November 1, 2018 Newsletter

Dear Friends,

Tangents:
On Nov. 1, 1952, the United States exploded the first hydrogen bomb, in a test at Eniwetok in the Marshall Islands.  Go to article »
PHOTOS OF THE DAY

A frosty and misty start to the day over the Cambridgeshire Fens near Ely. Credit Geoff Robinson

Sun rays fall through trees in the Taunus region near Frankfurt, Germany. Credit: Michael Probst/AP

A visitor takes photographs at a Furoshiki exhibition in a giant Furoshiki Japanese architect and art director Tsuyoshi Tane in Paris, France. Credit: Alain Jocard/AFP/Getty Images
Market Closes for November 1^st, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Janine Wolf
     (Bloomberg) — Canadian stocks opened mixed Thursday, with the S&P/Toronto Stock Exchange Composite Index rising about 0.5 percent. U.S. stocks faded following a two-day rally, with investors assessing the latest economic data and earnings before Apple reports after the close. Materials and energy led gains, while health care and info tech stocks fell.
     The Canadian dollar is starting November stronger against a weak U.S. dollar; against the rest of the G-10, the loonie is only up versus the greenback and the yen.
     TransCanada Corp. said it’s moving forward with a C$1.5 billion ($1.1 billion) expansion of its NOVA Gas Transmission Ltd. system. The project will offer Western Canadian natural gas producers some much needed relief from a pipeline bottleneck that sent local prices close to zero earlier this year. Demand for gas in Alberta is growing in the power generation, oil sands, petrochemical, industrial and utilities sectors.
Stocks
* Encana Corp. plunges 16 percent following an announcement it’s acquiring Newfield Exploration Inc. for $5.5 billion
* Hudbay Minerals rises 8.5 percent as sales beat consensus 
* Turquoise Hill Resources rises 8.1 percent ahead of its third- quarter earnings report after market close today
* Canadian Natural Resources rises 7.5 percent after cutting its oil production forecast for the full year
Commodities
* Western Canada Select crude oil traded at a $43 discount to WTI
* Gold gained 1.3 percent to $1,230.60 an ounce FX/Bonds
* The Canadian dollar was little changed at C$1.30787 per U.S. dollar
* The Canada 10-year government bond yield fell to 2.508%
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks rose for a third day, continuing a torrid rebound from the October sell-off as investors greeted the latest batch of earnings optimistically amid signs of easing trade tension. The dollar sank, and oil tumbled.
     The risk-on mood that’s suddenly gripped American equity markets sent the S&P 500 to its best three-day advance in two years. Earnings that for weeks had done little to jolt shares higher contributed to Thursday’s gain, with DowDuPont rallying the most since 2015 and NXP Semiconductors leading a rally in chipmakers. Homebuilders that got trounced in October rallied, while utility stocks that had been in favor slumped.
     In after-hours earnings moves, Apple fell 3.4 percent after iPhone sales missed, while Starbucks jumped on its results. Caesars Entertainment rose and U.S. Steel retreated. Equities also got a lift from a President Donald Trump tweet claiming progress in trade negotiations with China. The dollar extended its sell-off to the most since March after it ended October at the highest in more than a year. The 10-year Treasury yield slipped after data on manufacturing missed estimates ahead of Friday’s jobs report. Emerging-market assets surged. Brazil’s Ibovespa stock index closed at a record high on optimism over the newly elected government. Investors welcome any reason to be positive after a tumultuous October, the worst month for global shares since May 2012. While risks abound from the likes of European politics and slowing Chinese growth, bulls are hoping some of the momentum garnered at the end of last month from firm U.S. economic data can be sustained. The focus turns to Apple Thursday, then to the monthly U.S. jobs report Friday.
     In Europe, the Stoxx 600 Index advanced with telecoms and travel companies leading the way. While strong results from the likes of ING Groep NV helped buoy sentiment, not all the news was positive, with Royal Dutch Shell Plc declining after profit fell short of expectations.
Here are some key events still to come this week:
* Earnings season includes: Macquarie, Alibaba, Exxon Mobil
* On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved and that the unemployment rate held at a 48-year low.
And these are the main moves in markets:
Stocks
* The S&P 500 Index increased 1 percent as of 4 p.m. New York time, capping a three-day surge of 3.75 percent.
* The Nasdaq 100 rose 1.5 percent, pushing its three-day rally past 5 percent.
* The Dow Jones Industrial Average climbed 1.1 percent and small caps jumped 2.2 percent.
* The Stoxx Europe 600 Index gained 0.4 percent to the highest in more than two weeks.
* The MSCI All-Country World Index climbed 1.1 percent.
* The MSCI Emerging Market Index rose 2 percent.
Currencies
* The Bloomberg Dollar Spot Index sank 0.8 percent, the steepest slide since March.
* The euro jumped 0.9 percent to $1.14, the biggest increase in six weeks.
* The Japanese yen increased 0.2 percent to 112.689 per dollar.
* The MSCI Emerging Markets Currency Index jumped 0.9.
* The offshore yuan gained 0.9 percent to 6.91 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 3.14 percent.
* The two-year yield fell two basis points to 2.8465 percent
* Germany’s 10-year yield increased one basis point to 0.399 percent.
* Britain’s 10-year yield gained two basis points to 1.455 percent.
Commodities
* The Bloomberg Commodity Index gained 0.5 percent, the biggest climb in more than two weeks.
* West Texas Intermediate crude decreased 2.8 percent to $63.50 a barrel.
* Gold climbed 1.7 percent to $1,235.4 an ounce.
–With assistance from Eddie van der Walt.

Have a great night.

Be magnificent!

As ever,

Carolann

I am not afraid of storms for I am learning how to sail my ship.
                                          -Louisa May Alcott, 1832-1888

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