February 4, 2019 Newsletter

Dear Friends,

Tangents:  Today is Facebook’s fifteenth birthday.
The social networking website Facebook was launched. Go to article »

1985 – Torture abolished by the UN.
1948 – Independence Day Sri Lanka

Winterlude, Ottawa, February 1-18.

Charles Lindbergh, aviator, b. 1902
I realized that if I had to choose, I would rather have birds than airplanes. -Charles Lindbergh.
PHOTOS OF THE DAY

Participants compete during the ‘Credit Suisse GP of Celerina’ skijoring race on the first weekend of the ‘White Turf’ races in St. Moritz, Switzerland. Credit: Giancarlo Cattaneo/Keystone Via AP

An archeologist works on a mummy inside the newly excavated tombs in Tuna-el-Gebel necropolis of Minya province south of the capital Cairo, Egypt. The Egyptian minister of antiques announces on Saturday the discovery of three ancient tombs with more than 40 well-preserved mummies in Tuna-el-Gebel necropolis of Minya province south of the capital Cairo. Credit: Xinhua/Ahmed Gomaa

Jogger and pet dog enjoy a sunny start to the day in Longrock, Cornwall. Credit: Simon Maycock/Alamy Live News
Market Closes for February 4^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1994, without any warning, and just as investors were pouring billions of dollars into bonds, the Federal Reserve raised short-term interest rates for the first time in five years. By year-end, the Fed had hiked short-term rates by 2.5 percentage points—and Treasury bonds lost 7.8%, their worst return since 1967.
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks climbed as marijuana stocks pushed the index higher, marking the fourth straight day of gains for the sector. The Canadian benchmark rose 0.6 percent led by health care and information technology while industrials underperformed.
     The Horizons Marijuana Life Sciences Index ETF gained 4.9 percent for a fourth session, reaching its highest intraday since early November, as the World Health Organization recommended last week that cannabis international regulations be loosened. 
Stocks
* Radient Technologies Inc. gained 42 percent after receiving its Standard Processing License from Health Canada under the new Cannabis Act regulations 
* High Tide Inc. rose 24.3 percent after plans to expand into Ontario with cannabis retail lottery winner 
* Village Farms International Inc. rose 16.1 percent 
* Namaste Technologies Inc. fell 14.5 percent after launching a strategic review, CEO departure 
* Westport Fuel Systems Inc. lost 14 percent after CFO resigned
Commodities
* Western Canada Select crude oil traded at a $10.25 discount to WTI
* Gold fell 0.4 percent to $1,312.17 an ounce
FX/Bonds
* The Canadian dollar fell 0.1 percent to C$1.3121 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.962%
US
By Sarah Ponczek and Reade Pickert
     (Bloomberg) — U.S. stocks rose for a fourth day, with technology shares leading the advance in thin trading ahead of a fresh batch of earnings reports. The dollar advanced on rising prospects for a trade truce.
     The S&P 500 closed at the highest since Dec. 3 in volume 20 percent below the 30-day average. Nvidia, Adobe, Microsoft and Apple led the Nasdaq indexes to solid advances. Alphabet reports earnings after the closing bell.
     President Donald Trump over the weekend told CBS that trade talks with Beijing are “doing very well” and sounded confident an agreement with North Korea was on the horizon. European equities eked out a fifth gain for the longest rally since November. In Asia, trading was subdued as much of the region headed into Lunar New Year holidays.
     “The S&P 500 was priced for perfection in the economy, earnings and the Fed, and while we’ve seen a lot of positive improvement, we’re a long way from that right now,” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” market newsletter, wrote to clients.
     After a busy few days that included relatively dovish Federal Reserve comments and U.S.-China trade talks in Washington, there were a notable lack of drivers for markets on Monday, particularly in Asia, where China is off and other markets will be shut for days. Investors may again look for direction from a corporate earnings season that’s been mixed so far.
     Elsewhere, Venezuela’s defaulted 2027 bonds fell as Spain, Germany and the U.K. led a host of European countries in recognizing National Assembly leader Juan Guaido as the country’s interim president on Monday. The country’s outlook is being followed by oil traders given the country’s share of global exports. Emerging-market currencies and shares fell.
Among key events in the coming days:
* Earnings season continues, with reports this week from Twitter, Hasbro, Ryanair, Disney, Philip Morris, SoftBank, BNP Paribas, ING, MetLife, Societe Generale
* Trump delivers a delayed State of the Union address Tuesday
* On Wednesday, Federal Reserve Chairman Jerome Powell gives his first public comments following the January FOMC meeting and rate decision. 
* Central banks in Australia, India and the U.K. set rates this week
These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.6 percent as of 4 p.m. New York time, while the Nasdaq Composite Index added 1.1 percent and the Dow Jones Industrial Average gained 0.4 percent.
* The Stoxx Europe 600 rose 0.1 percent.
* The MSCI Emerging Market Index eased 0.3 percent, the first drop in five days.
Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent, the third straight daily increase.
* The euro eased 0.2 percent to $1.1436.
* The British pound fell 0.1 percent to $1.3089.
* The Japanese yen weakened 0.5 percent to 110.06 per dollar.
Bonds
* The yield on 10-year Treasuries climbed four basis points to 2.72 percent.
* Germany’s 10-year yield rose one basis point to 0.17 percent.
* Britain’s 10-year yield rose two basis points to 1.27 percent.
Commodities
* West Texas Intermediate fell 0.9 percent to $54.79 a barrel.
* Gold fell 0.4 percent to $1,312 an ounce.
–With assistance from David Wilson and Eddie van der Walt.

Have a great evening.

Be magnificent!

As ever,

Carolann

Predicting rain doesn’t count.  Building arks does.
                                    -Warren Buffet, b. 1930

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