October 26, 2018 Newsletter

Dear Friends,

Tangents: Happy Friday!

ICYMI
Science may be backing up lavender’s reputation in folk medicine for reducing stress and anxiety.
A study found that sniffing linalool, an alcohol component of lavender odor, was akin to taking a Valium. It worked on the same parts of a mouse’s brain, but without the dizzying side effects. Relief could be triggered simply by inhaling.
Hideki Kashiwadani, a physiologist and neuroscientist at Kagoshima University in Japan and an author of the study, believes this new insight is a key step in developing lavender-derived compounds for clinical use in humans. Since anxiety disorders affect nearly a fifth of all adults in the U.S., this may come as welcome news. Read more »
from The New York Times, October 26, 2018                                                 

FYI~ I’ll be attending an investment conference in New York for the next few days.  Arriving back on Wednesday evening next week, but available by email if you need to contact me.

PHOTOS OF THE DAY

A Murmuration of Starlings, Ludes, France. Credit: Gutner/Sipa/Rex

Emirati competitors sail their dhows as they take part in the Dalma Sailing Festival, off of the coast of Dalma island in the Persian Gulf. Credit: Karim Sahib/AFP

A surfer rides the artic waves in Norway. The imposing mountain in the distance resembles a tidal wave. Credit: Tomarcherphoto/Caters News
Market Closes for October 26^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks ended the week on a sour note, posting their biggest weekly loss since February. In theU.S., a rout in technology shares deepened Friday, pushing the S&P500 index close to a 10% correction.
     The S&P/TSX Composite Index fell 0.2 percent, with healthcare and communication services leading losses. Energy, industrials and materials were the only bright spots on Friday. The Canadian 10-year yield dropped to the lowest level in a month.
Stocks
* Lundin Mining Corp. rose 6.3 percent after being upgraded at  RBC to outperform from sector perform (PT C$8) as the “valuation and implied upside to target are more compelling after the recent pullback.”
* Canopy Growth fell despite being pitched at the Invest For Kids Conference in Chicago earlier this week. Cannabis peers also dropped amid a risk-off trading session.
* Barrick Gold Corp. and Goldcorp Inc. were among the best- performing gold stocks on Friday as prices for the yellow metal rose amid increased volatility.
Commodities
* Western Canada Select crude oil traded at a $43.25 discount to WTI
* Gold gained 0.3 percent to $1,236.00 an ounce
FX/Bonds
* The Canadian dollar fell 0.14 percent at C$1.3088 per U.S. dollar
* The Canada 10-year government bond yield fell 5.5 basis points to 2.390%
US
By Sarah Ponczek and Vildana Hajric
     (Bloomberg) — A rout in technology shares deepened Friday, threatening to push the S&P 500 Index into corrective territory along with the Nasdaq Composite Index, in one of the most volatile weeks this year. Treasuries and gold rose as investors sought refuge.
     The S&P 500 finished just short of a 10 percent decline from its record September high, and remains on pace for the worst month since 2009. The tech-heavy Nasdaq indexes bore the brunt of selling after Amazon.com and Alphabet sank on disappointing results. The Chicago Board Options Exchange Volatility Index shows price swings are the greatest since February. Investors got a brief reprise after a report showed the U.S. economy expanded at a high-than-forecast 3.5 percent pace last quarter.
     “It’s a very treacherous environment because you see these big up days and then they get their heads handed to them,” said Donald Selkin, chief market strategist at Newbridge Securities. “There’s no consistency. It’s vicious, it’s nerve wracking. There’s no consistency.” The rout that had largely been contained to equities spilled into other assets Friday. Gold spiked toward the highest since July and the rally in Treasuries pushed the two-year note yield down 10 basis points this week. Yields on benchmark 10- year notes have slumped 11 basis points, the biggest weekly decline since May.
     In Europe, the Stoxx Europe 600 Index continued its retreat, heading for the biggest monthly drop in three years. Asian shares sank deeper into a bear market earlier. Core European bonds gained as the risk-off mood spread. Markets remain on edge after more than $6.7 trillion was lost from global equities’ value since late September, as lofty expectations for earnings were tested amid heightened trade tensions and tightening financial conditions.
     Meanwhile, West Texas oil briefly dipped back below $67 a barrel and copper closed the week lower. The offshore yuan extended this week’s slide to trade at the weakest since January 2017, while the yen pushed higher. Emerging-market stocks tumbled to the lowest in 19 months, capping a fifth straight week of losses.
These are the main moves in markets:
Stocks
* The S&P 500 dropped 1.7 percent to 2,658.57 as of 4:04 p.m. in New York, while the Dow Jones Industrial Average fell 1.2 percent to 24,688.31 and the Nasdaq Composite Index declined 2.1 percent to 7,167.21.
* The Stoxx Europe 600 dropped 0.8 percent. 
* The U.K.’s FTSE 100 slumped 0.9 percent.
* Germany’s DAX Index fell 0.9 percent.
* The MSCI Emerging Market Index eased 0.9 percent.
* The MSCI Asia Pacific Index slumped 0.3 percent.
Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent, after reaching a 17-month high. 
* The euro gained 0.3 percent to $1.1411.
* The British pound rose 0.2 percent to $1.2836.
* The Japanese yen strengthened 0.6 percent to 111.77 per dollar.
Bonds
* The yield on 10-year Treasuries fell four basis points to 3.08 percent, while the two-year note yield eased four basis points to 2.81 percent.
* Germany’s 10-year yield fell five basis points to 0.35 percent.
Commodities
* West Texas Intermediate crude rose 0.7 percent to $67.80 a barrel.
* Gold rose. 0.2 percent at $1,234.70 an ounce.
–With assistance from Robert Brand and David Wilson.

Have a wonderful weekend. 

Be magnificent!

As ever,

Carolann

Opportunity is missed by most people because it is dressed in overalls and looks like work.
–Thomas Edison, 1847-1931

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