June 28, 2018 Newsletter

Dear Friends,

Tangents:
On June 28, 1919, the Treaty of Versailles was signed in France, ending World War I.

Jean-Jacques Rousseau, philosopher, b. 1712.

The person who has lived the most is not the one with the most years but the one with the richest experiences. -Jean-Jacques Rousseau.
PHOTOS OF THE DAY

Two Damselfies are captured in incredible detail as they peer through holes that they have munched out of a leaf near the river Po in Reggio Emilia, Italy. Credit: Roberto Aldrovandi/Solent News & Photo Agency

South Korea players celebrate an historic victory against reigning world champions Germany. Germany are the fourth defending champions to be eliminated from the Group Stage at the World Cup in the last five tournaments (also France 2002, Italy 2010, Spain 2014). Credit: Dylan Martinez/Reuters

Germany fans react as they watch the match at a public viewing area at Brandenburg Gate. Credit: Hannibal Hanschke/Reuters

One of Lucian Freud’s last great nudes, Portrait on a White Cover sold in Sotheby’s London sale room for £22.5 million, making it the most valuable painting by the artist even sold in London. The previous highest price for a London auction of the artist’s work was £16.1 million set by Pregnant Girl at Sotheby’s in February 2016. Credit: Heathcliff O’Malley for the Telegraph
Market Closes for June 28^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Stefanie Marotta
     (Bloomberg) — Canadian stocks declined with consumer discretionary companies leading losses. Shaw Communications, Inc. fell 3.5 percent after taking an impairment charge on its investment in Corus Entertainment Inc., which slid 9.8 percent.
     The S&P/TSX Composite Index fell 0.3 percent to 16,179.89 points as global markets wavered under fears of President Trump’s trade war.
     Materials weighed on the market, dropping 0.8 percent even as Detour Gold Corp. climbed 3.3 percent, helped by two upgrades and a view that its status as an M&A target is growing.
     In other moves:
                                Stocks
* The Stars Group Inc. rose 6.2 percent after closing its previously announced underwritten public offering of common shares at $38.00
* Health care rose 4 percent as cannabis stocks accelerated.  Canopy Growth Corp. soared 9.8 percent despite reporting weak 4Q results
                                Commodities
* Western Canada Select crude oil traded at a $21.75 discount to WTI
* Aeco natural gas traded at a $1.67 discount to Henry Hub
* Gold fell 0.5 percent to $1,249.40 an ounce
                                 FX/Bonds
* The Canadian dollar strengthened 0.6 percent to C$1.3261 per U.S. dollar
* The Canada 10-year government bond yield rose four basis points to 2.13 percent
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks rose the most in three weeks as technology rebounded from losses sparked by America’s unclear strategy toward Chinese trade. Emerging-market assets had another miserable day, while Treasuries slumped with the dollar.
     The S&P 500 Index shook off early malaise to end higher, as technology stocks lifted the benchmark toward a monthly gain. The 2,700 mark provided a key level of support. The Nasdaq indexes led advances after bearing the brunt of selling in prior sessions. Walgreens Boots Alliance Inc., the Dow Jones Industrial Average’s newest member, plunged after Amazon.com Inc. said it acquired an online pharmacy. A gauge of developing- market stocks sank to the lowest level in 10 months. West Texas Intermediate crude pushed above $73 a barrel.
     Confusing signals on global trade keep coming from the White House, which yesterday appeared to step back from an all- out confrontation with the world’s second biggest economy, only for adviser Larry Kudlow to later say that President Donald Trump’s wasn’t softening his stance. In China, which Trump previously branded a currency manipulator, the yuan’s fastest fall since 2015 is threatening to heighten tensions.
     “The volatility comes because we’ve seen some volatility in the trade talks and it just naturally moves over into the markets,” Chris Gaffney, president of TIAA Bank World Markets in St. Louis, said by phone. “Trade is one of the major things impacting emerging markets, it’s impacting all of the markets. But specifically on the emerging market rout, unfortunately there’s probably more to come.”
     These are key events coming up for the remainder of this week:
* 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 rose 0.6 percent at 4 p.m. in New York.
* The Russell 2000 added 0.2 percent and the Nasdaq 100 Index climbed 0.9 percent.
* The Stoxx Europe 600 Index declined 0.8 percent to the lowest in more than 11 weeks.
* The MSCI All-Country World Index was flat.
* Germany’s DAX Index fell 1.4 percent to the lowest in 12 weeks.
                            Currencies
* The Bloomberg Dollar Spot Index declined 0.3 percent.
* The euro rose 0.1 percent to $1.163.
* The Japanese yen increased 0.2 percent to 110.51 per dollar.
* The British pound sank 0.3 percent to $1.3075.
* The offshore yuan fell 0.1 percent to 6.6337 per dollar.
                             Bonds
* The yield on 10-year Treasuries increased two basis points to2.84 percent, the first advance in more than a week.
* The two-year yield added one basis point to 2.52 percent.
* Britain’s 10-year yield decreased less than one basis point to 1.245 percent, the lowest in four weeks.
                             Commodities
* The Bloomberg Commodity Index fell 0.4 percent.
* West Texas crude rose 0.8 percent to $73.34 per barrel.
* Gold futures fell 0.5 percent to $1,249.40 an ounce.
–With assistance from Cormac Mullen, Andreea Papuc, Aline Oyamada, Giulia Morpurgo, Srinivasan Sivabalan, Adam Haigh and Eddie van der Walt.

Have a great night.

Be magnificent!

As ever,

Carolann

It is quite a three-pipe problem.
-Arthur Conan Doyle, 1859-1930

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