September 17, 2018 Newsletter

Dear Friends,

Tangents:
September 17, 1917 – Income Tax comes into effect; supposedly only a wartime measure.  Go to article >>

1920: national Football League formed.
Ken Kesey, writer, b. 1935.
Take what you can use and let the rest go by. -Ken Kesey.
PHOTOS OF THE DAY

Breezy conditions in Camber, East Sussex, ideal conditions for these kite-surfers as they take to the waves in great numbers. Credit: Paul Lawrenson/Alamy Live news


Reenactment of the Battle of Prestonpans which was the first significant conflict in the Jacobite rising of 1745. The battle took place on 21 September 1745, with the Jacobeans successfully defeating the British Army. Credit: SWNS

Kenya’s Eliud Kipchoge celebrates on the podium during the winner’s ceremony after winning the Berlin Marathon setting a new world record of 2:01:39. Credit: John MacDougall/AFP/Getty Images
Market Closes for September 17th, 2018

Market

Index

Close Change
Dow

Jones

26062.12 -92.55

 

-0.35%

S&P 500 2888.80 -16.18

 

-0.56%

NASDAQ 7895.793 -114.250

 

-1.43%

TSX 16082.31 +68.82

 

+0.43%

International Markets

Market

Index

Close Change
NIKKEI 23094.67 +273.35
+1.20%
HANG

SENG

26932.85 -353.56
-1.30%
SENSEX 37585.51 -505.13
-1.33%
FTSE 100* 7302.10 -1.94
-0.03%

Bonds

Bonds % Yield Previous % Yield
CND.

10 Year Bond

2.342 2.345
CND.

30 Year

Bond

2.357 2.361
U.S.   

10 Year Bond

2.9903 2.9959
U.S.

30 Year Bond

3.1309 3.1309

Currencies

BOC Close Today Previous  
Canadian $ 0.76695 0.76707
US

$

1.30386 1.30366
 
Euro Rate

1 Euro=

  Inverse
Canadian $ 1.52346 0.65640
US

$

1.16838 0.85588

Commodities

Gold Close Previous
London Gold

Fix

1201.95 1209.80
 
Oil
WTI Crude Future 68.91 68.99

Market Commentary:
Canada
By Tatiana Darie

     (Bloomberg) — Canadian stocks bucked the global trend to move higher on Monday. Shares extended gains for a second session as U.S. stocks fell amid the latest American threats to expand tariffs on Chinese goods. Canadian Foreign Affairs Minister Chrystia Freeland told reporters earlier that negotiators continue to hold discussions in Washington.
     The S&P/TSX Composite Index rose 0.4 percent, the most in three weeks, boosted by a rally in health care and material shares. Cannabis-related shares rose after reports that Coca- Cola Co. is in talks with the marijuana producer to develop the beverages. Materials rose as gold rallied amid rising concern about a U.S.-China trade war.
                            Stocks
* Aurora Cannabis Inc. led pot stocks higher, closing up 9.1 percent, after the Coca-Cola report; CEO Terry Booth told Bloomberg TV that his company has had talks with three different beverage companies while declining to comment on the Coca-Cola speculation.
* Bausch Health Companies Inc. rose 0.9 percent, erasing earlier losses, after insiders including CEO Joseph Papa disclosed buying shares; Barclays also assumed coverage with an overweight recommendation.
* West Fraser Timber Co Ltd rose 1 percent after reporting it’s proceeding with a buyback of up to 5.52 million shares.
                            Commodities
* Western Canada Select crude oil traded at a $35 discount to WTI
* Gold gained 0.3 percent to $1,205.10 an ounce
                            FX/Bonds
* The Canadian dollar was little changed percent C$1.3029 per U.S. dollar
* The Canada 10-year government bond yield lost 0.5 basis points to 2.336%
US
By Sarah Ponczek

     (Bloomberg) — U.S. stocks tumbled the most in a month as investors grappled with the latest American threats to expand tariffs on Chinese goods. The dollar slipped and emerging-market currencies declined.
     The S&P 500 Index retreated Monday after five straight days of gains, with technology companies including Amazon.com Inc., Apple Inc. and Microsoft Corp. leading decliners. Semiconductor stocks also slumped, and the Nasdaq 100 Index saw its biggest drop since June. Investors sought refuge in consumer-staple and energy stocks such as Procter & Gamble Co. and Exxon Mobil Corp.
     Shares in Hong Kong and China declined on news that President Donald Trump had instructed aides to proceed with tariffs on $200 billion in Chinese products. Beijing has already said it will retaliate, according to people familiar with the decision. Trump said he would make an announcement on China trade after U.S. financial markets close.
     “The vector for trade-related global equity weakness today is tech, rather than China and emerging markets,” said Naufal Sanaullah, chief macro strategist at EIA All Weather Partners. “If the recent weakness in U.S. tech represents sufficient digestion of 10 percent tariffs on another $200 billion in Chinese imports, then any announcement could mark a short-term bottom in tech and it becomes all about the U.S. dollar again.”
     The Stoxx Europe 600 Index closed higher, with fashion store Hennes & Mauritz AB beating forecasts to help retailers outperform. Italian bonds rallied while other core European debt turned lower. Benchmark U.S. Treasury yields hovered just under 3 percent.
     Elsewhere, oil wavered as international supply concerns were overshadowed by a looming demand drop. Emerging-market stocks weakened and their currencies were led lower by a slide in India’s rupee, South Korea’s won and Turkey’s lira. Base metals including copper as the looming trade conflict spurred concerns about demand.
     Here are some key events coming up this week:
* South Korean President Moon Jae-in visits Pyongyang for a summit with Kim Jong Un Tuesday.
* Japanese trade-flow numbers are due on Wednesday.
* The Bank of Japan holds its policy meeting on Wednesday.
* Britain releases inflation data on Wednesday
* European PMIs are due on Thursday
* The Organization of Petroleum Exporting Countries and its allies meet in Algiers this weekend.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index fell 0.6 percent as of 4 p.m. New York time
* The Stoxx Europe 600 Index rose 0.1 percent.
* The U.K.’s FTSE 100 Index fell less than 0.05 percent.
* The MSCI Emerging Market Index sank 1.2 percent.
                            Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent.
* The euro rose 0.5 percent to $1.1684.
* The British pound gained 0.7 percent to $1.3162.
* The Japanese yen rose 0.2 percent to 111.82 per dollar.
* The MSCI Emerging Markets Currency Index declined 0.2 percent.
                            Bonds
* The yield on 10-year Treasuries fell one basis point to 2.99 percent.
* Germany’s 10-year yield increased one basis point to 0.46 percent.
* Britain’s 10-year yield rose one basis point to 1.536 percent.
                            Commodities
* The Bloomberg Commodity Index fell 0.4 percent.
* West Texas Intermediate crude fell 0.4 percent to $68.71 a barrel.
* LME copper fell 0.5 percent to $5,945.00 a metric ton.
* Gold rose 0.4 percent to $1,200.08 an ounce.
–With assistance from Adam Haigh, Eddie van der Walt, Jessica Summers and Luke Kawa. 

Have a great night.

Be magnificent!

As ever,

 

Carolann

 

Today is only one day in all the days that will ever be.  But what will happen
in all the other days that ever come can depend on what you do today.

                                                     -Ernest Hemingway, 1899-1961

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