February 14, 2018 Newsletter

Dear Friends,

Tangents: Happy Valentine’s Day!

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

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

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

PHOTOS OF THE DAY

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

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

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

International Markets

Bonds

Currencies

Commodities

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

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

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

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

Queensbury Securities Inc.,
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