June 18, 2018 Newsletter

Dear Friends,

Tangents:

Dragon boat Festival, China.

-from today’s New York Times:

Across China and in many other parts of the world today, sleek dragon boats will line up, sticky rice dumplings will be eaten, and drums will thrum. 

The spectacle makes more sense if you know the Dragon Boat Festival’s origin tale. 

Dragon boats in Zigui, China.
Xinhua/Xiong Qi, via Getty Images 

More than 2,000 years ago, China was divided into many kingdoms. In one realm, the indolent king preferred sycophants to tell him that his kingdom was thriving, though it was under constant threat from invaders. Only a civil servant named Qu Yuan persisted in warning of the danger. 
He was ostracized and eventually exiled. When he heard that enemy troops had invaded the kingdom he loved, he flung himself into the Miluo River. 

People rowed frantically in search of his body, beating drums and cymbals to scare away hungry fish, and throwing clumps of sticky rice wrapped in bamboo leaves into the water to distract them from his remains. Wine was tossed overboard to appease water dragons and wrathful sea gods. 

In China, Qu Yuan has come to be honored as a historical exemplar of selfless loyalty to the people. In 2007, the government reintroduced the Dragon Boat Festival — at the expense of the Mao-era Marxist May Day. 

Tiffany May wrote today’s Back Story.

PHOTOS OF THE DAY

A view of smog over Santiago, due to which Chilean authorities declared a new environmental preemergence, as high levels of air pollution were recorded. Credit: The Telegraph

The La Cumbre volcano at the Fernandina Island, in Galapagos Archipelago, Ecuador erupts. Credit: The Telegraph

People race a dragon boat at night in Fuzhou, Fujian province, China. Credit: The Telegraph
Market Closes for June 18^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Bloomberg Automation
     (Bloomberg) — The S&P/TSX Composite rose 0.4 percent at 16,383.63 in Toronto. The move was the biggest gain since June 5 and follows the previous session’s decrease of 0.1 percent.
     TransCanada Corp. contributed the most to the index gain, increasing 3.2 percent. Canada Goose Holdings Inc. had the largest increase, rising 9.8 percent.
     Today, 161 of 246 shares rose, while 78 fell; 8 of 11 sectors were higher, led by energy stocks.
*      The Canadian dollar rose 0.11 percent to 1.3200 against the U.S. dollar.
*       The benchmark 10-year bond rose and the yield fell 1.7 basis points to 2.197 percent.
*       The S&P 500 Index declined 0.2 percent in the previous session.
     Related News headlines:
*      Canada Goose PT Nearly Doubled at CIBC to Street High
*       Bombardier/Airbus C Series Gets Boost From Moxy: BI React
*       Baytex Tumbles as $1.2 Billion Raging River Deal Dilutes Stock
*       Valeant’s Rebound Falters as Key Drug Rejection Breaks Momentum
*       RRX CN Downgraded to Reduce at Laurentian Bank Securities
*       S&P/TSX Index Rises 0.3%; Suncor Energy Leads Advance
US
By Sarah Ponczek and Janine Wolf
    (Bloomberg) — The S&P 500 slipped following stock declines in Europe and Asia amid concern over the escalating protectionist standoff between China and the U.S. Oil gained before a key OPEC meeting this week.
    U.S. equity gauges came off their lows of the day as energy shares advanced along with software makers. The Stoxx Europe 600 Index posted its biggest two-day drop since March and Japan’s Topix Index fell the most in almost three weeks. Crude climbed as producers were discussed a smaller-than-expected boost to production. Treasury yields were little changed after trading near the lowest level this month.
     Global trade is firmly back at the top of the agenda, with investors fretting about the intensifying confrontation between the U.S. and China. The Asian nation swiftly responded after President Donald Trump slapped tariffs on $50 billion of imports late last week, putting an additional 25 percent levy on $34 billion of American agricultural and auto exports starting July 6.
     “The relative policy calm was shattered late in the week as trade tensions escalated,” David Joy, the chief market strategist at Ameriprise Financial Inc., said in a note. “There is still time for negotiation. But the inexorable march toward a trade war with China took a significant step forward.”
     Meanwhile in Europe, German Chancellor Angela Merkel and British Prime Minister Theresa May face tough weeks over migration and Brexit, respectively. Trump said in a tweet that the German people “are turning against their leadership as migration is rocking the already tenuous Berlin coalition.”
    An index of emerging-market currencies fell for a fifth day, leaving it on track for the biggest quarterly decline since September 2015. Developing-nation equities extended a drop after their worst weekly performance in a month, with an MSCI index retreating for a fourth day.
     Here are some key events to watch for this week:
* European Central Bank President Mario Draghi speaks at ECB’s Forum on Central Banking on Tuesday.
* U.S. housing starts probably rose in May, data out Tuesday is expected to show.
* Draghi, Reserve Bank of Australia Governor Philip Lowe, Bank of Japan Governor Haruhiko Kuroda, and Fed Chairman Jerome Powell join a panel on central bank policy in Sintra, Portugal, on Wednesday.
* Thailand, Philippines and Brazil central bank decisions due Wednesday.
* Bank of England rate decision on Thursday.
* Also on Thursday: U.S. jobless claims, New Zealand GDP, South Korea export data.
* The Organization of Petroleum Exporting Countries meets in Vienna on Friday.
     And here are the main market moves:
                            Stocks
* The S&P 500 fell 0.2 percent at the close of trading in New York.
* The Stoxx Europe 600 Index decreased 0.8 percent.
* Japan’s Nikkei 225 Stock Average fell 0.8 percent to the lowest in more than a week.
* The MSCI Emerging Market Index declined 0.7 percent to the lowest since December.
                            Currencies
* The Bloomberg Dollar Spot Index was little changed, near the highest in 11 months.
* The euro rose 0.1 percent to $1.1618.
* The British pound fell 0.3 percent to $1.324.
* The Japanese yen rose 0.1 percent to 110.57 per dollar.
                            Bonds
* The yield on 10-year Treasuries was little changed at 2.92 percent.
* Germany’s 10-year yield decreased one basis point to 0.39 percent.
* Britain’s 10-year yield was little changed at 1.32 percent.
                            Commodities
* Gold was little changed at $1,278.61 an ounce.
* WTI oil rose 1.1 percent to $65.79 a barrel.
–With assistance from Andreea Papuc, David Marino, Todd White, Robert Brand, Samuel Potter and Christopher Anstey.

Have a great evening.

Be magnificent!

As ever,

Carolann

Be kind, for everyone you meet is fighting a hard battle.
                                         -Plato, 428 BCE-348 BCE

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