September 5, 2018 Newsletter

Dear Friends,

Tangents:

Carolann is out of the office this afternoon, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Deer rest in front of the Papal cross during sunny weather at the Phoenix Park in Dublin, Ireland. Credit: Coldagh Kilcoyne/Reuters

15-year-old Jordan Carambat wades in the ocean as Tropical Storm Gordon approaches Waveland, Mississippi. Credit: Jonathan Bachman/Reuters

Models present traditional Pakistani dress designed by Nomi Ansari during a fashion parade arranged by the Loreal Paris Pakistan Fashion Design Council in Lahore, Pakiston. Credit: K.M. Chaudary/AP
Market Closes for September 5^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks dropped for a fourth day and followed U.S. peers lower as investors await updates on trade negotiations with Washington. President Trump said the U.S. may find out within days whether Canada will be part of a new continent-wide trade pact. Meanwhile, Canadian Foreign Affairs Minister Chrystia Freeland said both countries need to bring “fresh ideas” to the table.
     The S&P/TSX Composite Index slipped 0.2%, with technology shares leading losses as executives of heavyweights such as Twitter Inc. and Facebook Inc. underwent scrutiny on Capitol Hill. Consumer staples, utilities and financials rose.
     The Canadian dollar gained for a first time in five sessions against the dollar.
     In other moves:
                            Stocks
* Nevsun Resources Ltd. rallied 18 percent after Zijin Mining agrees to buy the company for $1.41 billion. Lundin Mining is unlikely to top Zijin’s bid, an RBC analyst said.
* Cronos Group Inc. climbed 12 percent and Tilray Inc. rose 17 percent amid comments from Canopy Growth’s CEO that the global medical market is the real justification for the company’s sky- high valuation. Stocks were also helped by Constellation Brands statement that the cannabis industry on its way to becoming a worldwide business.
* Precision Drilling Corp fell 7.5 percent while Enerflex Ltd fell 0.5 percent after TD Securities downgraded shares, citing a mixed outlook for the oil service sector.
                            Commodities
* Western Canada Select crude oil traded at a $23.75 discount to WTI
* Gold gained 0.3 percent to $1,202.60 an ounce.
                            FX/Bonds
* The Canadian dollar gained 0.12 percent to C$1.3174 per U.S. dollar
* The Canada 10-year government bond yield gained 0.3 percent to 2.241%
US
By Sarah Ponczek and Katherine Greifeld
     (Bloomberg) — Most U.S. stocks fell, with FANG shares tumbling as executives of the tech heavyweights faced scrutiny on Capitol Hill. The selloff in emerging market assets deepened, adding to the risk-off tone on global financial markets.
     Twitter, Facebook and Alphabet helped send the Nasdaq Composite Index down 1.2 percent, the most in three weeks, during Congressional hearing on social media and foreign influences on elections. The Dow Jones Industrial Average finished in the green. The Stoxx Europe 600 Index sunk to its lowest since April. An emerging-market currency gauge fell to a fresh one-year low, led for a second day by South Africa’s rand, before paring losses.
     “Trade is looking worse, emerging markets are looking worse, but you’d think FANGs are pretty insulated from some of those negatives,” said Mike Bailey, director of research at FBB Capital Partners in Bethesda, Maryland. “Just the visual of seeing folks hauled in front of Congress is probably not helping the big-cap tech names.”
     The pound rallied after the British and German governments were said to have abandoned key Brexit demands to potentially ease the path for the U.K. to strike a deal with the European Union. Sterling pared the gain after Reuters reported that the German government said its position is unchanged.
     “The more ‘positive’ or ‘friendly’ Brexit headlines we get, the harder it’ll be for pound bears to ignore,” said Viraj Patel, an ING Groep NV currency strategist.
     Elsewhere, gold climbed, while WTI oil futures dropped in the context the recent run in the dollar and a potential build at the Cushing, Oklahoma, storage hub. Bitcoin fell after a report that Goldman Sachs was said to delay setting up a trading desk for cryptocurrencies.
     Here are some key events coming up this week:
* A key monthly U.S. employment report for August is due Friday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index dropped 0.3 percent, the Dow Jones Industrial Average rose less than 0.1 percent and the Nasdaq Composite Index declined 1.2 percent as of 4:07 p.m. in New York.
* The Stoxx Europe 600 Index fell 1.1 percent, the lowest in more than two months.
* The U.K.’s FTSE 100 Index declined 1 percent to the lowest in almost 19 weeks.
* The MSCI Emerging Market Index dipped 1.7 percent, reaching the lowest in almost three weeks on its sixth straight decline and the biggest decrease in three weeks.
* The MSCI Asia Pacific Index sank 1.5 percent, hitting the lowest in almost three weeks with its fifth consecutive decline and the largest tumble in more than three weeks.
                            Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent, after reaching the highest in almost three weeks.
* The MSCI Emerging Markets Currency Index sank 0.2 percent, touching the lowest level in 16 months.
* The euro increased 0.4 percent to $1.1628.
* The British pound rallied 0.4 percent to $1.2906, after hitting the weakest in almost two weeks.
                            Bonds
* The yield on 10-year Treasuries rose less than one basis point to 2.90 percent.
* The yield on two-year Treasuries declined less than one basis point to 2.65 percent.
* Germany’s 10-year yield increased two basis points to 0.38 percent, the highest in a week.
* Italy’s 10-year yield decreased 8 basis points to 2.94 percent, after touching the lowest in more than four weeks.
                            Commodities
* West Texas Intermediate crude dipped 1 percent to $68.87 a barrel, after dropping to the lowest in more than a week on the biggest decrease in three weeks.
* Gold rose 0.4 percent to $1,196.55 an ounce, the largest gain in a week.
* LME copper gained 1 percent to $5,854.25 per metric ton, the first advance in more than a week. 

Have a great night.

Be magnificent!

As ever,

Karen

When the pupil is ready, the teacher will come. 
Chinese Proverb

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