March 19, 2019 Newsletter

Dear Friends,

Tangents:

On March 19, 2003, President George W. Bush ordered the start of the war on Iraq, declaring: “On my orders, coalition forces have begun striking selected targets of military importance to undermine Saddam Hussein’s ability to wage war.” Go to article »

On March 19, 1619, John Chamberlain wrote to Dudley Carleton: We have every week almost a new proclamation for somewhat or other, as for buildings (forward and backward), for weights and measures, for inns and alehouses, for horse meat, and I know not what else, all for the good of the subject, and yet they either believe it not or will not acknowledge the good pretended.
 The Queen’s funeral is put off till the 29^th of the next month, to the great hindrance of our players, which are forbidden to play so long as her body is above ground.  One special man among them, Burbage, is lately dead, and hath left they say better than 300 land.
The Queen was Anne of Denmark, consort of James I; Richard Burbage was the first performer of many of Shakespeare’s greatest roles. 

PHOTOS OF THE DAY

Tens of thousands of starlings perform their nightly balletic murmurations in the sky above Aberystwyth as the day draws to an end. Aberystwyth, UK, is one of the few urban roosts in the country and draws people from all over the UK to witness the spectacular nightly displays between October and March. CREDIT: KEITH MORRIS/LNP

Members of the press walk around a new installation by British Artist Mike Nelson at Tate British in London, England. The pieces form part of the exhibition Asset Strippers, pointing at the decline of British Industry, and will be on show until October 6, 2019. CREDIT: DAN KITWOOD/GETTY IMAGES

A horse and an artist perform during a show “ Cavalluna, World of Fantasy”, in Brussels, Belgium. CREDIT: REUTERS/YVES HERMAN
Market Closes for March 19^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1792, Wall Street crashed for the first time ever, on “Black Monday,” as 6% Treasury bonds lost 10% of their value and shares in the Bank of the United States dropped 12%. Speculator William Duer, a friend of Alexander Hamilton, had borrowed too much money and was about to be thrown in debtors’ prison, spreading panic through the cobblestone streets of downtown Manhattan.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks gave back earlier gains, even as Marijuana stocks continued their rally with Tilray Inc. beating sales estimates. Canada forecast 2019-2020 budget deficit of C$19.8 billion, however, Loonie hasn’t reacted to the news, and it likely won’t move the needle for Bank of Canada.
     The S&P/TSX Composite Index fell 0.4 percent to 16,188.10 on Tuesday. Pot stocks jumped and the Horizons Marijuana Life Sciences Index ETF advanced to its highest intraday since October 19. Utilities underperformed, weighed down by Northland Power Inc., which reported a secondary offering of shares.
     Further on Budget, Canada’s housing agency will spend up to C$1.25 billion ($943 million) over three years to take equity positions in homes purchased by first-time buyers, part of a plan by Justin Trudeau’s government to make entering the property market more affordable for the youngest voters.
     In other moves:
Stocks
* Maple Leaf Foods Inc. gained 7.3 percent after being upgraded at TD Securities
* Hexo Corp. continued Monday’s climb after being upgraded to buy at Cormark Securities
* Bausch Health rose 6.8 percent, to highest levels since Nov. 14, 2018
* Northland Power Inc. fell 9.3 percent after the company announced that Northland Power Holdings Inc. has entered into an agreement with Northland and a syndicate of underwriters led by CIBC Capital Markets
* Badger Daylighting fell 3.6 percent after 4-day gain
Commodities
* Western Canada Select crude oil traded at a $10.50 discount to WTI
* Gold gained 0.4 percent to $1,306.40 an ounce FX/Bonds
* The Canadian dollar strengthened 0.2 percent to C$1.3312 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.724 percent
US
By Sarah Ponczek and Reade Pickert
    (Bloomberg) — A rally in equities sputtered out after a report that U.S. and Chinese negotiators remain at odds on aspects of their current trade talks. Treasury yields narrowed and Texas crude declined.
     The S&P 500 Index ended the session little changed Tuesday on word that Trump administration officials are concerned that China is pushing back against U.S. demands. Earlier in the session, the benchmark had topped 2,850 for the first time since October.
The trade news threatens to overshadow other developments investors have been watching this week, including a rate announcement from the Federal Reserve and the latest chapter in the Brexit saga. The Fed’s dovish shift in recent months has helped reignite a global equity rally on bets that policy makers will act to support growth.
    “The markets have priced in the trade-war resolution, so if there’s any chance this gets extended, delayed or changed, this causes markets to be jittery,’’ said Gene Goldman, chief investment officer at Cetera Investment Management. “Markets are pricing in perfection right now, again this goes back to ‘buy the rumor, sell the news.’’’
     Earlier, the Stoxx Europe 600 Index advanced after a quiet start, while equities posted modest losses in Japan, China and Australia, but rose in Hong Kong and India. The pound gained on word that European Union leaders are planning to offer the U.K. a conditional Brexit extension at this week’s summit in Brussels, giving Prime Minister Theresa May one more chance to get her deal through Parliament. The euro extended an advance after data showed German investor confidence rose for a fifth straight month. 
    The Bank of England also meets this week, though given the backdrop of Brexit uncertainty investors see little chance of a policy shift. In Asia, central banks in Indonesia, the Philippines and Thailand hold meetings amid expectations they too will stand pat. Policy makers could signal some willingness to cut in coming months as low inflation sweeps across the region.
Elsewhere, West Texas crude fell. Gold gained.
Here are some key events coming up this week:
* Company earnings this week include FedEx, Tencent, Hermes, Tiffany, Micron, Nike and PetroChina.
* On Wednesday the Fed is expected to hold interest rates steady, announce plans for the end of asset roll-off from its balance sheet, and lower projections for the number of interest- rate hikes this year.
* Central banks in the U.K., Thailand, the Philippines and Indonesia are all scheduled for policy meetings.
* Euro zone purchasing manager survey numbers on Friday will give an indication of the health of the region’s industrial and service sectors.
And these are the main moves in markets:
Stocks
* The S&P 500 Index fell less than 0.05 percent as of 4:03 p.m. New York time.
* The Stoxx Europe 600 Index jumped 0.6 percent.
* The U.K.’s FTSE 100 Index climbed 0.3 percent.
* The MSCI Emerging Market Index gained 0.1 percent to the highest in more than seven months.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent to the lowest in almost three weeks.
* The euro climbed 0.2 percent to $1.1359, the strongest in more than two weeks.
* The British pound rose 0.1 percent to $1.3272.
* The Japanese yen climbed 0.1 percent to 111.39 per dollar.
Bonds
* The yield on 10-year Treasuries gained one basis point to 2.61 percent.
* Germany’s 10-year yield rose one basis point to 0.10 percent, the highest in almost two weeks.
* Britain’s 10-year yield decreased one basis point to 1.186 percent.
Commodities
* West Texas Intermediate crude fell 0.4 percent to $58.83 a barrel.
* Gold gained 0.2 percent to $1,306.57 an ounce.
–With assistance from Divya Balji, Cormac Mullen, Andreea Papuc, Samuel Potter and Vildana Hajric.

Have a great night.

Be magnificent!

As ever,

Carolann

You will never win if you never begin.
           -Helen Rowland, 1918-1978

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