November 7, 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 Ministry of Fun Santa School checks out the view from The London Eye high over London in a private capsule. Credit:  Jeff Spicer/Getty

Race-goers wear figures of horse heads ahead of the running of the Melbourne Cup in Melbourne. Credit: Wiliam West/AFP

The Oxford Street Christmas lights shine after being switched on for the festive season, in London, Britain. Credit:  Henry Nicholls/Reuters
Market Closes for November 7^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks climbed along with their U.S. peers as markets moved past the hurdle of uncertainty presented by the U.S. midterm elections. Pot stocks lifted Canadian equities higher after Michigan voted to legalize recreational marijuana and Missouri approved it for medical use.
     The S&P/TSX Composite Index rose 0.5 percent to the highest since Oct. 22, with pot stocks and technology shares pacing gains. Cannabis, already bolstered by wins in the midterm elections, got an added boost when anti-pot Attorney General Jeff Sessions, a major opponent of marijuana legalization, announced his resignation.
Stocks
* Bombardier Inc rose 2.9 percent after saying its flagship business jet, Global 7500 aircraft, has received Federal Aviation Administration certification 
* Saputo gained 1.3 percent after NBF analyst Vishal Shreedhar (sector perform, PT C$44) wrote in note that Parmalat’s plan to buy Kraft Heinz’s Canadian natural cheese business doesn’t have a major impact on Saputo near-term.
* Encana rose 0.4 percent after Steve Cohen’s Point72 Asset Management reported a 5% passive stake in the company.
Commodities
* Western Canada Select crude oil traded at a $43.50 discount to WTI
* Gold gained 0.1 percent to $1,227.50 an ounce FX/Bonds
* The Canadian dollar was little changed at C$1.3113 per U.S. dollar
* The Canada 10-year government bond yield fell 0.2 basis points to 2.528%
US
By Randall Jensen and Vildana Hajric
(Bloomberg) — U.S. equities jumped as investors moved past the hurdle of uncertainty presented by the midterm elections and embraced an outlook for Washington gridlock. Riskier assets were in favor after Democrats won control of the House of Representatives and Republicans held the Senate.
     The outcome dims chances that Donald Trump’s signature tax cuts will be reversed, but also makes less likely major fiscal initiatives that might have pushed up interest rates. The dollar slid and Treasuries climbed.
     Tech stocks, which absorbed the brunt of October’s sell-off, led gains as the Nasdaq 100 surged more than 3 percent. Amazon.com and Netflix were among the best performers. Health- care shares rallied as investors saw reduced risk for major changes to the health system, while marijuana stocks gained after Michigan voted to permit recreational use and Attorney General Jeff Sessions — a critic of legalization — resigned. A gauge of volatility expectations declined.
     “We’ve gotten the broad uncertainty out of the way,” said Chad Morganlander, senior portfolio manager at Washington Crossing Advisors.
     The outcome largely matched polling going into the vote, and it’s likely investors will now refocus their attention on other issues. The biggest macro theme remains the trade war after recent warnings from major names including the IMF’s Christine Lagarde and former U.S. Treasury Secretary Hank Paulson. Meanwhile, the Federal Reserve is set to decide interest rates Thursday, and Theresa May is pushing on with efforts to agree a Brexit deal.
     Elsewhere, European stocks rallied and Asian shares were mixed. Shares of Spanish banks surged after they escaped paying billions of euros in back taxes. The euro rallied as data showed German industrial output picked up steam in September.
* The Fed’s next rate decision is Thursday. While policy makers are expected to leave borrowing costs unchanged, observers will be looking for any signals on how much more tightening remains.
* China trade data also come Thursday, with gauges of consumer and factory prices expected on Friday. 
And these are the main moves in markets:
Stocks
* The S&P 500 Index rose 2.1 percent as of the close of trading in New York; the Nasdaq Composite added 2.6 percent; the Dow Jones Industrial Average rose 2.1 percent.
* The Stoxx Europe 600 Index rose 1.1 percent.
* The MSCI Emerging Market Index rose 0.9 percent.
Currencies
* The Bloomberg Dollar Spot Index slipped 0.1 percent.
* The euro climbed 0.1 percent to $1.144.
* The Japanese yen rose 0.1 percent to 113.52 per dollar.
* The British pound strengthened 0.3 percent to $1.3135.
Bonds
* The yield on 10-year Treasuries fell one basis point to 3.22 percent.
* Germany’s 10-year yield rose one basis point to 0.44 percent.
* Britain’s 10-year yield was little changed at 1.53 percent.
Commodities
* West Texas Intermediate crude fell 1 percent to $61.59 a barrel, its eighth consecutive decline.
* Copper rose 0.4 percent to $2.743 a pound.
* Gold slipped 0.2 percent to $1,225.37 an ounce.

Have a wonderful evening.  

Be magnificent!

As ever,

Karen

“A leader is one who knows the way, goes the way, and shows the way.” John C. Maxwell

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