January 14, 2019 Newsletter

Dear Friends,

Tangents:
1784: End of the American Revolution.
January 14^th, 2004 President George W. Bush unveiled a plan to send astronauts to the moon, Mars and beyond.  Go to article »

Albert Schweitzer, philosopher, b. 1869
You must give some time to your fellow men.  Even if it’s a little thing, do something for others- something for which you get no pay but the privilege  of doing it. –Albert Schweitzer.

ICYMI
Our nice neighbors from the north proved it again. Canadian air traffic controllers sent pizza to their US counterparts hit by the shutdown. -CNN
PHOTOS OF THE DAY

A dog enjoys a balmy day out in a carrier on the back of a red Vespa scooter motorcycle in Muswell Hill, North, London. Credit: Jon Rosenthal/Alamy Live News

An Amazigh (Berber) girl participates in a rally to celebrate their new year known as Yennayer in Rabat, Morocco. Credit: Xinhua/Rex

People wearing loin cloths pray as they bathe in ice-cold water in a ceremony to purify their souls and wish for good health in the new year at the Teppozu Inari shrine in Tokyo, Japan. Credit: Issei Kato/Reuters
Market Closes for January 14^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1982, Ford announced that it would skip paying a quarterly dividend for the first time since the company went public in 1956, a move that would save it $36 million per quarter. Late last week, Ford said it is launching an overhaul of its money-losing European business that is expected to include thousands of job cuts, plant closures and the cancellation of low-profit models.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks edged higher Monday morning as investors watched to see whether they can extend their winning streak to seven sessions.
     Communication services and industrials were the biggest gainers among industry groups in Toronto while information technology and utilities declined the most. Prime Minister Justin Trudeau shuffled his cabinet after one of his senior ministers decided not to seek re-election this fall.
Stocks
* Goldcorp Inc. surged as much as 12 percent after rival Newmont Mining Corp. agreed to buy the company in a deal valued at $10 billion, creating the world’s largest gold miner
* Eldorado Gold Corp. fell as much as 6.4 percent after National Bank Financial downgraded its rating to sector perform from outperform
Commodities
* Western Canada Select crude oil traded at a $6.95 discount to WTI
* Gold rose 0.1 percent to $1,291.72 an ounce; London gold closed at $1288.95.
FX/Bonds
* The Canadian dollar strengthened less than 0.1 percent to C$1.32608 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.961%
US
By Randall Jensen and Reade Pickert
     (Bloomberg) — U.S. stocks declined as weak Chinese trade data fueled concerns about slowing global growth. Treasuries were little changed and the dollar dropped.
     The S&P 500 fell for only the third time this month, led by technology companies after China’s slumping exports fueled worries about the growing impact of the U.S.-China trade war on worldwide growth. Drugmakers slid amid a probe by U.S. lawmakers into pricing, while PG&E plunged 54 percent after the utility said it will file for bankruptcy. Citigroup said the trading environment was starting to improve, helping to boost the bank’s stock and other financial shares.
     The 10-year Treasury yield pared an early decline to trade higher, while the dollar fell against most major currencies. In Europe, the Stoxx Europe 600 Index snapped four days of gains, also dragged lower by tech. The euro was steady following data showing industrial output slowed, and the pound rose before Tuesday’s crucial vote on Brexit.
     “There are two macro events that continue to weigh on market perspective,” Frances Donald, head of macroeconomic strategy at Manulife Asset Management, said in an interview. “The first is where is global growth heading next, and weak Chinese trade data would suggest that global growth is certainly not bottomed as of yet. And the second issue is the persistence of the U.S. government shutdown and how that muddies our perspective about what happens next.”
     This month’s buoyancy in global equities, triggered by signs of progress in U.S.-China trade talks and dovish commentary from Federal Reserve officials, faces a test with the Chinese data underscoring the impact of the trade spat. The next hurdles to clear will be a slew of U.S. bank profit reports at the start of the earnings season, amid worries global growth is slowing. Also weighing on sentiment is the partial U.S government shutdown that’s entered its fourth week.
     Elsewhere, West Texas Intermediate crude traded around $51 a barrel. Emerging-market currencies and shares fell.
Here are some important events coming up:
* Some of the world’s biggest banks announce earnings, including JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs. Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express and BlackRock also post results. 
These are the main moves in markets:
Stocks
* The S&P 500 Index declined 0.5 percent as of 4 p.m. New York time.
* The Nasdaq Composite Index dropped 0.9 percent, falling for a second session. 
* The Stoxx Europe 600 Index fell 0.5 percent, the first retreat in a week.
* The MSCI All-Country World Index decreased 0.4 percent, the first retreat in more than a week.
* The MSCI Emerging Market Index sank 0.8 percent, the biggest drop in more than a week.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent.
* The euro was steady at $1.1467.
* The Japanese yen gained 0.3 percent to 108.20 per dollar.
* The British pound gained 0.1 percent at $1.2861.
* The MSCI Emerging Markets Currency Index sank 0.1 percent.
Bonds
* The yield on 10-year Treasuries were steady at 2.70 percent
* Germany’s 10-year yield decreased one basis point to 0.23 percent.
* Britain’s 10-year rose basis point to 1.297 percent.
Commodities
* The Bloomberg Commodity Index rose 0.3 percent.
* West Texas Intermediate crude fell 1.9 percent at $50.60 a barrel.
* Gold increased 0.2 percent to $1,291.70 an ounce.
–With assistance from Sarah Ponczek and Eddie van der Walt.

Have a great night.

Be magnificent!

As ever,

Carolann

All the mind’s activity is easy if it is not subjected to reality.
                                           -Marcel Proust, 1871-1922

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
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www.carolannsteinhoff.com