May 17, 2019 Newsletter

Dear Friends,

Tangents: HAPPY FRIDAY!

May 17,1844: Rubber band patented.
1954: School segregation banned.  Brown vs. Board of Education.
Constitution Day in Norway.

‘Game’ over?
More than 300,000 “Game of Thrones” fans are so ticked off about the way this final season has played out, they’ve signed a petition demanding a remake. They also need a life. -from CNN

On this day in 1792 – The New York Stock Exchange was founded by brokers meeting under a tree on what is now Wall Street.  24 brokers gathered under a tree and signed the Buttonwood Agreement: “We the Subscribers, Brokers for the Purchase and Sale of Public Stock, do hereby solemnly promise and pledge ourselves to each other, that we will not buy or sell from this day for any person whatsoever, any kind of Public Stock at a less rate than one quarter per cent Commission.”  

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PHOTOS OF THE DAY

Kew Garden’s “Children’s garden” opens in Kew, London, UK.
CREDIT: EDDIE MULHOLLAND FOR THE TELEGRAPH

A man prunes roses during preparations for the RHS Chelsea Flower Show at the Royal Hospital Chelsea, London.
CREDIT: AARON CHOWN/PA WIRE

A beautiful early sunrise on a misty spring morning illuminates The Abbey Church of St Mary the Virgin, in Tewkesbury Abbey, this 12-century parish church and former Benedictine monastery, is one of the finest examples of Norman architecture in Britain.
CREDIT: TRISTAN POTTER/ SWNS

A surfer is silhouetted as he walks past a residential building at Bondi Beach in Sydney, Australia, on Wednesday. Australia’s economy has been weighed down by a retrenchment in household spending as property prices slump and slash personal wealth. An election Saturday is likely to see the opposition Labour party win power and lift spending further.
CREDIT: DAVID GRAY/ BLOOMBERG

An interior view of the ‘S.A.C.R.E.D.’ installation of Chinese artist Ai Weiwei during his currently largest exhibition in Europe, which the art collection North Rhine – Westphalia is showing simultaneously at K20 and K21 in Duesseldorf, Germany. The exhibition titled ‘Everything is art, everything is politics’ will be inaugurated on 17 May.
CREDIT: SASCHA STEINBACH/EPA-EFE/REX
Market Closes for May 17^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks fell, ending a three-day win streak as trade related jitters left investors to hit the sell button, globally. The S&P/TSX Composite Index fell 0.3% to 16,401.75 on Friday in Toronto. Pot stocks were among the worst performers, while consumer staples were the best. Seven of the 11 industry groups fell, with CAE Inc. as the best performing stock after earnings beat the highest estimate. 
     Meanwhile, The U.S. and Canada have reached a deal to lift metals tariffs, and the agreement will take effect in “no later than two days,” according to a joint statement. Countries have agreed to lift “all tariffs the United States imposed under Section 232 on imports of steel and aluminum products from Canada” and “all tariffs Canada imposed in retaliation for the Section 232 action taken by the United States.”
     In other moves:
Stocks
* CAE rallied 15%, BMO said that company cleared a “high bar”
* Alacer Gold rose about 13% in last five days. New Gold fell 6.5% on Friday, underperforming peers
* Stelco and Russel Metals rose after U.S.-Canada deal
* Seven Generation fell 4%, along with MEG Energy, which was down 3.4%
Ratings
* ITP CN: Intertape Polymer Rated New Neutral at CIBC; PT C$20
* TRZ CN: Transat AT Downgraded to Hold at Desjardins; PT C$13
* WJA CN: WestJet Airlines Cut to Sector Perform at Scotiabank; PT C$31
Commodities
* Western Canada Select crude oil traded at a $13 discount to WTI
* Gold spot prices fell 0.7% to 1,278.04 an ounce
FX/Bonds
* The Canadian dollar rose 0.03% to C$1.3455 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.688%
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks fell for the first time in four days, with technology shares bearing the brunt of the selling in a market rattled by a barrage of trade-related headlines. The dollar rose.
     The S&P 500 declined a second week for the first time this year amid speculation U.S.-Chinese trade negotiations reached an impasse after tit-for-tat tariffs soured proceedings. Friday’s slump halted a three-day rally sparked by optimism the two sides would eventually reach a deal. The Nasdaq 100 slid 1%, with chipmakers under pressure a second day after the Trump administration threatened to ban Huawei Technologies Co. products.
     Ten-year Treasury yields were little change at 2.39%, while the dollar rose to around year highs. Oil fell toward $62 a barrel. The late-day sell-off underscored the fragile mood on financial markets roiled by two weeks of concern that escalating trade war will undermine global growth. President Donald Trump took steps toward calming nerves by postponing any tariffs on Japanese and European cars, while agreeing to end levies on Canadian steel and aluminum imports. But the status of talks with China remained unclear as investors headed into the weekend.
     “What’s happening in markets is there’s this push and pull idea of what’s happening with the trade war with China. That’s obviously what’s on everyone’s minds,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
     Meanwhile, iron ore rose to the highest level in almost five years. The pound weakened as U.K. Prime Minister Theresa May agreed to set a timeline to quit and Labour leader Jeremy Corbyn walked out of cross-party Brexit talks. MSCI’s gauge of emerging-market stocks fell to its lowest since January. Bitcoin slumped as much as 14%, before paring losses as this month’s surge for cryptocurrencies was tested.
     Here are the main market moves:
Stocks
* The S&P 500 Index fell 0.6% to 2,859.53 as of 4 p.m. New York time, the second weekly decline.
* The Dow Jones Industrial Average fell 0.4% to 25,764.00. 
* The Stoxx Europe 600 Index dipped 0.4%.
* The U.K.’s FTSE 100 Index fell 0.1%.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.3% to the highest in more than 21 weeks.
* The euro fell 0.1% to $1.1165.
* The British pound dipped 0.6% to $1.2726.
* The Japanese yen fell 0.1% to 110.00 per dollar.
Bonds
* The yield on 10-year Treasuries fell less than one basis point to 2.39%.
* Germany’s 10-year yield decreased one basis point to -0.1%.
* Britain’s 10-year yield declined four basis points to 1.034%.
Commodities
* West Texas Intermediate crude dropped 0.2% to $62.71 a barrel.
* Gold fell 0.6% to $1,278.90 an ounce.
–With assistance from Robert Brand.

Have a wonderful weekend.

Be magnificent!
As ever,

Carolann

A fanatic is one who can’t change his mind and won’t change the subject.

                                                   -Sir Winston Churchill, 1874-1965

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