July 10, 2018 Newsletter

Dear Friends,

Tangents:
On July 10, 1940, during World War II, the 114-day Battle of Britain began as Nazi forces began attacking southern England by air. By late October, Britain managed to repel the Luftwaffe, which suffered heavy losses. 
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PHOTOS OF THE DAY

Kestrels in flight at the opening of the Great Britain Birds of Prey Centre at the National Botanic Garden of Wales. Credit: Chris Fairweather/Huw Evans Agency

The 2018 Audubon Photography Awards, celebrating its ninth year featured bird species protected under conservation law among its winning entries – including cobalt-winged parakeets and black-necked stilts. World-renowned judges, including Steve Freligh, publisher of Nature’s Best Photography, chose photographer Steve Mattheis’ snap on an owl majestically preparing for lift-off as its Grand Prize Winner. Credit: Liron Gertsman/SWNS.COM

The Grand Lake Wetland Park in Ba Likun, Xinjiang, China, has a beautiful sunset. Credit: Costfoto/Barcroft Images

The Milky Way is seen over a “nuraghe” (tower-fortresses) in Sardinia, Italy. Credit: Reuters/Stefano Rellandini

Fireflies give off flashes of light at Linggu Temple in Nanjing, east China’s Jiangsu Province. Credit: Sipa Asia/Zuma Wire/Alamy Live News
Market Closes for July 10^th, 2018 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks hit a second consecutive record as strong earnings from a convenience-store operator pushed consumer staples to their biggest gain in more than two years.
     The S&P/TSX Composite Index added 96 points or 0.6 percent to 16,548.72. Consumer staples jumped 1.8 percent as Alimentation Couche-Tard Inc. gained 6.7 percent to the highest in four months.
    The energy index rose 1.1 percent as the discount for Canadian crude shrank to its narrowest gap in almost a month. Paramount Resources Ltd. gained 7.2 percent and Birchcliff Energy Ltd. added 5.1 percent.
     In other moves:
                            Stocks
* Canopy Growth Corp. fell 1.5 percent. Canopy is buying Hiku Brands Co. for about C$270 million
* Gildan Activewear Inc. rose 2.1 percent after Hedgeye added the stock its Best Idea Long list
* Toronto-Dominion Bank added 0.4 percent. The bank is buying Greystone Capital Management Inc. for C$792 million
                            Commodities
* Western Canada Select crude oil traded at a $18.60 discount to WTI
* Gold fell 0.3 percent to $1,255.40 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.3115 per U.S. dollar
* The Canada 10-year government bond yield fell 1 basis point to 2.16 percent
US
By Randall Jensen
     (Bloomberg) — Stocks rose and Treasuries fell as a lull in the trade war gave investors room to focus on the start of the earnings season.
     The S&P 500 Index gained for a fourth day, the longest streak since the beginning of June. PepsiCo Inc. jumped more than 4 percent after reporting better-than-forecast profit, while banks fell ahead of JPMorgan Chase & Co. and Citigroup Inc. results Friday. The Russell 2000 Index declined, ending a five-day rally.
     The dollar reversed earlier gains as the euro pared losses. Treasury yields advanced for a second session and West Texas crude held at around $74 a barrel.
     “The last couple days people have said, ‘well, the tariffs went into effect on Friday, the world didn’t end,’” JP Gravitt, chief executive officer and market strategist for Market Realist, said in an interview at Bloomberg’s New York headquarters. “Stocks are directionless, they just want the numbers. They need the numbers right now because there’s a lot of stuff out there that we don’t know.”
     With fewer trade-war headlines rattling markets since Friday’s imposition of U.S. and Chinese tariffs, investors turn their attention to earnings season in the hope that strong results can complement a recent run of positive economic data.
     Elsewhere, a basket of emerging-market currencies gained, while Turkey’s lira climbed after yesterday’s end-of-day tumble as traders came to terms with President Recep Tayyip Erdogan latest power grab.
     These are some events to look out for this week:
* Earnings season gets going with JPMorgan and Citigroup among the largest companies due to give results, as well as India’s Infosys Ltd.
* The most noteworthy U.S. data may be the June inflation report on Thursday, which consensus expects will show both headline and core price growth picking up. There’s another deluge of Treasury debt sales too, with a total $156 billion of notes and bills offered.
* Chinese trade data due at the end of the week will probably show slightly slower export growth, after early indicators pointed to softer overseas demand and weaker export orders, Bloomberg Economics said.
     Here are the main market moves:
                            Stocks
* The S&P 500 Index climbed 0.4 percent to 2,793.82 as of 4 p.m. New York time.
* The Dow Jones Industrial Average rose 0.6 percent, it’s fourth day of gains.
* The Russell 2000 Index fell 0.5 percent.
* The Stoxx Europe 600 Index rose 0.4 percent.
* The MSCI All-Country World Index gained 0.2 percent.
* The MSCI Emerging Market Index advanced 0.2 percent.
                            Currencies
* The Bloomberg Dollar Spot Index dropped 0.1 percent.
* The euro fell 0.1 percent to $1.1745.
* The British pound rose 0.1 percent to $1.3270.
* The Japanese yen sank 0.4 percent to 111.28 per dollar.                            
                           Bonds
* The yield on 10-year Treasuries rose one basis point to 2.867 percent.
* Germany’s 10-year yield gained two basis points to 0.32 percent.
* Britain’s 10-year yield advanced five basis points to 1.302 percent.
                            Commodities
* The Bloomberg Commodity Index fell 0.4 percent.
* West Texas Intermediate crude rose 0.3 percent to $74.07 a barrel.
* Gold declined 0.2 percent to $1,255.74 an ounce.
–With assistance from Lananh Nguyen, Jeremy Herron, Sarah Ponczek and Eddie van der Walt. 

Have a great evening.

Be magnificent!

As ever,

 Carolann

Great things are done by a series of small things brought together.
                                                 -Vincent Van Gogh, 1853-1890

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