January 26, 2018 Newsletter

Dear Friends,

Tangents:  Happy Friday!

PHOTOS OF THE DAY

These amazing pictures capture the moments after an adorable Flamingo chick came into the world – the first at its zoo to be reared by its own parents. The baby hatched at Auckland Zoo in New Zealand, while visitors watched on in awe. The fluffy tot can be seen stretching its small wings and exploring the enclosure in the first few days after its birth. The photos show it starting to walk for the first time while not straying far from its mum and dad’s watchful gaze. CREDIT: THE TELEGRPAH

Anyone for Cricket. Worcester Cricket Ground partially flooded near the River Severn in Worcester. CREDIT: THE TELEGRAPH
Market Closes for January 26^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose the most in a week following a surprise victory for Bombardier Inc. in a trade
dispute with Boeing Co.
     The S&P/TSX Composite Index added 35 points or 0.2 percent to 16,239.22. Even with Friday’s gain 
the benchmark fell 0.7 percent on the week, the biggest weekly decline since September.
     Bombardier Inc. led stocks higher Friday with a 15 percent gain to the highest in three years. The industrials index added
0.8 percent.
     Health-care stocks rose 2.8 percent as pot producers rebounded from four days of declines. Canopy Growth Corp. added
11 percent and Aphria Inc. gained 5.5 percent.
     In other moves:
                             Stocks
* Ballard Power Systems Inc. fell 8.6 percent, adding to Thursday’s 13 percent decline. The company said it will announce
“strong full-year 2017 results” on March 1
* Electrovaya Inc. tumbled 26 percent to the lowest since 2015 after commencing insolvency proceedings at its German subsidiary
* Cameco Corp. lost 3 percent. The uranium miner said its joint venture in Kazakhstan produced 5.5 million pounds in 2017 and is
forecast to produce 6.9 million pounds in 2018
                          Commodities
* Western Canada Select crude oil traded at a $27.60 discount to WTI
* Gold fell 0.8 percent to $1,352.10 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 0.4 percent to $1.2323 per U.S. dollar, the highest in four months
* The Canada 10-year government bond yield rose two basis points to 2.26 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks rose the most since March as strong earnings outflanked concerns about trade spurred by Trump
administration officials, whose comments helped push the dollar to its worst week in eight months.

     The S&P 500 Index gained for a fourth week as corporate profits continued to beat estimates at a heady clip, with the
latest earnings from pharmaceutical and technology companies boosting shares. The greenback fell to a three-year low, wiping
out the surge from President Donald Trump’s support of a strong currency on Thursday, which followed Treasury Secretary Steven
Mnuchin’s endorsement of a weak dollar a day earlier. Ten-year U.S. bond yields headed toward the highest level in more than
three years. Oil traded at $66 a barrel.
     “Equities are in a unique situation right now, I feel like there’s a trifecta going on in terms of strength,” Mona Mahajan,
U.S. investment strategist for Allianz Global Investors, said by phone. “We’re getting strength from the economy, we’re getting
strength from earnings…and yields, while they’ve moved up, they’re not at those 3 percent plus levels where we could see a
potential bear market.”
     Elsewhere, the yen rose to the strongest since September versus the dollar after Bank of Japan Governor Haruhiko Kuroda
commented on inflation. It later pared the gain when a BOJ spokesperson clarified what was said.
     Trump and his officials roiled markets this week with protectionist rhetoric and conflicting positions on the greenback. 
Treasury Secretary Steven Mnuchin made an unusual endorsement of a weak dollar, prompting a veiled scolding from the European 
Central Bank. Trump then countermanded his cabinet member by supporting a strong greenback. Meanwhile, Commerce Secretary 
Wilbur Ross stoked trade tensions by hinting at tariffs, injecting volatility into the global risk-on rally that has padded records 
across asset classes.    
     These are the main moves in markets:
                             Stocks
* The S&P 500 Index rose 1.2 percent to 2,872.80 as of 4 p.m. New York time.
* The Nasdaq 100 Stock Index advanced 1.5 percent. 
* The Stoxx Europe 600 Index rose 0.5 percent. 
* The U.K.’s FTSE 100 Index gained 0.7 percent. 
* Germany’s DAX Index gained 0.3 percent. 
                           Currencies
* The Bloomberg Dollar Spot Index declined 0.3 percent, touching the lowest in more than three years. 
* The euro advanced 0.2 percent to $1.2426, the strongest in more than three years. 
* The British pound climbed 0.3 percent to $1.4185. 
* The Japanese yen increased 0.7 percent to 108.67 per dollar, the strongest since September.                             
                   Bonds
* The yield on 10-year Treasuries advanced three basis points to 2.65 percent. 
* Germany’s 10-year yield gained two basis points to 0.63 percent, the highest in about two years. 
* Britain’s 10-year yield rose three basis points to 1.444 percent.
                       Commodities
* West Texas Intermediate crude gained 1.0 percent to $66.14 a barrel, the highest in more than two years. 
* Gold advanced 0.2 percent to $1,350.26 an ounce. 
* Copper fell 0.6 percent to $3.19 a pound.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

O, Wind,
If Winter comes, can Spring be far behind?
-Percy Bysshe Shelley, 1792-1822

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