June 6, 2018 Newsletter

Dear Friends,

Tangents:
On June 6, 1944, the D-Day invasion of Europe took place during World War II as Allied forces stormed the beaches of Normandy, France.

From today’s NY Times:

“The most pivotal battle of all time.”

That was how Secretary of State Cordell Hull described D-Day, when more than 150,000 Allied troops landed in Normandy on this day in 1944 to begin liberating Europe from Nazi occupation during World War II.

American troops on a Normandy beach in 1944.
Associated Press

D-Day saw airborne forces parachute across northern France as ground troops landed on five beaches. By day’s end, it was the largest air, naval and land operation in history.

But it was not the first D-Day.

D-Day is a general term used for the start of any military campaign, and is used when the exact date of an operation is secret or not yet known. Similarly, H-Hour is a term used to describe a yet-to-be-determined time. The alliterative phrases go back at least as far as World War I, and helped keep actual mission dates out of enemy hands.

The generic phrases also allowed for advance planning, which in 1944 led to scenes like this:

“The relatively calm water was churned by wave after wave of ships,” according to one Times account from Normandy, “some large enough to cast their eerie shadows in the early morning glow and others darting through like so many water-bugs.”

Remy Tumin wrote today’s Back Story.

PHOTOS OF THE DAY

Ray Schuck, 95, who was a paratrooper on D-Day and was later shot in the head by a German sniper sits inside the church in Ranville, France, where he was given the last rites in June 1944. Credit: Matt Cardy/Getty Images

A priest looks out from the temple of Swet Bhairabh in Basantapur Durbar Square in Kathmandu, Nepal. Credit: Niranjan Shrestha/AP

Tourists visit an aquatic forest park in Lizhong Township of Xinghua, east China’s Jiangsu Province. Credit: Meng Delong/Xinhua News Agency/Eyevine
Market Closes for June 6^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
~$ On this day in 1934, the Securities Exchange Act was signed into law by President Franklin D. Roosevelt. It created the U.S. Securities & Exchange Commission and required companies to file registration documents with stock exchanges and to file quarterly financial statements.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks staged a late-day rally, closing at the highest since Jan. 26, as health care and materials companies gained.
     The S&P/TSX Composite Index added 62 points, or 0.4 percent, after trading near or below the previous session’s closing price for most of the day. Cannabis stocks rose for a third day as the Canadian Senate prepares to vote Thursday on legislation that would legalize the drug for recreational use. Aurora Cannabis Inc. was the biggest gainer, adding 13 percent to the highest since March.
     The materials sector gained 1.7 percent as copper rose to an almost four-month high. First Quantum Minerals Ltd. added 7.1 percent and Hudbay Minerals Inc. gained 6 percent.
     In other moves:
                          Stocks
* Valeant Pharmaceuticals International Inc. rose 7.5 percent to the highest since 2016 after Barclays upgraded the stock to overweight, saying it’s at an inflection point
* Cameco Corp. added 6.7 percent, bringing its three-day gain to 16 percent. The uranium sector should see further price gains, according to Eight Capital
* Shaw Communications Inc. gained 1.3 percent after CIBC Capital Markets upgraded the stock to buy for the first time since 2014
                          Commodities
* Western Canada Select crude oil traded at a $15.25 discount to WTI
* Gold was little changed at $1,297.10 an ounce
                          FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2957 per U.S. dollar
* The Canada 10-year government bond yield rose six basis points to 2.31 percent after the trade deficit narrowed to a six-month low
US
By Samuel Potter
     (Bloomberg) — Trade hopes and the end of easy money were the twin themes in trading on Wednesday, with U.S. stocks extending gains and bonds falling as this week’s risk-on mood endured.
     The S&P 500 pushed higher for a fourth consecutive day after dipping earlier into negative territory, led by gains in financials and health care companies. The Dow Jones Industrial Average climbed the most in almost two months. The Nasdaq Composite Index reached another record high, pushing its return for the year beyond 11 percent. Equities had opened higher across Asia on signs that major economies will step back from the brink of a trade war.
     The Stoxx Europe 600 Index finished little changed as a strengthening euro provided a headwind and as Italian shares fell. Both were reacting to signs that the ECB is ready to discuss an end to quantitative easing, which sank bonds in the region and spurred fears for Italy’s embattled lenders.
     The dollar stayed lower after the U.S. trade deficit narrowed to the lowest level since September thanks to record exports. Most metals rallied and 10-year Treasury yields climbed above 2.95 percent after China was said to offer to buy more American products and on reports the Treasury Department favors less sweeping investment limits on the Asian nation.
     Investors have been here before: The on-again, off-again threat of protectionism is becoming a common refrain in global markets. They’ll now look ahead to the G-7 meeting this week for further developments in the story, as well as to this month’s meetings of both the Federal Reserve and the European Central Bank for more clues on monetary policy. ECB chief economist Peter Praet on Wednesday confirmed next week’s gathering will be pivotal for a decision on when to end its bond-buying program.
     Elsewhere, oil slid lower after a U.S. government report showed a surprise increase in domestic crude stockpiles. Brazil’s real deepened losses after closing at the weakest since 2016 on Tuesday following a failed attempt by the central bank to halt the currency’s slide.
     These are some key events to watch this week:
* On Thursday, Japanese Prime Minister Shinzo Abe meets with U.S. President Trump at the White House to discuss the planned U.S. summit with North Korea’s Kim Jong Un.
* Also on Thursday, euro-zone GDP.
* A Turkish rate decision is due on Thursday.
* G-7 Leaders’ Summit starts in Quebec Friday through to June 9.
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index increased 0.9 percent to 2,772.35, the Dow Jones Industrial Average gained 1.4 percent 25,146.39 and the Nasdaq Composite Index rose 0.7 percent to a record 7,689.24 as of 4:05 p.m. in New York.
* The U.K.’s FTSE 100 Index gained 0.3 percent.
* The MSCI Emerging Market Index increased 0.5 percent, touching the highest level in three weeks.
* Japan’s Nikkei 225 Stock Average gained 0.4 percent.
                           Currencies
* The Bloomberg Dollar Spot Index slumped 0.2 percent.  The euro rose 0.5 percent to $1.1773.
* The British pound gained 0.2 percent to $1.3414.
* The Japanese yen weakened 0.4 percent to 110.22 per dollar.
                           Bonds
* The yield on 10-year Treasuries rose four basis points to 2.97 percent.
* Italian 10-year yields jumped 15 basis points to 2.94 percent, bringing the two-day increase to 40 basis points.
                           Commodities
* West Texas Intermediate crude dropped 0.7 percent to $65.05 a barrel.
* Gold rose 0.1 percent to $1,297.02 an ounce.
–With assistance from Sophie Caronello. 

Have a great night.

Be magnificent! 

As ever,

Carolann

Guard against the impostures of pretended patriotism.
                             -George Washington, 1732-1799

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