January 17, 2019 Newsletter

Dear Friends,

Tangents:

Benjamin Franklin, birthday, b. 1706

See www.pbs.org/benfranklin/

Insights from Benjamin Franklin:
Three may keep a secret if two of them are dead.

Necessity never made a good bargain.

The definition of insanity is doing the same thing over and over and expecting different results.

In this world nothing is certain but death and taxes.

Early to bed and early to rise, makes a man healthy, wealthy and wise.
PHOTOS OF THE DAY

A member of crew mops the deck of a boat in the Atlantic Ocean. Credit: Zay Yar Lin/Solent News

Traders inspect goldfishes in the ‘Kanko’ wooden trays floating at a pond prior to the first auction of the New Year in Yatomi, Japan. Credit: The Asahi Shimbun/Getty Images

Star trails captured at the 900-year-old Leeds Castle in Kent. Credit: Robert Canis
Market Closes for January 17^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1792, the dollar sign ($) appeared for the first time on a federal document—a U.S. Treasury bond issued to George Washington.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks extended gains for a 10th consecutive session, the longest streak of gains for the benchmark since May 2018. 
     Health-care and energy stocks fell. Canada’s ambassador to China John McCallum warned that the diplomatic feud between the two countries was damaging Beijing’s reputation, as the U.S. joined countries criticizing a Canadian citizen’s death sentence as “politically motivated.” McCallum told reporters Wednesday that China’s prosecutions of Canadian nationals risked undermining its own interests in the world’s business community.
Stocks
* MEG Energy Corp. plunged close to 37 percent after Husky Energy Inc. abandoned its hostile takeover bid after failing to win enough support from shareholders; Husky climbed more than 11 percent
* Peyto Exploration & Development Corp. fell more than 8 percent after cutting its dividend forecast 65%
* Aurora Cannabis Inc. fell about 5.4 percent; on Monday the company entered into a letter of intent to acquire privately held Whistler Medical Marijuana Corporation 
Commodities
* Western Canada Select crude oil traded at a $8.25 discount to WTI
* Gold fell about 0.2 percent.
FX/Bonds
* The Canadian dollar fell about 0.4 percent to C$1.33032 per U.S. dollar
* The Canada 10-year government bond yield strengthened to 1.995%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the 10th day, climbing 0.7 percent, or 99.96 to 15,211.22 in Toronto. The index advanced to the highest closing level since Dec. 3. Toronto-Dominion Bank contributed the most to the index gain, increasing 1.0 percent. Husky Energy Inc. had the largest
increase, rising 12.4 percent.
Today, 160 of 239 shares rose, while 76 fell; 10 of 11 sectors were higher, led by financials stocks.
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 40.9933| 0.8| 20/6
Materials | 15.8905| 1.0| 31/18
Energy | 14.5387| 0.5| 25/18
Industrials | 11.7088| 0.7| 23/5
Consumer Discretionary | 6.2796| 1.0| 10/7
Communication Services | 5.2963| 0.6| 7/0
Utilities | 4.7052| 0.8| 12/3
Information Technology | 2.6590| 0.4| 10/0
Real Estate | 0.3791| 0.1| 12/10
Consumer Staples | 0.2534| 0.0| 5/5
Health Care | -2.7470| -0.9| 5/4
================================================================
Top Contributors |Index Points Move| % Change
================================================================
TD Bank | 9.2740| 1.0
Suncor Energy | 8.9860| 1.9
Nutrien | 8.3270| 2.9
Fairfax Financial Holdings | -2.5530| -2.1
MEG Energy | -5.3980| -35.6
Aurora Cannabis | -7.2390| -10.5
================================================================
Biggest Gainers | % Change |Index Points Move
================================================================
Husky Energy | 12.4| 4.1230
Crescent Point Energy | 4.5| 0.7830
Canada Goose | 4.5| 1.1910
================================================================
Biggest Losers | % Change |Index Points Move
================================================================
MEG Energy | -35.6| -5.3980
Peyto Exploration | -10.7| -0.9980
Aurora Cannabis | -10.5| -7.2390

* The Canadian dollar rose 0.17 percent to 1.3278 against the U.S. dollar
* The benchmark 10-year bond rose and the yield fell 0.3 basis points to 1.993 percent
* The S&P 500 Index advanced 0.8 percent
US
By Randall Jensen and Reade Pickert
     (Bloomberg) — Stocks rose following a report that said some Trump administration officials are pushing for an easing of trade tensions with China. Treasuries declined.
     The S&P 500 pushed above its average price for the past 50 days, a level it hadn’t breached since December, after the Wall Street Journal cited people close to discussions saying Treasury Secretary Steven Mnuchin is a proponent of easing tariffs. The Treasury denied the report. Shares had advanced earlier in the session after strong data calmed concern that the world’s largest economy was in danger of contracting.
     The late-session rally was the latest sign that investors consider the months long trade war with China a major headwind for the global economy. The S&P 500 has fallen about 5 percent since President Donald Trump and Chinese President Xi Jinping agreed on a 90-day truce that expires in March.
     “Certainly evidence that the administration is approaching a deal would be good news. If it is credible, we might have to lower our inflation forecast a little since it embeds more tariffs,” said Laura Rosner, senior economist at MacroPolicy Perspectives, in an interview. “We’ve heard noise around trade policy before though, so I would want to make sure the progress happens and sticks.”
Here are some key events coming up:
* Earnings season rolls on with Netflix posting results.
* Data on U.S. industrial production are due.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.8 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index rose less than 0.1 percent.
* The MSCI Emerging Market Index dipped 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index was steady.
* The euro was little changed at $1.1394.
* The Japanese yen fell 0.1 percent to 109.22 per dollar.
* The British pound gained 0.7 percent to $1.2980.
* The MSCI Emerging Markets Currency Index dipped 0.2 percent.
Bonds
* The yield on 10-year Treasuries rose two basis point to 2.74 percent.
* Germany’s 10-year yield gained two basis points to 0.24 percent.
* Britain’s 10-year yield added three basis points to 1.34 percent.
Commodities
* The Bloomberg Commodity Index rose 0.2 percent.
* West Texas Intermediate crude was little changed at $52.32 a barrel.
* Gold decreased 0.2 percent to $1,291.10 an ounce.
–With assistance from Eddie van der Walt and Sarah Ponczek.

Have a great night.

Be magnificent!

As ever,

Carolann

The beginning is always today.
-Mary Wollstonecraft Shelley, 1797-1851

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