October 17, 2017 Newsletter

Dear Friends,

Tangents:
On Oct. 17, 1931, mobster Al Capone was convicted of income tax evasion and sentenced to 11 years in prison. He was released in 1939.
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Also on this day, in 1919, the Radio Corporation of America is founded.
October 17,1989: San Francisco earthquake.

Check out the SkySafari 5 app to learn more about what you’re seeing in the sky.  In addition to showing you what the sky looked like 10,000 years ago or what it may look like in the future, the app features photos from NASA missions and will help you figure out which planet or star you’re gazing at.  It’s $2.99 for iOS and Android.
PHOTOS OF THE DAY

The sun rises over the Notre-Dame de Strasbourg cathedral in eastern France.

The sky over central London is turned orange as the remains of Hurricane Ophelia whips up dust from the Sahara desert. 80 mph winds and storm conditions have hit Ireland already today.

A thrill seeking woman gets a soaking as she stands in front of a splashing wave which hit the promenade at the Penzance in Cornwall, UK, which was whipped up by gale force winds from ex hurricane Ophelia.

A pumpkin of 432 kg (952 pounds) in weight grown by psychologist Alexander Chusov from Elektrogorsk, Moscow Region, at a Russian Record Book ceremony gets the award as the largest pumpkin in Russia.
Market Closes for October 17^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
60%
The most recent survey of Wall Street newsletter writers by Investors Intelligence suggested that more than 60% of them are bullish, up from 47% early last month.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks edged closer to an all-time high as an aerospace deal sent Bombardier Inc. shares soaring and the telecom sector rose ahead of earnings.
     The S&P/TSX Composite Index added 14 points or 0.1 percent to 15,816.90, the highest close since February. Telecom shares led the way, gaining 0.7 percent. Rogers Communications Inc. will report third-quarter results later this week.
     The industrial sector gained 0.3 percent as Bombardier jumped 16 percent, the biggest gain in 19 months. Airbus SE is taking a majority stake in the company’s C Series jetliner program, a move that analysts said will boost sales and cut production costs.
     In other moves:

                             Stocks
* Home Capital Group Inc. fell 1.5 percent and Equitable Group Inc. lost 1.9 percent after Canada’s banking regulator toughened its mortgage qualifying rules
* Aphria Inc. tumbled 13 percent and Canopy Growth Corp. lost 4.7 percent. The Toronto Stock Exchange said Monday it may delist pot stocks that flout U.S. law
* Thomson Reuters Corp. added 1.7 percent after it was upgraded to outperform at Scotiabank
                         Commodities
* Western Canada Select crude oil traded at a $10.55 discount to WTI, the smallest gap since August
* Aeco natural gas traded at a $2.69 discount to Henry Hub
* Gold fell 1.3 percent to $1,283.00 an ounce, the biggest drop in almost four weeks
                          FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.2526 per U.S. dollar
* The Canada 10-year government bond yield fell one basis point to 2.02 percent, the lowest in more than a month
US
By Brendan Walsh
     (Bloomberg) — The dollar strengthened to a one-week high on speculation the next Federal Reserve chairman will be more hawkish as the Dow Jones Industrial Average briefly topped the 23,000 level for the first time.
     The blue-chip equity gauge, which closed just shy of the big round number, was lifted by earnings that beat estimates at UnitedHealth Group Inc. and Johnson & Johnson. The S&P 600 also edged higher. Gold and copper declined, sending a measure of commodities to the biggest drop in a week.
    John Taylor, who is known for a policy rule that would suggest higher interest rates were he to replace Janet Yellen, was said to have impressed President Donald Trump in an interview last week. That prompted investors to lift bets on a rate increase in December, and sent the dollar up versus all the Group of 10 currencies. A host of Fed speakers and the publication of the Beige Book this week may provide further clues about the U.S. policy path.
     U.S. homebuilders’ confidence rebounded to a five-month high, indicating concern over fallout from major hurricanes has been alleviated. U.S. factory production rose last month for the first time since June.
     The pound weakened after Governor Mark Carney said the Bank of England is making contingency plans for a “hard” exit from the European Union. The euro slumped after Spain cut its growth forecast for 2018 to 2.3 percent from 2.6 percent, acknowledging the impact of an escalating political crisis in Catalonia, a region that accounts for a fifth of the country’s output. The Spanish state is turning up the pressure on separatist leaders to drop their push for independence.
     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.
* China releases data for GDP, industrial production and retail sales on Thursday.

      Here are the main moves in markets:
                          Stocks
* The S&P 500 rose 0.1 percent at the close in New York.
* The Dow Jones Industrial Average rose 0.2 percent to 22,997.44.
* The Stoxx Europe 600 closed 0.3 percent lower.
* The MSCI Emerging Market Index sank 0.4 percent, the first retreat in more than a week.
                          Currencies
* The Bloomberg Dollar Spot Index gained 0.2 percent
* The euro dipped 0.3 percent to $1.1767.
* The British pound declined 0.5 percent to $1.3185.
* The Japanese yen was little changed at 112.22 per dollar.
                          Bonds
* The yield on 10-year Treasuries was little changed at 2.3 percent.
* Britain’s 10-year yield fell six basis points to 1.27 percent.
* Spain’s 10-year yield fell two basis points to 1.53 percent.
                          Commodities
* West Texas Intermediate rose 0.2 percent to $52 a barrel
* Gold declined 0.8 percent to $1,285.97 an ounce.
* Copper sank 1.2 percent to $3.2015 a pound, the first retreat in more than a week.

Have a wonderful evening everyone.

Be magnificent!

Where we suffer we have made it into a personal affair.
We shut out all the suffering of mankind.
Krishnamurti

As ever,

Carolann

Nothing is a waste of time if you use the experience wisely.
                                         -Auguste Rodin, 1840-1917

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