October 18, 2018 Newsletter

Dear Friends,

Tangents:
I was at a restaurant for dinner last night where there was live music; the female vocalist sang a moving rendition of Autumn Leaves and I had forgotten how beautiful the lyrics (and musical score) are.  The lyrics – inspiring this time of year:

Autumn Leaves

The falling leaves drift by my window
The falling leaves of red and gold
I see your lips the summer kisses
The sunburned hands I used to hold
Since you went away the days grow long
And soon I’ll hear old winter’s song
But I miss you most of all my darling
When autumn leaves start to fall
Since you went away the days grow long
And soon I’ll hear old winter’s song
But I miss you most of all my darling
When autumn leaves start to fall
I miss you most of all my darling
When autumn leaves start to fall

Songwriters: Giorgio Canali / Francesco Magnelli / Gianni Maroccolo / Massimo Zamboni / Giovanni Lindo Ferretti
Autumn Leaves lyrics © Universal Music Publishing Group

October 18,1970 – Police find body of QC Labour Minister Pierre Laporte in the trunk of a car at St-Hubert Airport; strangled by FLQ terrorists with the chain of a religious medal.

PHOTOS OF THE DAY

A train leaves the main train station in Frankfurt, Germany and provides the photographer with an opportunity to show off his skills. Credit: Michael Probst/AP

Pink-footed Geese flying in front of the Moon taken in South Shields, South Tyneside. The geese arrive in the UK for winter before returning to their breeding grounds of Iceland and Greenland in the early spring. Credit: Lee Harris

The Chimbu Skeleton Tribe of Papua New Guinea. The tribe traditionally dress as skeletons to strike fear into their enemies. The tribe first made contact with the Western world in 1934. Credit: Pongtharin Tanthasindhu/Mediad
Market Closes for October 18th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1937, the stock market crashed on worries of cutbacks in government spending and rumors that the Roosevelt administration would crack down on Wall Street. The Dow Jones Industrial Average lost 10.57 points, or 7.8%, to close the day at 125.73.  
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed global peers lower as investors flocked to government bonds amid increased concerns  over the U.S.-China trade war’s impact on economic growth and rising interest rates.
     The S&P/TSX Composite Index extended losses for a second day, falling 0.8 percent, with industrials and tech shares leading to the downside. Telecom and media stocks rose.
                            Stocks
* Centerra Gold Inc rose 1 percent, outperforming most gold peers after Canaccord upgraded the shares to buy from hold (PTC $6.50 vs C$6.75) citing more attractive risk-reward trade off.
* MEG Energy Corp rose 0.6 percent as Husky Energy said it has reviewed the directors’ circular filed by MEG Energy and that it remains committed to its offer as the “best available option” for MEG holders to maximize value.
* Aurora Cannabis Inc, Aphria Inc rebounded after a lackluster day Wednesday, as Canada’s recreational marijuana legalization looks to be off to a good start, and as two Canadian pot producers seek listings on the New York Stock Exchange.
                            Commodities
* Western Canada Select crude oil traded at a $44.25 discount to WTI
* Gold gained 0.1 percent to $1,228.10 an ounce
                            FX/Bonds

* The Canadian dollar fell 0.4 percent at C$1.3071 per U.S.dollar
* The Canada 10-year government bond yield fell 2.3 basis points to 2.496%
US

By Randall Jensen and Vildana Hajric
(Bloomberg) — A risk-off tone gripped global financial markets, with U.S. stocks sliding while Treasuries climbed with the yen on demand for havens.
American equities fell the most since last week’s rout as investors fretted over the U.S.-China trade war’s impact on economic growth, the Italian debt crisis and rising interest rates. High-flying technology shares again led the sell-off, while defensive sectors like utilities and real estate fared better. Mixed earnings, with disappointments from key industrial and tech names, added to investor anxiety.
The S&P 500 slid back toward its 200-day moving average, the Dow Jones Industrial Average shed more than 300 points and the Nasdaq 100’s rout topped 2 percent.  The weakness comes after China sank overnight, bringing losses in its major benchmark to 30 percent since January highs.
The dollar touched the highest in more than a week, while the 10-year Treasury yield fell to 3.17 percent. Italy’s yield spread over Germany’s hit the highest level since 2013 as European Union officials questioned the country’s budget plan.
“Like every other spurt of volatility, it’s hard to give an exact reason, but we have all the usual culprits: concern about global trade, earnings season and companies potentially staring down the barrel of another tariff maybe over the winter,” said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors. “It’s a hodgepodge. You have all these things that come together at the same time.”
Earnings remain in focus though the depth of the sell-off overshadowed most major reports. Weak results from Germany’s SAP and Taiwan Semiconductor dragged American tech indexes lower.
Earnings misses from several U.S. industrial firms and a Bank of America downgrade of the housing sector fueled worries that higher interest rates and the trade war are hitting profits.
Philip Morris surged on strong demand, buoying consumer shares.
Here are some key events for the rest of this week:
* Third-quarter GDP for China comes Friday in addition to last month’s retail sales and factory output.
These are the main moves in markets:
                            Stocks
* The S&P 500 Index declined 1.4 percent as of 4 p.m. New York time, the most since Oct. 11.
* The Nasdaq Composite fell 2.1 percent, while the Nasdaq 100 dropped 2.2 percent, both the most since Oct. 10.
* The Dow Jones Industrial Average slid 324 points to 25,382.50.
* The Stoxx Europe 600 Index fell. 0.5 percent.
* The MSCI Emerging Market Index sank 1.4 percent.
* The MSCI Asia Pacific Index declined 0.7 percent.
                            Currencies
* The Bloomberg Dollar Spot Index rose 0.4 percent, hitting the highest since Oct. 9.
* The euro fell 0.4 percent to $1.1456.
* The British pound fell 0.7 percent to $1.3020.
* The Japanese yen increased 0.4 percent to 112.17 per dollar.
                            Bonds
* The yield on 10-year Treasuries fell three basis points to 3.17 percent.
* Germany’s 10-year yield fell five basis points to 0.42 percent.
* Britain’s 10-year yield fell four basis points to 1.54 percent.
                            Commodities
* West Texas Intermediate crude decreased 1.5 percent to $68.71 a barrel.
* Gold rose 0.1 percent to $1,228.00 an ounce.
–With assistance from Yakob Peterseil.

Have a great night.

Be magnificent!

As ever,

Carolann

The reward for conformity was that everyone liked you except yourself.
                                                              -Rita Mae Brown, b. 1944

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
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www.carolannsteinhoff.com