September 13, 2018 Newsletter

Dear Friends,

Tangents:

September 13, 1759 – James Wolfe’s army defeats Montcalm’s French forces at the Battle of Québec on the Plains of Abraham.
Go to article >>

PHOTOS OF THE DAY

Bavarian herdsmen in traditional dress drive their livestock during the return of the cattle from the summer pastures in the mountains near Oberstdorf, Germany. In autumn, herds fed on alpine pastures in the mountains during summer are led down to the valley where they spend the winter. Credit: AP Photo/Matthias Schrader

A mother teaches her three cubs to survive in the forest on the Russian border near Kajaani, Finland. She is making them keep watch for any approaching males. Each of the brown bear cubs take their turn keeping watch while the family relaxes by a nearby river – before they all patrol the area as a family. They are protecting their territory from adult male bears, who have been known to attack and kill young cubs. Russian border near Kajaani, Finland. Credit: Alex Perov/Solent News & Photo Agency

A polar bear seems to be having a rest in this hilarious photo from the Comedy Wildlife Photography Awards. Credit: Denise Dupras/CWPA/Barcroft Images
Market Closes for September 13^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks extended losses, falling for the ninth out of 10 straight sessions, as officials remain tight-lipped about any progress on trade talks with the U.S. Earlier, Prime Minister Justin Trudeau declined to comment on a hard deadline for the deal. A tech rebound pushed U.S. stocks higher.
     The S&P/TSX Composite Index fell 0.3 percent to the lowest since May 29, dragged down by health care. Pot stocks plunged today as analysts highlighted signs of weakening momentum in the near term. Industrials and real estate led gains.
                            Stocks
* Dollarama Inc. fell 17 percent after its forecast for full- year gross margin missed estimates
* Aphria Inc. and other cannabis stocks plunged as Canaccord recommended reducing exposure on negative technical signals; the manager of a new marijuana-focused mutual fund cautioned investors should get ready for “scary down days”
* ATS Automation Tooling Systems Inc. gained 6.8 percent after agreeing to acquire KMW to strengthen its offerings in the electric vehicle market
                            Commodities
* Western Canada Select crude oil traded at a $34.50 discount to WTI
* Gold fell 0.4 percent to $1,206.40 an ounce
                            FX/Bonds
* The Canadian dollar was little changed at C$1.2997 per U.S. dollar
* The Canada 10-year government bond yield fell 0.9 basis point to 2.323%
US
By Sarah Ponczek
     (Bloomberg) — Gains in the information technology and health care sectors helped to propel U.S. stocks higher for a fourth day. Turkey’s lira jumped after a rate hike, and the dollar fell after data showed a gauge of underlying U.S. inflation unexpectedly cooled in August.
     Equities pulled back earlier from the day’s highs after President Donald Trump tweeted that U.S. isn’t under pressure to reach a trade agreement with China. While speculation on trade continues to dictate investor sentiment, the consumer price data and the resumption of the rally in tech kept shares afloat. The MSCI Asia Pacific Index climbed for the first time in 11 sessions, with equities rallying in Shanghai and Hong Kong.
     “The big thing about tech today is it feels like a relief rally,” said Chris Zaccarelli, chief investment officer at Independence Advisor Alliance in Charlotte, North Carolina. “There was extreme pessimism in terms of what was happening with tariffs potentially being put in place this week.”
     The pound rose after the Bank of England kept rates steady as expected, and strengthened more as the greenback slipped. The euro also climbed, after the ECB’s predicted hold and as President Mario Draghi expressed confidence on wage growth and the outlook for inflation. Turkey’s lira surged after the larger-than-expected move by the Turkish central bank.
     In the end, markets appear to be giving a cautious welcome to the earlier news that the U.S. and Chinese governments are working out the details for a new round of trade talks, just days after Trump threatened to slap tariff hikes on nearly all goods from China. Emerging-market assets — among the hardest hit by the protectionist spat — rallied.
     Elsewhere, crude oil pared two days of gains made on the outlook for tighter supply. The potential impact on commodities from Hurricane Florence faded with lower wind speeds.
     Here are some key events coming up this week:
* China releases August industrial production, retail sales data on Friday.
* U.S. retail sales, industrial production, consumer sentiment on Friday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index rose 0.5 percent as of 4:04 p.m. in New York, while the Dow Jones Industrial Average gained 0.6 percent and the Nasdaq Composite Index jumped 0.8 percent.
* The Stoxx Europe 600 fell 0.2 percent.
* The U.K.’s FTSE 100 fell 0.4 percent.
* Germany’s DAX Index climbed 0.2 percent higher.
* The MSCI Emerging Market Index gained 1.4 percent.
* The MSCI Asia Pacific Index rose 1 percent, after reaching the highest in a week on the first advance in more than two weeks.
                            Currencies
* The Bloomberg Dollar Spot Index dropped 03 percent.
* The euro gained 0.5 percent to $1.1684, reaching the strongest in more than two weeks on the biggest increase in more than two weeks.
* The British pound rose 0.5 percent to $1.3106, the strongest in six weeks.
* The Turkish lira jumped 4.1 percent to 6.0925 per dollar, reaching the strongest in more than two weeks on the largest jump in more than four weeks.
                            Bonds
* The yield on 10-year Treasuries gained less than one basis point to 2.97 percent, while the two-year note yield rose less than one basis point to 2.75 percent.
* Germany’s 10-year yield rose one basis point to 0.42 percent.
* Britain’s 10-year yield rose two basis points to 1.50 percent.
* Italy’s 10-year yield fell one basis points to 2.95 percent.
                            Commodities
* West Texas Intermediate crude dropped 2.3 percent to $68.78 a barrel.
* Gold slipped 0.4 percent to $1,201.43 an ounce. 

Have a great night.

Be magnificent!

As ever,

Carolann

Looking back, I have this to regret, that too often when I loved,
I did not say so.  -David Grayson, 1870-1946

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