September 6, 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

St. Mary’s Church sits above a light mist on the River Frome floodplain at sunrise at Wareham in Dorset. Credit: Graham Hunt/Alamy Lives News

As recurring bands of rain showers continue to saturate the upper midwestern United States, a student at the University of Wisconsin-Madison takes cover under an umbrella while making her way past a rain-spattered window on the campus in Madison, Wis. Credit:  John Hart/Wisconsin State Journal Via AP

The Flying Scotsman steam locomotive travels along the East Lancashire Railway’s line near Ramsbottom station, near Bury. Credit:  Oli Scarff/AFP/Getty Images
Market Closes for September 6^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks fell for a fifth day, tracking a decline in global markets amid continued pressure in developing nations and trade discussions in Washington. Canadian Foreign Minister Chrystia Freeland said talks were “productive,” and that lower-level negotiators have been given instructions on how to move forward.
     The S&P/TSX Composite Index fell 0.2 percent to 16,100.94 on Thursday, with energy and technology companies leading losses. Consumer staples, industrials and real estate stocks rose.
     The Canadian dollar gained for a second day against the greenback.
     In other moves:
                            Stocks
* Canopy Growth Corp and Aurora Cannabis Inc fell 2.9 percent and 5.7 percent, respectively, as Tilray Inc. saw a second downgrade in a more than a week; Northland Capital downgraded the Canada-based cannabis producer to an equivalent hold, citing a “far more balanced” risk/reward after the massive rally over the past few weeks.
* The Descartes Systems Group Inc. fell 1.6 percent after missing estimates on quarterly revenue and Ebitda; a William Blair analyst notes the co.’s “mixed second quarter results.”
* WSP Global Inc. rose 7.3 percent after National Bank Financial analyst Maxim Sytchev upgraded to outperform from sector perform, (PT C$74 from C$71.50), saying shares could rebound into the year-end.
                            Commodities
* Western Canada Select crude oil traded at a $27 discount to WTI
* Gold gained 0.4 percent to $1,205.90 an ounce
                            FX/Bonds
* The Canadian dollar gained 0.2 percent to C$1.3148 per U.S. dollar
* The Canada 10-year government bond yield fell 0.5 percent to 2.231%
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks fell to a two-week low amid renewed selling in technology shares as the Trump administration eyed escalating the trade war and concerns mounted over flagging demand for computer chips. Emerging-market equities flirted with a bear market and Treasuries advanced.
     The Nasdaq indexes retreated for a third day, as semiconductor shares paced declines on concern the sector will slow. Selling eased in afternoon trading, sending the Dow Jones Industrial Average to a gain. The S&P 500 ended lower. Facebook dropped a fourth day as the threat of tighter regulation loomed a day after tech executives testified before Congress. Mixed economic data ahead of Friday’s jobs report added to investor concern.
     Emerging-market stocks retreated a seventh day, bringing losses from a recent high to almost 20 percent, just below the threshold for a bear market. While Argentine’s peso and Indonesia’s rupiah rose versus the dollar, Russia’s ruble weighed on MSCI’s gauge of developing-nation currencies. Crude oil tumbled below $68 a barrel. The yen strengthened to session highs after the Wall Street Journal reported President Donald Trump may turn his sights on trade with the nation.
     “There are many risks out there,” Chris Rupkey, chief financial economist at MUFG Union Bank in New York, wrote in an email to clients. “Emerging markets causing market chaos (forget US stocks are at all time highs and could care less), rising trade tensions threatening long-established world trade patterns and disrupting company supply-chains.”
     The weakness in tech shares comes ahead of the key U.S. payroll report that will offer clues on the labor market’s health and the state of wage inflation. For now, emerging economies hold the key to sentiment, with recent losses fueling fears that turmoil could spill into developed markets. While focus remains on efforts from Argentina to Indonesia to sustain confidence, the potential for President Donald Trump to announce another round of tariff hikes on Chinese imports as soon as Thursday also looms large.
     Elsewhere, the pound climbed after being whipsawed amid Brexit discussions. Gold advanced with copper. Bitcoin dropped after a report that Goldman Sachs was said to delay setting up a trading desk for cryptocurrencies.
     Here are some events coming up during the remainder of this week:
* The key monthly U.S. employment report for August is due Friday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 fell 0.4 percent at 4 p.m. in New York.
* The Nasdaq 100 Index dropped 0.9 percent to a two-week low.
* The Stoxx Europe 600 lost 0.6 percent.
* The MSCI All-Country World Index declined 0.4 percent, hitting the lowest in more than two weeks with its sixth consecutive decline.
* The MSCI Emerging Market Index decreased 0.2 percent, reaching the lowest in about 14 months on its seventh straight decline.
                            Currencies
* The Bloomberg Dollar Spot Index dropped 0.2 percent.
* The euro was little changed at $1.1624.
* The Japanese yen climbed 0.6 percent to 110.9 per dollar, the first advance in a week.
* South Africa’s rand gained 0.7 percent to 15.324 per dollar.
* The MSCI Emerging Markets Currency Index rose 0.1 percent to stop a three-day slide.
                            Bonds
* The yield on 10-year Treasuries fell three basis points to 2.88 percent.
* The two-year yield lost one basis points to 2.64 percent.
* Germany’s 10-year yield fell three basis points to 0.355 percent.
                            Commodities
* The Bloomberg Commodity Index fell 0.3 percent.
* West Texas Intermediate crude dropped 1.1 percent to $67.94 a barrel.
* Gold futures added 0.3 percent to $1,205 an ounce. 

Have a great night.

Be magnificent!

As ever,

Karen

“You get in life what you have the courage to ask for.”
-Oprah Winfrey

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