December 21, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!

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

PHOTOS OF THE DAY

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

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

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

International Markets

Bonds

Currencies

Commodities

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

Have a great weekend!

Be magnificent!

As ever,

Karen

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

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com