February 11, 2019 Newsletter

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

The Milky Way above the Bathing House in Howick, Northumberland. Credit: Owen Humphreys/PA

Glasgow’s Chinese community celebrates the Chinese New year at a ceremony in Glasgow’s George Square and City Chambers. Credit: Wattie Cheung

A murmuration of starlings over Turkey’s northwestern Kirklareli Province. Credit: Ozgun Tiran/Anadolu Agency/Getty Images
Market Closes for February 11^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell for a third day as investors took a risk-off approach to a week that could provide clarity on global trade. Energy stocks gained, offset by declines in most other sectors.
     The S&P/TSX Composite Index lost 0.4 percent to 15,568.85, the lowest since Feb. 1. Health-care stocks led the decline, falling 2.6 percent as cannabis companies retreated ahead of earnings from two of the sector’s biggest players. Aphria Inc. slid 9.8 percent, the most since early December.
     Industrials fell 1 percent, led by a 7.4 percent drop at SNC-Lavalin Group Inc. to the lowest since 2009. The company issued its second profit warning in as many weeks after failing to reach an agreement over a disputed mining project in Latin America.
In other moves:
Stocks
* Restaurant Brands International Inc. rose 2.1 percent. The company reported earnings that beat analyst estimates and said it expects to open more than 1,500 Tim Hortons outlets in China over the next 10 years
* Sprott Resource Holdings Inc. jumped 16 percent, the most since 2016, after forming a special committee to maximize shareholder value 
* Canadian Tire Corp. fell 3.2 percent, the most since August. Barclays cut the company’s rating and price target, citing “daunting” competition from Amazon.com Inc.
Commodities
* Western Canada Select crude oil traded at a $11 discount to WTI
* Gold fell 0.5 percent to $1,311.80 an ounce
FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.3304 per U.S. dollar
* The Canada 10-year government bond yield rose 3 basis points to 1.91 percent
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — U.S. equities were mixed and trading volume was muted at the start of a week that could be pivotal for global trade, while lawmakers in Washington continue to negotiate a contentious spending bill. The dollar strengthened for an eighth day, and 10-year Treasuries fell.
     The S&P 500 finished higher after drifting most of the session, with advancing stocks outnumbering decliners. A faltering communication-services sector countered a gain in industrials driven by railroad shares. Health-care companies — including UnitedHealth, Pfizer and Merck — weighed on the Dow Jones Industrial Average. Volumes were lower than average, suggesting some people are waiting on the sidelines for more potent market catalysts to emerge.
     Investors are weighing the prospects for the success of this week’s high-level U.S.-China trade talks — coming just days before the March 1 deadline for higher tariffs. The threat of a shutdown in Washington also looms, with political tensions flaring again between Congress and the president.  Equities gained in China as exchanges reopened after a holiday. Japan’s securities markets were shut for a holiday, and the yen weakened.
     “Of the events looming on the horizon, the one we’re focused on most is the U.S.-China trade right now,” said Mona Mahajan, U.S. investment strategist at Allianz Global Investors in New York. “And I think that’s been an overhang not only on U.S. equities, but clearly on Chinese equities and the economy there as well.”
     Earnings season continues with the likes of Michelin reporting today, and Nissan and Cisco later this week. Yields rose on Treasuries and most European sovereign bonds. The pound stayed lower after the U.K. economy unexpectedly shrank in December.
     Elsewhere, West Texas crude futures hovered above $52 a barrel, while gold headed for its first drop in three sessions. The Swiss franc swooned almost 1 percent at the start of Asia trading Monday in a mini-recurrence of the “flash crash” that roiled FX markets early last month.
Here are some key events coming up:
* Earnings season continues with reports from companies including Michelin, Nissan, Cisco, Vivendi, Nvidia, Nestle, Coca-Cola and Credit Suisse.
* Sweden’s Riksbank is expected to keep interest rates at minus 0.25 percent on Wednesday after the first increase in more than seven years in December.
* Data Wednesday is expected to show U.S. consumer prices rose 0.1 percent in January, after falling 0.1 percent in December.
* If no deal is reached on the U.S-Mexico border wall, parts of the federal U.S. government may shut down again later this week when stopgap government funding expires.
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.1 percent, as of 4 p.m. New York time.
* The Nasdaq 100 declined 0.1 percent while the Dow Jones Industrial Average fell 0.2 percent.
* The Stoxx Europe 600 Index gained 0.9 percent.
* The MSCI Emerging Market Index fell 0.1 percent.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.5 percent, hitting the highest in almost six weeks.
* The euro fell 0.4 percent to $1.1277.
* The British pound dropped 0.6 percent to $1.2861, the weakest in almost a month.
* The Japanese yen dipped 0.6 percent to 110.38 per dollar, the weakest in more than six weeks.
Bonds
* The yield on 10-year Treasuries rose two basis points to 2.66
percent, the first advance in a week.
* Germany’s 10-year yield jumped three basis points to 0.12 percent.
* Britain’s 10-year yield increased three basis points to 1.18
percent.
Commodities
* West Texas Intermediate crude decreased 0.6 percent to $52.38 a barrel, the lowest in two weeks.
* Gold sank 0.4 percent to $1,308.41 an ounce.
–With assistance from Adam Haigh and Todd White.

Have a great evening.

Be magnificent!

As ever,

Karen

“The true secret of happiness lies in taking a genuine interest in all the details of daily life.” William Morris

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