November 30, 2017 Newsletter

Dear Friends,

Tangents: St. Andrew’s Day, Christian calendar.

Winston Churchill, statesman, b.  1874
Abbie Hoffman, activist, b. 1936
Mark Twain, writer, b. 1835.
On Nov. 30, 1995, President Clinton became the first U.S. chief executive to visit Northern Ireland.
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Barring that natural expression of villainy which we all have, the man looked honest enough. -Mark Twain.
PHOTOS OF THE DAY

An army dog stands up as retiring soldiers salute their guard post before retirement in Suqian, Jiangsu province, China.
CREDIT: REUTERS

Security guards at a Christmas market at Red Square in Moscow.

French president Emmanuel Macron delivers a speech during the inauguration ceremony of the solar energy power plant in Zaktubi, near Ouagadougou, Burkina Faso.
Market Closes for November 30^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1988, Kohlberg Kravis Roberts wins the bidding war to do a leveraged buyout of RJR Nabisco for more than $25 billion, setting the high-water mark for the LBO craze and junk-bond binge of the 1980s.
Number of the Day
1.28 trillion
The kilowatt hours of electricity generated by natural gas in the U.S. last year, supplanting coal as the top source of electricity in the country for the first time.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks gained as energy shares surged the most in a year, offsetting a decline in the financial sector.
     The S&P/TSX Composite Index rose 100 points or 0.6 percent to 16,067.48. Energy stocks jumped 2.6 percent, the biggest gain since Nov. 30, 2016, as OPEC and its allies agreed to extend production cuts to the end of 2018.
     Industrials rose 1.7 percent, spurred by a sector-wide advance. New Flyer Industries Inc. gained 3.3 percent and Air Canada rose 3.2 percent.
     Financials fell 0.3 percent as a drop in Toronto-Dominion Bank offset a gain in Canadian Imperial Bank of Commerce.
     In other moves:
                          Stocks
* Lundin Mining Corp. tumbled 16 percent, the most since 2011. At least five analysts downgraded it after its production outlook missed expectations
* Enbridge Inc. rose 6.3 percent as a share sale and lowered dividend-growth forecast eased funding concerns
* Toronto-Dominion Bank fell 2.4 percent, the most since April, after earnings disappointed investors, while Canadian Imperial Bank of Commerce rose 2.9 percent, the most in 21 months, on strong results Commodities
* Western Canada Select crude oil traded at a $17.10 discount to WTI
* Aeco natural gas traded at a $1.40 discount to Henry Hub
* Gold fell 0.7 percent to $1,273.20 an ounce, the lowest in four weeks
                          FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.2897 per U.S. dollar, the lowest since July
* The Canada 10-year government bond yield rose one basis point to 1.89 percent
US
By Brendan Walsh
     (Bloomberg) — U.S. stocks posted record highs after John McCain backed the Senate tax bill and the biggest technology stocks rebounded from their worst selloff in more than a year.
     The Dow Jones Industrial Average climbed past 24,000 after the statement of support from the Arizona Republican as the measure headed for a marathon debate, while the S&P 500 capped its longest monthly winning streak since 2007. Treasuries extended their slide, with the 10-year yield breaking above 2.4 percent. The euro and pound strengthened as Brexit negotiators moved closer to a divorce agreement.
     An up-or-down vote on the Senate’s tax bill could happen before the end of this week. While McCain’s support helped bring the measure one step closer to passing, Republican Senator Susan Collins of Maine said it “would be very difficult” for her to support the proposal in its current form. The party can only afford to lose two of its 52 members to pass the bill without Democratic support. Bob Corker of Tennessee, Jeff Flake of Arizona, James Lankford of Oklahoma and Ron Johnson of Wisconsin are all seen as potential “no” votes.
     Data showed U.S. consumer spending settled back in October to a still-decent pace after the biggest increase since 2009, as a post-storm surge in auto sales cooled. Incomes remained robust and inflation showed progress toward the Federal Reserve’s goal. Treasuries sank, driving the benchmark 10-year yield to the highest in a month.
     Oil posted its longest streak of monthly gains since early 2016 after an OPEC-led coalition of major crude producers followed through on a long-awaited extension of supply cuts.    
     Here are some key events scheduled for the remainder of this week:
* Japan’s CPI may show a sharp divergence between headline and core inflation, Bloomberg Intelligence said ahead of the releases on Friday.
* In China, the private Caixin manufacturing PMI is due on Friday.

      These are the main moves in markets:
                            Stocks
* The S&P 500 Index rose 0.8 percent to a record at the close in New York.
* The Stoxx Europe 600 Index fell 0.3 percent.
* The U.K.’s FTSE 100 Index dropped 0.9 percent.
* Japan’s Nikkei 225 Stock Average jumped 0.6 percent to the highest in three weeks.
* The MSCI Emerging Market Index dipped 1.9 percent, the most since May.                         
                            Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro increased 0.4 percent to $1.1898.
* The British pound rose 0.9 percent to $1.3523, the strongest in more than two months.
* The Japanese yen slipped 0.6 percent to 112.6 per dollar.
                             Bonds
* The yield on 10-year Treasuries rose three basis points to 2.42 percent.
* Germany’s 10-year yield dipped two basis points to 0.37 percent.
* Britain’s 10-year yield fell one basis point to 1.33 percent.
                             Commodities
* West Texas Intermediate was little changed at $57.31 a barrel.
* Gold declined 0.7 percent to $1,277.20 an ounce.
* Copper rose 0.1 percent to $3.0715 a pound.

Have a wonderful evening everyone.

Be magnificent!

The end to be sought is human happiness combined with full mental and moral growth.
This end can be achieved under decentralization.
Centralization as a system is inconsistent with a non-violent structure of society.
Mahatma Gandhi

As ever,

Carolann

A lie can travel halfway around the world while the truth
is putting on its shoes.   -Mark Twain, 1835-1910

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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
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www.carolannsteinhoff.com