March 8, 2018 Newsletter

Dear Friends,

Tangents:

March 8, 1867 – Constitution – British House of Lords gives final reading to the British North America Act; the Act breezes through Parliament with few changes; few MPs and Lords attend to vote; more rush in after to vote against a more contentious bill to place a tax on dogs. BNA Act given Royal Assent March 22; proclaimed March 29. London, England

1982 – British House of Commons passes the Canada Act, allowing Canada to patriate its constitution.

1913 – US income tax begins.
1917 – Russian revolution begins.
1983 – President Reagan calls USSR an “evil empire”.
PHOTOS OF THE DAY

A mosaic of images showing Jupiter’s south pole.
Credit: Nasa/SWRI/JPL/ASI/INAF/IAFPS

A couple is framed by a light installation called Passage by Canadian artist Serge Maheu, at Singapore’s Marina Bay waterfront.
Credit: Wong Maye-E/AP

Horticulturist Simon Allan checks the 16ft flower spike of the Doryanthes palmeri, also known as the giant spear lily, in the Victorian Temperate Palm House at the Royal Botanic Garden Edinburgh. It if the first time the plant has flowered in 60 years.
Credit: Jane Barlow/PA Wire
Market Closes for March 8th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1817, the New York Stock & Exchange Board—ancestor of the NYSE—was formed when 24 brokers agreed to a “Constitution” that set a fine of at least six cents for talking out loud about other subjects while stocks are trading.
Number of the Day
$56.6 billion
The U.S. trade gap rose to $56.6 billion in January, its highest level in more than nine years. The widening of the deficit comes as President Donald Trump ramps up efforts to close the gap with the help of tariffs.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks climbed and the loonie strengthened as President Trump signed an order giving steel and aluminum tariffs exemptions sparing Canada and Mexico, depending on Nafta talks.
     The S&P/TSX Composite Index gained 66 points, or 0.4 percent, to 15,538.70. The gain almost erased Wednesday’s losses as all sectors traded to the upside except materials, which fell almost 1 percent.
     Shares of technology companies rose the most as BlackBerry Ltd. continued its climb from Tuesday when it sued Facebook Inc. in federal court for patent infringement. Industrials also gained, as Morneau Shepell Inc. climbed after reporting 4Q adjusted Ebitda Wednesday that matched estimates.
     In other moves:
                         Stocks
* Dorel Industries Inc. rallied as much as 8.9 percent, the most intraday since Aug. 2013, before paring gains after 4Q revenue beat estimates
* Intertape Polymer Group Inc. gained 8.6 percent, the most intraday since Nov. 13, after forecasting revenue in 1Q 2018 greater than 1Q 2017
* Cominar REIT plunged as much as 10.4 percent, the most intraday since Nov. 2008, after reporting 4Q FFO per share that missed the average estimate
                          Commodities
* Western Canada Select crude oil traded at a $26.25 discount to WTI
* Gold fell 0.4 percent to $1,322.80 an ounce
                           FX/Bonds
* The Canadian dollar gained 0.2 percent to C$1.28916
* The Canada 10-year government bond yield fell slightly to 2.23 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks rose after President Donald Trump announced tariffs that were narrower than some traders had anticipated. Treasuries and the dollar gained.
     The S&P 500 advanced for the fourth time in five days as investors found relief in the president’s decision to exclude Canada and Mexico while giving other countries wiggle room from levies on imports of steel and aluminum that will take effect in 15 days. Technology companies paced gains. Ten-year Treasury yields fell to 2.86 percent.
     The dollar rose against the euro after the European Central Bank’s decided to drop a pledge to increase asset purchases if necessary, and as President Mario Draghi downplayed the change. Crude oil traded near $60 a barrel and gold slipped as a Bloomberg gauge of commodities slid for a second day.
     “Investors have to take a deep breath and watch what the reality is. It’s a highly complex situation that investors have to try to game, where they believe these [Nafta] negotiations will finally land,” said Chad Morganlander, a portfolio manager at Washington Crossing Advisors, said by phone. “This is a lever for negotiating the Nafta deal, and investors are watching this in a careful way, with one eye on the market and one eye on trade negotiations.”
     The specter of a global trade war has had markets on edge this week, as Trump’s threats of steel and aluminum tariffs were met with talk of retaliation in China and Europe. The ECB’s surprise change in language signaled its confidence in the euro area economy even as the concerns rumble on. However in his press briefing after the decision, Draghi acknowledged that protectionist threats represent a downside risk and described unilateral trade decisions as “dangerous.” Investors are now eyeing the upcoming central bank decision in Japan.
     Here are some key events coming up this week:
* The Chinese People’s Political Consultative Conference runs through March 15 and overlaps with the National People’s Congress meetings in Beijing, through March 20.
* BOJ monetary policy decision and briefing on Friday.
* U.S. monthly payrolls data come Friday.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.45 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index increased 1.1 percent to the highest in a week.
* The U.K.’s FTSE 100 Index rose 0.6 percent.
* The MSCI Emerging Market Index gained 0.4 percent to the highest in more than a week.
                           Currencies
* The Bloomberg Dollar Spot Index increased 0.4 percent.
* The euro fell 0.8 percent to $1.2315.
* The British pound declined 0.6 percent to $1.3814, the first retreat in more than a week.
* The Japanese yen dropped 0.1 percent to 106.14 per dollar.
* The MSCI Emerging Markets Currency Index fell 0.4 percent, the largest fall in a week.
                            Bonds
* The yield on 10-year Treasuries fell three basis points to 2.86 percent.
* Germany’s 10-year yield dropped two basis points to 0.628 percent.
* Britain’s 10-year yield declined two basis points at 1.474 percent.
                            Commodities
* West Texas Intermediate crude fell 1.3 percent to $60.35 a barrel.
* Gold dropped 0.4 percent at $1,320.68 an ounce.
–With assistance from Ven Ram, Eddie van der Walt, Kailey Leinz and Sarah Ponczek. 

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

Love, friendship, respect do not unite people as much as common hatred for something.
                                                                        -Anton Chekov, 1860-1904

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

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