October 2, 2018 Newsletter

Dear Friends,

Tangents:
October 2, 1869 ~ Mahatma Gandhi’s birthday, Indian spiritual leader, advocate of non-violent resistance as a tool against tyranny.
He was assassinated in the garden of his home in New Delhi, January 30, 1948.  On the anniversary of Gandhi’s birth (Gandhi Jayanti), thousands gather at the park on Jumna River at Delhi where Gandhi’s body was cremated.  Hymns are sung, verses from the Gita, the Koran, and the Bible are recited, and cotton thread is spun on small spinning wheels (one of Gandhi’s favorite activities).  Other observances are held at his birthplace (Porbandar, India) and throughout India on this public holiday.

“Whatever you do will be insignificant, but it is very important that you do it.” -Mahatma Gandhi.

PHOTOS OF THE DAY

Indian school children with their head tonsured and dressed like Mahatma Ghandi assemble during a event at a school in Chennai ahead of Ghandi’s 149th birth anniversary. – Indians all over the country celebrate Ghandi’s birthday on October 2. Credit: ARUN SANKAR/AFP/GETTY IMAGES

Church secretary Jacqui Tait opens the doors to the 200 year old Liberton Kirk in South Edinburgh, Scotland. CREDIT: DUNCAN MCGLYNN

Award winning pumpkins at the RHS Harvest Festival Show in London. CREDIT: HEATHCLIFF O’MALLEY FOR THE TELEGRAPH

Autumn colours in New England, US. CREDIT: KYLE DEMPSEY/MEDIADRUMWORLD.CO
Market Closes for October 2nd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
(Bloomberg) — Canadian stocks fell, while U.S. stocks were mixed, amid declines in pot and technology shares. Energy stocks pared recent gains as oil slid.
     The S&P/TSX Composite Index fell 0.5 percent, with gold miners, consumer staples and utilities offsetting weakness elsewhere. Cannabis stocks dropped as PepsiCo said it had no plans to invest in the business because of the federal ban in the U.S. Total short interest in the marijuana group hit $3.1 billion last week, up from just over $2 billion at the end of June.
                             Stocks
* Gold and silver equities rallied after spot gold price above its 50-DMA as budget turmoil in Italy boosted demand for the metal as a safe haven. Goldman Sachs “three reasons to buy gold” call may also be contributing to the rally.
* Methanex Corp. fell 0.6 percent after its largest shareholder, M&G Investment Management, cut its stake in the company again, saying it’s become “repeatedly frustrated with the market valuation” of the methanol company
* Pembina Pipeline Corp. rose 1 percent after Canaccord analyst David Galison wrote that the company stands to benefit most from Canada’s LNG project
                            Commodities
* Western Canada Select crude oil traded at a $40.75 discount to WTI
* Gold rose 1.3 percent to $1,207.10 an ounce FX/Bonds
* The Canadian dollar was little changed at C$1.2819 per U.S. dollar
* The Canada 10-year government bond yield fell 4.3 basis points to 2.459%
US
By Jeremy Herron and Vildana Hajric
(Bloomberg) — U.S. stocks ended an up-and-down session mostly lower as Amazon.com’s wage increase pressured retailers and small caps slumped to a two-month low as trade tensions eased. The dollar, Treasuries and commodities advanced. 
     The S&P 500 Index edged lower. Retailers led declines after Amazon raised the minimum wage for all its employees. Small caps remained under pressure after the new Nafta deal, while Boeing Co. and Caterpillar Inc. led the Dow Jones Industrial Average to a fresh record. Comments from Federal Reserve Chairman Jerome Powell shrugging off inflation worries added to pressure on equities.
     Amazon’s wage move raised the specter that competitors will have to make a similar move, threatening profit margins at a time when input costs have also been on the rise. Otherwise, trade largely set the tone, with multinationals continuing to benefit from a reduction in tension and domestically focused companies under pressure. Meanwhile, political drama in Washington still swirls around President Donald Trump’s Supreme Court nominee.
    European shares slid as concern mounted that Italy’s budget could lead to a debt crisis. The region’s common currency touched the lowest in six weeks. Emerging-market equities tumbled amid weak data and as Mohamed El-Erian warned against rushing into the group.
     Elsewhere, the dollar climbed against almost all its major peers. Indonesia’s rupiah fell past 15,000 per dollar for the first time since 1998 a day after inflation came in slower than forecast. The pound slumped as Brexit and the annual conference of the governing Conservative Party continued to dominate headlines.
Here are some key events coming up this week:
* U.K. Prime Minister Theresa May speaks Oct. 3. in Birmingham.
* A central bank policy decision from the Reserve Bank of India is due Friday.
* U.S. employment reports for September also due Friday.

These are the main moves in markets:
Stocks
* The S&P 500 fell less than 0.1 percent at 4 p.m. in New York.
* The Dow added 0.5 percent and the Nasdaq 100 Index fell 0.2 percent. The Russell 2000 Index fell 1 percent.
* The Stoxx Europe 600 Index dipped 0.5 percent to the lowest in almost two weeks.
* The MSCI Emerging Market Index declined 1.2 percent to the lowest in almost two weeks.
* The MSCI Asia Pacific Index declined 0.8 percent to the lowest in two weeks on the biggest drop in almost four weeks.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in three weeks.
* The euro dipped 0.4 percent to $1.1554, reaching the weakest in almost six weeks on its fifth straight decline.
* The British pound declined 0.5 percent to $1.298.
* The Japanese yen rose 0.3 percent to 113.611 per dollar.
Bonds
* The yield on 10-year Treasuries decreased four basis points to 3.05 percent.
* Germany’s 10-year yield fell five basis points to 0.42 percent, the lowest in almost three weeks.
* Italy’s 10-year yield gained 15 basis points to 3.448 percent, the highest in more than four years.
Commodities
* West Texas Intermediate fell 0.2 percent to $75.14 a barrel after hitting the highest in almost four years.
* Gold futures climbed 1.3 percent to $1,207.70 an ounce.
–With assistance from Mark Cranfield, Andreea Papuc and Samuel Potter.

Have a great night.

Be magnificent!
As ever,

Carolann

Life must be understood backwards; but it must be lived forwards.
                                              -Soren Kierkegaard, 1812-1855

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
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www.carolannsteinhoff.com