March 6, 2019 Newsletter

Dear Friends,

Tangents:

March 6, 1834 – The city of Toronto was incorporated. 
Happy Birthday Toronto!  Go to article »

1836 – Fall of the Alamo.
1475 -Michelangelo, artist, b.
1928 – Gabriel Garcia Marquez, author, b.
PHOTOS OF THE DAY

An employee of Swiss National Bank presents the new 1,000-franc banknote in Zurich, Switzerland. Credit: Arnd Wiegmann/Reuters

The Archbishop of York, Dr John Sentamu (left) and The Dean of York, the Right Reverand Dr. Jonathan Frost attend a media call as a wooden cross is suspended from York Minster’s Central Tower as part of the Minster’s perpetrations to mark the season of Lent. Credit: Charlotte Graham
Market Closes for March 6^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The investor’s chief problem – even his worst enemy – is likely to be himself. -Benjamin Graham, 1894-1976
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks pared gains Wednesday, ending about flat with pot stocks being especially weak after analysts said the departure of FDA Commissioner Scott Gottlieb adds more uncertainties to the evolution of the U.S. cannabidiol and medical marijuana market.
     The S&P/TSX Composite Index rose 0.03 percent to 16,092.07. Horizons Marijuana Life Sciences lost 1.8 percent after gaining 3.3 percent on Tuesday. Materials stocks also lagged as metals including gold, copper, and silver fell.
     Additionally, the Bank of Canada diluted its conviction that interest rates will need to go higher as officials expressed greater uncertainty about the outlook amid a deeper- than-expected slowdown.
In other moves:
Stocks
* Stars Group advanced 13.3% after 4Q adj. EPS and Ebitda beat analysts’ estimates 
* Alaris Royalty gained 6.5% after 4Q net profit jumped 58% 
* BlackBerry rose 5.1%, most since Sept. 28 
* Aecon Group rose 5.3% after 4Q revenue beat and boosting qtr. dividend 
* STEP Energy Services dropped 13.2% after 4Q adj. Ebitda missed the lowest estimate 
* Flower One Holdings fell 8.5% after pricing, terms of overnight offering
* Advantage Oil & Gas lost 5.7%, most since Jan. 28 
* Lundin Mining fell 4.8% after a report its Chile unit was under investigation; the company said its unaware 
* Pengrowth Energy fell 1.4% after posting a 4Q loss and plans for a strategic review 
Commodities
* Western Canada Select crude oil traded at a $11 discount toWTI
* Gold rose 0.3% to about $1,288.20/ounce 
FX/Bonds
* The Canadian dollar fell 0.6% to C$1.3435 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.816 percent
US
By Vildana Hajric and Reade Pickert
     (Bloomberg) — U.S. equities fell to a three-week low on concern about the outlook for growth after fresh data pointed to a slowing economy before a key jobs report Friday. The dollar rose for a sixth day and oil fell.
     Energy and health-care companies led losses on the S&P 500 Index, sending the gauge toward its worst week of the year after reports showed the U.S. trade deficit widened in 2018 to a 10- year high and private companies added fewer employees than analysts forecast last month. General Electric Co. slumped a second day after the new CEO’s sobering outlook reminded investors that the company’s troubles are far from over.
     Commodities were led lower by oil after a bigger-than- expected buildup in U.S. crude stockpiles. Government bonds rallied as investors sought out defensive assets after the OECD said the global economy is suffering from trade tensions and political uncertainty.
     Trade remains high on investors’ agenda as they wait for details of a possible accord, with President Donald Trump said to be pressuring U.S. negotiators to cut a deal with China soon in hope of fueling a market rally. Meanwhile, bond traders are taking a more cautious stance as Morgan Stanley predicted benchmark Treasury yields will drop as low as 2.35 percent by the end of the year. Traders will also get plenty to ponder from the European Central Bank’s policy decision and the monthly U.S. jobs report later this week.
     “The possibility of a soft landing of this economy throughout the course of 2019 is still in play, but every data point now is watched with extreme focus and what you’re seeing is markets are not giving it the benefit of the doubt,” said Matthew Miskin, a market strategist at John Hancock Investments in Boston.
     European shares edged lower after an initial spike following a report that central bank officials are poised to cut their economic forecasts by enough to justify another round of loans for banks. Canada’s dollar extended losses after the Bank of Canada toned down its conviction that interest rates will need to go higher.
     Elsewhere, the Australian dollar sank amid growing bets on interest-rate cuts. Chinese shares outperformed and Japanese equities dropped. Turkey’s lira weakened after the country’s central bank held its policy rate unchanged.
Here are some key events coming up:
* European Central Bank policy makers are expected to leave rates unchanged amid a deteriorating outlook. President Mario Draghi will hold a news conference on Thursday after the decision.
* The U.S. jobs report Friday may show hiring moderated in February. Nonfarm payrolls may have increased by 185,000 while the jobless rate fell to 3.9 percent, according to estimates.
These are the latest moves in markets:
Stocks
* The S&P 500 Index fell 0.7 percent at the close of trading in New York.
* The Stoxx Europe 600 Index fell less than 0.05 percent.
* The MSCI Emerging Market Index was little changed.
Currencies
* The Bloomberg Dollar Spot Index added 0.2 percent, hitting the highest in three weeks with its sixth straight advance.
* The euro was little changed at $1.1311.
* The Japanese yen increased 0.1 percent to 111.77 per dollar.
Bonds
* The yield on 10-year Treasuries fell three basis points to
2.68 percent.
* Germany’s 10-year yield fell four basis points to 0.12 percent.
* Britain’s 10-year yield declined six basis points to 1.22 percent.
Commodities
* The Bloomberg Commodity Index declined 0.6 percent.
* WTI crude fell 0.6 percent to $56.22 a barrel.
* Copper fell 0.3 percent to $2.925 a pound.
* Gold dipped 0.1 percent to $1,286.83 an ounce.
–With assistance from Cormac Mullen, John Ainger, Sid Verma, Adam Haigh, Carlyann Edwards, Eddie van der Walt, Christopher Anstey and Robert Brand.

Have a great night!

Be magnificent!

As ever,

Carolann

I believe in God, only I spell it Nature.
    -Frank Lloyd Wright, 1867-1959

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