May 2, 2018 Newsletter

Dear Friends,

Tangents:
On May 2, 1945, the Soviet Union announced the fall of Berlin and the Allies announced the surrender of Nazi troops in Italy and parts of Austria.
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On this day in 1981, American Airlines introduced the first frequent-flyer program, AAdvantage. Most major airlines followed suit almost immediately.

The next wave in the looming robot apocalypse is their invasion of the Smithsonian museums. Twenty-five robots started “working” there this week. 

Leonardo Da Vince, d. May 2, 1519

As a well-spent day brings happy sleep, so a life well used brings a happy death. ~Leonardo Da Vinci.

PHOTOS OF THE DAY

Steam returns to the Settle to Carlisle railway line, as the first ‘Dalesman’ train hauls passengers on the most scenic railway in England. Pictured is the LMS Stanier Class 8F 48151 powering over Arten Gill Viaduct – high in the Cumbrian Pennines – as passengers enjoy stunning views along the back bone of England. Credit: Paul Kingston/NNP

Theatre company Les Enfants Terribles have created this art installation in Blickling Hall, Norfolk. The Word Defiant is a series of installations throughout the mansion, revealing stories of books that have been banned, burned, redacted, drowned, neglected and superseded. Credit: David Rose for the Telegraph

Students from the University of St. Andrews take part in the traditional May Day Dip on the East Sands in St. Andrews, Fife. Plunging into the freezing North Sea at dawn on the first of May is said to promote good luck in exams. Credit: Jane Barlow/PA

Mathilde Edey Gamassou, acting as Jeanne d’Arc, takes part in a tribute to Jeanne D’Arc (Joan of Arc) at the Johannique celebrations in Orleans, central France. Credit: Guillaume Souvant/AFP/Getty Images
Market Closes for May 2^nd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$100 billion
The value of a share buyback program that Apple Inc. announced Tuesday, the largest in corporate history. The tech giant said earlier in the year that it was bringing overseas cash back to the U.S.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks edged higher, propelled by stronger commodity prices and earnings from tech company CGI Group Inc.
     The S&P/TSX Composite Index added nine points or 0.1 percent to 15,627.93 after earlier gaining as much as 0.4 percent. Materials rose the most, adding 0.7 percent as Chinese investors piled into base metals.
    CGI rose 2.3 percent, briefly touching a record high, after quarterly revenue beat the highest estimate. Maple Leaf Foods Inc. was the biggest decliner, falling 5.7 percent, the most since 2015, on lower pork processing margins.
     In other moves:
                          Stocks
* Green Organic Dutchman Holdings Ltd. rose 6.6 percent in the cannabis company’s trading debut
* NexGen Energy Ltd gained 8.3 percent. The uranium miner said it made significant radioactivity discoveries around its Arrow deposit
* Russel Metals Inc. added 5.8 percent, the most since November, after first-quarter earnings beat the highest analyst estimate
                         Commodities
* Western Canada Select crude oil traded at a $15.25 discount to WTI
* Gold fell 0.1 percent to $1,305.60 an ounce, the lowest since March 1
                         FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2885 per U.S. dollar, the lowest since April 2
* The Canada 10-year government bond yield rose two basis points to 2.37 percent
US
By Janine Wolf and Sarah Ponczek
     (Bloomberg) — U.S. stocks fell to their lowest in a week and the dollar jumped as investors assessed the Federal Reserve’s signal that it’s in no rush to raise rates even as inflation rises to its target.
     The S&P 500 ended near session lows after briefly pushing higher following the central bank’s decision to hold rates steady. Equities tumbled in the final hour of trading as concern mounted that the Fed may let inflation run hot as it gradually tightens. Treasury yields resumed a march to 3 percent and the dollar strengthened versus major peers, adding to equity headwinds.
     Central bank officials may have signaled their willingness to allow inflation to exceed their 2 percent goal somewhat by adding a reference to the “symmetric” nature of their target.
     “This week’s government data showed inflation moving closer to its 2 percent target. This adjustment is simply an acknowledgment by the Fed that its inflation forecast is, in fact, playing out as predicted,” Robin Anderson, a senior economist at Principal Global Investors, said in an email.
     “Since inflation was running below 2 percent, this language indicates that the Fed might be willing to let it run a little above 2 percent for a little while.”
     The British pound and the euro traded lower. Emerging- market equities and currencies mostly dropped. Gold and oil gained after the Fed announcement. Earlier, miners, automakers and technology shares led the Stoxx Europe 600 Index toward its best gain this week, shrugging off declines in most Asian markets.
     As U.S. trade officials prepare to visit China for talks Thursday and Friday, the People’s Bank of China weakened its daily currency fixing by more than traders and analysts had expected. The move raises questions about whether it may devalue further to counter American import tariffs.
    These are some key events to watch this week:
* Eurozone producer prices are scheduled for tomorrow.
* The European Commission will present its spring economic forecasts, including growth, inflation, debt and deficit projections.
* Payroll gains in the U.S. probably picked up in April, with the unemployment rate forecast to drop to 4 percent, according to surveys of economists before the data reports due Friday.
* Earnings season continues with Tesla Inc. on Wednesday and HSBC Holdings Plc Friday.
     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index declined 0.7 percent as of 4:01 p.m. New York time.
* The Stoxx Europe 600 Index advanced 0.6 percent.
* The U.K.’s FTSE 100 Index gained 0.3 percent, its fifth consecutive advance.
* Germany’s DAX Index surged 1.5 percent to the highest in almost three months.
* The MSCI Emerging Market Index fell 1 percent, the biggest drop in a week. 
                          Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent.
* The euro fell 0.4 percent to $1.1941.
* The British pound fell 0.4 percent to $1.3563.
* The Japanese yen declined 0.1 percent to 109.92 per dollar.
                           Bonds
* The yield on 10-year Treasuries gained one basis point to 2.97 percent.
* Germany’s 10-year yield climbed two basis points to 0.58 percent, the largest surge in more than a week.
* Britain’s 10-year yield climbed five basis points to 1.457 percent, the first advance in a week.
                           Commodities
* West Texas Intermediate crude gained 0.7 percent to $67.73 a barrel, the biggest gain in two weeks.
* Gold increased 0.1 percent to $1,304.55 an ounce.
* LME copper rose 1.1 percent to $6,820 a metric ton.
–With assistance from Adam Haigh, Cecile Gutscher and Todd White.

Have a great evening.

Be magnificent!

As ever,

Carolann

Chance fights ever on the side of the prudent.
              -Euripedes, c. 480 BC- c. 406 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