October 16, 2017 Newsletter

Dear Friends,

Tangents:  HAPPY MONDAY!
On this day in 1793, Marie Antoinette is beheaded during the French Revolution.
Hong Kong, Oct. 16–Communist China announced tonight that it had exploded its first atom bomb. Peking pledged that it would never be the first to use nuclear weapons in the future. 
go to article >>

BIRTHDAYS:
1854, Oscar Wilde
1946, Suzanne Somers

PRIME NUMBERS:
90
Days it took to build Berlin’s Tegel airport in 1948.  Berliners voted Sept. 24 to keep it open, since the new airport – which took 15 years of planning before construction began in 2006 – still has no completion date.

40
Rockets fired by the Afghan Taliban in an attempt to hit US Defense Secretary James Mattis’s plane, hours after he’d left Kabul during an unannounced visit Sept. 27.  No one was hurt.

7
Countries named in Donald Trump’s new travel ban, issued Sept. 24.  Nearly all citizens from Iran, Libya, Syria, Yemen, Somalia, Chad, and North Korea are banned.  Those from Iraq and Venezuela face restrictions.

1.1      
MILLION
Asylum-seekers who fled to Europe in 2015 and 2016 and are still waiting to hear the status of their applications.

5.8
TRILLION
Tax revenue (in dollars) analysts say a Republican tax reform plan could cost over 10 years.  The GOP says it will recoup $3.6 trillion of that by eliminating certain tax deductions.

Sources: The Washington Post, CNN, The New York Times, Newsweek, The Washington Post, Reuters.

Don’t talk, just act.
Don’t say, just show.
Don’t promise, just prove.
PHOTOS OF THE DAY

The National Choreographic Center of Creteil and the French Val-Marne presents the show ‘Pixel’, a dance that combines
the human body with digital images and music, during the 45^th International Cervantino Festival in Guanajuato, Mexico.
CREDIT:  ULISES RUIZ BASURTO/EPA

Japanese maples and colourful acers highlight the magnificent array of autumn colours at Westonbirt Arboretum at Tetbury, Gloucestershire.
CREDIT: WENN

Visitors attend “Birgu by Candlelight”, an annual event during which most street lights are switched off and the city is lit up by candlelight to create a magical ambience, in the medieval city of Birgu, also known as Vittoriosa, Malta.

Flames rise behind Ledson Winery in Kenwood, near Santa Rosa, California. At least 40 people are confirmed dead with hundreds still missing. Officials expect the death toll to rise, and now estimate that 5,700 structures have been destroyed.
Market Closes for October 16^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$3.3 billion
The amount investors poured into emerging-market equity funds last week, the largest net inflow in 21 weeks.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks were less than 150 points shy of their closing record as gains in oil and copper drove a gauge of commodities to its highest level in six months.
     The S&P/TSX Composite Index fell 4.5 points or less than 0.1 percent to 15,802.70 at the market close in Toronto. Information technology stocks were the biggest gainers, rising 0.6 percent.
     The energy sector rose 0.2 percent as West Texas Intermediate prices rose above $52 a barrel amid supply disruptions due to tensions between Iraqi forces and Kurds.
     In other moves:
                          Stocks
* Bombardier Inc. rose 2.6 percent. The company is exploring options for its aerospace assets including a sale of some operations, according to people familiar with the matter
* ShawCor Ltd. fell 3.7 percent after the stock was downgraded at Industrial Alliance Securities
* Magna International Inc. fell 2.8 percent. The stock was downgraded to sell at Goldman Sachs, which said it’s time for investors to trim their auto exposure
                          Commodities
* Western Canada Select crude oil traded at an $11.15 discount to WTI
* Aeco natural gas traded at a $2.67 discount to Henry Hub
* Gold fell 0.6 percent to $1,296.30 an ounce
                           FX/Bonds
* The Canadian dollar weakened 0.4 percent to C$1.2522 per U.S. dollar
* The Canada 10-year government bond yield fell about 1 basis point to 2.028 percent, the lowest in a month
US
By Sarah Ponczek
     (Bloomberg) — The S&P 500 Index rose to a record as gains in oil and copper drove a gauge of commodities to a six-month high. Treasuries fell after Federal Reserve Chair Janet Yellen suggested gradual rate increases are warranted despite soft inflation.
     The pound broke a five-day winning streak on speculation that Brexit talks could be headed for a breakdown. Spain’s IBEX 35 Index declined and the euro weakened amid the stand-off over independence for Catalonia. The dollar extended gains after people familiar with the matter said Stanford University economist John Taylor, a candidate to be the next Fed chairman, made a favorable impression on President Donald Trump after an interview.
     WTI crude rose to a two-week high on concern tensions between Iraqi forces and Kurds will disrupt supplies, while copper surged to the highest since July 2014.
     Yellen said on Sunday her “best guess” is consumer prices will soon accelerate after a period of surprising softness, a forecast echoed by European Central Bank President Mario Draghi and Bank of England Governor Mark Carney. A host of Fed speakers and the publication of the Beige Book this week may provide further clues about the U.S. policy path.
     In Spain, investors are awaiting the next move in a crisis that has weighed on Spanish assets and may also roil the euro. Catalan President Carles Puigdemont defended his region’s claim to independence as the Spanish government signaled it will move ahead with the process of suspending self-rule this week. Puigdemont has until Thursday morning to back down, Deputy Prime Minister Soraya Saenz de Santamaria said.
     Elsewhere, Mexico’s peso fell to a five-month low after President Donald Trump’s administration made aggressive demands during a fourth round of negotiations on the future of the North American Free Trade Agreement. Developing-nation stocks extended gains.
     Here are some key events coming up this week:
* Among Fed speakers lined up this week are Philadelphia Fed President Pat Harker on Tuesday, and New York Fed President Bill Dudley and Dallas Fed President Robert Kaplan On Wednesday. The Fed’s Beige Book will also be published on Wednesday.
* U.S. economic data will include a couple of September housing reports. Beginning construction on new homes and sales of previously owned properties will probably show the negative effects of Hurricanes Harvey and Irma on demand and building.
* China releases data for GDP, industrial production and retail sales on Thursday.
* Earnings season gets into full swing with major U.S. financial firms including Morgan Stanley, Goldman Sachs Group Inc. and Blackstone Group LP. posting results. Netflix Inc. and General Electric Co. are also reporting.
* Bank of England Governor Mark Carney appears before the U.K. Parliament’s Treasury Committee for the first time since June’s election on Tuesday.

      Here are the main moves in markets:
                           Stocks
* The S&P 500 Index rose 0.2 percent at the close in New York.
* The Stoxx Europe 600 Index closed little changed.
* Spain’s IBEX Index decreased 0.8 percent.
* The MSCI Emerging Market Index added 0.5 percent to the highest in six years.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.2 percent.
* The euro decreased 0.2 percent to $1.1792.
* The British pound slipped 0.3 percent to $1.3249, the first retreat in a week.
* The Japanese yen weakened 0.3 percent to 112.16 per dollar.
                           Bonds
* The yield on 10-year Treasuries rose three basis points to 2.3 percent.
* Germany’s 10-year yield declined three basis points to 0.37 percent.
* Britain’s 10-year yield dipped three basis points to 1.33 percent.
* Spain’s 10-year yield decreased four basis points to 1.55 percent.
                           Commodities
* WTI crude rose 0.8 percent to $51.86 a barrel.
* Gold slipped 0.7 percent to $1,294.40 an ounce.
* Copper climbed 3.4 percent to $3.239 a pound, the highest in three years. 

Have a wonderful evening everyone.

Be magnificent!

Nonviolence is the summit of bravery.
Mahatma Gandhi

As ever,

Carolann

I am not afraid of storms for I am learning how to sail my ship.
                                          -Louisa May Alcott,1832-1888

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