December 5, 2018 Newsletter

Dear Friends,

Tangents:
Today’s Birthdays:
1830~ Christine Rosetti
1901~ Walt Disney
1934~ Joan Didion
1946~ Jose Carreras

EXPERIENCE YOSEMITE:
Two filmmakers have created Project Yosemite, a time-lapse video that presents beautiful vistas of the California national park.  Craggy mountains, sweeping forests, and shining bodies of water can be seen in Colin Delehanty and Sheldon Neill’s work.  You can find the footage at www.projectyose.com. –CSM
PHOTOS OF THE DAY

Swans meander along The River Trent as the sun rises over Nottingham, as parts of the UK wake up to sub zero temperatures. Credit: SWNS.COM

Buyers share a joke during the annual Mistletoe and Holly Auctions held at Tenbury Wells, central England. The auctions, which have been held in Tenbury Wells for over 100 years, attract a range of buyers including florists, stately home owners, grocers, market stall holders, hoteliers, garden centres, and members of the public looking to decorate their homes for the Christmas season. Credit: Oli Scarff/AFP/Getty Images

Drone image shows Winchester Cathedral going multi coloured for Christmas. Credit: Chris Gorman/Bigladder
Market Closes for December 5^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The stock market is a device for transferring money from the impatient to the patient. -Warren Buffett.
Canada
Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose 0.8 percent at 15,182.64 in Toronto. The move follows the previous session’s decrease of 1.4 percent. Suncor Energy Inc. contributed the most to the index gain, increasing 3.3 percent. Cominar Real Estate Investment Trust had the largest increase, rising 5.5 percent. Today, 147 of 245 shares rose, while 87 fell; 9 of 11 sectors were higher, led by energy stocks.
US
US markets closed for a day of mourning for George H.W. Bush.

International Markets Commentary:
By Samuel Potter
     (Bloomberg) — European and Asian stocks dropped on Wednesday following the rout on Wall Street, though declines were contained and U.S. equity futures rose after China pledged to start delivering on trade agreements reached with America.
     The pound gained as traders weighed the latest on Brexit. Global markets were left reeling following Tuesday’s steep sell-off in New York, but nerves appeared to steady after China’s Commerce Ministry said Beijing will start to quickly implement specific items where there’s consensus with the U.S. and will push forward on trade negotiations within the 90-day “timetable and road map.” While the Stoxx Europe 600 Index slumped 1.2 percent, that was far less than the 3.2 percent plunge recorded by the S&P 500 a day earlier. Futures for America’s benchmark gauge advanced, though the U.S. market is closed on Wednesday to mark the death of President George H. W. Bush.
     Stocks fell in Japan, Korea, Australia and Hong Kong, and China’s yuan gave up some of its recent surge. The pound edged higher as investors digested legal advice over Prime Minister Theresa May’s Brexit deal, which confirmed that the so-called customs backstop — the insurance mechanism that kicks in if the Irish border issue cannot be resolved — could remain “indefinitely.” Benchmark German bunds rose before reversing, while Italian bonds jumped on mounting optimism for a positive end to the country’s budget spat with the EU.
     The break in trading in the U.S. offers respite to investors after a roller coaster few days, and a chance to reassess what might be behind the latest bout of selling. From the trade war to flattening Treasury yield curve there’s no shortage of culprits, but the underlying narrative appears to be mounting concern that the global growth picture is not as robust as it seems.
     China’s announcement, another twist in the trade war saga, was a dose of positive news. It ended days of silence from the Asian nation following a weekend meeting between Presidents Donald Trump and Xi Jinping. Upbeat statements from Trump had not been immediately matched by Beijing, helping fuel the equity tumult.
     Elsewhere, Australia’s dollar slid after weaker-than- anticipated economic growth for the third quarter. West Texas oil prices were little changed around $53 a barrel as traders await this week’s critical OPEC gathering. Bitcoin extends losses, dropping as much as 5.9 percent.
Some of the key events investors will be focused on this week:
* U.S. financial markets are closed Wednesday for a national day
of mourning to honor former President George H.W. Bush. Fed Chairman Jerome Powell’s testimony to Congress scheduled for Wednesday has been canceled.
* Friday brings the U.S. monthly employment report for November.
* China November trade data are due on Saturday.
And here are the main moves in markets:
Stocks
* Futures on the S&P 500 Index gained 0.6 percent.
* The Stoxx Europe 600 Index sank 1.2 percent to the lowest in more than a week on the biggest tumble in six weeks.
* The U.K.’s FTSE 100 Index sank 1.4 percent to the lowest in more than eight months on the largest tumble in almost eight weeks.
* Germany’s DAX Index decreased 1.2 percent to the lowest in more than a week on the biggest dip in more than two weeks.
* The MSCI Asia Pacific Index decreased 1.1 percent to the lowest in a week on the largest dip in more than two weeks.
* The MSCI Emerging Market Index decreased 1.3 percent, the biggest dip in more than two weeks.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2 percent to the highest in more than a week.
* The euro gained 0.1 percent to $1.1352.
* The British pound climbed 0.01 percent to $1.2730, the first advance in a week.
* The Japanese yen declined 0.3 percent to 113.13 per dollar, the biggest drop in more than a week.
Bonds
* Germany’s 10-year yield gained one basis point to 0.28 percent, the first advance in a week and the biggest rise in more than a week.
* Britain’s 10-year yield jumped three basis points to 1.316 percent, the first advance in more than a week and the largest surge in almost three weeks.
* The spread of Italy’s 10-year bonds over Germany’s decreased 11 basis points to 2.7832 percentage points to the smallest premium in almost 10 weeks.
Commodities
* West Texas Intermediate crude was little changed at $53.11 a barrel, after reaching the highest in two weeks.
* Gold was little changed at $1,238 an ounce.
–With assistance from Cormac Mullen and Adam Haigh.

Have a great night.

Be magnificent!

As ever,

True originality consists not in a new manner but in a new vision.
                                                -Edith Wharton, 1862-1937

Carolann 

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