May 23, 2018 Newsletter

Dear Friends,

Tangents:

On this day in 1934, Bonnie Parker and Clyde Barrow were shot to death by Texas and Louisiana state police while driving a stolen car after a string of crimes.

1887 – First CPR Train Steams into the Vancouver Harbour Terminal

PHOTOS OF THE DAY

Miao people play the suona at a folk festival which falls on the eighth day of the fourth month in the Chinese lunar calendar, in Anshun, China. Credit: VCG Via Getty Images

Flora, fashion and famous faces were the format again for the colourful Royal Horticultural Society’s Chelsea Flower Show. Credit: Heathcliff O’Malley for the Telegraph

An illumination of a three dimensional 17^th century boat, which is created by projecting light along the surface of the surrounding water, at Salthouse Dock in Liverpool ahead of the Three Festivals Tall Ships Regatta. Credit: Peter Byrne/PA
Market Closes for May 23^rd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
200,000
Venezuelan’s crude output has dropped by 200,000 barrels a day this year, posing a risk to global oil supply.
Canada
By Carolina Wilson
     (Bloomberg) — The S&P/TSX Composite Index lost 11 points or less than 0.1 percent to close at 16,133.80 Wednesday, down a second day after an 11-day winning streak.
     Consumer staples and utilities stocks outperformed, adding 1.6 percent and 0.8 percent, respectively. Energy fell the most, down 0.7 percent, as crude flirted with this week’s low and Scotia Howard analyst said the oil rally may pause before a June OPEC meeting.
     In other moves:
                           Stocks
* Eldorado Gold Corp. climbed as much as 7.2 percent, adding to Tuesday’s gains following a report Greece aims to resolve a long-standing standoff with the miner
* Alamos Gold Inc. climbed 5 percent, the most in two months
* MEG Energy Corp. rose 4.1 percent after Morgan Stanley analyst Benny Wong upgraded the stock to overweight
* First Quantum Minerals Ltd. fell 3.3 percent as Citi says the firm is the most likely takeover target within copper miners
                           Commodities
* Western Canada Select crude oil traded at a $17.00 discount to WTI
* Gold rose less than 0.1 percent to $1,298.20 an ounce
                           FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.28304 per U.S. dollar
* The Canada 10-year government bond yield fell to 2.45 percent
US
By Sarah Ponczek and Janine Wolf
     (Bloomberg) — U.S. stocks clawed back early losses to trade higher after minutes from the most recent Federal Reserve meeting showed central bankers in no hurry to accelerate the pace of rate hikes even as the economy continues to improve. Yields on 10-year Treasuries briefly dipped below 3 percent, while the dollar climbed.
     All major equity benchmarks rose despite escalating geopolitical fears following President Donald Trump’s decision to back away from a recently announced trade agreement with China. The dollar climbed as investors got a mixed picture on the health of U.S. consumers from a host of retailer earnings. Tiffany & Co. surged as sales blew away estimates, while Target Corp. tumbled after its profit missed forecasts.
     “Although we have a lot of market noise around trade and North Korea and Middle East, the fundamental picture is still bright,” said Anthony Saglimbene, global market strategist at Ameriprise Financial. “Earnings are growing, the Fed is still accommodative, inflation levels are still very modest. That is all positive for stock prices over the next six to 12 months.”
     For traders, the monetary policy chatter was a welcome break from the geopolitical back-and-forth. Trump appeared to express pessimism on a planned summit meeting with North Korean leader Kim Jong Un, and the U.S. president kept up his attacks on Special Counsel Robert Mueller’s investigation, warning of a “scandal the likes of which this country may never have seen before.” Meanwhile, in Italy questions are swirling around the populist government’s economic policies.
     “We’re seeing a bit of a pullback here given some of the geopolitical headlines and tensions you’re seeing around the globe,” said Francis Gannon, the co-chief investment officer at The Royce Funds, which manages $17 billion. “The market almost was looking for an excuse to take a bit of a breather here, so it’s not surprising.”
     Markets in Europe also tumbled as weak manufacturing data added to concern that growth is slowing in the region. U.K. inflation figures trailed expectations, denting prospects for a rate increase. The Stoxx Europe 600 Index sank the most in two months, the euro fell to a six-month low and the pound weakened. The Turkish lira clawed back from a record low after the government announced an emergency rate hike. The yen jumped as traders sought havens.
     These are some key events to watch this week:
* Thursday sees the Bank of England Markets Forum at Bloomberg London. Speakers include BOE Governor Mark Carney and New York Fed President William Dudley.
* At the St. Petersburg Forum Friday, Russian President Vladimir Putin and French President Emmanuel Macron, IMF Managing Director Christine Lagarde, and Japan Prime Minister Shinzo Abe participate on a panel moderated by Bloomberg News Editor-in- Chief John Micklethwait.
* Also Friday, European Union finance ministers discuss the latest on Brexit talks, in Brussels.
     These are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.3 percent to 2,733.25, while the Nasdaq 100 Index gained 0.9 percent.
* The Stoxx Europe 600 Index sank 1.1 percent in the biggest tumble in two months.
* The MSCI Asia Pacific Index fell 0.4 percent to the lowest in two weeks.
                          Currencies
* The Bloomberg Dollar Spot Index rose 0.1 percent.
* The euro fell 0.6 percent to $1.1704, the weakest in more than six months.
* The British pound sank 0.6 percent to $1.3356, the weakest since December.
* The Japanese yen jumped 0.7 percent, the most since February, to 110.13 per dollar.
                          Bonds
* The yield on 10-year Treasuries decreased six basis points to 3.0045 percent.
* Germany’s 10-year yield dipped five basis points to 0.507 percent.
* Britain’s 10-year yield fell eight basis points, the most in two months, to 1.439 percent.
                          Commodities
* West Texas Intermediate crude sank 0.5 percent to $71.76 a barrel.
* Gold rose 0.2 percent to $1,293.30 an ounce.
* Copper fell 1.9 percent to $3.0605 per pound.
–With assistance from Samuel Potter, Robert Brand, Yakob Peterseil and Brendan Walsh. 

Have a great night.

Be magnificent!

As ever,

Carolann

Better be wise by the misfortunes of others tan by your own.
                                 -Aesop, 620 BCE-564 BCE

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
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www.carolannsteinhoff.com