November 13, 2018 Newsletter

Dear Friends,

Tangents:
On Nov. 13, 1956, the Supreme Court struck down laws calling for racial segregation on public buses.  Go to article »
PHOTOS OF THE DAY

Men dressed as demons take part in the traditional Correfoc (firewalk or street parade with fireworks) in Inca, Mallorca, Spain. Correfoc is a traditional festival of Catalonia and the Balearic Islands. People dressed as devils and “fire animals” mingle with the audience and dance to the music. Credit: DPA Picture Alliance/Alamy Live News

A sunbird gathers honey from a flower at the Fuzhou National Forest Park in Fuzhou, capital of southeast China’s Fujian Province. Credit: The Telegraph

The staircase of the Bristol Kempinski Hotel in Berlin’s Charlottenburg district. Credit: Paul Zinken/AFP/Getty Images
Market Closes for November 13^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1878, the first telephones were installed on the trading floor of the New York Stock Exchange, just over two years after Alexander Graham Bell invented the telephone.
U.S. crude for December delivery dropped more than 2% to $58.64 a barrel on Tuesday, after having lost 0.4% on Monday, which marked its 11th consecutive daily decline—the longest such streak on record, according to Dow Jones Market Data analysis going back to 1983.  (JSo happy we sold all our oil shares 4 years ago!)
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks extended declines for a fourth day on Tuesday, capping the longest losing streak in a month. U.S. peers also fell as a slump in oil prices dragged down energy companies. The S&P/TSX Composite Index fell 0.2 percent, with pot and energy shares the biggest laggards. Communications and technology companies led gains.
Stocks
* NuVista Energy Ltd. extended losses for a second day, falling 5.4 percent, after weaker-than-expected 3Q results on Monday; the stock was defended at Desjardins, with analyst Chris MacCulloch saying earnings “generally surprised to the upside,” and tempered 2019 growth signaled capital discipline.
* Vermilion Energy Inc. erased gains, slipping 0.3 percent, despite an upgrade to strong buy from outperform at Raymond James. “We rarely suggest valuation is a catalyst but this a real exception,” analyst Kurt Molnar said.
* Premium Brands Holdings Corp. plunged 17 percent after its 3Q adj. EPS and Ebitda missed the lowest estimates; with the EPS miss marking the 5th consecutive miss for the company.
Commodities
* Western Canada Select crude oil traded at a $40 discount to WTI
* Gold fell 0.1 percent to $1,202.20 an ounce
FX/Bonds
* The Canadian dollar is little changed at C$1.3240 per U.S. dollar
* The Canada 10-year government bond yield fell 4.5 basis points to 2.455%
US
By Vildana Hajric and Sarah Ponczek
     (Bloomberg) — U.S. stocks finished the session lower as a surge in optimism over trade talks with China was offset by a plunge in crude prices. The pound rallied on reports of advancement toward a Brexit deal.
     The S&P 500 ended Tuesday well off the day’s highs as West Texas crude hit a nine-month low, falling the most since 2011, after U.S. President Donald Trump criticized Saudi Arabia’s plan to cut output. The Dow Jones Industrial Average slid as Exxon Mobil and Chevron dropped. Treasuries climbed and the dollar fell from an 18-month high.
     Stock indexes spent the morning on an upswing after White House economic adviser Larry Kudlow told CNBC that the U.S. and China are talking on “all levels” of government. That followed an overnight report that China’s Vice Premier Liu He will pave the way for a meeting between the leaders of the two biggest economies later this month. Caterpillar, 3M and megacap technology shares that react to trade headlines paced those gains in major equity benchmarks.
     “What I think is going on in the market is a bit of a consolidation of the activity that took place yesterday. It’s a little bit of a repositioning of people’s portfolios,” said Steve Ricchiuto, chief U.S. economist at Mizuho Americas. “It’s reflected in very little price change and thin market behavior, a market where you’re seeing a rotation within asset classes.”
     Britain’s pound surged after three days of losses as the U.K. and the European Union agreed on a draft Brexit divorce deal. Trade worries and Brexit negotiations have hung over markets for months, clouding the economic outlook and helping compound an ongoing sell-off in equities. While comments from Chinese Premier Li Keqiang in Singapore Tuesday hinted at a more optimistic outlook, sentiment overall remains fragile as the Federal Reserve pursues its path of policy normalization and tech companies continue to slide.
     The Stoxx Europe 600 Index rose for the first time in three days, with telecom firms leading the way after Vodafone Group Plc’s results. The euro recovered from its weakest against the dollar since June 2017. Emerging market equities and currencies were steady.
Coming up this week:
* Tuesday marks the deadline set by the EU for Italy to revise its budget.
* Chinese industrial production and retail sales data due Wednesday.
* Fed Chairman Jerome Powell discusses national and global economic issues with Dallas Fed President Robert Kaplan at an event hosted by the Dallas Fed. * U.S. consumer inflation probably rebounded in October after easing in September. The consumer price index data is projected to show a 0.3 percent increase from the prior month.
* Policy decisions are coming from central banks in Mexico, Philippines, and Thailand.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.2 percent as of 4:04 p.m. New York time.
* The Stoxx Europe 600 Index rose 0.7 percent.
* The U.K.’s FTSE Index rose less than 0.05 percent. 
* The MSCI Emerging Market Index fell less than 0.05 percent.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.2 percent.
* The euro gained 0.6 percent to $1.1283, the first advance in a week.
* The British pound gained 0.8 percent to $1.2956.
* The Japanese yen rose less than 0.05 percent to 113.79 per dollar.
Bonds
* The yield on 10-year Treasuries dipped four basis points to 3.14 percent.
* Germany’s 10-year yield rose one basis point to 0.41 percent.
* Britain’s 10-year yield gained seven basis points to 1.521 percent.
Commodities
* West Texas Intermediate crude fell 7.8 percent to $55.23 a barrel, an 11-month low.
* LME copper rose 0.4 percent to $6,073.00 a metric ton.
* Gold climbed 0.1 percent to $1,201.93 an ounce.
* The Bloomberg Commodity Index fell 0.7 percent to an eight- week low.
–With assistance from Andreea Papuc, Luke Kawa and Eddie van der Walt.

Have a great night.

Be magnificent!

As ever,

Carolann

Do what you can, with what you have, where you are.
                          -Theodore Roosevelt, 1858-1919

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
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www.carolannsteinhoff.com