March 14, 2018 Newsletter

Dear Friends,

Tangents:
Albert Einstein, b. 1879

RIP Stephen Hawking.
In Hawking’s 2013 memoir “My Brief History,” he wrote that at the time of his ALS diagnosis, “I thought my life was over and that I would never realize the potential I felt I had,” according to the BBC. “But now, 50 years later, I can be quietly satisfied with my life,” he wrote.

On March 14, 1900, Congress ratified the Gold Standard Act.
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PHOTOS OF THE DAY

A dog sleeps under solar panels during the inauguration ceremony for the first stage of the Infinity 50 Solar Park near Aswan, southern Egypt. Once completed the solar power plant is supposed to be the biggest in the world with an output of 1.86 gigawatts.
Credit: Oliver Weiken/DPA

A perfectly timed photograph makes a rhino appear to be wearing a dress, as a peacock stands behind him, in Gorumara National Park in West-Bengal, India.
Credit: Kallol Mukherjee/Caters News

The Oriental Pearl Tower is seen with blooming magnolias as the weather turns warm in Shanghai, China.
Credit: VCG/Getty Images

A lady watches the video artwork “Untitled, 2018” (video still) by artist Laurent Grasso which is part of the 31^st Biennale of Sydney in Australia.
Credit: Mark Kolbe/Getty Images
Market Closes for March 14th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1904, the U.S. Supreme Court ruled that J.P. Morgan’s Northern Securities Co., holding company for the Northern Pacific and Great Northern railroad lines, was stifling free competition and violating the Sherman Antitrust Act. The decision helped mark an end to an era of monopolies and earned President Theodore Roosevelt his reputation as a “trust buster.”
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks barely held onto a fifth day of gains, while bond yields fell to the lowest level in more than two months.
     The S&P/TSX Composite Index added six points or less than 0.1 percent to 15,653.61, the highest close in two weeks, after dipping in and out of negative territory throughout the trading day.
     Consumer staples were the biggest gainers, adding 0.8 percent. Empire Co. jumped 4.4 percent, the most in six months, after earnings beat the highest analyst estimate. Telecom shares weighed on the index, falling 1 percent as BCE Inc. lost 0.6 percent.
     In other moves:
                          Stocks
* Stella-Jones Inc. fell 6.2 percent to the lowest since August after reporting fourth-quarter results. Acumen Capital said Ebitda guidance was lighter than expected
* Quebecor Inc. rose 2.7 percent, the most since August. Fourth- quarter adjusted operating income beat estimates
* The Stars Group Inc. lost 1.6 percent, moderating an earlier decline of 10 percent. Full-year revenue guidance missed estimates and the company said Russian regulations may restrict online gaming operators
                          Commodities
* Western Canada Select crude oil traded at a $25.75 discount to WTI
* Gold fell 0.1 percent to $1,325.60 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2952 per U.S. dollar
* The Canada 10-year government bond yield fell five basis points to 2.16 percent, the lowest since early January
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks fell for the third straight day after lackluster retail sales figures fanned concern that consumer spending is cooling, while traders awaited next week’s rate decision by the Federal Reserve. Ten-year Treasury yields tightened.
     The drop in retail spending provided a second data point — after Tuesday’s tepid inflation figures — to suggest unsteady growth in the world’s largest economy. Trading in S&P 500 Index shares was more than 10 percent below the 30-day average, suggesting investors are taking a wait-and-see attitude.
     “The reality of Fed tightening is beginning to weigh on markets even though the impact is not extreme,” Mark Heppenstall, chief investment officer of Penn Mutual Asset Management, said in a message. “Markets have rallied through the tightening process so far, but it will be more and more challenging as the Fed approaches neutral.”
     The Stoxx Europe 600 Index retreated from earlier gains, and benchmarks dropped across Asia after the sudden firing of U.S. Secretary of State Rex Tillerson. The euro declined after Mario Draghi’s comment that recent gains weren’t all warranted by economic fundamentals. News that factory output and investment growth in China had unexpectedly accelerated boosted most industrial metals, including copper.
     Oil fluctuated after OPEC raised its expectation for supply growth from the U.S. and other producers for a fourth consecutive month. U.S. crude inventories rose more than anticipated last week. Bitcoin dropped to its lowest level in over a month.
     Tillerson’s ouster raised concerns of a new guard in the White House that may take a harder line on trade, advancing President Donald Trump’s agenda of imposing tariffs. To replace Tillerson, Trump nominated CIA director Mike Pompeo, an ex- congressman who has endorsed “pushing back against the Chinese threat.” And on Wednesday, the president named economist and CNBC contributor Larry Kudlow to replace Gary Cohn as director of the White House National Economic Council.
     These changes come as the administration considers tariffs on a broad range of Chinese imports, with Politico reporting one proposal is to take measures against more than $30 billion of goods a year.
     Here are some of the key things happening this week:
* Inflation data Thursday is a focal point in the euro area.
* Also this week, Germany’s Angela Merkel is inaugurated to a fourth term, and EU27 government officials discuss the European Union’s Brexit position.
* New Zealand GDP data is out Thursday.
* The U.K. is expected to set out retaliation measures today against Russia over a nerve agent attack on its territory. Meanwhile, Russians will go to the polls on Sunday to vote in a presidential election that Vladimir Putin is widely expected to win.
     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index declined 0.6 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.1 percent to its lowest in a week.
* The U.K.’s FTSE 100 Index declined 0.1 percent.
* Germany’s DAX Index rose 0.1 percent.
* The MSCI Emerging Market Index fell 0.4 percent, its first retreat in a week.                         
                          Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent.
* The euro declined 0.2 percent to $1.237.
* The British pound gained less than 0.05 percent to $1.3968.
* The Japanese yen climbed 0.3 percent to 106.26 per dollar.
                           Bonds
* The yield on 10-year Treasuries fell three basis points to 2.81 percent.
* Germany’s 10-year yield declined three basis points to 0.59 percent.
* Britain’s 10-year yield fell five basis points to 1.437 percent.
                           Commodities
* West Texas Intermediate crude gained 0.3 percent to $60.88 a barrel.
* Gold fell 0.1 percent to $1,325.05 an ounce.
* LME copper climbed 0.6 percent to $6,988.50 per metric ton, the highest in more than a week.
–With assistance from Joanna Ossinger, Andrew Janes, Adam Haigh and Robert Brand.

Have a great night. (same as it ever was).

Be magnificent!

As ever,

Carolann

If you can’t feed a hundred people, then feed just one.
                                  -Mother Teresa, 1910-1997

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
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