February 21, 2019 Newsletter

Dear Friends,

Tangents:
On Feb. 21, 1965, former Black Muslim leader Malcolm X was shot and killed by assassins identified as Black Muslims as he was about to address a rally in New York City; he was 39.
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February 21, 1916: Battle of Verdun, France – over 1 million men killed.
1925 ~ New Yorker magazine debuts.
1893 ~ Andres Segovia was born.

A species of giant tortoise not seen in more than 100 years — and thought to be extinct — has been found in the Galapagos Islands. -CNN
PHOTOS OF THE DAY

People jump over a bonfire during an event to celebrate the Lantern Festival, which makes the end of Lunar New Year celebrations, in Haikou in China’s southern Hainan province. Credit: AGF/Getty Images

Gallery assistants adjust Le Palais Ducal by Claude Monet, during a photo call for Sotheby’s Impressionist, Modern Art and Surrealist Art sales, in London. Credit: Eddie Mulholland for The Telegraph

Dancers celebrate the commencement of the final phase of building works at the Central School of Ballet in London SE1. Credit: David Rose for The Telegraph
Market Closes for February 21st, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1947, Edwin Land, founder of Polaroid, demonstrated the instant camera to 650 scientists assembled at the annual meeting of the Optical Society of America. Never before had it been possible to develop a snapshot within a single minute. The Land Instant Camera sold at an initial price of $89.75. Although Polaroid lost money on it at first, it went on to make the company one of the great growth stocksof postwar America.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks ended a four-day rally, as global markets declined as investors grappled with concerns about economic growth and the latest twists in global trade. Pot and consumer staples performed worst within the Canadian markets.
     The S&P/TSX Composite Index fell 0.2 percent, to 16,000.86 in Toronto on Thursday. Uni-Select Inc. and Iamgold Corp. were the worst performing stocks, while Kirkland Lake Gold Ltd. and Torex Gold Resources Inc. were among the best.
     Meanwhile, Bank of Canada Governor Stephen Poloz said the path toward higher interest rates is “highly uncertain” due to lingering questions around housing and investment, even as he stuck to his message that borrowing costs eventually need to head higher.
In other moves:
Stocks
* Kirkland Lake Gold rose 8.4 percent after raising its 2019 outlook
* Torex Gold advanced 7.3 percent after its fourth quarter adjusted EPS beat estimates
* Osisko Gold climbed 6.3 percent after BMO upgraded the stock, citing an “improved outlook,” after results
* Uni-Select dropped 11 percent as Macquarie cut its rating and price target
* Iamgold declined 5.9 percent after its fourth quarter adj. loss per share from continuing operations was wider than est.
* Finning International Inc. fell 5 percent to the lowest since December. The seller of Caterpillar equipment’s quarterly earnings missed the lowest analyst estimate
Commodities
* Western Canada Select crude oil traded at a $12.75 discount to WTI
* Gold fell 1.7 percent to $1,325.30 an ounce
FX/Bonds
* The Canadian dollar weakened 0.4 percent to C$1.3222 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.92 percent
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks fell in thin trading, while Treasuries also declined as investors grappled with concerns about economic growth and the latest twists in global trade.
     The S&P 500 dropped for the first time in four sessions after economic data in both Europe and U.S. came in below expectations, reigniting worries about the world economy.
     Alphabet slid amid questions about the company’s YouTube platform. Health-care stocks were pulled down as Johnson & Johnson dropped after the company said it received subpoenas from federal prosecutors tied to its talc baby-powder products.
     The 10-year Treasury yield rose above 2.68 percent, and the dollar gained against major currencies amid reports signaling uneven progress in trade talks between the U.S. and China as a March 1 deadline for more tariffs approaches. The Aussie dollar dropped on reports China’s Dalian port banned coal imports from Australia. West Texas oil fell below $57 a barrel after an industry report showed American crude stockpiles continue to swell.
     “Clearly there’s been a lot weaker data than I think anybody was expecting, including the spate of data that was released today,” said Matt Forester, chief investment officer at BNY Mellon’s Lockwood Advisors. “Strategists are waiting to see if this is just a temporary slowdown in global data. We’ll have to see if this has legs.”
     Investors are also closely watching incoming economic numbers to see how they may nudge central bankers that are in a wait-and-see stance. At the same time, the slow but apparently steady progress in trade negotiations between the world’s biggest economies could set up risk assets for disappointment as some analysts see a truce priced into markets, with the MSCI’s global gauge of stocks up about 15 percent since Christmas Day.
     In Europe, lenders led shares lower as minutes of the latest ECB meeting showed policy makers setting up their March gathering as a key session to render their verdict on a regional slowdown and whether new long-term bank funding is required.
Here are some key events coming up:
* 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.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.4 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.3 percent.
* The MSCI Asia Pacific Index increased 0.2 percent for a fourth gain in a row.
* The MSCI Emerging Market Index advanced 0.1 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2 percent.
* The euro was steady at $1.1337.
* The British pound fell 0.1 percent at $1.3036.
* The Japanese yen climbed 0.1 percent to 110.70 per dollar.
Bonds
* The yield on 10-year Treasuries advanced four basis points to 2.68 percent, the highest in a week.
* Britain’s 10-year yield jumped two basis points to 1.202 percent.
* Germany’s 10-year yield climbed three basis points to 0.127 percent.
Commodities
* Gold declined 1.5 percent to $1,326.70 an ounce.
* West Texas Intermediate crude fell 0.5 percent to $56.89 a barrel.
–With assistance from Andrew Cinko, Kriti Gupta and Reade Pickert.

Have a great night.

Be magnificent!

As ever,

Carolann

The only thing necessary for the triumph of evil is for good men to do nothing.
                                                                   -Edmund Burke, 1729-1797

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