March 15, 2018 Newsletter

Dear Friends,

Tangents:
On this day in 44 BC, Roman senators stabbed the empire’s dictator, Julius Caesar, to death. The conspiracy against Caesar encompassed as many as sixty noblemen, including Caesar’s own protege, Marcus Brutus.

What is still more extraordinary, many report that a certain soothsayer forewarned him of a great danger which threatened him on the ides of March, and that when the day was come, as he was going to the senate-house, he called to the soothsayer, and said, laughing, “The ides of March are come”; to which he answered softly, “Yes; but the are not gone.” –Plutarch: Julius Caesar, (Langhorne translation, 2^ndcentury AD.
PHOTOS OF THE DAY

Skiers compete during the first stage of the 33^rd edition of the Pierra Menta ski mountaineering competition Areches-Beaufort, France.
Credit: Jeff Pachoud/AFP/Getty Images

French urban climber, Alain Robert, also known as “French Spiderman”, climbs the building of French energy group Total, at La Defense business center, in Paris, France.
Credit: Francois Mori/AP

A colourful network of floating lobster cages off of the coast of Tuy Hoa, Vietnam.
Credit:  Trung Pham Huy/Solent News & Photo Agency
Market Closes for March 15th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest level in two and a half weeks, while the loonie was the weakest in nine months.
     The S&P/TSX Composite Index rose 0.1 percent to 15,670.62, the sixth consecutive gain and the highest since Feb. 27. Consumer-discretionary stocks were the biggest gainers, adding 2.1 percent as Magna International Inc. jumped 6.9 percent. Magna will work with Lyft Inc. to fund and develop self-driving cars. The energy index tumbled 0.9 percent after U.S. regulators ruled that master-limited partnerships can no longer receive credit for income taxes they don’t pay.
     In other moves:
                          Stocks
* Element Fleet Management Corp. tumbled 24 percent to the lowest since 2012. National Bank Financial said the company’s fourth-quarter results are likely to renew concerns about costs
* Premium Brands Holdings Corp. rose 4.5 percent to a record high after hiking its dividend and announcing four acquisitions
* Ivanhoe Mines Ltd. fell 13 percent amid ongoing discussions with the Democratic Republic of Congo on its new mining code
                          Commodities
* Western Canada Select crude oil traded at a $26.50 discount to WTI, the widest gap in more than a week
* Gold fell 0.6 percent to $1,317.80 an ounce, the lowest since March 1
                          FX/Bonds
* The Canadian dollar weakened 0.8 percent to C$1.3055 per U.S. dollar, the weakest since June, as the greenback strengthened against most G-10 peers
* The Canada 10-year government bond yield fell two basis points to 2.14 percent, the lowest since early January
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks ended mixed Thursday, as industrial and tech gains were offset by losses in the consumer and energy sector. Ten-year Treasury yields steadied after briefly sinking below 2.80 percent as traders look forward to next week’s Federal Reserve policy decision.
     With volume running about 17 percent below average, the S&P 500 Index notched its longest losing streak of 2018 — four days. The Empire Manufacturing Index exceeded projections and initial jobless claims came in just below estimates, signaling continuing strength in the U.S. economy. While an increase in borrowing costs at the Fed meeting is seen as a done deal, it remains an open question whether U.S. policy makers will lift their expectations for the pace of future increases.
     “The factory orders number in conjunction with the possibility of another round of tax cuts would bolster the somewhat weakening growth story we’ve seen the past two weeks,” Kevin Caron, a senior portfolio manager at Washington Crossing Advisors, said by phone.
     Pipeline stocks plunged after the Federal Energy Regulatory Commission ruled that master-limited partnerships can no longer recover a key income-tax allowance.
     Investors are weighing prospects for more U.S. trade protectionism after new White House appointee Larry Kudlow signaled support for a strong dollar and took a tough line on China. Gold declined after Kudlow said he’d sell the metal and buy the greenback, which gained.
     The Stoxx Europe 600 Index advanced, with big gains in insurance and financial shares. Norway’s krone rose to the strongest level since early February after its central bank signaled faster interest-rate increases. The yen gained for a third day this week.
     Elsewhere, West Texas crude advanced above $61 a barrel as signs of stronger U.S. fuel consumption balanced OPEC’s forecasting for the first time that new supplies from its rivals will exceed demand growth this year.
     Here are some of the key things happening this week:
* Japan industrial production is out on Friday.
* EU27 government officials discuss the European Union’s Brexit position.
     And these are the main moves in markets:                           
                          Stocks
* The S&P 500 Index fell 0.1 percent as of 4 p.m. New York time.
* The Nasdaq 100 Index declined 0.1 percent.
* The Stoxx Europe 600 Index climbed 0.5 percent.
* The U.K.’s FTSE 100 Index gained 0.1 percent.
* Germany’s DAX Index increased 0.9 percent.
* The MSCI Emerging Markets Index decreased 0.3 percent.
                          Currencies
* The Bloomberg Dollar Spot Index advanced 0.5 percent, the biggest rise in over two weeks.
* The euro fell 0.5 percent to $1.2301.
* The British pound fell 0.2 percent to $1.3938.
* The Japanese yen rose less than 0.05 percent.
                           Bonds
* The yield on 10-year Treasuries rose one basis point to 2.82 percent.
* Germany’s 10-year yield decreased two basis points to 0.58 percent, the lowest in seven weeks.
* Britain’s 10-year yield gained less than one basis point to  1.438 percent.
                           Commodities
* West Texas Intermediate crude climbed 0.4 percent to $61.21 a barrel.
* Gold fell 0.7 percent to $1,316.20 an ounce, the biggest fall in a week.
* LME copper fell 1 percent to $6,920.00 per metric ton.
–With assistance from Adam Haigh, Tim Loh, Stephen Cunningham and Eddie van der Walt.

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

Festina lente.
Make haste slowly.
-Augustus, 63 BC-AD 14

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

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