September 4, 2018 Newsletter

Dear Friends,

Tangents:
September 4, 1987 – Paleontology – The world’s biggest dinosaur nest is uncovered in the Alberta Badlands, 80 kilometres east of Lethbridge; fetuses in the dinosaur eggs were the first ever uncovered. Lethbridge, Alberta 
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PHOTOS OF THE DAY

The Villarrica Volcano is seen at night from Pucon town, Chile. Credit: Cristobal Saavedra Escobar/Reuters

High waves hit breakwaters at a port of Aki, Kochi prefecture, Japan. Powerful Typhoon Jebi is approaching Japan’s Pacific coast and forecast to bring heavy rain and high winds to much of the country. Credit: Ichiro Sakano/Kyodo News Via AP

Urus Muratos men participate in an offering to Kota Mama (Mother Water) on the dried lake Poopo affected by climate change, in the Oruro Department, Bolivia. Credit: David Mercado/Reuters
Market Closes for September 4^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1998, the search engine Google was incorporated. The company’s parent firm Alphabet now has a market value of roughly $850 billion.
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed global peers lower as trade tensions persisted and emerging markets remained under pressure. Canadian and U.S. negotiators are set to resume talks on Wednesday.
     The S&P/TSX Composite Index fell 0.6 percent, with miners leading losses as metal prices took a hit on a stronger U.S. dollar. Health care outperformed again, with pot stocks continuing their August rally. The North American Marijuana Index is now up 147 percent since its one-year low, reached on September 7, 2017.
     The Canadian dollar fell for a fourth day against the dollar, dropping as much as 0.9 percent on Tuesday, to the lowest since July 20.
     In other moves:
                            Stocks
* Miners including First Quantum Minerals Ltd., First Majestic Silver Corp and Barrick Gold Corp fell 6.6 percent, 3.4 percent and 3 percent, respectively, as metal prices tumbled on the strengthening of the U.S. dollar
* Tahoe Resources Inc. tumbled 20 percent after the company said that Escobal mining license in Guatemala will remain suspended until the Ministry of Energy and Mines completes consultation with the Xinka communities.
* Chemtrade Logistics Income Fund rose 1 percent after Desjardins Securities analyst David Newman upgraded his rating to buy from hold based on the recent recovery in Northeast Asia caustic soda prices.
                            Commodities
* Western Canada Select crude oil traded at a $25 discount to WTI
* Gold fell 0.7% to $1,198.60 an ounce
                            FX/Bonds
* The Canadian dollar fell 0.6 percent to C$1.3182 per U.S. dollar
* The Canada 10-year government bond yield gained 0.4 percent to 2.235%
US
By Jeremy Herron
     (Bloomberg) — U.S. stocks fell, Treasuries weakened and the dollar climbed as trade tensions persisted and emerging markets remained under pressure.
     The S&P 500 started September on the back foot as Nike Inc.’s politically controversial ad campaign and Facebook Inc.’s analyst downgrade weighed on major averages. With the exception of Ford Motor Co., all major automakers reported sales that trailed analysts’ estimates. Amazon.com surged past $1 trillion in market value boosting consumer shares. Metals tumbled as the dollar advanced, roiling mining stocks. The greenback added to gains after a reading of U.S. factory output surged.
     Emerging-market currencies headed for the lowest close this year, with South Africa’s rand leading losses. Declines in Treasuries, gold and the yen left investors with few havens. Oil climbed as a storm threatened U.S. production on the Gulf Coast.
     U.S. investors returned from a three-day weekend to ongoing woes in emerging-market assets and simmering trade tensions between America and Canada as the Trump administration moves toward more tariffs against Chinese goods. The factory data gave a reprieve but equities resumed declines in afternoon trading .Nike’s new ads contributed to the charged political atmosphere, while Facebook’s woes persisted.
     South Africa’s unexpected tumble into a recession and Argentina’s urgent financial measures increased concern about more volatility in stocks and currencies. Investors have increasingly been weighing whether the troubles will spill into developed markets, which advanced during the summer despite trade salvos and a Federal Reserve that’s heading toward a late- September rate hike.    
     Here are some key events coming up this week:
* Executives from Facebook, Twitter and Google on Wednesday testify on social media, Russia meddling.
* U.S. construction and employment reports for August are due this week.
     These are the main moves in markets:
                            Stocks
* The S&P 500 lost 0.3 percent as of 4 p.m. in New York.
* Nike fell 3.2 percent, the most since April. Facebook dropped 2.6 percent.
* The Stoxx Europe 600 Index decreased 0.7 percent to the lowest in two weeks.
* The MSCI All-Country World Index slid 0.5 percent to the lowest in more than a week.
* The MSCI Emerging Market Index fell 0.8 percent, reaching the lowest in more than two weeks.
                            Currencies
* The Bloomberg Dollar Spot Index increased 0.4 percent to the highest in almost three weeks.
* The euro fell 0.4 percent to $1.1577, the weakest in more than a week.
* The Japanese yen dipped 0.42 percent to 111.483 per dollar.
* The Turkish lira sank 0.7 percent to 6.6845 per dollar, the weakest in more than three weeks.
* South Africa’s rand decreased 3.3 percent to 15.358 per dollar, the weakest in more than two years.
* The MSCI Emerging Markets Currency Index sank 0.7 percent, headed for the lowest close since May 2017.
                            Bonds
* The yield on 10-year Treasuries gained four basis points to 2.90 percent, the biggest advance in a week.
* The two-year yield rose three basis points to 2.65 percent.
* The spread of Italy’s 10-year bonds over Germany’s decreased 11 basis points.
                            Commodities
* The Bloomberg Commodity Index declined 0.7 percent to the lowest in two weeks..
* West Texas Intermediate crude dropped 0.9 percent to $69.17 a barrel.
* Gold futures lost 0.7 percent to $1,198.10 an ounce, the weakest in more than a week.
–With assistance from Cormac Mullen, Andreea Papuc and Eddie van der Walt. 

Have a great night.

Be magnificent!

As ever,

Carolann

Be smarter than other people, just don’t tell them so.
                             -H. Jackson Brown Jr., b. 1940

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
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www.carolannsteinhoff.com