November 6, 2018 Newsletter

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

The biggest firework display in the South East of England, Leeds Castle puts on a spectacular show. Credit: Tony Watson/Alamy News

The sun rises over the now empty vines and the misty downs. The excellent harvest has been completed and grapes that will make Ambriel sparkling wine, in the Redfold Vineyard. Pulborough, West Sussex, UK are now pressed and in tanks. Credit:  Guy Bell/Alamy News

A woman poses for a selfie at the “Never again” poppy installation at Koenigsplatz in Munich, southern Germany as Europe prepares to mark the Centenary of the ending of the First World War. Credit: Christof Stache/AFP/Getty Images
Market Closes for November 6^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed U.S. peers higher for a second day, boosted by pot stocks and utilities. The increase comes as Americans go to the polls to vote in the midterm elections, with congressional races seen as a referendum on President Donald Trump’s policies.
     The S&P/TSX Composite Index rose 0.5%, also helped by energy. The telecom and industrial sectors were the only ones to post a decline.
Stocks
* Tahoe Resources now sees full-year gold production at the low end of the company’s forecast of 400k to 475k oz.
* Alaris Royalty Corp fell 6.9 percent after third-quarter results. Management commentary suggested “that certain investment partners are facing challenges,” CIBC analyst Scott Fromson writes.
* Thomson Reuters Corp rose 4.6 percent after a report that the company is looking to make “substantive” acquisitions to boost its legal and tax units after selling a majority stake in its financial terminal business.
* Katanga Mining Ltd fell 25 percent after reporting that its revenue in the coming quarters will be hurt by a temporarily suspension of cobalt sales at Kamoto Project in Democratic Republic of Congo.
Commodities
* Western Canada Select crude oil traded at a $42.25 discount to WTI
* Gold fell 0.4 percent to $1,227.70 an ounce FX/Bonds
* The Canadian dollar fell 0.1 percent at C$1.3128 per U.S. dollar
* The Canada 10-year government bond yield gained to 2.529%
US
By Brendan Walsh
     (Bloomberg) — U.S. stocks climbed, with the biggest tech companies among the best performers, in relatively light volume as the U.S. midterm elections got underway. The Nasdaq was the best performing major U.S. gauge, with Apple, Amazon and Facebook leading the way. The Stoxx Europe 600 Index slid a second day. Oil traded near the lowest level in seven months as concerns over a supply crunch eased. Investors watched for developments on trade as China’s vice president said Beijing remained ready to discuss a deal with Washington.
     Government bonds in Europe and the U.S. were mixed, but mostly little changed. The euro recovered from disappointing manufacturing data to gain, while the pound strengthened despite no apparent progress on Brexit negotiations. The dollar fell for a second day.
     Caution prevailed in markets Tuesday, with few standout moves as investors braced for any fallout from the vote, particularly congressional races seen as a referendum on the policies of President Donald Trump. Democrats are expected to take control of the House of Representatives but fall short in the Senate. Meanwhile, investors have one eye on the U.K., where Theresa May is redoubling efforts to reach a Brexit deal.
     “All eyes are on the U.S. midterm elections today, which have resulted in a slight risk-friendly bias to markets, but a dearth of activity,” said Kit Juckes, a London-based global fixed-income strategist at Societe Generale SA. Expectations for policy gridlock are “the corner-stone of what feels like a consensual view that growth will slow,” he wrote in a note.
     Elsewhere, equities climbed in Japan, Australia, South Korea and Hong Kong, but underperformed in China. WTI oil fluctuated between small gains and losses.
Here are some key events coming up this week:
* On Tuesday, U.S. mid-term elections will determine whether Republicans keep control of Congress, and set the stage for Trump’s 2020 re-election bid
* Federal Reserve policy makers are expected to leave the main interest rate unchanged Thursday at their penultimate gathering of 2018
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.4 percent as of 10:26 a.m. New York time; the Nasdaq Composite added 0.8 percent.
* The Stoxx Europe 600 Index dipped 0.2 percent.
* The MSCI Emerging Market Index rose 0.2 percent.
Currencies
* The Bloomberg Dollar Spot Index declined 0.1 percent.
* The euro advanced 0.1 percent to $1.1417.
* The Japanese yen fell 0.1 percent to 113.28 per dollar.
* The British pound added 0.3 percent to $1.3079, the strongest in almost three weeks.
* The MSCI Emerging Markets Currency Index was little changed.
Bonds
* The yield on 10-year Treasuries was little changed at 3.2 percent.
* Germany’s 10-year yield was little changed at 0.43 percent.
* Britain’s 10-year yield rose three basis points to 1.53 percent.
Commodities
* West Texas Intermediate crude fell 0.3 percent to $62.90 a barrel.
* Copper rose 0.1 percent to $2.7595 a pound..
* Gold slipped 0.2 percent to $1,229.54 an ounce.

Have a wonderful evening.  

Be magnificent!

As ever,

Karen

“Challenges are what make life interesting and overcoming them is what makes life meaningful.” –Joshua J. Marine

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