May 16, 2018 Newsletter

Dear Friends,

Tangents:

On this day in 1929, the Academy of Motion Picture Arts and Sciences handed out its first awards at a dinner party held at the Roosevelt Hotel in Hollywood, Calif.  The silent film Wings won the award for best picture.

May 16, 1961 – John F. Kennedy starts three-day visit to Ottawa. Ottawa, Ontario See: (CBC Archives: Camelot comes to Canada

The Muslim holy month of Ramadan begins today in many countries. 

It starts with the sighting of the crescent moon the night before; regions where it is not seen will wait a day. 

Learning to read the Quran at a school in India during Ramadan last year.
Jayanta Dey/Reuters 

From dawn to sunset, observant Muslims give up food, water and bodily pleasures. Most try to go about their normal routines, while making time for more prayer and charity. It can be a particular challenge for some people, like athletes. 

Mosques hold extra prayers, called tarawih, each evening, during which the entire Quran is recited over the month. 

It’s a time for reflection — but also for celebration. People hold festive gatherings to break the fast together. Each culture has specialties for the evening meal, iftar, and for the pre-dawn meal, suhoor. 

The Muslim lunar calendar is 10 days shorter than the solar year, so Ramadan rotates through the seasons. Winter fasts are considered easier — the days are shorter, and usually colder, meaning less thirst — while summer fasts are more taxing. They are even harder in upper latitudes, where the days are long and the sun doesn’t set. So communities follow the times of the nearest Muslim country, or those of Saudi Arabia. 

The traditional greeting during the holiday month? “Ramadan Mubarak.” 

Aisha Khan wrote today’s Back Story, New York Times, 5/16/2018.
PHOTOS OF THE DAY

Visitors admire artist Luke Jerram’s installation Museum of the Moon at Tintern Abbey In Chepstow, Wales. The artwork, unveiled as part of the Wye Valley River Festival, involves a replica of the moon, seven metres in diameter, hanging within the ruined Abbey accompanied by music. Credit: Ben Birchall/PA

A lion cub pulls its sibling’s tail in Kenya Masai Mara game reserve. Credit: Paul Goldstein/Cover Images Artist Chris Naylor, who was commissioned by bookmakers Ladbrokes to recreate the official

Engagement picture of Meghan Markle and Prince Harry onto a 16 metre by 16 metre stretch of land on a farm in Braintree, Essex. Naylor spent over 40 hours, creating the masterpiece, using a lawnmower, trimmer and a handful of garden tools. Credit: Andy Bell/PA

The Mayfair Flower Show at sketch in Conduit St, central London, celebrates the Royal Wedding of Prince Harry and Meghan Markle. Here” ‘Impressionist Love’ inspired by Monet’s Garden in Giverny by Rebel Rebel and ‘Something Blue’ based on a North African oasis by Tony Marklew. Credit: Paul Grover for The Telegraph
Market Closes for May 16^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$166 billion
The amount U.S. companies are expected to have spent on factories, equipment, and other capital expenditures in the first quarter.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for a ninth day, the longest advance since 2014, led by Canadian National Railway Co. and First Quantum Minerals Ltd.
     The S&P/TSX Composite Index added 10 points or 0.1 percent to 16,108.06, about 300 points away from its all-time high reached in January. Industrials were the biggest gainers, rising 0.6 percent as CN Rail added 2.4 percent, reaching a 10-month high. The railroad’s CEO said Tuesday that it’s overcoming service issues faster than expected.
     Energy stocks lost 0.4 percent even as Canadian crude prices traded at the narrowest gap with West Texas Intermediate since October.
     In other moves:
                         Stocks
* Kinder Morgan Canada Ltd. rose 2 percent after Canada said it’s prepared to reimburse the company for any “politically motivated” delays to its proposed pipeline expansion
* Linamar Corp. lost 5.9 percent, the most since November. The auto supplier’s earnings miss indicates the challenges of generating consistent momentum late in the cycle, BMO said
* Callidus Capital Corp. fell 2.3 percent as its first-quarter loss widened from a year ago
                        Commodities
* Western Canada Select crude oil traded at a $13.50 discount to WTI
* Gold rose 0.1 percent to $1,291.50 an ounce
                        FX/Bonds
* The Canadian dollar strengthened 0.7 percent to C$1.2790 per U.S. dollar
* The Canada 10-year government bond yield rose two basis points to 2.50 percent, the highest since April 2014
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks advanced and 10-year Treasury yields pushed toward 3.1 percent as retailer results and solid economic data boosted confidence in the American economy. The euro fell amid political uncertainty in Italy.
     The S&P 500 Index rose above its average price for the past 100 days and the Russell 2000 Index hit an all-time high. The 10-year note yield advanced anew as factory production and housing starts showed strength in the economy. Europe’s common currency fell as Italy moved closer to a populist government and the German chancellor cautioned that the region’s central bank will eventually ease stimulus.
     Emerging-market equities rebounded after Tuesday’s plunge, but developing currencies turned lower. The Turkish lira reversed a drop after the central bank said it was monitoring markets and would take necessary steps. In Asia stocks nudged lower, with shares in Japan and Hong Kong declining while Australia’s main gauge eked out a gain and Korean stocks were little changed. The Malaysian ringgit fell for a sixth day.
     Investors pushed American stocks higher on speculation that the world’s largest economy will continue to pick up steam after a lackluster first-quarter. Macy’s Inc. results bolstered the sense that consumers remain on strong footing, overcoming fresh uncertainty about the U.S.-North Korea summit continued to weigh on investor sentiment at the same time the Trump administration sends mixed signals on the state of play on negotiations with China over trade.
     The question has now turned to whether higher Treasury yields, which act as a benchmark for global borrowing costs, indicate that the Federal Reserve will be forced accelerate monetary tightening.
     These are some key events to watch this week:
* Chinese Vice Premier Liu He is expected in Washington for more trade talks.
* U.S. industrial production numbers are due this week.

     These are the main moves in markets:
                            Stocks
* The S&P 500 Index rose 0.4 percent at 4 p.m. in New York. It fell Tuesday for the first time in five days.
* The Russell 2000 added 1 percent to reclaim its record. The index is higher by more than 5 percent in 2018.
* Macy’s jumped 11 percent and consumer-products makers paced gains in the equity benchmark.
* The Stoxx Europe 600 Index advanced 0.2 percent to the highest in almost 15 weeks on the largest gain in a week.
* The MSCI Emerging Market Index gained 0.5 percent.
* The MSCI Asia Pacific Index fell 0.1 percent.
                            Currencies
* The Bloomberg Dollar Spot Index fell less than 0.1 percent, after reaching the highest in 20 weeks.
* The euro fell 0.3 percent to $1.1807.
* The Japanese yen increased 0.2 percent to 110.16 per dollar.
* The Turkish lira climbed 0.5 percent to 4.4247 per dollar
                              Bonds
* The yield on 10-year Treasuries rose one basis point to 3.096 percent.
* Germany’s 10-year yield dipped five basis points to 0.60 percent, the largest decrease in almost two weeks.
* Britain’s 10-year yield declined three basis points to 1.491 percent.
* Italy’s 10-year yield climbed 13 basis points to 2.08 percent, the highest in three months on the largest increase in almost 11 months.
                              Commodities
* West Texas Intermediate crude declined 0.6 percent to $70.89 a barrel.
* Gold dipped 0.3 percent to $1,287.24 an ounce, the weakest in 20 weeks.
* Brent crude declined 0.7 percent to $77.85 a barrel, the biggest drop in more than a week.
–With assistance from Ruth Carson, Andreea Papuc and Samuel Potter. 

Have a great night.

Be magnificent!

As ever,

Carolann

A short saying oft contains much wisdom.
   -Sophocles, 479/496 BC-406/405 BC

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