July 20, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!
MOON DAY
On July 20, 1969, astronaut Neil Armstrong became the first man to walk on the moon.
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They remained on the lunar surface 21 hours, 36 minutes and 16 seconds.  The landing was made from the Apollo XI’s orbiting command and service module, code named Columbia, whose pilot, Michael Collins, remained aboard.  Neil Armstrong was the first to set foot on the move.  Armstrong and Edwin Aldrin, Jr. were outside the spacecraft, walking on the moon’s surface, approximately 21/4 hours.  The astronauts returned to Earth July 24, bringing photographs and rock samples.

Sir Edmund Hillary, explorer, b.  July 20, 1919.
It is not the mountain we conquer, but ourselves. -Sir Edmund Hillary, 1919-2008

PHOTOS OF THE DAY

A woman wears VR glasses while the projection mapping is cast on table and walls during its media preview at “TREE BY NAKED, yoyogi park” restaurant in Tokyo. This restaurant incorporates virtual reality projection mapping, and music to enhance diners’ enjoyment of their food. CREDIT: KIM KYUNG-HOON/REUTERS

Silhouettes of visitors are seen as they walk on the dried ground of Lake Salt, which is the second largest lake in Ankara, Turkey. Lake Salt is one of the most important wetlands for conservation and biodiversity. The Lake is largely dry and resembles a salt desert every summer. It is believed that if you walk on the salt barefoot you can release your negative energy. Many tourists from nearby cities and other countries visit the salt lake each year. CREDIT: EVRIM AYDIN/GETTY
Market Closes for July 20th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks tumbled the most in seven sessions, with auto suppliers and energy companies retreating amid escalating trade tensions, while the loonie strengthened on strong economic data.
     The S&P/TSX Composite Index fell 108 points or 0.7 percent to 16,435.46 Friday, bringing the weekly decline to 0.8 percent.
Consumer discretionary shares lost 1.1 percent, with Linamar Corp. falling 4.8 percent, the most in two months. BMO said a tariff war threatens to push supplier stocks down by at least 20 percent.
     The energy index lost 1.1 percent even as oil prices rose 1.4 percent. TransCanada Corp. fell 2.3 percent, retracing some of Thursday’s 5.4 percent gain.
     In other moves:
                             Stocks
* Detour Gold Corp. fell 1 percent and Barrick Gold Corp. lost 0.9 percent. Barrick is said to be the undisclosed suitor that’s courting Detour
* Aimia Inc. jumped 18 percent to the highest since Feb. 1 after announcing that members will be able to use their Aeroplan points on any major airline beginning in 2020
* Sherritt International Corp. lost 2.9 percent, adding to Thursday’s 4.6 percent decline. Panasonic Corp. suspended cobalt purchases from Sherritt’s mine in Cuba
                          Commodities
* Western Canada Select crude oil traded at a $26.25 discount to WTI
* Gold rose 0.6 percent to $1,231.10 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 1.1 percent to C$1.3126 per U.S. dollar, the biggest gain since May, after inflation and retail sales beat forecasts
* The Canada 10-year government bond yield rose 7 basis points to 2.18 percent
US
By Olivia Schaber and Sarah Ponczek
     (Bloomberg) — The dollar weakened the most since March, Treasuries tumbled and stocks closed mostly lower after President Donald Trump’s latest verbal salvos fanned investor concern that a global trade war is escalating.
     Financial markets were upended after Trump said he’s “ready to go” with additional import tariffs and that China, the European Union and others have been manipulating their currencies and interest rates. Yields on Treasuries climbed the most since May as Trump reiterated that he’s unhappy with the Federal Reserve tightening after the administration has worked so hard to grow the economy.
     “We’re in a world of firsts and tweeting about the Fed, not once, but twice, doubling down, that the president is trying to exert pressure,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group LLC in Pittsburgh. “Crazy times we live in, I love it. You never know what’s going to happen. This is supposed to be the sleepy time. We’re supposed to be looking at earnings, which are killing it by the way.”
     Trump’s latest move in the trade war with China came as investors try to gauge the ability of the Asian nation’s economy
— the world’s second-biggest — to withstand a protectionist showdown. The yuan may be a key tool in China’s response to Trump, who continues to express dissatisfaction with America’s own monetary policy as his country’s currency strengthens.
     Oil posted its third consecutive weekly loss amid concern the escalating trade rows will undercut energy demand, undermining reassurances from Saudi Arabia that it won’t flood global crude markets.
     Copper rose for the first day this week after the yuan steadied amid signs that domestic banks are taking steps to support the currency. Most metals were supported on the London Metal Exchange as the dollar weakened for the first time in four days. The gains in metals capped a turbulent week across the industry as traders extended a month long selloff kicked off by fears that the trade tensions between China and the U.S. will hurt demand for industrial materials.
     These are the main moves in markets:
                             Stocks* 
The S&P 500 Index slipped less than 0.1 percent to 2,801.83 as of 4:08 p.m. in New York.
* The Dow Jones Industrial Average dropped less than 0.1 percent to 25,058.12.
* The Nasdaq Composite Index eased less than 0.1 percent to 7,820.20.
* The U.K.’s FTSE 100 Index was little changed.
* The MSCI Emerging Market Index gained 1.1 percent.
* The Stoxx Europe 600 Index fell 0.2 percent.
                           Currencies
* The Bloomberg Dollar Spot Index slumped 0.76 percent, the most since March 21.
* The euro increased 0.8 percent to $1.1729.
* The British pound strengthened 0.9 percent to $1.3136.
* The Japanese yen gained 0.9 percent to 111.51 per dollar.
* South Africa’s rand gained 1 percent to 13.41 per dollar.
                             Bonds
* The yield on 10-year Treasuries rose six basis points to 2.89 percent, the most since May 30.
* Italian 10-year yields increased eight basis points to 2.59 percent.
* Germany’s 10-year yield rose four basis points to 0.37 percent.
                          Commodities
* West Texas Intermediate crude rose for a fifth day, climbing 1 percent to $70.46 a barrel.
* Gold increased for the first time in six trading sessions, climbing 0.6 percent to $1,230.21 an ounce.
–With assistance from Eddie van der Walt.

Have a great weekend.

Be magnificent!

As ever,

Carolann

The ultimate inspiration is the deadline.
                -Nolan K Bushnell, b. 1943

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