November 15, 2018 Newsletter

Dear Friends,

Tangents:
It’s official:

• Word of the year

Oxford Dictionaries has chosen “toxic” as its international word of the year, beating other candidates like “gaslighting,” “incel” and “techlash.” 

1943: Gypsies condemned by Himmler, over 500,000 killed.

On Nov. 15, 1969, a quarter of a million protesters staged a peaceful demonstration in Washington, D.C., against the Vietnam War.  Go to article »

PHOTOS OF THE DAY

Mt. Sakurajima spews out a massive column of smoke and ash in Kagoshima, Japan. The eruption occurred at around 12:45am at the mountain’s Minamidake summit vent. The is the first time that the active volcano southern Kyushu has spewed smoke of 4,000 meters or higher since an eruption on July 16th. It marked a third such eruption this year. Credit: The Asahi Shimbun Via Getty Images

French Shepherd Gaetan Meme, 24-years-old, herds a flock of sheep in the mountains near the Col Du Glandon, in the French Alps. – Gaetan Shepherds a flock of 1,300 sheep in the Alpine Pastures. Credit: Jeff Pachoud/AFP/Getty Images

The city of Kronberg lies in the fog as the sun rises in Kronberg, Germany. Credit: AP Photo/Michael Probst
Market Closes for November 15^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1971, the money-market mutual fund was born as the prospectus for the Reserve Fund, created by Bruce Bent and Henry Brown, became effective. Mutual funds were then able to compete directly with banks, offering daily income dividends, daily redemptions and a constant net asset value per share.
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks edged higher as U.S. peers rebounded for the first time in six days, with technology shares pacing gains due to speculation trade tensions will ease. The S&P/TSX Composite Index rose 0.08%, with pot stocks and technology leading the way. Consumer discretionary and real estate were among the laggards.
     The loonie climbed against the dollar. Credit Agricole’s foreign-exchange strategist Eric Viloria wrote today that the Canadian dollar will keep gaining in the coming year amid ongoing policy normalization by the Bank of Canada and a constructive trajectory for trade relations with the U.S.
Stocks
* Detour Gold Corp. gained 0.8 percent after Paulson & Co. increased its stake in Detour Gold and called for the immediate resignation of CEO Michael Kenyon and Chairman Alex Morrison. 
* Computer Modelling Group Ltd. fell 10 percent after Echelon Wealth Partners analyst Amr Ezzat downgraded to hold from buy (PT C$8.50 from C$11), on a “challenging environment” going forward.
* Iamgold Corp. gained 7.4 percent after reporting in a filing that a work stoppage at Rosebel Gold Mine in Suriname has ended and normal operations will resume. 
Commodities
* Western Canada Select crude oil traded at a $43.00 discount to WTI
* Gold gained 0.3 percent to $1,213.60 an ounce
FX/Bonds
* The Canadian dollar gained 0.5 percent to C$1.3185 per U.S. dollar
* The Canada 10-year government bond yield fell 4.5 basis points
to 2.386%
US
By Vildana Hajric
     (Bloomberg) — U.S. stocks rose for the first time in six days, with beaten-down technology shares leading the rebound on speculation trade tensions will ease. The pound plunged as Brexit again threw the U.K. government into turmoil. The dollar was little changed, while oil and Treasuries jumped. Trade-sensitive industrial shares led the S&P 500 Index higher in afternoon trading amid hope that China and the U.S. would de-escalate their trade spat before the G20 summit later this month, even as the threat of new tariffs looms. Technology, materials and energy stocks also reacted positively to the news, offsetting a decline in consumer stocks brought on by disappointing results from department stores.
     For all the worries assailing investors — Brexit, the trade dispute and Italian budget stress — they are at least receiving a steady message from the U.S. central bank. In a question-and-answer session late Wednesday, Federal Reserve Chairman Jerome Powell played down recent turbulence in equities, saying volatility was only one of many factors that board members take into account when setting policy. “Maybe if we can get progress in trade relations, that could be a boost,” Jason Browne, chief investment strategist at FundX Investment Group, said in an interview. “But the benefits are likely to get offset from expectations of continued hikes from the Fed. That’s part of the challenge right now.”
     Sterling tumbled after Brexit Secretary Dominic Raab announced his resignation, the highest-profile of several departures on Thursday. Brexit-backer Jacob Rees-Mogg later joined calls for a vote of no confidence in Prime Minster Theresa May. The events throw into doubt her ability to secure Parliament’s support for the exit plan — and even to survive as leader. As the Westminster resignations rolled in, gilts surged, but at a press conference late Thursday, the premier reiterated her commitment to the exit deal. FTSE 100 Index futures surged.
     Elsewhere, emerging-market shares rallied and their currencies strengthened. In Asia, Japanese stocks edged lower, while Hong Kong shares jumped after Tencent Holdings Ltd. earnings beat expectations. Chinese equities outperformed as reports indicated officials have outlined a series of potential concessions to the Trump administration. The Australian dollar climbed after a strong local jobs report.
These are the main moves in markets:
Stocks
* The S&P 500 Index gained 1.1 percent as of 4:01 p.m. New York time; the Nasdaq Composite Index added 1.7 percent.
* The Stoxx Europe 600 Index declined 1.1 percent to the lowest in more than two weeks.
* The U.K.’s FTSE 100 Index rose 0.1 percent in heavy volume.
* The MSCI Emerging Market Index gained 1.5 percent to the highest in a week.
Currencies
* The Bloomberg Dollar Spot Index rose less than 0.05 percent.
* The euro gained 0.2 percent to $1.1335.
* The British pound decreased 1.6 percent to $1.2783, the weakest in more than two weeks.
* The Japanese yen rose 0.1 percent to 113.56 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 3.11 percent, the lowest in more than two weeks.
* Germany’s 10-year yield decreased four basis points to 0.36 percent.
* Britain’s 10-year yield decreased 13 basis points to 1.373 percent, the lowest in more than 11 weeks.
Commodities
* West Texas Intermediate crude climbed 0.4 percent to $56.44 a barrel.
* Gold gained 0.2 percent to $1,213.67 an ounce.
* LME copper gained 1.5 percent to $6,184 a metric ton.
–With assistance from Christopher Anstey, Charlotte Ryan,
Andreea Papuc, Adam Haigh, Cecile Gutscher, Sheldon Reback, Samuel Potter and Yakob Peterseil.

Have a great evening. 

Be magnificent!

As ever,

Carolann

Man is able to do what he is unable to imagine.
                                  -Rene Char, 1907-1988

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