May 8, 2018 Newsletter

Dear Friends,

Tangents:

On this day in 1886, Dr. John S. Pemberton sold the first glass of Coca-Cola at the soda fountain of Jacob’s Pharmacy in Atlanta. Some believe the “tonic” beverage originally gained popularity because it contained trace amounts of real cocaine and extract from the African kola nut, a stimulant and thirst quencher.

1945: VE DAY – Victory in Europe.

Christie’s Images Ltd. 2018

Christie’s New York begins a three-day auction of a Rockefeller family art collection that could be the largest single-owner sale, and the largest charitable one, in history.The house will offer masterpieces by Matisse and Picasso, as well as truckloads of valuable porcelain. Highlights from the collection have been touring the globe to increase anticipation. Above, one of five Monets on offer. -NY Times

PHOTOS OF THE DAY

A tractor drives through an apple orchard in Haselau, northern Germany. Credit: The Telegraph

A cicada breaks free from its dirty shell and stretches its wings as it bursts out in its beautiful new green skin on Euboea Island, Greece. Credit: The Telegraph

A Dandelion Seed head framed by the rising Sun is seen in Ditcheat, Somerset. Credit: The Telegraph

The Heavenly Bodies: Fashion & The Catholic Imagination Costume Institute Gala Press Preview at The Metropolitan Museum of Art in New York. Credit: The Telegraph
Market Closes for May 8^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$70.29
U.S. crude rose 0.8% to $70.29 a barrel on Monday, breaking the $70 mark for the first time since 2014 amid geopolitical risks and a healthier backdrop.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for a third day, boosted by a proposed mining deal and strong pharma earnings.
     The S&P/TSX Composite Index added 34 points or 0.2 percent to 15,842.71. Health-care stocks led the gains, rising 1.6 percent as Valeant Pharmaceuticals International Inc. jumped 8.5 percent to the highest since January. Valeant beat estimates with the help of a top-selling gastrointestinal drug.
     Nevsun Resources Ltd. added 17 percent, the most since 2010, after rejecting an offer from Lundin Mining Corp. and saying it has other suitors. Materials stocks rose 0.8 percent.
     In other moves:
                         Stocks
* Canadian Natural Resources Ltd. fell 1.8 percent. Royal Dutch Shell Plc is selling its stake in the oil sands producer for $3.3 billion
* WestJet Airlines Ltd. tumbled 10 percent to the lowest in two years after it said increased spending will outstrip revenue growth
* Labrador Iron Ore Royalty Corp. lost 11 percent, the most since 2008. First-quarter earnings missed the lowest analyst estimate
                         Commodities
* Western Canada Select crude oil traded at a $15.85 discount to WTI
* Gold was little changed at $1,313.70 an ounce
                         FX/Bonds
* The Canadian dollar weakened 0.5 percent to C$1.2950 per U.S. dollar as crude prices retreated
* The Canada 10-year government bond yield rose two basis points to 2.35 percent
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks were mixed after President Donald Trump’s decision to scrap a nuclear deal with Iran sparked concern it could increase geopolitical tensions. The dollar rose and Treasury yields pushed higher.
     The S&P 500 Index was little changed as banks advanced and utility stocks slumped. West Texas crude sank as much as 4.4 percent before paring the loss in a volatile trading session as investors digested what the Iran move could mean for energy supplies. The greenback strengthened for a third day. Ten-year Treasury yields rose toward 3 percent after JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon warned a climb to 4 percent may be coming.
     Concern about an increase in geopolitical tension is weighing on global sentiment at the same time worries about pricey stocks and rising borrowing costs are bubbling up amid higher Treasury yields and a stronger dollar. Sanctions on Iran could potentially disrupt supplies from OPEC’s third-largest producer and open an uncertain new chapter for the Middle East.
     “I don’t think there’s anything that’s a major surprise — the announcement was well advertised,” said Ernie Cecilia, the chief investment officer at Bryn Mawr Trust Co. “What seems to be a little surprise is that it didn’t allow for a whole lot of other possibilities, if you want to call it that. He was a little more specific, he was pretty straight forward.”
     Elsewhere, Argentina’s peso pared losses after the government was said to be in talks with the International Monetary Fund for a $30 billion flexible credit line to help defend the currency after it dropped to a record. Italian shares tumbled on the prospect for fresh elections that may boost the chances of a populist government taking power. Indonesia’s rupiah sank to its weakest since 2015, and the nation’s government bonds slumped. Turkey’s lira hit another low and the country’s benchmark equity index fell.
     Some key events coming up this week:
* Malaysia holds a general election Wednesday.
* Japanese Prime Minister Shinzo Abe hosts South Korean President Moon Jae-in and Chinese Premier Li Keqiang on Wednesday.
* There’s a Bank of England policy decision on Thursday.
* U.S. inflation data for April is due the same day.
* Some of the company earnings due include Walt Disney, Petrobras, Marriott, Toyota, Ambev and Deutsche Telekom.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index ended the trading day little changed.
* The Stoxx Europe 600 Index rose 0.1 percent.
* The MSCI Asia Pacific Index added 0.4 percent to the highest in a week.
* Japan’s Nikkei 225 Stock Average rose 0.2 percent.
* The MSCI Emerging Market Index rose 0.3 percent.
                           Currencies
* The Bloomberg Dollar Spot Index climbed 0.3 percent to the highest this year.
* The euro declined 0.5 percent to $1.186, the weakest since December.
* The British pound fell 0.1 percent to $1.3544, the weakest in more than four months.
* The Japanese yen was little changed at 109.11 per dollars.
                            Bonds
* The yield on 10-year Treasuries rose two basis points to 2.97 percent.
* Germany’s 10-year yield climbed three basis points to 0.56 percent.
* Britain’s 10-year yield increased four basis points to 1.44 percent.
                            Commodities
* West Texas Intermediate crude decreased 1.4 percent to $69.74 a barrel, the first retreat in a week.
* Gold was little changed at $1,314.59 an ounce.
–With assistance from Andreea Papuc, Janine Wolf, Stephen Engle, Eric Lam, Christopher Anstey, Yakob Peterseil, Samuel Potter, Sophie Caronello and Jessica Summers.

Have a great night.

Be magnificent!

As ever,

Carolann

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