June 25, 2018 Newsletter

Dear Friends,

Tangents:
1950: Korean War begins.
George Orwell, b. 1903
On June 25, 1876, Lt. Col. George A. Custer and his 7th Cavalry were slaughtered by Sioux and Cheyenne Indians in the Battle of Little Big Horn in Montana. 
Go to article »

1647 – First horses arrive in Canada; gift from the French King; today’s Canadian breed.

From today’s New York Times:

Did you see strange lights in the sky yesterday?

If so, perhaps you spotted an extraterrestrial anniversary celebration! The modern era of ufology (yes, it’s a word) dawned 71 years ago on June 24.

Kenneth Arnold had one of the earliest reported sightings of a U.F.O., in 1947.
Idaho Statesman, via Associated Press

That’s when Kenneth Arnold, an Idaho businessman flying a private plane, saw nine disc-like objects zooming impossibly fast past Mount Rainier, in Washington. He told a newspaper, the East Oregonian, about his sighting, and it ran a short article that was picked up by The Associated Press.

Since then, U.F.O. sightings have been reported worldwide, including in Australia, Canada, India and Scotland.

June 24 was also the day, in 1997, the Air Force published a study about a second flying object report in 1947, by a rancher near Roswell, N.M., who found metallic debris scattered there. Rumors grew that an alien spacecraft had crashed. The study intended to debunk rumors about little green people once and for all (whether it succeeded is debatable).

As for Mr. Arnold, stung at being mocked by skeptics, he once complained to an Air Force officer who interviewed him, “If I saw a 10-story building flying through the air I would never say a word about it.”

But he never recanted his original story.

Nancy Wartik wrote today’s Back Story.

PHOTOS OF THE DAY

A man walks past a recent artwork by street artist Banksy in Paris. Credit: Philippe
Lopez/AFP/Getty Images

A vintage ship with scarlet sails passes on the Neva River in central Saint Petersburg, during the “Scarlet Sails,” a romantic holiday with laser show to honour high schools graduates. “Scarlet Sails” is the title of a story by Alexander Grin, the story of a young girl, who never gave up on her dreams and finally arrived on the tall ship with the scarlet sails. Credit: Olga Maltseva/AFP/Getty Images

An owl grabs a midnight snack in Ticino Park, Italy before passing the rodent to its mate in a nest in a tree. Credit: Luzzini/Vignati/swns.com
Market Closes for June 25^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Stefanie Marotta
     (Bloomberg) — Canadian stocks plummeted as global markets dropped amid escalating fears of President Donald Trump’s trade war.
     The S&P/TSX Composite Index fell 1.6 percent to 16,183.96 points. Technology lead losses, dropping 3.1 percent as Shopify Inc. slid 5.8 percent.
     Health care fell 2.9 percent even as cannabis companies prepare for Canada to legalize recreational marijuana. Canopy Growth Corporation fell 4.5 percent.
     In other moves:
                               Stocks
* Hudbay Minerals Inc. dropped 6.3 percent after Scotiabank downgraded the miner to sector perform from focus stock due to permit uncertainty for the Rosemont project
* Suncor Energy Inc. dropped 3.6 percent after news that a power outage at Syncrude Canada may tighten Canadian crude differentials
* Canada Goose Holdings Inc. bucked the global trend, climbing 2.1 percent after Goldman Sachs reinstated the company at neutral
                               Commodities
* Western Canada Select crude oil traded at a $23.75 discount to WTI
* Gold fell 0.2 percent to $1,267.70 an ounce
                               FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.3294 per U.S. dollar
* The Canada 10-year government bond yield fell three basis points to 2.09 percent
US
By Eddie van der Walt and Jeremy Herron
     (Bloomberg) — Escalating trade tensions sent U.S. stocks to the steepest drop since early April, as President Donald Trump’s threats of more protectionism against major partners were met with Chinese and European vows of retaliation.
     The S&P 500 Index fell 1.4 percent, though comments from National Trade Council Director Peter Navarro brought the measure back from losses that topped 2 percent. The Dow Jones Industrial Average closed below its 200-day moving average. Selling was heaviest in tech shares, with the Nasdaq 100 Index sinking 2.2 percent.
     Equities tumbled around the world on reports that the Treasury department will propose limits on Chinese technology investment, straining already tense relations between the world’s two largest economies. Navarro said on CNBC that there were no plans to impose restrictions, sparking a late-day rebound. China and Europe warned the escalating trade war could trigger a global recession.
     The selling in American stocks spread from Asia, where equities in Shanghai and Hong Kong declined despite China’s central bank freeing up liquidity in the banking system. European shares also tumbled, with the Stoxx 600 Index down 2.1 percent. Political concerns hit Italian bonds and stocks after the nationalist League party won municipal elections. Emerging- market equities slid. U.S. crude pushed toward $69 a barrel. After an early surge, Turkey’s lira swung between gains and losses as traders digested Recep Tayyip Erdogan election victory.
     The rising tensions have weighed on stocks ahead of the second-quarter earnings season that so far has seen estimates keep rising. Daimler AG dented that notion last week, warning that tariffs will lower its profits. Germany’s DAX Index was among the worst performers of the region’s stock gauges as data showed business sentiment slipped. Automakers were the big losers after more tariff threats from Trump at the end of last week.
     These are key events coming up this week:
* German Chancellor Angela Merkel holds private talks with leaders of the other parties in her coalition government on refugee policy and euro-area reforms in Berlin Tuesday.
* New Zealand and Indonesia monetary policy decisions on Thursday.
* U.S. personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data.
* China manufacturing and non-manufacturing PMI are due on Saturday.
     Here are the main market moves.
                                 Stocks
* The S&P 500 Index fell 1.4 percent as of 4 p.m. New York time, the most since April 46
* The Dow slipped 1.3 percent and the Nasdaq indexes slid at least 2.1 percent.
* The Stoxx Europe 600 Index declined 2 percent to the lowest since April 11 on the biggest drop since March.
* The MSCI All-Country World Index declined 1.4 percent.
* Emerging market shares fell 1.5 percent.
                                 Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent to the lowest in more than a week.
* The Japanese yen jumped 0.4 percent to 109.58 per dollar, the strongest in more than two weeks.
* The euro increased 0.3 percent to $1.1691, the strongest in more than a week.
* The British pound climbed 0.1 percent to $1.328, the strongest in more than a week.
* The Turkish lira gained less than 0.05 percent to 4.6769 per dollar, the strongest in more than a week.
                                 Bonds
* The yield on 10-year Treasuries fell one basis point to 2.88 percent, the lowest in more than three weeks.
* Germany’s 10-year yield declined one basis point to 0.33 percent, the lowest in almost four weeks.
* Britain’s 10-year yield decreased one basis point to 1.308 percent.
                                 Commodities
* Gold declined less than 0.05 percent to $1,270.02 an ounce.
* Brent crude decreased 1.4 percent to $74.49 a barrel.
* LME copper advanced 0.1 percent to $6,792.50 per metric ton.
–With assistance from Andreea Papuc, Samuel Potter and Adam Haigh. 

Have a great night.

Be magnificent!

As ever,

Carolann

Act as if what you do makes a difference.  It does.
                            -William James, 1842-1910

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
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www.carolannsteinhoff.com