February 16, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!

POINTS OF PROGRESS:

VENEZUELA
Two hundred plundered artifacts are to be returned to Costa Rica.  The Venezuelan government has said that it will repatriate 196 pre-Columbian stone and ceramic archaeological artifacts to Costa Rica.  The items, which had been sculpted by indigenous people native to Costa Rica, were found being illegally held by the estate of a Venezuelan collector. -TELESUR.

BELIZE
The country is halting all oil exploration in its waters to protect its coral reefs.  Oil exports make up more than a quarter of the nation’s total exports.  But tourism accounts for 10% of Belize’s gross domestic product – with coral reefs at the top of the list of the nation’s tourist attractions. -QUARTZ

ICELAND
It is now illegal to pay women less than men for the same job.  A new law passed by Iceland’s Parliament states that as of Jan. 1^st, public and private employers with 25 employees or more must obtain government certification of equal pay policies.  The 2017 Global Gender Gap Report ranks Iceland as the country with the most gender equity in the world. –THINKPROGRESS

DENMARK
Wind power generated 43.4 % of Denmark’s electricity in 2017.  In March 2017, for one 24-hour period, the country was able to generate all of its electricity needs through wind power.  The push toward wind power – which is subsidized by the Danish government – is part of the country’s drive to be coal-free by 2030. –FUTURISM
PHOTOS OF THE DAY

Ethnic Malaysian-Chinese devotees arrive to offer prayers at the Thean Hou temple decorated with red lanterns in Kuala Lumpur, Malaysia, on the eve of the Lunar New Year.
CREDIT: Manan Vatsyayana

A wild camper watches the sun set in a snow covered Thirlmere Valley in the Lake District, Cumbria.
CREDIT: Paul Kingston/NNP

People perform a dragon dance to celebrate the Spring Festival in Yongcheng in central China’s Henan province.
CREDIT: FEATURE CHINA/BARCROFT IMAGES
Market Closes for February 16^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1878, the Bland-Allison Act became law, allowing the U.S. to mint silver dollars again just five years after a Congressional act prioritizing gold over silver sparked outrage among miners and farmers.
Number of the Day
73%
The three-month correlation between S&P 500 sectors jumped Monday to 73%, according to Goldman Sachs data, nearly double last year’s average of 37%. Some investors fear stocks’ intertwined rally could lead to more turbulence ahead.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest in nearly two weeks and have retraced about one-third of the benchmark’s recent decline, boosted by strong earnings and deal activity.
     The S&P/TSX Composite Index added 79 points or 0.5 percent to 15,407.66. Real estate shares were the biggest gainers, rising 2 percent as Canadian Real Estate Investment Trust jumped 16 percent, the most ever. Choice Properties REIT is buying Canadian REIT for C$3.93 billion.
     The materials index was the only decliner, losing 0.4 percent amid concerns about gold miners’ ability to contain costs. Kinross Gold Corp. tumbled 7.3 percent, the most since 2016, after reporting weaker-than-expected quarterly results.
     In other moves:
                          Stocks
* Bombardier Inc. jumped 11 percent after reporting the highest cash flow in seven years
* Canadian Tire Corp. rose 6.6 percent to a record high. Fourth- quarter earnings per share beat the highest estimate
* Cenovus Energy Inc. fell 5.3 percent to the lowest since August. The company will consider selling more of its holdings to speed up efforts to repair its balance sheet, its CEO said
                          Commodities
* Western Canada Select crude oil traded at a $26.50 discount to WTI, the widest in eight trading days
* Gold fell 0.3 percent to $1,352.10 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2485 per U.S. dollar
* The Canada 10-year government bond yield was little changed at 2.38 percent
US
By Kailey Leinz
     (Bloomberg) — U.S. stocks held onto gains to cap their best week in five years while Treasuries climbed and the dollar broke a five-day losing streak.
     The S&P 500 was slightly higher at the close after a late- day slump as investors assessed the implications of new indictments related to Russian meddling in the 2016 presidential election. The gauge ended 4.3 percent higher for the week ahead of a holiday weekend. The 10-year Treasury yield pulled back below 2.9 percent and the dollar rose from a three-year low.
     The recovery in American equities has come quickly after the first correction in U.S. stocks in two years, and the S&P 500 is now down less than 5 percent from an all-time high reached Jan. 26. The Russia news distracted traders otherwise focused on the outlook for the credit markets and interest rates as economic growth accelerates and fans inflation.
     “As far as corrections go, while we’re not out of the woods yet, it’s starting to feel like the best possible one you can hope for: Short and sweet,” said Craig Birk, an executive vice president of portfolio management at Personal Capital. “All the basic economic fundamentals and earnings results still seem very solid.”
     Elsewhere, sterling slipped after U.K. retail sales missed estimates and gilts advanced. Crude oil reversed losses to trade near a one-week high. Bitcoin rose above $10,000.
     These are the main moves in markets:
                          Stocks
* The S&P 500 rose less than 0.1 percent at the close of trading in New York.
* The Stoxx Europe 600 Index increased 1.1 percent.
* The U.K.’s FTSE 100 Index climbed 0.8 percent.
* Japan’s Topix index rose 1.1 percent.
* Australia’s S&P/ASX 200 Index fell 0.1 percent.
                          Currencies
* The Bloomberg Dollar Spot Index rose 0.5 percent, the first advance in more than a week.
* The euro fell 0.8 percent to $1.2406.
* The British pound sank 0.6 percent to $1.4013, the first retreat in a week.
* The Japanese yen fell 0.2 percent to 106.35 per dollar.
                           Bonds
* The yield on 10-year Treasuries fell four basis points to 2.87 percent.
* Germany’s 10-year yield declined six basis points to 0.7 percent.
* Britain’s 10-year yield sank seven basis points to 1.58 percent.
                           Commodities
* West Texas Intermediate crude rose 0.5 percent to $61.62 a barrel.
* Gold fell 0.4 percent to $1,348.71 an ounce.
–With assistance from Adam Haigh, Robert Brand and Jeremy Herron.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

It is not disbelief that is dangerous to our society; it is belief.
                                      -George Bernard Shaw, 1856-1950

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
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