June 29, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!

June 29, 1922 – France formally transfers ownership of 100 hectares at Vimy Ridge to Canada.

PHOTOS OF THE DAY

Former Chief of the Secret Intelligence Service, also known as M16, John Sawers (2nd R) stands in his
formal robes at the beginning of the Service of Commemoration and Dedication, marking the 200th anniversary of the Most Distinguished Order of St Michael and St George at St Paul’s Cathedral in London. Credit: Leon Neal/AFP/Getty Images

Prince Williams touches the Western Wall, Judaism’s holiest prayer site, in Jerusalem’s Old City. Credit: Abir Sultan/Pool Via Reuters

A view of the Russian city of Petropavlovsk-Kamchatsky covered in fog. Credit: Vereshchaka Yelena\\Tass Via Getty Images

Lightning illuminates the night sky during heavy rainfall in Istanbul, Turkey. Credit: Emrah Yorulmaz/Anadolu Agency/Getty Images
Market Closes for June 29^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks posted their best quarter since 2013, driven largely by energy stocks, which jumped 15 percent to mark their biggest quarterly gain in nine years.
     The S&P/TSX Composite Index added 5.9 percent in the second quarter, aided by a 0.6 percent gain on Friday to close at 16,277.73. Energy led the increase, rising 2.1 percent. Enbridge Inc. added 7.1 percent to the highest since January after Minnesota regulators approved the replacement and expansion of its Line 3 pipeline.
     The materials sector rose 1.6 percent, with First Quantum Minerals Ltd. up 6.4 percent. The company is reportedly a potential takeover target for Rio Tinto Plc.
     In other moves:
                          Stocks
* Bombardier Inc. gained 2.2 percent. Quebec Premier Philippe Couillard said he expects the shares to post further gains as its C Series jet attracts new orders
* Magna International Inc. lost 2 percent to the lowest in nearly two months after General Motors Co. warned that auto tariffs could force it to shrink U.S. operations and cut jobs
* AltaGas Ltd. rose 2.9 percent to the highest since Feb. 1. Its takeover of WGL Holdings Inc. gained the last major approval needed for the deal to close
                          Commodities
* Western Canada Select crude oil traded at a $21.00 discount to WTI
* Gold rose 0.3 percent to $1,254.50 an ounce, its first gain of the week
                           FX/Bonds
* The Canadian dollar strengthened 0.8 percent to C$1.3143 per U.S. dollar after Canada’s economy posted an unexpected gain in April
* The Canada 10-year government bond yield rose four basis points to 2.17 percent
US
By Jeremy Herron
     (Bloomberg) — Stocks eked out a gain amid late selling to cap a quarter that’s seen equities whipsawed by escalating trade tensions and central-bank hawkishness. Treasuries fell and the dollar slipped.
     The S&P 500 Index rose for a third straight month, though the index gave back more than three-quarters of a gain that neared 1 percent, with the retreat heaviest in the final 15 minutes of trading. Nike Inc. rose the most on record after reporting results, but the gain was not enough to drag the Dow Jones Industrial Average to an advance for June. The dollar pared a third straight monthly advance. The euro rose the most in a month and Italian 10-year government bonds rose. European equities pared a monthly loss. Ten-year Treasury yields rose to 2.85 percent, where they ended May.
     Investors looked for reasons to cheer at the end of a volatile quarter overshadowed by trade tensions and political risk. Trump’s reported threat to leave the World Trade Organization rattled markets before the U.S. open, but his Treasury secretary later walked back the statements. It’s still too early to tell how long the European Union’s united front and the respite in the yuan’s decline will last, for now the risks to financial markets appear to have eased.
     Emerging-market stocks rallied Friday to shave a fifth monthly loss. The group is down almost 8 percent in 2018. Shares in Hong Kong and Shanghai led an advance in Asia earlier. The offshore yuan rose, halting an 11-day decline that was triggered by concern about Chinese policy makers’ intentions. Crude rallied to $74.10 in New York, while Brent jumped toward $80 a barrel.
     These are key events coming up for the remainder of this week:
* China manufacturing and non-manufacturing PMI are due on Saturday.
     Here are the main market moves
                           Stocks
* The S&P 500 rose 0.1 percent to 2,718.38 at 4 p.m. in New York. It rose 0.5 percent in June.
* The Russell 2000 Index was flat, but capped a fourth monthly advance. The Dow Jones Industrial Average pared a loss in June as Nike rallied.
* The Stoxx Europe 600 Index advanced 0.8 percent.
* Japan’s Nikkei 225 Stock Average jumped 0.2 percent.
* The Shanghai Composite Index surged 2.2 percent.
                           Currencies
* The Bloomberg Dollar Spot Index sank 0.5 percent.
* The euro climbed 0.9 percent to $1.1678.
* The British pound climbed 0.9 percent to $1.3194.
* The Japanese yen fell 0.2 percent to 110.754 per dollar.
                           Bonds
* Germany’s 10-year yield fell one basis point to 0.31 percent.
* Britain’s 10-year yield advanced two basis points to 1.272 percent.
* The yield on 10-year Treasuries rose one basis point to 2.85 percent.
                           Commodities
* West Texas Intermediate crude rose 1.2 percent to $74.34 a barrel.
* Brent crude climbed 2 percent to $79.44 a barrel.
* Gold futures added 0.2 percent to $1,253.80 an ounce.
–With assistance from Srinivasan Sivabalan, Adam Haigh and Joe Easton. 

Have a great weekend.

Be magnificent!

As ever, 

Carolann

Diligence is the mother of good fortune.
       -Miguel de Cevantes, 1547-1616

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

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