February 20, 2019 Newsletter

Dear Friends,

Tangents: Look for the Full Moon Tonight.
On Feb. 20, 1962, astronaut John Glenn became the first American to orbit Earth as he flew aboard the Friendship 7 Mercury capsule.  Go to article »

PHOTOS OF THE DAY

Sequences of images showing the moment the Full moon passes behind Londons Shard. Credit: WENN.COM

This cheeky kingfisher appeared to show off to its pal by ignoring the ‘no fishing’ sign they were both perched on and grabbing its lunch. Credit: Gerald Robinson/Kennedy News

Morning mist and frost in the Meon Valley in the South Downs National Park, near Bishops Waltham, UK. Credit: Luke MacGregor
Market Closes for February 20^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1852, a locomotive of the Michigan Southern railroad arrived in Chicago, connecting the breadbasket of the world directly with the Eastern U.S. for the first time. Instead of more than two weeks by horse, coach and canal boat, it took just two days by rail to travel from New York City to Chicago. Goods, money and people could flow between the two booming cities faster than anyone had ever imagined.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks rose for a fourth consecutive trading day to their highest level since Oct. 3, as a weaker U.S. dollar continued to lift metal prices and mining stocks. The four-day gain lifted the total market-cap of the stocks by almost C$64 billion, according to Bloomberg data.
     The S&P/TSX Composite Index rose 0.6 percent to 16,031.24 on Wednesday. Miners such as Semafo Inc. and Teck Resources Ltd. were the best performing stocks within the index. Uni-Select Inc. was the worst performing stock amid strategic review angst.
     Canadian Finance Minister Bill Morneau’s pre-election budget will be unveiled on March 19, as the government looks to dangle new program spending ahead of a vote this year. Morneau announced the budget date in parliament on Wednesday in Ottawa.
     He has signaled it will include measures such as new prescription drug coverage and housing measures aimed at younger buyers.
In other moves:
Stocks
* Semafo rose 6.9 percent, highest level since Aug. 2018 as metal prices rose
* Teck Resources climbed 5 percent after the company showed it’s strengthening its balance sheet and is focused on growth opportunities
* Uni-Select Inc. plunged more than 20 percent after reporting fourth quarter adjusted EPS that missed estimates
* Bausch Health Cos. Inc. slid 5.3 percent after reporting guidance that appeared conservative.
* Fortuna Silver was among worst performers within the mining stocks as its Lindero project costs seen increasing to $295 million
* Aritzia Inc. fell close to 8 percent after company reported a C$330M secondary offering
Commodities
* Western Canada Select crude oil traded at a $14 discount to WTI
* Gold fell 0.2 percent to $1,341.80 an ounce, erasing earlier gain after Fed minutes sowed doubts on dovish rate outlook
FX/Bonds
* The Canadian dollar rose 0.3 percent to C$1.3177 per U.S. dollar
* The Canada 10-year government bond yield gained to 1.89 percent
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks edged higher, while Treasuries fell after Federal Reserve meeting minutes did little to alter views on the central bank’s policy path.
     The S&P 500 eked out its seventh gain in eight sessions as the record of the gathering reinforced the Fed remains committed to its patient approach to further hikes without ruling them out if economic growth picks up. Caterpillar rallied after giving a bullish forecast for demand in China, lifting shares in materials producers. The 10-year Treasury yield climbed to 2.64 percent, while the dollar erased losses.
     Taken together, minutes of the Fed meeting broke decidedly dovish, with a discussion of ending the balance sheet runoff and uncertainty about more rate hikes. That they didn’t do more to move prices reflects the big swings that have ruled equity and bond markets for the last three months. Much of the sentiment reflected in today’s statement was priced in by the S&P 500’s nearly 20 percent jump since Christmas.
     “The Powell Pivot actually started on January 4th when Chair Powell spoke at the AEA,” said Michael O’Rourke, JonesTrading’s chief market strategist. “It is fair to say the dovish stance has been priced in.”
     The post-Christmas rally that’s added 18 percent to U.S. stocks appears to have run out of catalysts to propel it higher. Technical indicators, from closely watched moving averages to the relative-strength index, signal that gains from here may be difficult to come by. Investor focus will be trained on headlines out of this week’s negotiations in Washington and on any information coming out of the Fed that could shed more light on future monetary policy.
     Elsewhere, the pound was little changed as Prime Minister Theresa May headed back to Brussels in a last-ditch attempt to save her Brexit deal. Gold traded near the highest since May and palladium soared to a record as a shortage started to bite.
     Emerging-market shares rallied and their currencies advanced. South Africa’s rand fell as the government unveiled a bailout package for utility Eskom.
Here are some key events coming up:
* European Central Bank releases meeting minutes on Thursday.
* Bank of Canada Governor Stephen Poloz speaks on Thursday; ECB President Mario Draghi speaks on Friday, the same day Reserve Bank of Australia Governor Philip Lowe gives parliamentary testimony.
* An Indonesian rate decision is due Thursday.
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.2 percent at 4 p.m. New York time.
* The Stoxx Europe 600 Index gained 0.7 percent to the highest in 19 weeks.
* The MSCI All-Country World Index increased 0.5 percent to the highest in 19 weeks.
* The MSCI Emerging Market Index surged 1.2 percent, the most since January.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro was rose less than 0.1 percent $1.1343.
* The Japanese yen fell 0.2 percent to 110.81 per dollar, the weakest in a week.
* The MSCI Emerging Markets Currency Index gained 0.4 percent to the highest in two weeks.
Bonds
* The yield on 10-year Treasuries climbed one basis point to 2.65 percent.
* Germany’s 10-year yield declined one basis point to 0.100 percent.
* Britain’s 10-year yield rose one basis point at 1.181 percent.
Commodities
* The Bloomberg Commodity Index rose 0.5 percent.
* West Texas Intermediate crude gained 1.5 percent to $56.92 a barrel.
* Gold fell 0.1 percent to $1,344.00 an ounce.
–With assistance from Eddie van der Walt and Reade Pickert.

Have a great night.

Be magnificent!

As ever,

Carolann

If I had eight hours to chop down a tree, I’d spend six sharpening my axe.
                                                           -Abraham Lincoln, 1809-1865

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