October 1, 2018 Newsletter

Dear Friends,

Tangents:
October~ Green becomes gold.  Orange pumpkins appear on the porches.  Tasseled, colored corn hangs mysteriously on the doorframe.  The world is on fire – it is becoming the sun!  the maples redden.  The poplars become flaming torches.  Leaves drift weightlessly across the lawn and city parks.  Twilight echoes with crows cawing.  It is time to turn over a new leaf….No longer immersed in nature’s greenness, we find ourselves detached from her….Perhaps the dead can help us.  The month ends with Celtic Samhain, Christian All souls and All Saints – Hallowe’en – when the veil between the worlds is thinnest and the spirits of the ancestors come with their gifts. -CD

October 1, 2008 – A $700 billion financial industry bailout won lopsided passage in the Senate, 74-25, after it was loaded with tax breaks and other sweeteners.

PHOTOS OF THE DAY

Actors participate in a street performance called ‘The Fisherwives’, by Bru Theatre Group, representing part of the fishing community from 100 years ago, at the Spanish Arch in Galway, Ireland. Credit: Clodagh Kilcoyne/Reuters

Performers entertain the crowd at the Arts by the Sea Festival in Bournemouth. Credit: Thomas Faull/Alamy Live News

The towers of the Deutsche Bank are illuminated by the setting sun in Frankfurt, Germany. Credit: Michael Probst/AP
Market Closes for October 1st, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2008, in the depths of the financial crisis, conglomerate General Electric turned to billionaire investor Warren Buffett to inject at least $3 billion into the company. GE also said it would sell at least $12 billion in stock to other investors.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks climbed after Prime Minister  Justin Trudeau reached an agreement with the U.S. late Sunday to join a new trade deal.  Hours earlier, Bloomberg News reported that a Royal Dutch Shell Plc-led group is poised to announce Monday that it’s moving forward on a C$40 billion ($31 billion) natural gas terminal in Canada, one of the country’s biggest construction projects.
     The S&P/TSX Composite Index rose 0.2 percent, with energy and health care stocks leading gains. Oil jumped to the highest level in nearly four years as a slowdown in American drilling added to concern over supply losses from Iran and Venezuela.
Shares of technology companies fell the most.
                           Stocks
* MEG Energy Corp. soared 38 percent after Husky Energy Inc. made a $2.6 billion hostile bid; Husky fell 6.5 percent
* Martinrea International Inc. jumped about 10.5 percent on the trade deal, which removed the threat of tariffs; Magna International Inc. and Linamar Corp. also climbed 
* Saputo Inc. rose 5.7 percent along with other dairy producers which joined auto makers and railroads climbing higher on tariffs announcement 
                          Commodities
* Western Canada Select crude oil traded at a $36 discount to WTI
* Gold fell about 0.3 percent to $1,193 an ounce FX/Bonds
* The Canadian dollar rose 0.8 percent to C$1.2807 per U.S. dollar
* The Canada 10-year government bond yield gained to 2.509%
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks ended mixed, with multinational companies rising and domestically focused small caps sinking the most since July after the last-minute clinching of a new Nafta deal. Canada’s dollar remained higher, while Mexico’s peso gave back its rise.
     The S&P 500 Index finished higher but more stocks fell than rose in the market-cap weighted index. Industrial titan Boeing Co. led the advance among blue chips, while the Russell 2000 Index fell more than 1.5 percent. General Electric Co. surged after replacing its chief executive, while Tesla Inc. rallied after Elon Musk settled with regulators. The loonie jumped 0.8 percent versus the dollar. Oil topped $75 a barrel in New York.
      A measure of confidence returned to markets after American and Canadian representatives announced a trade deal to be known as the U.S. Mexico Canada Agreement, making modest revisions to the old Nafta framework. Political drama in Washington still swirled around Donald Trump’s Supreme Court nominee, but investors remained focus on a spate of corporate news and economic data due this week.
     In Europe, the broad equity gauge rose for the fourth day in five, led by oil and chemical companies. Italian bonds extended their slide from last week, dragging European debt lower as uncertainty persisted over a budget accord. Investors will be watching the market closely; the ECB has cut monthly bond purchases in half to 15 billion euros ($17 billion) starting this month. The euro turned lower even as data showed growth in factory output slid to the weakest pace in two years in the single currency area.
     In Asia, volumes were below normal in a number of markets – – it’s Labor Day in Australia, Hong Kong is shut and China is out through Oct. 7. Japan’s blue-chip Nikkei 225 Average closed at its highest level in nearly 27 years.
Here are some key events coming up this week:
* U.K. Conservative Party in second day of its annual conference Monday. Prime Minister Theresa May speaks Oct. 3. in Birmingham.
* Central bank policy decision are scheduled by the Reserve Bank of Australia on Tuesday and Reserve Bank of India on Friday.
* U.S. employment reports for September also due Friday.
These are the main moves in markets:
                           Stocks
* The S&P 500 rose 0.4 percent at 4 p.m. in New York, after rising as much as 0.8 percent.
* The Russell 2000 Index fell 1.4 percent, the most since July.
* The Nasdaq 100 Index rose to an intraday record before paing the gain to finish little changed. 
* The Stoxx Europe 600 Index advanced 0.2 percent.
* The MSCI Emerging Market Index slipped 0.2 percent.
* Japan’s Nikkei 225 Stock Average jumped 0.5 percent to the highest in about 27 years.
                          Currencies
* The Bloomberg Dollar Spot Index rose 0.1 percent.
* The euro dipped 0.2 percent for a fourth day of losses.
* The Mexican peso ended virtually unchanged at 18.715 per dollar. It rose as much as 1.2 percent.
* The Canadian dollar jumped 0.8 percent to C$1.28041 per U.S. dollar, the strongest in 19 weeks.
* The Japanese yen fell 0.2 percent to 113.96 per dollar, the weakest in about 11 months.
                           Bonds
* The yield on 10-year Treasuries advanced three basis points to 3.087 percent.
* The yield on two-year Treasuries increased less than one basis point to 2.82 percent.
* Italy’s 10-year yield climbed 15 basis points to 3.295 percent.
                          Commodities 
* The Bloomberg Commodity Index gained 1.4 percent to the highest since June. 
* West Texas Intermediate crude advanced 3.1 percent to $75.52 a barrel, the highest in almost four years.
* Gold futures lost 0.2 percent to $1,193.20 an ounce.
–With assistance from Brandon Kochkodin, Cormac Mullen and Todd White.

Have a great evening.

Be magnificent!

As ever,

Carolann

Courage is rightly esteemed the firs of human  qualities because,
as has been said, it is the quality which guarantees all others.
                                             -Sir Winston Churchill, 1874-1965

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