January 22, 2018 Newsletter

Dear Friends,

Tangents:

Landmark renderings
Artist Maxwell Tilse has seen globally famous monuments such as Big Ben, the Sydney Opera House and the Globe Theatre as many people have.  But he has now created small, intricate pen-and-ink renderings of these sights and photographed them next to the real thing.  Take a look at maxwellillustration.com   and marvel at the details.

U2’s new collection of music, Songs of Experience, rivals the band’s best work. The Showman (Little More Better) & The Little Things That Give You Away are top-tier U2.

PHOTOS OF THE DAY

Loch Chon in the Trossachs is sprinkled with snow. A Met Office yellow weather warning for snow and ice is in force for most of Scotland.
CREDIT: LESLEY MARTIN

Members of the British Army’s Ice Maiden Expedition in Antarctica. They have become the first all-female team to cross Antarctica using only muscle power.
CREDIT:PA

A reveller takes part in the traditional “Correfoc” festival in Palma de Mallorca. The Correfoc is a night of revelry in which participants dress as demons and devils and move through the streets scaring people with fire and fireworks.
CREDIT: JAMIE REINA
Market Closes for January 22^nd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
394
The number of days since the S&P 500 has fallen 5% or more from its peak. It’s on pace to set a new record with Monday’s trading session.
Business is a combination of war and sport. -Andre Maurois
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks slipped as railways and miners retreated, offsetting gains in financials and consumer staples.
     The S&P/TSX Composite Index lost five points or less than 0.1 percent to 16,347.98. Industrials were the biggest decliners, falling 0.8 percent as Canadian National Railway Co. lost 1.6 percent ahead of earnings scheduled for Tuesday.
     The materials index fell 0.6 percent even as copper prices rose, with Franco-Nevada Corp. down 3.4 percent. Financials rose 0.1 percent and consumer staples added 0.6 percent.
     In other moves:
                          Stocks
* Cineplex Inc. fell 0.6 percent after earlier losing as much as 4.9 percent. The stock has “found a bottom and can trend higher,” according to analysts at National Bank Financial
* Home Capital Group Inc. rose 10 percent, the most since July, after TD Securities upgraded the stock to buy and gave it a street-high price target of C$21
* Teck Resources Ltd. lost 1.4 percent. The miner reported a “significant pressure event” at its Elkview mine and said it’s working to assess the extent of the damage and potential impact on production
                         Commodities
* Western Canada Select crude oil traded at a $26.50 discount to WTI
* Gold fell 0.1 percent to $1,331.90 an ounce
                         FX/Bonds
* The Canadian dollar strengthened 0.3 percent to $1.2451 per U.S. dollar
* The Canada 10-year government bond yield was unchanged at 2.24 percent
US
By Randall Jensen
     (Bloomberg) — U.S. equity gauges closed at records as the government shutdown appeared to be on the brink of ending and investors turned their attention toward earnings. The dollar fell and Treasuries traded little changed.
     The S&P 500 Index rose to an all-time high after the U.S. Senate broke a stalemate over a short-term spending bill, setting the stage for the government to reopen. Investors are awaiting about 80 earnings reports this week from companies in the benchmark index. The dollar traded near lows for the year and 10-year Treasury yields held close to 2.66 percent.
     “GDP impacts from prior shutdowns were minimal. It makes sense for equity investors to brush aside the political shenanigans and focus instead on company fundamentals,” Alexandra Coupe, associate director at PAAMCO in Irvine, California, said. “Similar to the last government shutdown in 2013, equity markets have hit new highs in the wake of the resolution.” Equity investors had appeared mostly undecided over the latest U.S. government drama, weighing it against the optimism over economic growth and profit increases that pushed many stock indexes to all-time highs. Meanwhile, the next catalyst for bonds may come from commentary by policy makers after European and Japanese central bank decisions this week. Their signals that unprecedented stimulus will soon be wound back has sparked a surge in yields this month.
     Elsewhere, West Texas oil rose after OPEC and Russia said output cuts will continue until the end of the year. The MSCI Emerging Market Index of stocks gained for a seventh day, poised for the longest winning streak in six months as the likes of Goldman Sachs Group and Blackstone Group joined the chorus of developing-nation bulls. South Africa’s rand touched its highest since 2015 on speculation President Jacob Zuma may be forced to leave office.
     Here’s what to watch out for this week:
* Earnings season is in full swing: Netflix and Halliburton are due to post results Monday, with Novartis, General Electric, Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks, Hyundai Motor and Fanuc Corp. coming later in the week.
* Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos, Switzerland, for the annual World Economic Forum.
* Central banks: Bank of Japan monetary policy decision and briefing on Tuesday; European Central Bank rate decision on Jan. 25
* U.K. Prime Minister Theresa May’s Brexit bill is set to be taken up in the House of Lords.

     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.8 percent to 2,832.97 as of 4 p.m. New York time, a record.
* The Dow Jones Industrial Average gained 142 points to 26,214.67, an all-time high.
* The Stoxx Europe 600 Index advanced 0.3 percent to the highest in more than two years.
* The MSCI World Index of developed countries rose 0.4 percent to the highest on record.
* The MSCI Emerging Market Index advanced 0.5 percent, its seventh consecutive advance.
* The U.K.’s FTSE 100 Index fell 0.2 percent.
                          Currencies
* The euro increased 0.3 percent to $1.2258.
* The Bloomberg Dollar Spot Index fell 0.2 percent.
* The British pound gained 0.9 percent to $1.3984, the strongest in 19 months.
* The Japanese yen fell 0.2 percent at 110.99 per dollar.
                          Bonds
* The yield on 10-year Treasuries was steady at 2.66 percent.
* Germany’s 10-year yield was little changed at 0.57 percent.
* Britain’s 10-year yield rose two basis points to 1.358 percent.
                          Commodities
* Gold gained 0.2 percent at $1,334 an ounce.
* West Texas Intermediate crude rose 0.2 percent to $63.49 a barrel.

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

The only way to do great work is to love what you do. -Steve Jobs

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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