October 16, 2018 Newsletter

Dear Friends,

Tangents: RIP Paul Allen
On Oct. 16, 1964, China detonated its first atomic bomb.  Go to article »
1853 ~ Start of the Crimean War
1793 ~ Marie Antoinette executed.
Looks like Marie Antoinette is about to lose the family jewels. Gems in her family for two centuries will be up for auction soon. -CNN
PHOTOS OF THE DAY

Winemaker Brian Shirley enjoys the autumn colours breaking out at his vineyard south of the Mendip Hills in Somerset, UK. Credit: Jason Bryant/APEX

Staff members (R) transferring a hot air balloon during the 2018 Outdoor Sports Conference in Xingyi in China’s southwestern Guizhou province. Credit: STR/AFP/Getty Images

A street vendor selling helium balloons at the premises of Shikali Temple at Khokana Village, Patan, Nepal. Credit: Narayan Maharian/Nurphoto/SIPA USA
Market Closes for October 16th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1973, the Ministerial Committee of the Gulf Members of OPEC announced an immediate hike in the price of crude oil to $5.12 a barrel, “to exercise their sovereign right to determine the price of their natural resources.” Brent crude, the global benchmark for oil prices, closed at $80.78 a barrel Monday. 
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks regained their footing on Tuesday, posting their biggest gain since April 18, amid a rally in technology shares. U.S. equities also gained on positive corporate earnings reports.
     The S&P/TSX Composite Index rose 1.1 percent, with energy and industrials also contributing to gains. Health care was the only sector that fell in the index as pot stocks fell.
                            Stocks
* Sierra Wireless Inc. rose 2.4 percent after appointing Kent Thexton as president & CEO.
* Bombardier rose 0.8 percent after reporting that its Global 7500 aircraft delivery remains on track for 2021; the better-than-expected announcement on business jet deliveries helped strengthen its backlog, according to BMO analyst Fadi Chamoun(outperform, PT $6). 
* Corus Entertainment Inc. rose 7 percent after Canaccord Genuity analyst Aravinda Galappatthige upgraded it to buy from hold.
                            Commodities
* Western Canada Select crude oil traded at a $47 discount to WTI
* Gold fell 0.2 percent to $1,228.50 an ounce
                            FX/Bonds
* The Canadian dollar gained 0.3 percent at C$1.2946 per U.S. dollar
* The Canada 10-year government bond yield fell 0.5 basis points at 2.492%
US
By Randall Jensen and Vildana Hajric
     (Bloomberg) — U.S. stocks gained the most in more than six months as corporate earnings provided a respite from tensions over trade and geopolitics. The dollar declined.  The S&P 500 surged more than 2 percent, all 30 members of the Dow Jones Industrial Average advanced and small caps in the Russell 2000 Index notched the best gain since the day after the 2016 election. The Nasdaq Composite saw its biggest gain since March as UnitedHealth Group bolstered health-care firms and Adobe’s forecast lifted software makers. Technology stocks looked set to extend gains in the futures session as Netflix rallied on a surge in net subscribers. IBM fell in late trading as its revenue missed targets.
     The dollar held near a two-week low and the 10-year Treasury yield traded around 3.15 percent as data showed U.S. factory production expanded in September. Oil edged higher amid tensions between the Saudi Arabia and the U.S. over the disappearance of a prominent journalist. “The third quarter, which is now underway, would be the first sign if you’re looking for a smoking gun for either tariffs or tightening conditions,” Jurrien Timmer, director of global macro at Fidelity Investments, said by phone. “People at this point want to be relieved or are feeling that things aren’t as bad as last week suggested.”
     Better results at the start of earnings season are giving many investors breathing room from concerns that a slowdown could be on the horizon. Netflix Inc. becomes the first large technology company to report after today’s close, while minutes from the latest Fed meeting should offer more clues a day later.
     In the background, traders are still grappling with continuing U.S.-China trade war rhetoric and geopolitical strains. Elsewhere, the pound climbed as leaders struck a conciliatory tone a day after Brexit negotiations broke down.  The Turkish lira rose following seven days of gains after the country released U.S. pastor Andrew Brunson on Friday.
     In Asia, Japan’s equities outperformed, while Chinese shares retreated.
Here are some key events coming up this week:
* APEC finance ministers meet in Port Moresby, Papua New Guinea.
* China’s new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. 
* Third-quarter GDP for China comes Friday, with headline growth forecast to slow to 6.6 percent year on year from 6.7 percent, in addition to last month’s retail sales and factory output.
* Minutes from the Federal Reserve’s latest policy meeting are due on Wednesday, with investors focused on projections for further interest rate rises.
* Netflix is among companies reporting this week.
* Euro-area governments, including Italy, must turn in fiscal budget proposals to the European Commission by midnight Monday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index rose 2.2 percent to 2,809.83 as of 4 p.m. New York time, the most since March 26.
* The Nasdaq Composite Index advanced 2.6 percent, the biggest rise since March 26. 
* The Russell 2000 Index gained 2.4 percent, the most since November 9, 2016.
* The Dow Jones Industrial Average rose 1.9 percent, the most since March 26. 
* The Stoxx Europe 600 Index gained 1.6 percent, the most since April 5. 
* The MSCI Emerging Market Index gained 1.2 percent.
                            Currencies
* The Bloomberg Dollar Spot Index dipped 0.1 percent.
* The euro rose 0.1 percent to $1.1585.
* The British pound gained 0.3 percent to $1.3189.
* The Japanese yen dipped 0.4 percent to 112.18 per dollar.
                            Bonds
* The yield on 10-year Treasuries was steady at 3.15 percent.
* Germany’s 10-year yield dipped one basis points to 0.49 percent, the lowest in almost two weeks.
* Britain’s 10-year yield advanced one basis point to 1.624 percent.
                            Commodities
* West Texas Intermediate crude rose 0.2 percent at $71.91 a barrel.
* Gold fell 0.2 percent to $1,228.20 an ounce.
–With assistance from John Ainger, Sarah Ponczek and Yakob Peterseil.

Have a great night.

Be magnificent!

As ever,

Carolann

Art is never finished, only abandoned.
           -Claude Monet, 1840-1926

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
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