July 3, 2018 Newsletter

Dear Friends,

Tangents: Dog Days of Summer, hottest days of the year July 3-August 11

When the sea boiled, wine turned sour, dogs grew mad, and all creatures became languid…-Brady’s Clavis Calendarium.

 “This is the time when evil is on the land, when dogs and snakes must be watched with special care and when all living things seem to wilt under some baleful influence.”

So said a 1975 article in The Times, rapturously describing the dog days of summer. The term originated in ancient times, linked not to humankind’s best friend, but marking when Sirius, the Dog Star, starts rising at dawn. (In the U.S., according to the Old Farmer’s Almanac, the dog days begin today.)

It was once believed that Sirius combined forces with the sun to create midsummer’s intense heat.

The dog days have often been associated with ill fortune.

The Roman poet Virgil described in the Aeneid how Sirius, “bringer of drought and plague to frail mortals, rises and saddens the sky with sinister light.”

Pure superstition, right? A Finnish study published in 2009 tested folklore saying wounds are more infection-prone during this time.

“This study was conducted in order to challenge the myth that the rate of infections is higher during the dog days,” the authors wrote. “To our surprise, the myth was found to be true.”

The dog days continue into August. Until then, avoid sharp objects.

Nancy Wartik wrote today’s Back Story.  -New York Times, July 3, 2018

PHOTOS OF THE DAY

A contestant dives from a 27-metre platform on the La Salve bridge overlooking the Guggenheim Museum during the finals of the Red Bull Cliff Diving series in Bilbao, Spain. Credit: Vincent West/Reuters

Nepalese farmers cover themselves with plastic sheets as they work in a paddy field during a drizzle in Kathmandu, Nepal. Credit: Niranjan Shrestha/AP

A ‘Usho’, cormorant masters use cormorants to catch fishes in Ujigawa River in Kyoto, Japan. Credit: The Asahi Shimbun/Getty Images

Supporters of the presidential candidate for the “Juntos haremos historia” coalition, Andres Manuel Lopez Obrador, celebrate at the Zocalo square in Mexico City, after getting the preliminary results of the general elections. Anti-establishment leftist Andres Manual Lopez Obrador won Mexico’s presidential election Sunday by a large margin, according to exit polls, in a landmark break with the parties that have governed for nearly a century. Credit: Mario Vazquez/AFP/Getty Images
Market Closes for July 3^rd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Stefanie Marotta
     (Bloomberg) — Canadian stocks slipped as oil prices ran out of steam before the U.S. holiday after rallying to a three- year high.
     The S&P/TSX Composite Index fell 0.1 percent to 16,263.16 points. Energy dropped 0.5 percent, dragged down by Trican Well Service Ltd. with a 4.4 percent loss.
     Real estate sidestepped ongoing fears of a global trade war, rising 0.9 percent. Colliers International Group Inc. rose 2.2 percent to a record high after acquiring Danish firm Sadolin & Albæk.
     In other moves:
                              Stocks
* Minto Apartment Real Estate Investment Trust rose 8.8 percent on its first day of trading after launching its IPO at $14.50
* Martinrea International Inc. dropped 4 percent as auto suppliers slumped amid light-vehicle sales and ongoing tariff concerns
* Yamana Gold Inc. climbed 6.5 percent, more than any full-day gain since September
                             Commodities
* Western Canada Select crude oil traded at a $21.00 discount to WTI
* Aeco natural gas traded at a $1.91 discount to Henry Hub
* Gold rose 1 percent to $1,254.10 an ounce
                              FX/Bonds
* The Canadian dollar strengthened 0.4 percent to C$1.3141 per U.S. dollar
* The Canada 10-year government bond yield fell three basis points to 2.139 percent
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks reversed an early climb and ended lower Tuesday, as weakness in technology and financial shares weighed on benchmarks. Oil briefly rose above $75 a barrel for the first time since November 2014 before paring the gain.
     All major equity benchmarks dropped, with the S&P 500 Index stumbling after a Chinese court temporarily banned Micron Technology Inc. chip sales in the country. The Nasdaq 100 Index plunged on the news, ending down more than 1 percent. U.S. stock markets closed at 1 p.m. in New York, while the bond market shut at 2 p.m.
     The dollar retreated. In China, an earlier pledge by the governor of nation’s central bank not to use the yuan as a weapon in any trade dispute assuaged some fears and helped it reverse losses. That boosted developing-nation currencies overall, though Turkey’s lira slumped after inflation data. The Swedish krona strengthened as the country’s central bank stuck to its plan to start lifting interest rates.
     Meanwhile, the global trade spat between the world’s biggest economies appeared to be worsening, with President Donald Trump taking measures to prevent China Mobile Ltd. from entering the U.S. market.
     “It certainly looks like there will be no deal before the tariffs take effect, at least the first round of $34 billion,” said John Vail, chief global strategist at Nikko Asset Management. “I think negotiations will start after that to perhaps prevent any further escalation, but for the first part it looks like it’s going to happen.”
     Telephone companies led an advance in the Stoxx Europe 600 Index, while miner Glencore Plc headed for the biggest decline in two years after saying it was subpoenaed by the U.S. Department of Justice. Commodities climbed as metals recovered after losses that saw platinum drop to the lowest in nine years.
     These are key events coming up this week:
* The U.S. celebrates Independence Day on Wednesday, July 4. Stock and bond markets are closed, along with government offices.
* Federal Reserve releases minutes of its June 12-13 meeting, when FOMC policy makers raised the benchmark rate a quarter point for the second time this year and lifted the median forecast to four total increases in 2018.
* U.S. payrolls are due Friday.
* Also on Friday, the U.S. is scheduled to impose tariffs on $34 billion of Chinese goods. Beijing has said it will slap tariffs on an equal value on U.S. exports including agricultural and auto exports.
     Here are the main market moves:
                          Stocks
* The S&P 500 fell 0.5 percent to 2,713.29, while the Nasdaq 100 Index dropped 1.2 percent.
* The Stoxx Europe 600 Index gained 0.8 percent.
* The MSCI All-Country World Index was little changed.
* The MSCI Emerging Market Index added less than 0.1 percent.
                         Currencies
* The Bloomberg Dollar Spot Index declined 0.6 percent as of 4:09 p.m. in New York.
* The euro gained 0.1 percent to $1.1651.
* The British pound climbed 0.2 percent to $1.3170.
                          Bonds
* The yield on 10-year Treasuries slid three basis points to 2.8364 percent.
* Germany’s 10-year yield dipped one basis point to 0.294 percent.
* Britain’s 10-year yield fell one basis points to 1.243 percent.
                          Commodities
* The Bloomberg Commodity Index increased 0.2 percent.
* West Texas Intermediate crude slipped 0.2 percent to $73.79 a barrel.
* Gold jumped 0.9 percent to $1,253.42 an ounce, the largest climb in four months.
–With assistance from Richard Frost, Adam Haigh and Eddie van der Walt. 

Have a great night.

Be magnificent!

As ever,

Carolann

Minds are like parachutes.  They only function when they are open.
                                                -James Dewar, 1842-1923

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