June 13, 2018 Newsletter

Dear Friends,

Tangents:
June 13, 1922 – Urban – North York is incorporated as a township. Toronto, Ontario

June 13, 1898 – Confederation – Royal Assent given to the Yukon Territory Act; The Yukon Judicial District becomes a distinct territory from the North-West Territories, two years after the Klondike gold discovery

From today’s New York Times:

Today, in honor of William Butler Yeats (born on this day in 1865), we explore the lasting influence of his most ubiquitous poem, “The Second Coming.”

Written in 1919, the poem is considered a towering achievement of Modernist poetry. Yeats drew on Christian apocalyptic imagery to capture the violent chaos of the political turmoil in Europe at the time, and to warn of further dangers on the horizon. 

William Butler Yeats in Dublin in 1923.
The New York Times Photo Archives 

So often have the poem’s phrases been incorporated into other works of art and literature that The Paris Review has called it “the most thoroughly pillaged piece of literature in English.” 

There is, of course, Chinua Achebe’s novel “Things Fall Apart,” and Joan Didion’s short story collection “Slouching Towards Bethlehem,” but lines from the poem have proliferated in many more book titles, speeches, folk albums, CD-ROM games and tweets, as well. 

An episode of “The Sopranos” called “The Second Coming” features the poem, as does a Batman comic book series called “The Widening Gyre.”

There was an uptick in references to the poem in 2016, as writers and pundits grasped for language to describe the series of dramatic political shifts in Europe and the U.S. 

Emma McAleavy wrote today’s Back Story.

PHOTOS OF THE DAY

Britain’s new aircraft carrier HMS Queen Elizabeth is anchored in Mount’s Bay, Penzance. Credit: Matt Cardy/Getty Images

The H-IIA F39 rocket, carrying an intelligence-gathering government satellite, lifts off from the launch pad at the Japan Aerospace Exploration Agency Tanegashima Space Center in Kagoshima, Japan. Credit: The Asahi Shimbun via Getty Images
Market Closes for June 13^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks snapped a seven-day winning streak, retreating as the U.S. Federal Reserve struck a more hawkish tone and energy shares fell.
     The S&P/TSX Composite Index fell 23 points or 0.1 percent to 16,265.82, the first decline since June 1. Energy shares lost 0.6 percent even as crude prices rose for a third day, reflecting continued uncertainty about Russia and Saudi Arabia’s plan to boost output.
     Forestry stocks tumbled after lumber prices fell to the lowest in six weeks. Interfor Corp. lost 5 percent and West Fraser Timber Co. slid 4.7 percent.
     In other moves:
                          Stocks
* Canopy Growth Corp. rose 3.3 percent as Canada’s legal marijuana bill moved closer to approval
* AltaGas Ltd. gained 2.6 percent, the most since April. It’s selling its interest in Northwest British Columbia Hydro Electric Facilities for C$922 million
* Choom Holdings Inc. jumped 40 percent after Aurora Cannabis Inc. said it would take an 8 percent stake in the cannabis company
                          Commodities
* Western Canada Select crude oil traded at a $18.50 discount to WTI
* Gold rose 0.1 percent to $1,296.90 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.2 percent to C$1.2989 per U.S. dollar
* The Canada 10-year government bond yield rose two basis points to 2.32 percent
US
By Sarah Ponczek and Janine Wolf
     (Bloomberg) — U.S. stocks finished lower as the Federal Reserve struck a somewhat hawkish tone in its latest policy statement. Treasuries fell, while the dollar retreated after spiking to session highs. Other major currencies fluctuated as investors absorbed the first of three big central bank reports this week.
     The Federal Open Market Committee on Wednesday raised rates and signaled it may pick up the pace of increases this year as unemployment falls and inflation flirts with target levels. Ten- year Treasury yields briefly crossed the 3 percent threshold after the announcement. The S&P 500 Index closed near its low for the day.
     “The FOMC is now signaling two more hikes this year and has dropped its increasingly stale signal to markets that rates will remain for some time below those levels expected in the long term,” James McCann, global economist at Aberdeen Standard Investments, said in a note. “This shift reflects the robust domestic growth backdrop, which is being fermented by a late- cycle fiscal stimulus.”
     Fed Chairman Jerome Powell told reporters that unemployment and inflation are both low, and that raising rates too slowly or quickly could be harmful. He added that the bank won’t over- react to inflation levels above 2 percent. Powell also announced he would hold press conferences at every Fed meeting starting in January.
     The euro dropped after the Fed decision only to recover to session highs. The pound also erased losses from a post-Fed swoon. The European Central Bank will decide rates on Thursday — no change is expected but investors will be braced for news on a potential end to the region’s quantitative-easing program. The Bank of Japan reports Friday.
     “From the ECB standpoint, the gross numbers in 2018 are not as good as the numbers were in 2017,” John Lynch, chief investment strategist for LPL Financial, said by phone. “So I’m wondering if it’s impatience on the part of investors as opposed to a fundamentally driven necessity to remove accommodation.”
     Gold and copper advanced, while Bitcoin looked headed for a fourth straight day of declines. West Texas crude jumped after EIA reported an unanticipated draw on U.S. oil supplies.
     Earlier, technology companies outperformed as the Stoxx Europe 600 Index advanced, though gains were tempered by a decline in telecom shares. In Asia, Japanese shares rose as the yen fell slightly, while equities fell in Hong Kong and Australia. Chinese shares also retreated, with ZTE Corp. plunging by its daily limit after it agreed to a $1 billion fine.
     These are some key events to watch this week:
* The European Central Bank rates decision comes Thursday with a briefing from President Mario Draghi.
* The Bank of Japan June monetary policy decision and news conference is Friday.
* FIFA expects more than 3 billion viewers for the World Cup that begins this week in Russia.
     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index fell 0.4 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index climbed 0.2 percent to the highest in more than two weeks.
* The U.K.’s FTSE 100 Index declined less than 0.05 percent.
* Germany’s DAX Index gained 0.4 percent to the highest in almost three weeks.
                          Currencies
* The Bloomberg Dollar Spot Index declined 0.1 percent, its biggest drop in a week.
* The euro gained 0.4 percent to $1.1779.
* The British pound gained less than 0.05 percent to $1.3376.
* The Japanese yen advanced 0.1 percent to 110.30 per dollar.
                          Bonds
* The yield on 10-year Treasuries rose one basis point to 2.97 percent, the highest in more than two weeks.
* Germany’s 10-year yield declined one basis point to 0.48 percent.
* Britain’s 10-year yield fell three basis points to 1.369 percent, the lowest in more than a week.
                          Commodities
* West Texas Intermediate crude jumped 0.5 percent to $66.69 a barrel.
* Gold gained 0.3 percent to $1,300.19 an ounce.
* LME copper advanced 0.5 percent to $7,257 a metric ton.
–With assistance from Andreea Papuc, Richard Jones and Samuel Potter. 

Have a great night.

Be magnificent!

As ever,

Carolann

Even when laws have been written down, they ought not always to remain unaltered.
                                                                                   -Aristotle, 384 BC-322 BC

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