves fall
Or even when the snow begins again,
If life that cast you, when this all began,
As a small boy, still needs a dying man.
                                      -By Clive James 

PHOTOS OF THE DAY

Snowdrops make a white carpet in the woods at Welford Park near Newbury. Welford Park, where The Great British Bake Off is filmed every summer, is only open for visitors for five weeks in the year – until March 5^th.
CREDIT: THE TELEGRAPH

Dancers perform at Palazzo Pisani Moretta during the annual Ballo del Doge in Venice, Italy. The Ballo del Doge, created by fashion and costume designer Antonia Sautter, is considered the most elegant and exclusive masquerade ball during the Venice Carnival.
CREDIT: THE TELEGRAPH

Revellers from the Vila Maria Samba School take part in Carnival celebrations at Anhembi Sambradrome in Sao Paulo, Brazil.
CREDIT: THE TELEGRAPH
Market Closes for February 12^th, 2018

Market Index	Close	Change
Dow Jones	24601.27	+410.37    +1.70%
S&P 500	2656.00	+36.45   +1.39%
NASDAQ	6981.964	+107.473   +1.56%
TSX	15241.88	+207.35
		+1.38%

International Markets

Market Index	Close	Change
NIKKEI	21548.04	+165.42
		+0.77%
HANG SENG	29459.63	-47.79
		-0.16%
SENSEX	34300.47	+294.71
		+0.87%
FTSE 100*	7177.06	+84.63
		+1.19%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.342		2.352
CND. 30 Year Bond		2.489		2.499
U.S.    10 Year Bond		2.8566		2.8512
U.S. 30 Year Bond		3.1431		3.1612

Currencies

BOC Close	Today	Previous
Canadian $	0.79276	0.79483
US $	1.26141	1.25813
Euro Rate 1 Euro=		Inverse
Canadian $	1.54728	0.64629
US $	1.22662	0.81524

Commodities

Gold	Close	Previous
London Gold Fix	1322.30	1314.10
Oil
WTI Crude Future	59.29	59.20

Market Commentary:
On this day in 1970, the New York Stock Exchange elects its first African-American member, Joseph L. Searles III.
Number of the Day
$22.9 billion
Investors withdrew $22.9 billion from U.S. stock mutual funds and exchange-traded funds in the seven days that ended Wednesday, according to fund tracker EPFR Global, the highest total on record.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rebounded from two weeks of steep declines, gaining the most since July 2016, but still lagged their U.S. counterparts.
     The S&P/TSX Composite Index added 207 points or 1.4 percent to 15,241.88. The gain was the biggest in 19 months but underperformed the 1.7 percent increase in the Dow Jones Industrial Average.
     Materials stocks saw the biggest gain, adding 3 percent as precious and base metals rose. Ivanhoe Mines Ltd. jumped 11 percent, the most since October.
     Industrials added 2.2 percent as CAE Inc. rose 5.7 percent.
RBC Capital Markets upgraded the stock to outperform, saying it could be headed to C$30 or more long term.
     In other moves:
                             Stocks
* Aecon Group Inc. fell 1.8 percent to the lowest since a Chinese firm launched its takeover bid for the engineering firm; Canada began a national security review of the deal
* Restaurant Brands International Inc. gained 6.2 percent, the most in a year. The parent company of Burger King said the chain’s 4Q comparable sales rose far more than analysts expected
* First Quantum Minerals Ltd. added 6.2 percent, the most in three months, after the company said it will push ahead with an Alaska mining project
                          Commodities
* Western Canada Select crude oil traded at a $21.25 discount to WTI, the smallest gap in four weeksGold rose 0.9 percent to $1,324.20 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.1 percent to $1.2595 per U.S.dollar
* The Canada 10-year government bond yield fell one basis point to 2.34 percent
US
By Kailey Leinz and Sarah Ponczek
     (Bloomberg) — U.S. stocks surged, with financial markets showing signs of recovery after the worst week in two years for American equities.
     The 10-year yield fell back from the four-year high hit earlier Monday as the dollar slipped. The Nasdaq Composite Index turned positive for 2018, with the Dow Jones Industrial Average and the S&P 500 now down less than 1 percent since the end of December. Stocks and bonds have been in a tug-of-war since a blowout jobs report early this month sent Treasury yields spiking, raising the specter of higher interest rates to come.
     The Cboe Volatility Index fell as the S&P posted its biggest two-day advance in 18 months, but traders were still on edge following the tumultuous move in equities last week that wiped $2 trillion from U.S. stocks. Investors are awaiting U.S.
consumer-price data due Wednesday with some trepidation, given that pressure on equities has been emanating from the Treasury market and the outlook for inflation.
     “You just had a major reversal and investors are just taking a deep breath,” said Mike Bailey, the director of research at FBB Capital Partners in Bethesda, Maryland. “People said, ‘OK, the 10 percent correction is over, let’s take a look at the bright side.”’
     The S&P 500 retook its 100-day moving average, a technical indicator that it crashed through last week. Morgan Stanley chief U.S. equity strategist Michael Wilson reversed his week- old cautious call, joining peers at Goldman Sachs Group Inc. and JPMorgan Chase & Co. who have told clients to buy the dip.
     European and Asian equities also rose Monday, while the dollar’s slide supported commodities, with metals rallying and crude oil slightly higher after a six-day selloff.
     The won outperformed major currencies after Vice President Mike Pence told the Washington Post the U.S. is ready to engage in talks about North Korea’s nuclear program, signaling a shift in policy. South Africa’s rand strengthened on speculation President Jacob Zuma is poised to leave office.
     Terminal users can read more in our markets blog.
     Here are some important things to watch out for this week:
* Chinese New Year celebrations for the Year of the Dog begin in China and follow across much of Asia, including Hong Kong, Taiwan, Singapore, Malaysia and Indonesia. Chinese mainland markets are closed Feb. 15-21.
* Zuma’s fate is set to be sealed on Monday when the top leadership of the ruling African National Congress meets to conclude the transition to a new administration.
* The U.S. consumer-price index, due Wednesday, probably increased at a moderate pace in January, economists project.
Retail sales in the U.S., also out Wednesday, probably increased for a fifth straight month.
* Japan is expected to extend the longest stretch of economic growth since the mid-1990s when it reports fourth-quarter gross domestic product on Wednesday.
* Earnings season continues in full swing with reports from Bunge, TripAdvisor, SunPower, Con Edison, Bombardier, Michelin, PepsiCo, MetLife, Cisco, Japan Post Bank, Credit Suisse, Nestle, Airbus, Allianz, Telstra, Coca-Cola, Deere, Eni, Credit Agricole and Campbell Soup.
     These are the main moves in markets:
                             Stocks
* The S&P 500 Index rose 1.4 percent at the close of trading in New York
* The Stoxx Europe 600 Index climbed 1.2 percent.
* The MSCI All-Country World Index added 1.2 percent, the most since April.
* The U.K.’s FTSE 100 Index rose 1.2 percent.
                           Currencies
* The Bloomberg Dollar Spot Index dipped 0.3 percent.
* The euro rose 0.3 percent to $1.229.
* The British pound was little changed at $1.3834.
* South Africa’s rand climbed 0.5 percent to 11.93 per dollar.
                             Bonds
* The yield on 10-year Treasuries was little changed at 2.85 percent.
* Germany’s 10-year yield rose one basis point to 0.75 percent.
* Britain’s 10-year yield rose three basis points to 1.6 percent.
                          Commodities
* West Texas Intermediate crude added 0.2 percent to $59.33 a barrel, the first advance in more than a week.
* Gold rose 0.5 percent to $1,322.74 an ounce for the largest advance in two weeks.
* Copper futures climbed 1.7 percent for the first advance in five days.
–With assistance from Elena Popina, Ruth Carson, Andreea Papuc, Eddie van der Walt, Todd White, Christopher Anstey and Lu Wang.

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann 

Si jeunesse savait; si vieillesse pouvait.
If youth knew; if age could.
                   -Henri Etienne, 1531-98

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:

Terrance Hayes selected this poem for inclusion in last Sunday’s NY Times magazine.  He writes, “This pithy poem could double as a writing prompt.  The poet gets you started, opening with the seemingly surreal image of a six-legged horse.  It unfolds with a mix of aphorism, fantasy and myth….Try adding another 36 words to the poem…..toward the imaginativeness the poem invokes:

Beginning With a Horse
       By Alan Felsenthal

A horse has six legs
two belong to a man
who might be Pluto
disguised as the devil
abducting a unicorn
whose horn was used
to purify a spring
that whetted the infinite
now behind us

PHOTOS OF THE DAY

A member of the AMADEE-18 Mars simulation mission wears a spacesuit standing in the doorway of a simulation habitat, with a view of the night sky above in Oman’s Dhofar desert, during an analog field simulation in a collaboration between the Austrian Space Forum and the Oman National Steering Committee preparing for future human Mars missions.
CREDIT: KARIM SAHIB/AFP

A praying mantis fitted with miniature 3-D glasses, in a research facility at Newcastle University. Praying mantises sporting tiny 3-D glasses held in place with beeswax, have revealed a new kind of “stereo” vision that may help improve robot sight, researchers said.
CREDIT: MIKE IRWIN/AFP

A model holds a 102.34 carat white diamond, described as the rarest white diamond ever to come to market, at Sotheby’s in New Bond Street, London, ahead of its private sale at Sotheby’s Diamonds retail boutique where it is expected to fetch in excess of 33.7 million in US Dollars.
CREDIT: GEOFF PUGH FOR THE TELEGRAPH

Charlotte Riordhan from Lyon and Turbull with the key used to open Glasgow School of Art in 1899, not seen in public since the school’s opening ceremony, on display at Lyon and Turnbull in Edinburgh where it will be auctioned in April.
CREDIT: ANDREW MILLIGAN/PA WIRE
Market Closes for February 9^th, 2018

Market Index	Close	Change
Dow Jones	24190.90	+330.44   +1.38%
S&P 500	2619.55	+38.55   +1.49%
NASDAQ	6874.492	+97.333   +1.44%
TSX	15034.53	-31.08
		-0.21%

International Markets

Market Index	Close	Change
NIKKEI	21382.62	-508.24
		-2.32%
HANG SENG	29507.42	-943.85
		-3.10%
SENSEX	34005.76	-407.40
		-1.18%
FTSE 100*	7092.43	-78.26
		-1.09%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.352		2.378
CND. 30 Year Bond		2.499		2.497
U.S.    10 Year Bond		2.8512		2.8330
U.S. 30 Year Bond		3.1612		3.1344

Currencies

BOC Close	Today	Previous
Canadian $	0.79483	0.79361
US $	1.25813	1.26006
Euro Rate 1 Euro=		Inverse
Canadian $	1.54144	0.64874
US $	1.22518	0.81620

Commodities

Gold	Close	Previous
London Gold Fix	1314.10	1315.45
Oil
WTI Crude Future	59.20	61.15

Market Commentary:
On this day in 1585, the Frankfurt Stock Exchange is established.
Number of the Day
19%
Despite the massive selloff recently, the Dow Jones Industrial Average is still up 19% over the past year.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell to their lowest level since early September after a wild day that saw the benchmark rise as much as 0.3 percent and fall as much as 1.9 percent.
     The S&P/TSX Composite Index closed down 31 points or 0.2 percent to 15,034.46. Materials were the biggest decliners, losing 1.1 percent as gold miners retreated from Thursday’s gains. Guyana Goldfields Inc. fell 7.6 percent and Eldorado Gold Corp. lost 7.1 percent.
     Utilities rose 0.7 percent and the real estate index added 0.2 percent as government bond yields fell for the first time in four trading days.
     In other moves:
                          Stocks
* Sierra Wireless Inc. tumbled 14 percent to the lowest since 2016 after its forecast for first-quarter earnings missed the lowest analyst estimate
* Cameco Corp. fell 4.9 percent. The uranium miner reported a fourth-quarter loss and lower revenue
* Canada Goose Holdings Inc. fell another 4.6 percent for the biggest two-day decline ever. Analysts blamed high expectations and the stock’s recent rally.
                          Commodities
* Western Canada Select crude oil traded at a $23 discount to WTI, the narrowest gap in three and a half weeks
* Gold fell 0.3 percent to $1,313.10 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.1 percent to $1.2588 per U.S. dollar
* The Canada 10-year government bond yield fell two basis points to 2.35 percent
US
By Sarah Ponczek and Randall Jensen
     (Bloomberg) — U.S. equities ended their worst week in two years on a positive note, but rate-hike fears that pushed markets into a correction remain as investors await American inflation figures on Feb. 14.
     The S&P 500 tumbled 5.2 percent in the week, its steepest slide since January 2016, jolting equity markets from an unprecedented stretch of calm. At one point, stocks fell 12 percent from the latest highs, before a furious rally Friday left the equity benchmark 1.5 percent higher on the day. Still, the selloff has wiped out gains for the year.
     Signs mounted that jitters spread to other assets, with measures of market unrest pushing higher in junk bonds, emerging-market equities and Treasuries. The Cboe Volatility Index ended at 29, almost three times higher than its level Jan.26. . The VIX’s bond-market cousin reached its highest since April during the week, and a measure of currency volatility spiked to levels last seen almost a year ago.
     Pressure on equities came from the Treasury market, where yields spiked to a four-year high, raising concern the Federal Reserve would accelerate its rate-hike schedule. Yields ended the week at 2.85 percent, near where they started, as Treasuries moved higher when equity selling reached its most frantic levels. Commodities including oil, gold and industrial metals moved lower Friday. The dollar, euro and sterling all declined.
     Traders are now focusing on next week’s U.S. consumer-price data after a week in which the 10-year yield pushed as high as 2.88 percent. Equity investors took the signal to mean interest rates will rise as inflation gathers pace, denting earnings and consumers’ spending power.
     “Sometimes making a bottom can take time,” Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co., said by phone. “Investors should be at least aware, cognizant, and expect a little more volatility after we go through this period of more cathartic volatility.”
     Europe and Asia weren’t spared from the drama that’s afflicted global stocks. The Stoxx Europe 600 Index clocked its worst week since 2016, losing almost half a year’s gains. China’s benchmark fell the most in almost two years earlier, while the MSCI World Index had its biggest weekly drop since 2016.    
     These are the main moves in markets:
                          Stocks
* The S&P 500 Index rose 1.5 percent as of 4 p.m. in New York.
* The Dow Jones Industrial Average climbed 1.4 percent and the Nasdaq 100 added 1.7 percent.
* The Stoxx Europe 600 Index declined 1.4 percent, the lowest in more than five months.
* The U.K.’s FTSE 100 Index decreased 1.1 percent to a 13-month low.
* The MSCI Emerging Market Index fell 1.6 percent, the seventh straight decline.
                          Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent.
* The euro declined 0.1 percent to $1.2236.
* The British pound sank 0.7 percent to $1.3819, the weakest in more than three weeks.
* The Japanese yen fell less than 0.05 percent to 108.77 per dollar.
                           Bonds
* The yield on 10-year Treasuries rose two basis points to 2.85 percent.
* Germany’s 10-year yield dipped two basis points to 0.75 percent.
* Britain’s 10-year yield declined five basis points to 1.57 percent.
                          Commodities
* West Texas Intermediate crude dipped 3.2 percent to $59.18 a barrel, the lowest in six weeks.
* Gold fell 0.3 percent to $1,314.59 an ounce.
* Copper decreased 1.3 percent to $6,755 a metric ton.
* The Bloomberg Commodity Index fell 1.6 percent, its sixth straight decline.   
–With assistance from Cormac Mullen, Robert Brand and Kailey Leinz.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

 

Carolann

 

Keep your fears to yourself, but share your courage with others.
                                      -Robert Louis Stevenson, 1850-1894

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:
1828: Jules Verne, author, born
1910: Boy Scouts of America established.
1921: Lana Turner, actor, born
1931: James Dean, actor, born.
On Feb. 8, 1996, in a ceremony at the Library of Congress, President Clinton signed legislation revamping the telecommunications industry, saying it would “bring the future to our doorstep.”
Go to article »
PHOTOS OF THE DAY

A man skiing at Trocadero square covered by snow in front of the Eiffel Tower in Paris, France.
CREDIT: CHESNOT/GETTY IMAGES

Hot air balloons in the sky during a trip over historical Cappadocia region, in Nevsehir, Turkey.
CREDIT: BEHCET ALKAN/ANADOLU AGENCY/GETTY IMAGES

A performer poses during a portrait session on the stage of the circus structure built in Saint Mark’s square for this year’s Carnival in Venice, Italy.
CREDIT: SIMONE PADOVANI/AWAKENING/GETTY IMAGES
Market Closes for February 8^th, 2018

Market Index	Close	Change
Dow Jones	23860.46	-1032.89   -4.15%
S&P 500	2581.00	-100.66   -3.75%
NASDAQ	6777.160	-274.823   -3.90%
TSX	15065.61	-264.97
		-1.73%

International Markets

Market Index	Close	Change
NIKKEI	21890.86	+245.49
		+1.13%
HANG SENG	30451.27	+128.07
		+0.42%
SENSEX	34413.16	+330.45
		+0.97%
FTSE 100*	7170.69	-108.73
		-1.49%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.378		2.372
CND. 30 Year Bond		2.497		2.470
U.S.    10 Year Bond		2.8330		2.8340
U.S. 30 Year Bond		3.1344		3.1089

Currencies

BOC Close	Today	Previous
Canadian $	0.79361	0.79613
US $	1.26006	1.25608
Euro Rate 1 Euro=		Inverse
Canadian $	1.54314	0.64803
US $	1.22465	0.81656

Commodities

Gold	Close	Previous
London Gold Fix	1315.45	1324.65
Oil
WTI Crude Future	61.15	61.79

Market Commentary:
On this day in 1980, the total market value of all shares on the New York Stock Exchange surpasses $1 trillion for the first time.
Number of the Day
4.9%
The IMF expects emerging economies as a whole to grow 4.9% in 2018, up from 4.7% last year, and more than double the growth rate in advanced economies.
Canada
By Kristine Owram
     (Bloomberg) — After a couple of relatively calm days, Canadian stocks resumed their streak of triple-digit declines as concerns about rising interest rates re-emerged.
     The S&P/TSX Composite Index fell 265 points or 1.7 percent to 15,065.61, the lowest in nearly five months. Every sector was in the red, with consumer discretionary posting the biggest decline, down 2.7 percent. Canada Goose Holdings Inc. tumbled 16 percent, the most ever, after earnings failed to meet investors’ lofty expectations.
     The energy index fell 2.6 percent to the lowest since April 2016 as oil prices sunk to a five-week low. Advantage Oil & Gas Ltd. tumbled 6.5 percent and Crew Energy Inc. lost 6.4 percent.
     In other moves:
                          Stocks
* MEG Energy Corp. bucked the trend, rising 13 percent after agreeing to sell $1.3 billion in pipeline and storage assets
* Dollarama Inc. fell 4.2 percent, the most since 2015, after Desjardins Securities downgraded the stock, saying it’s running too far ahead
* OceanaGold Corp. gained 5.6 percent, Centerra Gold Inc. rose 4.1 percent and Eldorado Gold Corp. added 4 percent ahead of upcoming earnings.
                          Commodities
* Western Canada Select crude oil traded at a $26 discount to WTI, the narrowest gap in three weeks
* Gold rose 0.4 percent to $1,316.90 an ounce
                          FX/Bonds
* The Canadian dollar weakened 0.3 percent to $1.2600 per U.S. dollar, the lowest since December
* The Canada 10-year government bond yield was little changed at 2.37 percent
US
By Sarah Ponczek and Jeremy Herron
     (Bloomberg) — The dread that gripped equity markets earlier in the week re-emerged Thursday as U.S. stocks plunged on concern that rising interest rates will drag down economic growth.
     U.S. stocks fell to two-month lows after a nine-day swoon, erasing their gains for the year. Thursday’s 3.8 percent loss took the S&P 500 Index’s decline since its Jan. 26 record past 10 percent, meeting the accepted definition of a correction. The Dow plunged more than 1,000 points.
     The Cboe Volatility Index was more than double its level a week ago. Ten-year Treasury yields fluctuated near their four- year highs, while the yen found traction as a haven from the stock turmoil.
     West Texas intermediate crude slid almost to its low for the year following a report showing record production from U.S. fields. Gold fluctuated.
     Traders remain on edge after the resurgent threat of inflation and higher bond yields helped trigger the burst of volatility and a pullback across the overheated global equity market.
     Bulls may have to question the wisdom of buying the dip when more selling by speculators may be imminent. This week’s Treasury auctions have underwhelmed, raising the possibility that the debt selloff could steepen. Investors are also facing the prospect of Fed tightening, which could cool growth.
     “There’s some big-money players that have really leveraged to the low rates forever, and they have to unwind those trades,” said Doug Cote, chief market strategist at Voya Investment Management. “They could be in full panic mode right now.”
     U.K. gilts sold off and the pound rose after the Bank of England lifted its forecasts for economic growth and suggested it may need to raise interest rates faster than previously indicated. The euro fluctuated as ECB member Jens Weidmann said the central bank will monitor the impact of the currency on inflation. The yuan earlier fell the most since the currency’s devaluation in August 2015 after China reported a much narrower- than-expected trade surplus as imports jumped.
     Here are some events scheduled for the remainder of this week:
* Earnings season continues.
* The Bank of Russia is set to hold a rates decision Friday, with most economists forecasting a cut.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index fell 3.8 percent at the close in New York.
* The Dow Jones Industrial Average lost 4.1 percent and the Nasdaq 100 Index fell 4.2 percent.
* The Stoxx Europe 600 Index dipped 1.6 percent.
* The U.K.’s FTSE 100 Index sank 1.5 percent.
* The MSCI Emerging Market Index fell 1.2 percent.
                           Currencies
* The Bloomberg Dollar Spot Index advanced 0.1 percent.
* The euro fell 0.2 percent to $1.2244.
* The British pound increased 0.2 percent to $1.3905, the first advance in a week.
* The Japanese yen gained 0.4 percent to 108.85 per dollar.
                           Bonds
* The yield on 10-year Treasuries fell less than one basis point to 2.83 percent.
* Germany’s 10-year yield climbed two basis points to 0.76 percent.
* Britain’s 10-year yield climbed seven basis points to 1.617 percent, the biggest surge in five weeks.
                           Commodities
* West Texas Intermediate crude declined 2.2 percent to $60.41 a barrel.
* Gold fell less than 0.05 percent to $1,317.19 an ounce.
* Copper fell 0.5 percent to $6,845 per metric ton.
* The Bloomberg Commodity Index fell 0.2 percent.    
–With assistance from Kailey Leinz, Brian Chappatta and Randall Jensen.

Have a wonderful evening everyone.

Be magnificent!

As ever, 

Carolann

Our attitude towards others determines their attitude towards us.
                                                -Earl Nightingale, 1921-1989

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 1958, the Advanced Research Projects Agency of the U.S. Department of Defense is established. It would later create ARPANET, the prototype of the World Wide Web.

On Feb. 7, 1964, the Beatles arrived in the United States for the first time, giving rise to Beatlemania.
Go to article »

PHOTOS OF THE DAY

Two swans land on a snow-covered field in Hemmingen, northern Germany.
CREDIT: JULIAN STRATENSCHULTE/GETTY IMAGES

Leo Bartholomew, three, from Bath, cuddles up with a newborn lamb at The Olde House, Chapel Amble, Cornwall, in the middle of lambing season, which is a few weeks earlier than the rest of the country due to much milder Cornish weather.
CREDIT: BEN BIRCHALL/PA WIRE

Hikers follow the Latrigg walk to take in the view of Lake Derwentwater next to the town of Keswick, Lake District National Park.
CREDIT: OWEN HUMPHREYS/PA WIRE
Market Closes for February 7^th, 2018

Market Index	Close	Change
Dow Jones	24893.35	-19.42   -0.08%
S&P 500	2681.66	-13.48   -0.50%
NASDAQ	7051.984	-63.898   -0.90%
TSX	15330.58	-33.35
		-0.22%

International Markets

Market Index	Close	Change
NIKKEI	21645.37	+35.13
		+0.16%
HANG SENG	30323.20	-272.22
		-0.89%
SENSEX	34082.71	-113.23
		-0.33%
FTSE 100*	7279.42	+138.02
		+1.93%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.372		2.365
CND. 30 Year Bond		2.470		2.461
U.S.    10 Year Bond		2.8340		2.8054
U.S. 30 Year Bond		3.1089		3.0684

Currencies

BOC Close	Today	Previous
Canadian $	0.79613	0.80043
US $	1.25608	1.24933
Euro Rate 1 Euro=		Inverse
Canadian $	1.54088	0.64898
US $	1.22674	0.81517

Commodities

Gold	Close	Previous
London Gold Fix	1324.65	1331.40
Oil
WTI Crude Future	61.79	63.39

Market Commentary:
Number of the Day
1,167 points
The trading range for the Dow Jones Industrial Average on Tuesday, the second-widest swing for the blue-chip index in its long history. The all-time high is 1,597 points–a record that was set Monday.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were unable to hold onto early gains, closing down for the 7th time in 8 days as U.S. oil stockpiles grew the most since September, weighing on energy stocks.
     The S&P/TSX Composite Index fell 33 points or 0.2 percent to 15,330.58, the lowest since mid-September. Energy shares lost 1% as crude prices tumbled 2.5% to the lowest since early January.
     The materials index retreated 1.1% as precious and base metals fell. Klondex Mines Ltd. was the biggest decliner on the Canadian benchmark, losing 7.1% following several analyst downgrades.
     In other moves:
                          Stocks
* Hudson’s Bay Co. fell 1% after the retailer said its board has unanimously rejected an unsolicited proposal for its German business
* WestJet Airlines Ltd. gained 3.1%, the most since October. At least two analysts upgraded the stock on better-than-expected management guidance
* Canaccord Genuity Group Inc. fell 4.6% despite predicting ‘robust’ financing activity in the cannabis sector
                         Commodities
* Western Canada Select crude oil traded at a $28.75 discount to WTI, the narrowest gap in a week
* Gold fell 1.1 percent to $1,311.60 an ounce, the lowest since December
                         FX/Bonds
* The Canadian dollar weakened 0.6 percent to $1.2567 per U.S. dollar, the lowest since December
* The Canada 10-year government bond yield rose one basis point to 2.37 percent
US
By Kailey Leinz and Lu Wang
     (Bloomberg) — U.S. stocks remained on unsteady footing as the bout of volatility that’s gripped global financial markets persisted amid signs that the rise in Treasury yields has yet to run its course.
     Pressure Wednesday came from a weak 10-year note auction, sending the rate toward the four-year high that days ago sparked the biggest equity selloff in seven years. Stocks swung between gains and losses throughout the session before ending lower after heavy selling in the final 15 minutes of trading. Volume on U.S. exchanges topped 9 billion shares for a fourth straight day after surpassing that total just once in the past seven months.
     The S&P 500 erased a gain that reached 1.2 percent at its highest and closed lower by 0.5 percent in the biggest reversal since 2015. The Dow Jones Industrial Average swung 500 points from peak to trough, and heavy selling in megacap technology shares pushed the Nasdaq indexes to losses of at least 0.9 percent. While the Cboe Volatility Index eased back from levels last seen in August 2015, at 26.84 it remains about 40 percent above its average since 1990.
     The yield surge sparked concern the Federal Reserve would accelerate its tightening schedule, slowing the economy and eroding corporate profit margins. Chicago Fed President Charles Evans signaled as much Wednesday, saying sustained inflation could force more hikes.
     “When the rates began to move higher today seemed to be when the selling started to pick up in the market,” Michael Ball, president and lead portfolio manager of Colorado-based Weatherstone Capital Management Inc., said by phone. “That’s a long-term concern that’s out there. After the waterfall decline we had on Friday and Monday, people are just hyper-sensitive.”
     The U.S. equity decline signaled that Tuesday’s rebound — the S&P 500 had its best day in 15 months, as buyers picked over the wreckage from Monday’s 4.1 percent rout — might not persist into the Asian open. The region’s bid for its own recovery faltered late Wednesday, with the MSCI Asia Pacific Index almost completely erasing a gain of as much as 2.4 percent. Europe proved an outlier, with shares halting a seven-day slide on the biggest rally in nine months.
     A lingering issue for equity bulls is the wisdom of doing what they always do — buy the dip — when more selling by speculators may be imminent after Monday’s break in volatility markets. Accounts of losses and liquidations at hedge funds specializing in the asset class were rife Wednesday morning even as Wall Street strategists urged investors to consider the market’s solid underpinning in economic growth and earnings.
     “I think it’s telling you that people are still unnerved about the past several days,” David Ader, chief macro strategist at Informa Financial Intelligence, said by phone. “The stock market is going to be reacting to this retreat, to higher yields, until the bond market finds a footing.”
     The dollar rallied, adding to pressure in commodities. Bloomberg’s index of materials fell for a fourth day with its biggest drop since November. West Texas intermediate crude declined the most in two months after government data showed a jump in production. Gold futures slid and copper futures tumbled more than 3 percent.
     Here are some key events scheduled for this week:
* Monetary policy decisions are due this week in Russia, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
* Earnings season continues with reports from Philip Morris, Tesla, Rio Tinto, L’Oreal and Twitter.
* New York Fed President William Dudley and Dallas Fed President Robert Kaplan are among policy officials due to speak.    
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index fell 0.5 percent as of 4 p.m. in New York.
* The Dow lost 19 points to 24,893.35. The Nasdaq 100 Index fell 1.3 percent.
* The Stoxx Europe 600 Index increased 2 percent, the first advance in more than a week.
* The MSCI Emerging Market Index declined 0.2 percent.
                           Currencies
* The Bloomberg Dollar Spot Index advanced 0.5 percent to the highest in more than two weeks.
* The euro dipped 0.9 percent to $1.227, the weakest in more than two weeks.
* The British pound sank 0.5 percent to $1.3878, the weakest in almost three weeks.
* The Japanese yen declined less than 0.05 percent to 109.60 per dollar.
                            Bonds
* The yield on 10-year Treasuries rose four basis points to 2.84 percent, the highest in about four years.
* Germany’s 10-year yield increased five basis points to 0.75 percent.
* Britain’s 10-year yield climbed three basis points to 1.551 percent.
                            Commodities
* The Bloomberg Commodity Index fell 1.2 percent, its biggest tumble in 12 weeks.
* West Texas Intermediate crude fell 2.4 percent to $61.84 a barrel.
* Gold dipped 0.7 percent to $1,315.24 an ounce.
* Copper declined 2.8 percent to $6,880 a metric ton.
–With assistance from Sarah Ponczek.

Have a wonderful evening everyone.

 

Be magnificent!

As ever,

 

Carolann

We die only once, and for such a long time.
                                    –Moliere, 1622-1673

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. 6, 1952, Britain’s King George VI died; he was succeeded by his daughter, Elizabeth II.
Go to article »

PHOTOS OF THE DAY

A wintry snow shower over the Stade fishing beach this morning in Hastings, East Sussex, England.
Credit: The Telegraph

Fools dressed as balloonists celebrate in the streets of Damme near Osnabrueck, northern Germany, during a traditional carnival parade. The small town of Damme traditionally organises its carnival parade one week ahead of Rose Monday.
Credit: The Telegraph

A woman looks at an art installation titled Temple of the Soul – Two Suns is seen on Gyeongpo Beach as part of the Fire Art exhibition with the Pyeongchang Cultural Olympiad in celebration of the 2018 Pyeongchang Winter Olympics, in South Korea. The Olympic opening ceremony will be held this Friday, February 9^th. Throughout the Olympics each of the 23 pieces of art will be burned as part of the art exhibit.
Credit: The Telegraph
Market Closes for February 6^th, 2018

Market Index	Close	Change
Dow Jones	24912.77	+567.02   +2.33%
S&P 500	2695.14	+46.20   +1.74%
NASDAQ	7115.883	+148.357   +2.13%
TSX	15363.93	+29.12
		+0.19%

International Markets

Market Index	Close	Change
NIKKEI	21610.24	-1071.84
		-4.73%
HANG SENG	30595.42	-1649.80
		-5.12%
SENSEX	34195.94	-561.22
		-1.61%
FTSE 100*	7141.40	-193.58
		-2.64%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.365		2.295
CND. 30 Year Bond		2.461		2.418
U.S.    10 Year Bond		2.8054		2.7000
U.S. 30 Year Bond		3.0684		2.9961

Currencies

BOC Close	Today	Previous
Canadian $	0.80043	0.79826
US $	1.24933	1.25273
Euro Rate 1 Euro=		Inverse
Canadian $	1.54614	0.64677
US $	1.23757	0.80803

Commodities

Gold	Close	Previous
London Gold Fix	1331.40	1333.60
Oil
WTI Crude Future	63.39	64.15

Market Commentary:
Number of the Day
503 
The number of components in the (slightly misnamed) S&P 500 that fell in Monday’s trading. Two were up. None were unchanged.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for the first time in seven trading days after a turbulent session that saw the benchmark tumble 2.5 percent at the open.
     The S&P/TSX Composite Index rose 29 points or 0.2 percent to 15,363.93, the first increase since Jan. 26. Cannabis stocks led the gains, with Canopy Growth Corp. jumping 19 percent and Aphria Inc. rising 18 percent.
     The consumer discretionary index rose 1.2 percent. Auto supplier Magna International Inc. jumped 4.7 percent, the most since May, following stronger-than-expected results from customer General Motors Co.
      In other moves:
                         Stocks
* Element Fleet Management Corp. fell 29 percent, the most ever, after the company said it was no longer exploring a sale
* Nutrien Ltd. lost 2.9 percent. The potash company’s 2018 outlook and fourth-quarter results missed most analyst estimates
* Superior Plus Corp. rose 4.6 percent after the stock was rated a new buy at Desjardins Securities
                         Commodities
* Western Canada Select crude oil traded at a $30 discount to WTI
* Gold fell 0.5 percent to $1,326.10 an ounce, the lowest since Jan. 11
                          FX/Bonds
* The Canadian dollar strengthened 0.2 percent to $1.2511 per U.S. dollar
* The Canada 10-year government bond yield rose seven basis points to 2.36 percent
US
By Sarah Ponczek and Kailey Leinz
     (Bloomberg) — U.S. stocks rebounded from a violent selloff to post the biggest rally in 15 months as investors poured back into some of the most beaten-down sectors.
     Technology, materials and consumer shares paced a 1.7 percent gain in the S&P 500 Index, while DowDuPont and Home Depot led a 567 point surge in the Dow Jones Industrial Average, the biggest gain in two years. The ride wasn’t straight up, though. The Dow plunged more than 500 points at the open, adding to anxiety after Monday’s rout — the worst in almost seven years. Stocks swung between gains and losses no fewer than a dozen times before a late-session rally.
     The benchmark for U.S. share volatility went through wild gyrations after hitting a two-year high. Treasury yields swung before nudging higher. The greenback was little changed after two days of gains.
     Earlier, the Stoxx Europe 600 Index slumped the most since June 2016, and Japan’s Nikkei entered a correction as most of the shares on the 1,000-plus member MSCI Asia Pacific Index declined. European bonds traded higher.
     What began with rising bond yields became a selloff across global equity markets late last week, as investors feared the return of inflation and higher rates that could erode profitability for companies already trading at elevated valuations. Traders are watching how the moves unfold from here — a sustained stock slump has the potential to undermine consumer and business sentiment, crimp borrowing and so start to curtail global growth.
    “Based on where we stand relative to historic averages, there may be more pain ahead,” David Lebovitz, global market strategist at JPM Asset Management, said in a message. “However, with economic growth solid, profits rising and central banks only normalizing policy at a gradual pace, it seems reasonable to expect that we will look back on this a few months from now and not even remember what the initial plunge felt like.”
     Earlier Tuesday, the Cboe Volatility Index, a gauge of implied volatility for the S&P 500 Index over the next month, breached 50 to touch its highest level since the aftermath of China’s devaluation of the yuan in 2015.
     Elsewhere, oil declined and metals fell. Bitcoin traded around $7,600 after at one point sinking below $6,000 for the first time since October.
     Here are some key events scheduled for this week:
* Monetary policy decisions are due in Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
* Earnings season continues with reports from Walt Disney, SoftBank, Sanofi, Philip Morris, Tesla, Rio Tinto, L’Oreal and Twitter.
* Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index gained 1.7 percent as of 4 p.m. New York time, the biggest surge in 15 months.
* The Stoxx Europe 600 Index decreased 2.4 percent.
* The U.K.’s FTSE 100 Index dipped 2.6 percent.
* The MSCI Emerging Market Index sank 2.5 percent to the lowest in almost five weeks.
                           Currencies
* The Bloomberg Dollar Spot Index fell less than 0.05 percent.
* The euro climbed less than 0.05 percent to $1.2371.
* The British pound declined 0.1 percent to $1.3949.
* The Japanese yen declined 0.4 percent to 109.56 per dollar.
                           Bonds
* The yield on 10-year Treasuries climbed nine basis points to 2.80 percent.
* Germany’s 10-year yield declined four basis points to 0.69 percent.
* Britain’s 10-year yield fell four basis points to 1.521 percent, the biggest fall in almost five weeks.
                          Commodities
* West Texas Intermediate crude dipped 1 percent to $63.43 a barrel.
* Gold fell 1.3 percent to $1,322.74 an ounce.
* Copper fell 1.3 percent to $7,076 per metric ton.
–With assistance from Adam Haigh, Samuel Potter, Luke Kawa, Lu Wang and Julie Verhage.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

As ever,

 

Carolann

 

Alone we can do so little; together we can do so much.
                                     -Helen Keller, 1880-1968

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:

André-Gustave Citroën was born on this day in 1878. The French engineer and industrialist introduced Henry Ford’s methods of mass production to the European automobile industry when he converted his munitions factory into a facility to make low-cost vehicles after World War I.

POINTS OF PROGRESS:
WORLDWIDE
Pirate attacks against ships worldwide fell to their lowest level in more than two decades last year, according to the International Maritime Bureau.  A total of 180 incidents of piracy and armed robbery against ships were recorded in 2017, the lowest since noted, however, that piracy has increased in the Philippines, Bangladesh, and several areas in Africa. -The Straits Times

VANUATU
Vanuatu’s Council of Ministers has banned the manufacturing and importing of single-use plastic bags in this South Pacific nation.  The council made its move after a study showed a large amount of plastic garbage had accumulated on the main island of Efate.  As of Jan. 31, plastic bag manufacturers will only be allowed to use biodegradable plastics on all of the nation’s 80-some islands. -Radio New Zealand

SAUDI ARABIA
As of this month, Saudi women will be allowed to attend professional soccer matches for the first time in the country’s history.  Also, early in 2018, the government will begin issuing tourist visas to women older than 24, allowing them to leave the country without a male guardian.  -The Guardian and The National

CAMBODIA
Wages for worker in Cambodia’s garment industry rose by 11 percent on Jan. 1, evidence of a continuing trend.  The country’s garment workers have seen their wages increase by more than 150 percent over the past five years, from $61 per month in 2012 to a new high of $170 in 2018.  Cambodia’s $7 billion garment industry employs an estimated 700,000 workers. -Reuters

PARAGUAY
Giant lily pads believed to be extinct have reappeared.  The fragrant lilies known for their size (as large as six feet in diameter) and unusual shape (rimmed, like a teacup) – have reappeared at the mouth of the Salado River, a tributary of the Paraguay River.  The lilies had been listed as endangered in 2006 and later were believed to have disappeared. -BBC

PHOTOS OF THE DAY

A winter wonderland scene near Alston, Cumbria. Forecasters warning that the UK will experience the coldest spell of weather this winter in the coming week with heavy snowfalls and sub-zero temperatures.
CREDIT:  PAUL KINGSTON/NNP

Elisa Costantini performs in the Flight of Angel on in Venice, Italy. The traditional event goes back to the Serenissima period, and marks the official start of the Venice carnival.
CREDIT: AWAKENING/GETTY IMAGES

People dressed as ‘Pantallas’ dance and run, enjoying the Corredoiro Carnival Sunday in Xinzo de Limia, Ourense, Spain.
CREDIT: FOTOPRESS/GETTY IMAGES

A traditional Powhiri is given to the New Zealand Governor General Dame Patsy Reddy at Te Whare Runanga on the Waitangi Treaty Grounds in New Zealan. The Waitangi Day national holiday celebrates the signing of the treaty of Waitangi on February 6. 1840 by Maori chiefs and the British Crown, that granted the Maori people the rights of British Citizens and ownership of their lands and other properties.
CREDIT: PHIL WALTER/GETTY IMAGES
Market Closes for February 5^th, 2018

Market Index	Close	Change
Dow Jones	24345.75	-1175.21   -4.60%
S&P 500	2648.94	-113.19   -4.10%
NASDAQ	6967.527	-273.419   -3.78%
TSX	15334.81	-271.23
		-1.74%

International Markets

Market Index	Close	Change
NIKKEI	22682.08	-592.45
		-2.55%
HANG SENG	32245.22	-356.56
		-1.09%
SENSEX	34757.16	-309.59
		-0.88%
FTSE 100*	7334.98	-108.45
		-1.46%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.295		2.361
CND. 30 Year Bond		2.418		2.435
U.S.    10 Year Bond		2.7000		2.8354
U.S. 30 Year Bond		2.9961		3.0784

Currencies

BOC Close	Today	Previous
Canadian $	0.79826	0.80462
US $	1.25273	1.24282
Euro Rate 1 Euro=		Inverse
Canadian $	1.55055	0.64493
US $	1.23773	0.80783

Commodities

Gold	Close	Previous
London Gold Fix	1333.60	1331.15
Oil
WTI Crude Future	64.15	65.45

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell the most in 17 months as a rapid crash in the Dow Jones Industrial Average led North American indexes lower.
     The S&P/TSX Composite Index fell 271 points or 1.7 percent to 15,334.81, the lowest since mid-September. The benchmark has now lost 5.6 percent in the past six trading days.
     All sectors were lower Monday, with financials leading the decline, down 2.4 percent. Bank of Montreal lost 3 percent and Toronto-Dominion Bank fell 2.9 percent.
     The energy index retreated 2 percent along with West Texas Intermediate crude prices. The gap between Canadian crude and WTI remained the widest since 2013.
     In other moves:
                          Stocks
* Hudson’s Bay Co. lost 2.4 percent. The retailer named CVS Health Corp. executive Helena Foulkes as its chief executive officer
* Aurora Cannabis Inc. jumped 8.8 percent, bucking the broader market sell-off, after taking a 20 percent stake in Liquor Stores NA Ltd., which rose 2.1 percent
* Canaccord Genuity Group Inc. lost 6.5 percent. The stock was downgraded to hold at TD Securities
                          Commodities
* Western Canada Select crude oil traded at a $30.60 discount to WTI
* Gold fell 0.1 percent to $1,333 an ounce
                          FX/Bonds
* The Canadian dollar weakened 0.8 percent to $1.2523 per U.S. dollar, the lowest in nearly four weeks
* The Canada 10-year government bond yield fell five basis points to 2.31 percent, the most since December
US
By Sarah Ponczek and Jeremy Herron
     (Bloomberg) — U.S. stocks plunged the most in 6 1/2 years, with the Dow Jones Industrial Average sinking 1,175 points, as the equity selloff reached a fever pitch amid rising concern that inflation will force interest rates higher. Treasuries rallied and gold rose on haven demand.
     Volatility roared back into American equity markets, as the S&P 500 Index sank 4.1 percent to wipe out its January gain and turn lower on the year. The index capped its worst day since the U.S. lost its pristine credit rating, topping the rout that followed China’s shock devaluation of the yuan, the Brexit selloff and jitters heading into the presidential election. Trading volume was almost double the 30-day average. All but two stocks in the broad gauge declined.
     “This is classic risk off that may not end any time soon,” says Win Thin, head of emerging-market currency strategy at Brown Brothers Harriman.
     Selling accelerated shortly after 3 p.m. in New York, with the Dow sinking more than 800 points in a matter of 15 minutes to put its drop at 1,597 points. It snapped back in 10 minutes before turning lower again to end down 4.6 percent — its steepest drop since August 2011, and is also lower for the year. The Cboe Volatility Index more than doubled to its highest level in 2 1/2 years.
     Treasuries popped, sending the 10-year yield down more than 10 basis points, and gold future pushed higher. The dollar stabilized while the yen advanced.
     While Friday’s market rout came amid U.S. wage data on Friday that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies, the selling Monday came amid few major data points.
     “I think sentiment was a little too optimistic,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “What was driving the market up in January? It wasn’t the fundamentals, as good as they were, it was excessive confidence.”
     Elsewhere, oil extended declines after U.S. explorers raised the number of rigs drilling for crude to the most since August. Copper climbed the most in a week. Bitcoin slid below $7,000.
     Here are some key events scheduled for this week:
* Monetary policy decisions are due in Australia, Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
* Earnings season continues with reports from Bristol-Myers Squibb, Ryanair, Toyota Motor Corp., BNP Paribas, BP, General Motors, Walt Disney, SoftBank, Sanofi, Philip Morris, Total, Tesla, Rio Tinto, L’Oreal and Twitter.
* Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.
     These are the main moves in markets:
                         Stocks
* The S&P 500 fell 4.1 percent as of 4 p.m. New York time, to the lowest since Dec. 7.
* The Dow fell 1,175.21 points, or 4.6 percent, while the Nasdaq averages were off by more than 3.7 percent.
* The Russell 2000 Index lost 3.6 percent.
* The Stoxx Europe 600 Index declined 1.6 percent , hitting the lowest in almost 12 weeks with its sixth consecutive decline.
* The MSCI Emerging Markets Index lost 1.9 percent.
                         Currencies
* The Bloomberg Dollar Spot Index gained 0.4 percent.
* The euro decreased 0.6 percent to $1.2385.
* The British pound declined 1.1 percent to $1.3967, the weakest in almost two weeks.
* The Japanese yen gained 0.8 percent to 109.242 per dollar.
                          Bonds
* The yield on 10-year Treasuries fell 13 basis points to 2.71 percent.
* Germany’s 10-year yield declined three basis points to 0.74 percent, the largest decrease in almost six weeks.
* Britain’s 10-year yield declined two basis points to 1.558 percent.
                          Commodities
* West Texas Intermediate crude dipped 2.2 percent to $64.01 a barrel.
* Gold advanced 0.1 percent to $1,334.76 an ounce.
* Copper gained 1.8 percent to $7,169 per metric ton.
–With assistance from Andrew Dunn, Adam Haigh, Natasha Doff, Kailey Leinz and Lananh Nguyen.

Have a wonderful evening everyone.

Be magnificent!

As ever,

 

Carolann

 

Jealousy is all the fun you think they had.
                                    -Erica Jong, b. 1942

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 this day in 1887, Groundhog Day is celebrated for the first time at Gobbler’s Knob in Punxsutawney, Penn. The groundhog saw its shadow.

6 More Weeks of Winter: Punxsutawney Phil Sees His Royal Shadow
                     -By Jeanna Bryner, Live Science Managing Editor 

Punxsutawney Phil, the seemingly immortal and consistently cute groundhog and weather prognosticator, has emerged from his burrow on Gobbler’s Knob in Punxsutawney, Pennsylvania, this morning (Feb. 2) only to see his shadow, indicating six more weeks of winter.
The furry, well-fed groundhog — also called a woodchuck, marmot and whistle-pig — was welcomed by flashing TV cameras and a cheering crowd. And he apparently had something to say, speaking Groundhogese to the Punxsutawney Groundhog Club president, Bill Deeley, who reported that Phil directed him to a scroll that read: “… My faithful followers, your hands and my paws are getting cold, so here’s my forecast, not lead but solid gold. I see my royal shadow, six more weeks of winter to go.” Lots of cheering, and some boos, followed from the huge crowd that turned out in front of Gobbler’s Knob.
This is Phil’s 132nd weather forecast. And while your average groundhog (Marmota monax) in captivity lives about 10 years, the marmot’s caregivers maintain there has been only one furry forecaster.
Another claim of Phil’s handlers: that the well-pampered (he lives next to the children’s library the other 364 days of the year) rodent is spot-on with his forecasts every year.
“He sees his shadow about 80 percent of the time and the other 20 percent he doesn’t,” Deeley told Live Science previously. “He’s pretty darn accurate.”
The various incarnations of Punxsutawney Phil have seen their shadow 103 times (more winter) and reported no shadow, or early springs, 18 times. And in 1942, apparently, Phil saw a partial shadow, which was counted as “no shadow,” according to Stormfax Almanac. There is no record for nine years. Overall, Phil has swung it out of the park about 39 percent of the time, according to Stormfax Almanac.
Last year, Phil reported seeing his shadow, suggesting six more weeks of winter. At the end of February, forecasters did predict winter would stay around into spring, AccuWeather reported.
The weather-forecasting powers of woodchucks seem to date back to medieval Europe and were brought to the United States by German immigrants in the 1880s, Live Science previously reported.
Original article on Live Science.

On Feb. 2, 1943, the remainder of Nazi forces from the Battle of Stalingrad surrendered in a major victory for the Soviets in World War II.
Go to article ??

PHOTOS OF THE DAY

A super blue blood moon behind a mountain is seen from Longyearbyen, Svalbard, Norway.

A Soyuz 2.1a rocket booster with a Frigate upper stage block launched from the Vostochny Cosmodrome. The Soyuz 2.1s rocket booster is to deliver Russian Kanopus-V No3 and No4 remote sensing satellite and 9 small satellites to orbit.

An Indian Hindu devotee touches the water of the river Ganges on its pass through Brijghat in the Indian state of Uttar Pradesh.
Market Closes for February 2^nd, 2018

Market Index	Close	Change
Dow Jones	25520.96	-665.75   -2.54%
S&P 500	2764.26	-57.72   -2.05%
NASDAQ	7240.945	-144.918   -1.96%
TSX	15614.39	-246.53
		-1.55%

International Markets

Market Index	Close	Change
NIKKEI	23274.53	-211.58
		-0.90%
HANG SENG	32601.78	-40.31
		-0.12%
SENSEX	35066.75	-839.91
		-2.34%
FTSE 100*	7443.43	-46.96
		-0.63%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.361		2.364
CND. 30 Year Bond		2.435		2.417
U.S.    10 Year Bond		2.8354		2.7840
U.S. 30 Year Bond		3.0784		3.0200

Currencies

BOC Close	Today	Previous
Canadian $	0.80462	0.81536
US $	1.24282	1.22645
Euro Rate 1 Euro=		Inverse
Canadian $	1.54787	0.64605
US $	1.24545	0.80292

Commodities

Gold	Close	Previous
London Gold Fix	1331.15	1341.35
Oil
WTI Crude Future	65.45	65.80

Market Commentary:
Number of the Day
$546 million
Tesla Inc. sold $546 million of bonds backed by lease payments on Model X and Model S vehicles on Thursday, the latest sign of how yield-hungry investors continue to soak up corporate debt of all flavors.
CANADA
By Kristine Owram
     (Bloomberg) — Canadian stocks posted their worst week since January 2016, falling to the lowest in nearly five months amid a broader global rout.
     The S&P/TSX Composite Index tumbled 255 points or 1.6 percent to 15,606.03. The benchmark fell 3.9 percent on the week as a combination of rising bond yields and worsening sentiment weighed on stocks.
     The health-care index was the biggest decliner, losing 5.4 percent as marijuana stocks Canopy Growth Corp. and Aphria Inc. led the drop with double-digit losses.
     Materials tumbled 2.8 percent as precious and base metals fell, and energy lost 2.1 percent as the gap between Canadian crude and West Texas Intermediate widened to the largest since 2013.
     In other moves:
                          Stocks
* Canada Goose Holdings Inc. was one of the few gainers, adding 1.6 percent ahead of next week’s earnings release
* Imperial Oil Ltd. fell 4.3 percent after fourth-quarter earnings per share missed the average analyst estimate
* Norbord Inc. lost 2.8 percent even as fourth-quarter earnings beat estimates
                          Commodities
* Western Canada Select crude oil traded at a $30.55 discount to WTI, the widest since 2013
* Gold fell 0.8 percent to $1,333.70 an ounce
                           FX/Bonds
* The Canadian dollar weakened 1.2 percent to $1.2419 per U.S. dollar as U.S. jobs data strengthened the greenback
* The Canada 10-year government bond yield was little changed at 2.36 percent
US
By Jeremy Herron
     (Bloomberg) — The Dow Jones Industrial Average tumbled 666 points in the biggest plunge since June 2016, as the worsening bond rout stirred angst that the Federal Reserve will accelerate its rate-hike schedule.
     Solid jobs data that underscored the strength of the economy sent bond bulls scurrying and rattled equity investors who haven’t seen a week this bad in two years. The tandem selling accelerated after Dallas Fed President Robert Kaplan suggested officials may need to hike more than three times this year to cool the advance. The 10-year Treasury yield popped above 2.85 percent for the first time since January 2014.
     “Yields have risen, inflation evidence is rising rather broadly. It’s that combo of factors that’s starting to mount,” Jim Paulsen, chief investment strategist at Leuthold Weeden, said by phone. “And then you get a report, and that’s the straw that breaks the camel’s back, and that’s kind of what we got into today.”
     There was nowhere to hide on the stock market, with all 11 S&P 500 sectors lower. The index’s five-day rout reached 3.9 percent — marking its first pullback of at least that much in a record 404 days. Energy shares sank 4.1 percent as earnings disappointed and crude slumped. The tech selloff worsened, sending the Nasdaq 100 Index lower by 2.1 percent. Its weekly rout hit 3.7 percent, most since February 2006. Not even a record rally at Amazon.com Inc. could rescue the measure, as the world’s biggest company, Apple Inc. hit its lowest since October.
     “People are finally starting to reprice reflation, it’s about time,” Jeanne Asseraf-Bitton, head of global cross-asset research at Lyxor Asset Management, said by phone. “Global economic growth is strong and corporate earnings are very solid, so there’s no reason to question the equity bull market. The rise in bond yields is good, it’s just the speed at which it’s happening that is making investors nervous. Bottom line: this is a healthy correction.”
     U.S. hiring picked up in January and wages rose at the fastest annual pace since the recession ended, as the economy’s steady move toward full employment extended into 2018. Equities are being tested by the surge in bond yields, with some fund managers saying 3 percent U.S. 10-year rates would signal a bond bear market. The level is seen by many stock-watchers as a potential trigger for a correction in equities.
     In Europe, a bond selloff deepened across the continent, and equities dropped for a fifth straight day, the longest streak since November. Disappointing results from companies including Deutsche Bank AG and BT Group Plc. paced losses, with Germany’s DAX giving up the year’s gains, capping the worst weekly decline since 2016. Bund yields reached a fresh two-year high, while the euro and British pound weakened. Japanese debt gained and the yen declined after the Bank of Japan intervened to stem the rise in rates.
     These are the main moves in markets:
                        Stocks
* The S&P 500 Index fell 2.1 percent to 2,761.91 at 4 p.m. in New York.
* The Dow Jones Industrial Average lost 668.64 points to close at 25,518.07, the lowest since Jan. 10.
* The Nasdaq 100 Index lost 2.1 percent.
* The Stoxx Europe 600 Index decreased 1.4 percent, wiping out gains this year with its fifth consecutive decline. It lost 3.1 percent in the week.
* Germany’s DAX Index sank 1.7 percent, the most since June. It closed a four-month low.
* Emerging market stocks lost 1.6 percent, for a weekly drop of 3.5 percent, the most since May 2016.
* The MSCI Asia Pacific Index fell 0.7 percent.
* Topix index fell 0.3 percent, Hong Kong’s Hang Seng Index dropped 0.1 percent, the Kospi index declined 1.7 percent, Australia’s S&P/ASX 200 Index rose 0.5 percent.
                        Currencies
* The Bloomberg Dollar Spot Index gained 0.8 percent, the largest rise in more than 10 weeks.
* The euro declined 0.4 percent to $1.2457.
* The British pound fell 1 percent to $1.4123.
* The Japanese yen fell 0.7 percent to 110.144 per dollar, the weakest since Jan. 23.
                         Bonds
* The yield on 10-year Treasuries rose five basis points to 2.834 percent. It touched 2.8525 earlier.
* Germany’s 10-year yield rose five basis points to 0.77 percent, the highest in more than two years.
* Japan’s 10-year yield dipped one basis point to 0.086 percent.
                         Commodities
* West Texas Intermediate crude fell 0.5 percent to settle at $65.45 a barrel.
* Gold posted the biggest weekly drop since early December. Futures on Friday decreased 0.8 percent to settle at $1,337.30 an ounce.
–With assistance from Masaki Kondo, Cormac Mullen and Robert Brand 

Have a wonderful weekend everyone.

 

Be magnificent!

As ever,

 

Carolann

I always pass on good advice.  It is the only thing
to do with it.  It is never of any use to oneself.
                       -Oscar Wilde, 1854-1900

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:
February – the month of purification among the ancient Romans (Latin februum,”purgatation”)

POINTS OF PROGRESS:
NORWAY
In 2017, sales of electric or hybrid cars (52 %) outpaced sales of new gas or diesel-powered cars.  The country’s ambitious goal is to ban sales of gas-reliant cars by 2025.  The Norwegian government is offering tax cuts and other incentives, including free or subsidized parking and charging, and reduced road tolls, to achieve its goal. -Quartz.

CHINA
The country  – the world’s largest importer of elephant tusks – banned ivory sales early this month.  Although not all environmentalists approve (some predict it will drive traffic in ivory to countries such as Laos), others applaud the move.  Peter Knights, chief executive of WildAid, called the new legislation “the greatest single step toward reducing elephant poaching. -CBC

NEW YORK
Between 2011 and 2016, community gardens were created on 36 vacant lots, when advocacy group 596 Acres circulated a list of unused spaces available for public use.  The movement to inform residents of vacant lots that they may not have realized were open to the public use has since spread throughout the United States and to Australia, Canada, Brazil, England and Germany. -World Economic Forum.
PHOTOS OF THE DAY

A paddle boarder on Loch Lomond as wintery conditions return in Tarbet, Scotland.
CREDIT: JEFF J MITCHELL/GETTY IMAGES

A Panel from the First Class smoking room of the Normandie. ‘Les Sports’ 1935 on display at the V&A in London as part of a major exhibition – Ocean Liners: Speed and Style which will re-imagine the golden age of ocean travel, exploring the design and cultural impact of the ocean liner on an international scale.
CREDIT: JULIAN SIMMONDS FOR THE TELEGRAPH

A super blue blood moon rises over hills near the city of Yuzhno-Sakhalinsk on Sakhalin Island, Russia.
CREDIT: SERGEI KRASNOUKHOV/TASS/GETTY IMAGES

The European flag is projected onto the town hall at the Grand Place in Brussels, Belgium, during a light and sound show to mark the launch of the European year of cultural heritage 2018.
CREDIT: EMMANUAL DUNAND/AFP
Market Closes for February 1^st, 2018

Market Index	Close	Change
Dow Jones	26186.71	+37.32   +0.14%
S&P 500	2821.98	-1.83   -0.06%
NASDAQ	7385.863	-25.619   -0.35%
TSX	15860.92	-90.75
		-0.57%

International Markets

Market Index	Close	Change
NIKKEI	23486.11	+387.82
		+1.68%
HANG SENG	32642.09	-245.18
		-0.75%
SENSEX	35906.66	-58.36
		-0.16%
FTSE 100*	7490.39	-43.16
		-0.57%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.364		2.289
CND. 30 Year Bond		2.417		2.360
U.S.    10 Year Bond		2.7840		2.7050
U.S. 30 Year Bond		3.0200		2.9348

Currencies

BOC Close	Today	Previous
Canadian $	0.81536	0.81252
US $	1.22645	1.23074
Euro Rate 1 Euro=		Inverse
Canadian $	1.53429	0.65177
US $	1.25100	0.79936

Commodities

Gold	Close	Previous
London Gold Fix	1341.35	1345.05
Oil
WTI Crude Future	65.80	64.73

Market Commentary:
On this day in 1975, Bill Gates and Paul Allen finish writing the first BASIC language program for a personal computer and license it to Micro Instrumentation and Telemetry Systems of Albuquerque, NM, the maker of the Altair 8800 PC.
Number of the Day
10
The Dow Jones Industrial Average has risen for ten consecutive months, the longest winning streak since the 12 months ending February 1959.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell to their lowest close since October after a 4th day of declines, while government bond yields rose to the highest since mid-2014.
     The S&P/TSX Composite Index lost 91 points or 0.6 percent to 15,860.92. The 4-day retreat was the most in nearly a year.
     Energy stocks lost 0.6 percent as the gap between Canadian crude prices and West Texas Intermediate hit the widest since 2013. Financials fell 0.6 percent and health-care stocks tumbled 4.4 percent, led by a decline in cannabis shares.
     The only sector that rose was technology, which added 2.6 percent. Shares of Open Text Corp. jumped 13 percent, the most since 2015, after earnings and revenue beat the highest analyst estimate.
     In other moves:
                          Stocks
* Saputo Inc. fell 2.6 percent after the dairy company’s 3Q earnings missed the lowest analyst estimate
* Stella-Jones Inc. lost 8.2 percent, the most since 2008. The company’s principal shareholder is selling 5m shares at C$48.50 through a secondary offering
* Aimia Inc. tumbled 25 percent, the most since June, after selling its Nectar loyalty program for what one analyst called a “remarkably low price”
                          Commodities
* Western Canada Select crude oil traded at a $30.45 discount to WTI, the biggest gap since 2013
* Gold rose 0.4 percent to $1,344.30 an ounce
                          FX/Bonds
* The Canadian dollar strengthened 0.4 percent to $1.2269 per U.S. dollar, the highest since September
* The Canada 10-year government bond yield rose eight basis points to 2.37 percent, the highest since May 2014
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks and Treasuries fell in tandem Thursday ahead of a slew of technology earnings, as the threat of higher rates from the Federal Reserve continued to rattle equity markets coming off their best month since March 2016.
     The Nasdaq 100 Index bore the brunt of the selling as the tech-heavy gauge headed for its worst week since June. Amazon.com Inc. tumbled before its earnings, with Apple Inc. and Alphabet Inc. also fell on results that disappointed.
     Other major averages notched modest retreats in an up-dand- down session that actually saw the CBOE Volatility Index decline. The Dow Jones Industrial Average gave up all of a 150- point advance only to eke out a gain in the final minutes of trading. Rate-sensitive real estate and utility shares led the S&P 500 Index to a third drop in four days.
     While earnings drove individual stock moves, a resumption in the bond selloff weighed heaviest. The 10-year yield spiked to just under 2.79 percent, the highest level since April 2014, renewing speculation that pain in the bond market would spill over into equities. The dollar also fell, losing 0.5 percent against major peers.
     “The performance of the bond market has got to be beginning to flash red to equities,” Mark Heppenstall, chief investment officer of Penn Mutual Asset Management, said by phone. “Just the strength of rally in the equity market is going to bring the Fed more and more into play this year. It seems we’re reaching a critical level on interest rates that could throw some cold water on the party in the equity market.”
     Treasury weakness spread to European sovereign debt amid solid manufacturing data from the region, while earnings sent . The pound increased a third day alongside the euro, though U.K. numbers disappointed. Oil retook $65 a barrel and gold pushed higher. The dollar slumped.
     Investors are weighing the path of monetary policy at a time of synchronized global growth and rising corporate profits that’s pushed equity gauges to unprecedented levels and sent benchmark bond yields to the highest in almost four years. The Fed on Wednesday acknowledged stronger growth, expressed more confidence that inflation will rise to its 2 percent target, and set the stage for a March interest-rate increase.
     “The equity market has been selling off the last couple days in terms of understanding that rates are going to go higher and higher,” Wade Balliet, chief investment strategist at Bank of the West, said by phone. “Given some of the massive gains we’ve had in the last nine years, as rates trickle higher, that puts a little bit of nervousness in the equity market that we may not have as good a year as we had in 2017.”
     Elsewhere, oil rose and gold retreated as Bloomberg’s commodity index headed for a fourth consecutive drop. And following a miserable January Bitcoin slipped below $9,500.

     Here are some important things to watch out for this week:
* U.S. employers probably added more jobs in January than a month earlier, economists forecast before the Friday report.
* Technology earnings continue with Apple Inc., Alphabet Inc. and Amazon.com Inc.
     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index fell 0.1 percent to 2,821.96 at 4 p.m. in New York.
* The Nasdaq 100 fell 0.7 percent, while the Dow Jones Industrial Average rose 0.1 percent.
* Facebook Inc. rose 3.3 percent and Microsoft slipped 0.8 percent.
* The Stoxx Europe 600 Index fell 0.5 percent to the lowest in four weeks.
* The MSCI Asia Pacific Index gained 0.3 percent.
* The MSCI Emerging Market Index sank 0.5 percent.
                          Currencies
* The Bloomberg Dollar Spot Index fell 0.5 percent.
* The euro advanced 0.3 percent to $1.2456, the strongest in more than three years on the largest gain in more than a week.
* The British pound increased 0.3 percent to $1.423, the strongest in more than a week.
* The Japanese yen declined 0.4 percent to 109.59 per dollar, the weakest in more than a week.
* South Africa’s rand declined 0.3 percent to 11.8863 per dollar.
* The MSCI Emerging Markets Currency Index decreased 0.2 percent.
                           Bonds
* The yield on 10-year Treasuries increased eight basis points to 2.7877 percent.
* Germany’s 10-year yield advanced two basis points to 0.72 percent, the highest in more than two years.
* Britain’s 10-year yield climbed two basis points to 1.533 percent, reaching the highest in 21 months on its seventh straight advance.
                          Commodities
* West Texas Intermediate crude advanced 1.1 percent to $65.44 a barrel, the largest gain in more than a week.
* Gold fell 0.4 percent to $1,340.07 an ounce.
–With assistance from Samuel Potter and Kailey Leinz.

 

Have a wonderful evening everyone.

 

Be magnificent!

As ever,

 

Carolann

 

There’s a divinity that shapes our ends,
Rough-hew them how we will.
    -William Shakespeare, 1564-1616, Hamlet.

 

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:  Super Blue Moon tonight!

A super blood blue moon rises behind a temple in Bangkok, Thailand, Jan. 31. A NASA briefing describes the confluence of factors behind the phenomenon: ‘It is the third in a series of “supermoons,” when the Moon is closer to Earth in its orbit – known as perigee – and about 14 percent brighter than usual. It’s also the second full moon of the month, commonly known as a “blue moon.” The super blue moon will pass through Earth’s shadow to give viewers in the right location a total lunar eclipse. While the Moon is in the Earth’s shadow it will take on a reddish tint, known as a “blood moon.” ‘ Athit Perawongmetha/Reuters
(The illustrations in today’s Monitor Daily are by Jacob Turcotte and Karen Norris.)

PHOTOS OF THE DAY

The sun rises over East Sussex after a cold night.
CREDIT: PETER CRIPPS/ALAMY LIVE NEWS

Trees reflected in the water along the flooded banks of the Saone River between Tournus and Macon, eastern France.
CERDIT: PHILIPPE DESMZES/AFP/GETTY IMAGES

Gathering spaces and a plant-filled wall are shown before a grand opening ceremony for the Amazon Spheres in Seattle, US. The plant-filled geodesic domes will serve as a work-and gathering space for Amazon.com employees.
CREDIT: TED S. WARREN/AP
Market Closes for January 31^st, 2018

Market Index	Close	Change
Dow Jones	26149.39	+72.50   +0.28%
S&P 500	2823.81	+1.38   +0.05%
NASDAQ	7411.480	+8.999   +0.12%
TSX	15951.67	-3.84
		-0.02%

International Markets

Market Index	Close	Change
NIKKEI	23098.29	-193.68
		-0.83%
HANG SENG	32887.27	+279.98
		+0.86%
SENSEX	35965.02	-68.71
		-0.19%
FTSE 100*	7533.55	-54.43
		-0.72%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		2.289		2.298
CND. 30 Year Bond		2.360		2.377
U.S.    10 Year Bond		2.7050		2.7236
U.S. 30 Year Bond		2.9348		2.9747

Currencies

BOC Close	Today	Previous
Canadian $	0.81252	0.81031
US $	1.23074	1.23409
Euro Rate 1 Euro=		Inverse
Canadian $	1.52827	0.65433
US $	1.24175	0.80531

Commodities

Gold	Close	Previous
London Gold Fix	1345.05	1344.90
Oil
WTI Crude Future	64.73	64.50

Market Commentary:
On this day in 1990, McDonald’s opens its first restaurant in Russia. It has to import cheese from Poland, chickens from France, and potatoes from Holland, but the outlet on Moscow’s Pushkin Square is a huge success.
Number of the Day
3.44%
The average yield-to-maturity on U.S. investment-grade corporate bonds this week, up from from 3.05% in early September. 
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were little changed Wednesday, wrapping up their worst January since 2010.
     The S&P/TSX Composite Index slipped 4 points or less than 0.1 percent to 15,951.67, its lowest close since early December, as declines in energy and financials offset gains in most other sectors. The benchmark fell 1.6 percent on the month.
     Financials lost 0.3 percent and energy slipped 0.2 percent as the differential between Canadian crude prices and West Texas Intermediate hit the widest since 2013.
     Technology shares were the biggest gainers, adding 1 percent as Shopify Inc. rose 2.6 percent. Utilities gained 0.9 percent and telecom stocks rose 0.6 percent.
     In other moves:
                          Stocks
* Thomson Reuters Corp. fell 7.3 percent, giving up all of Tuesday’s gain. Analysts at National Bank Financial downgraded the stock, citing several “pressure points” in the Blackstone Group LP deal
* Imperial Oil Ltd. rose 1.9 percent, making it one of the top performers in the Canadian energy index, after RBC Capital Markets upgraded the stock
* Hudson’s Bay Co. rose 2.3 percent. Activist investor Land & Buildings Investment Management said a go-private transaction could be viable again
                          Commodities
* Western Canada Select crude oil traded at a $29 discount to WTI, the widest gap since 2013
* Gold rose 0.3 percent to $1,339.00 an ounce
                          FX/Bonds
* The Canadian dollar strengthened 0.3 percent to $1.2301 per U.S. dollar, the highest since September
* The Canada 10-year government bond yield was little changed at 2.29 percent
US
By Kailey Leinz and Sarah Ponczek
     (Bloomberg) — Treasury yields touched almost four-year highs and U.S. stocks managed to hold onto late gains after Federal Reserve officials set the stage for an rate increase in March by adding emphasis to their plan for more hikes while leaving borrowing costs unchanged.
     After being whipsawed by the Fed announcement, the S&P 500 Index closed higher for the first time in three days, rounding out the best start to the year for the U.S. benchmark since 1997. European and Asian equities continued to experience the pullback seen since the start of the week, with the Stoxx Europe 600 Index and the MSCI Asia Pacific Index both declining for a third day.
     The changes to the Fed statement, collectively acknowledging stronger growth and more confidence that inflation will rise to the 2 percent target. Officials also said inflation “is expected to move up this year and to stabilize” around the goal, in phrasing that marked an upgrade from December.
     “Some people who were not as hawkish before are probably a bit more hawkish now,” said John Vail, chief global strategist at Nikko Asset Management. “So let’s say probably due to economic developments, including the tax cut, the board and all the Fed members are moderately more hawkish than they were at the last meeting.”
     The yield on the 10-year U.S. note rose to as much as 2.75 percent, the highest since April 2014. It has climbed higher earlier the Treasury raised the amount of long-term bonds it will sell this quarter with the budget deficit worsening. The dollar briefly rallied before retracing losses.
     While U.S. bonds are off to their worst start to a year since 2009, it’s been a big month for stock markets, with stellar gains across most major gauges that were followed this week by the MSCI All-Country World Index’s biggest two-day slide since September 2016.
     
     Here are some important things to watch out for this week:
* U.S. employers probably added more jobs in January than a month earlier, economists forecast before the Friday report.

     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.1 percent, the Dow Jones Industrial Average gained 0.3 percent and the Nasdaq Composite Index increased 0.1 percent as of 4:09 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.2 percent.
* The MSCI Asia Pacific Index decreased 0.4 percent.
* The U.K.’s FTSE 100 Index dipped 0.7 percent.
                           Currencies
* The Bloomberg Dollar Spot Index declined 0.2 percent.
* The euro rose 0.1 percent to $1.2414.
* The British pound increased 0.3 percent to $1.4191.
* The Japanese yen weakened 0.4 percent to 109.17 per dollar.
                            Bonds
* The yield on 10-year Treasuries was little changed at 2.72 percent.
* Germany’s 10-year yield rose two basis points to 0.69 percent.
* Britain’s 10-year yield rose five basis points to 1.51 percent.
                           Commodities
* West Texas Intermediate crude gained 0.6 percent to $64.86 a barrel.
* Gold rose 0.5 percent to $1,345.76 an ounce.
–With assistance from Lu Wang.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

As ever,

 

Carolann

Rarely do great beauty and great virtue dwell together.
                            -Francesco Petrarch, 1304-1374

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