July 5, 2018 Newsletter

Dear Friends,

Tangents: Tynwald Day: Viking Mid-summer Day, Isle of Man.

First Bikini Swimsuit, July 5, 1946: Bikini swimsuits get their name from Bikini Atoll in the south Pacific.  French fashion designer Louis Réard chose the name to upstage rival designer Jacques Heim who had started selling a two-piece called the Atome.  On July 5, 1946, four days after the US tested an atomic bomb over Bikini, Réard launched his explosively small creation under the suddenly well-known name.   See www.binkiniscience.com.

On July 5, 1975, Arthur Ashe became the first black man to win a Wimbledon singles title as he defeated Jimmy Connors.

Spam — the canned meat, not the unwanted email — might deserve more respect.

On this day in 1937, Hormel Foods introduced the mix of pork shoulder and ham, whose name is derived from “spiced ham.” (No, it doesn’t stand for “Something Posing As Meat.”) Since then, Spam has been a muse for poets, comedians and chefs, and it helped win World War II.

The Times’s obituary for Jay Hormel, Spam’s creator, said he was the first to successfully can ham. Cooking the meat inside the can produced a natural gelatin, increased shelf life and made it useful in battle. President Dwight D. Eisenhower wrote a letter praising Spam, and the former Soviet premier Nikita Khrushchev said his country couldn’t have fed its troops without it.

Hawaii embraced Spam during the war, too, and the affection never ceased. The state consumes the most in America, with seven million cans a year, or five cans per person.

“In all of its high-sodium, gravy-drenched glory, Spam has, in every sense, found its way into my heart,” the chef Anthony Bourdain, who died last month, said during a visit to Hawaii for his show “No Reservations.” “I get it now. I feel inducted into the Church of True Knowledge.”

Robb Todd wrote today’s Back Story.  –The New York Times, July 5, 2018

PHOTOS OF THE DAY

French President Emmanuel Macron meets with a young boy who drew a portrait of him during a visit to the New Afrika Shrine in Lagos, Nigeria. Credit: Ludovic Marin/AP

Lightning flashes illuminate the sky over the Saint-Michel church in Bordeaux, southwestern France. Credit: Nicolas Tucat/AFP/Getty Images

A model walks the runway during the Maison Margiela Haute Couture Fall Winter 2018/2019 show as part of Paris Fashion Week in France. Credit: Thierry Chesnot/Getty Images
Market Closes for July 5^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Stefanie Marotta
     (Bloomberg) — Canadian stocks fell as global markets rose, weighed down by losses in the energy sector.
     The S&P/TSX Composite Index fell 0.2 percent to 16,266.61 points. Energy dropped 0.9 percent as oil dipped the most in three weeks after an increase in American stockpiles and moves by Saudi Arabia to cool prices.
     Even as the market declined, Bombardier gained 3.4 percent as the jet maker’s competitor Embraer SA inked a $4.75 billion deal with Boeing.
     In other moves:
                            Stocks
* Centerra Gold Inc. slid 9.2 percent amid concerns over regulatory approvals that could affect targets at the Mount Milligan Mill
* Maxar Technologies Ltd. jumped 6.1 percent after the data company’s DigitalGlobe announced a new head of its defense programs
* Canopy Growth Corp. added 2.7 percent after acquiring a Colombian medical cannabis company
                           Commodities
* Western Canada Select crude oil traded at a $20.20 discount to WTI
* Gold rose 0.4 percent to $1,258.00 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.03 percent to C$1.3141 per U.S. dollar
* The Canada 10-year government bond yield fell two basis points to 2.15 percent
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks returned from a holiday break with a strong advance led by technology shares, even as markets prepared Friday’s jobs report and the implementation of fresh tariffs between America and China. The dollar slumped.
     All major equity benchmarks in the U.S. advanced, with the Nasdaq indexes climbing more than 1 percent on strength in chipmakers. European automakers drove the continent’s stock markets higher on hopes of a trans-Atlantic tariff agreement. Asian shares earlier sank to a nine-month low as trade fears increased. Trading was quiet during the U.S. holiday week, with turnover on the S&P 500 and Nasdaq 100 more than 20 percent below normal.
     Investors also assessed minutes from the most recent Federal Reserve meeting where officials affirmed the need for gradual interest rate hikes amid increasing trade risks. And while the jobs report Friday is expected to show continued strength in the American labor market, the midnight deadline for tariffs is fast approaching.
     “The risks are increasing, it’s becoming a bit of a bumpier ride, and I think there probably is some nervousness,” said James McCann, global economist at Aberdeen Standard Investments. “Tightening policy alongside building risks is a more difficult cocktail for them.”
     The dollar fell as jobless data disappointed, and Treasuries were stable. The yuan declined. Commodities slid and those with heavy exposure to international trade were particularly pressured, with iron ore futures in Singapore hitting a seven month low. Oil slumped as inventories unexpectedly rose.
     “A pretty quiet day today as a lot of people are still on vacation,” Matt Maley, an equity strategist at Miller Tabak & Co., wrote in an email to clients. “Those who are at their posts will be waiting to see tomorrow’s employment report and the reaction to the tariffs that will go into effect tomorrow as well.”
     The trade conflict is poised to enter a new phase on Friday with the imposition of fresh tariffs between the world’s two biggest economies. China said it won’t be the first to act and will hold off on enforcement until the U.S. does. Investors are also preparing for the release of Federal Reserve minutes later Thursday and American jobs data on Friday.
     The euro strengthened and sovereign bonds fell as investors repriced the trajectory of ECB rate increases and after data showed German factory orders surged in May. The pound climbed on hawkish comments from Bank of England Governor Mark Carney.
     Elsewhere, emerging-market shares slipped for the eighth time in nine days, and developing-nation currencies held steady.
     These are key events coming up this week:
* 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 Index rose 0.9 percent to 2,736.61, while the Nasdaq 100 Index climbed 1.2 percent.
* The Stoxx Europe 600 Index gained 0.4 percent to the highest in almost two weeks.
* The MSCI All-Country World Index increased 0.6 percent.
* The MSCI Emerging Market Index fell 0.1 percent.
* The MSCI Asia Pacific Index dipped 0.5 percent to the lowest since October.
                           Currencies
* The Bloomberg Dollar Spot Index dropped 0.2 percent to the lowest in more than three weeks.
* The euro added 0.3 percent to $1.1691.
* The British pound fell 0.1 percent to $1.3221.
* The Japanese yen declined 0.1 percent to 110.64 per dollar.
                           Bonds
* The yield on 10-year Treasuries rose less than a basis point to 2.8345 percent.
* Germany’s 10-year yield dipped one basis point to 0.299 percent.
* Britain’s 10-year yield fell two basis points to 1.258 percent.
                          Commodities
* The Bloomberg Commodity Index dropped 0.5 percent.
* WTI crude slipped 1.6 percent to $72.99 a barrel.
* Gold increased 0.1 percent to $1,256.74 an ounce.
–With assistance from Jana Randow, Srinivasan Sivabalan and Eddie van der Walt.

Have a great night.

Be magnificent!

As always,

Carolann

A yawn is a silent shout.
-Gilbert Keith Chesterton, 1874-1936 

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