November 2, 2018 Newsletter

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Mount Fuji, the highest mountain in Japan, is seen from Fujikawaguchiko, Yamanashi prefecture, Japan. Credit: Behrouz Mehri/AFP

A swan stretches its wings at Loch Faskally, in Pitlochry, Scotland. Credit: Reuters/Russell Cheyne

Beautiful autumn colour and low cloud is reflected in Loweswater in Loweswater, United Kingdom. After the long summer, colder and more wintery weather has now settled in across the country. Credit: Tom White/Getty Images
Market Closes for November 2^nd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed lower amid conflicting messages on trade from the White House but still managed to post their biggest weekly gain since May. The S&P/TSX Composite Index lost 0.2 percent to 15,119.28 Friday, reversing an earlier gain. The benchmark posted a weekly gain of 1.6 percent, the most in six months, as global stocks recovered somewhat from October’s rout.
     Energy stocks lost 1 percent Friday as crude prices retreated, with Encana Corp. falling 5.9 percent, adding to Thursday’s 12 percent decline. Investors were not pleased with the company’s $5.5 billion purchase of Newfield Exploration Co., a reversal in strategy for the oil and gas company.
In other moves:
Stocks
* Sleep Country Canada Holdings Inc. tumbled 13 percent, the most on record, after two analysts downgraded the stock following “tepid” earnings
* Interfor Corp. jumped 15 percent, the most since 2011. Other forestry stocks also gained as lumber prices climbed to a three- week high
* The Green Organic Dutchman Holdings Ltd. gained 21 percent as a post-IPO share lockup expired
Commodities
* Western Canada Select crude oil traded at a $44.10 discount to WTI
* Aeco natural gas traded at a $2.11 discount to Henry Hub * Gold fell 0.4 percent to $1,233.30 an ounce FX/Bonds * The Canadian dollar weakened 0.1 percent to C$1.3103 per U.S. dollar
* The Canada 10-year government bond yield rose 5 basis points to 2.53 percent
US
By Jeremy Herron, Sarah Ponczek and Vildana Hajric
     (Bloomberg) — Stocks fell as trade concerns held center stage and Apple’s poor forecast hit tech-heavy indexes. Treasuries declined after U.S. hiring rebounded more than forecast in October. The S&P 500 dropped for the first time in four days, although was still on track for its best week in six months. Indexes pared some of Friday’s loss after President Donald Trump said he thinks the U.S. will reach a trade deal with China, which appeared to counter earlier remarks by his adviser Larry Kudlow. Tech led the decline, with the Nasdaq 100 sliding nearly 2 percent as Apple retreated after underwhelming sales forecasts.
     The 10-year Treasury yield rose the most in a month to 3.20 percent and the dollar gained as investors speculated the Federal Reserve won’t be deterred from its rate-hike path after a jobs report showed annual wage gains passed 3 percent for the first time since 2009. West Texas crude fell below $63 a barrel. Crowded Trades and Hedge Funds: Bloomberg Reporters Talk Markets “Trade negotiations will continue to be front and center,” Chad Morganlander, senior portfolio manager at Washington Crossing Advisors, said in an interview. “At the same time, the jobs numbers were quite robust. This will push the Fed to continue raising rates.”
     Doubts remain on the capacity of earnings to deliver. Apple’s disappointing forecast for the key holiday period suggested weaker-than-expected demand for the company’s pricier new iPhones. Next up is mid-term elections next week. Analysts also doubted the Trump administration’s ability to end the trade tensions any time soon.
     Talks between the U.S. and China may not be straightforward, with intellectual property theft still a stumbling block. A Chinese state-owned company was charged Thursday with conspiring to steal trade secrets from American chipmaker Micron Technology Inc. as the Justice Department steps up actions against the Asian nation in cases of suspected economic espionage.
     Elsewhere, the Stoxx Europe 600 Index headed for its best week in two years and equities from Hong Kong to Tokyo surged, taking gains on the MSCI Asia Pacific Index to 5 percent for the week. Emerging-market shares jumped the most since March 2016. The euro fell on reports that the ECB was considering new dovish measures.
     Meanwhile, WTI declined as fears over a supply disruption eased after the U.S. was said to agree on giving waivers to eight nations to continue importing Iranian crude. Bloomberg’s gauge of industrial metals extended a rebound from a 15-month low as copper, zinc and nickel led gains in other raw materials.
Here are the main moves in markets:
Stocks
* The S&P 500 fell 0.8 percent at 2:50 p.m. in New York.
* The Nasdaq 100 dropped 1.6 percent.
* The Stoxx Europe 600 Index advanced 0.3 percent. 
* The MSCI Emerging Market Index jumped 2.6 percent.
Currencies
* The Bloomberg Dollar Spot Index rose 0.2 percent. 
* The euro fell 0.3 percent to $1.1379. 
* The British pound dropped 0.5 percent to $1.2953. 
* The Japanese yen dipped 0.5 percent to 113.25 per dollar.
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 3.19 percent. 
* Germany’s 10-year yield advanced four basis points to 0.44 percent. 
* Britain’s 10-year yield increased five basis points to 1.500 percent. 
* Japan’s 10-year yield climbed one basis point to 0.129 percent.
Commodities
* West Texas Intermediate crude dipped 1 percent to $63.08 a barrel.
* Gold fell 0.5 percent at $1,232.70 an ounce. 
* Copper increased 2.6 percent to $2.80 a pound.

Have a wonderful weekend.  

Be magnificent!

As ever,

Karen

“Determine that the thing can and shall be done, and then we shall find the way.” –Abraham Lincoln

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