Month: September 2015

Dear Friends, 

Tangents:

PHOTOS OF THE DAY

 Mira Saville spins in her petticoat during the Nashuva Spiritual Community Jewish New Year celebration on Venice Beach in Los Angeles Monday. As Jews take part in the Tashlich prayer, a Rosh Hashanah ritual, bread crumbs are tossed into the waters to symbolically cast away sins. Lucy Nicholson/Reuters

 Women decorate gingerbread Oktoberfest hearts with icing at the Fesey company factory in Munich, Germany, Tuesday. Fesey will produce about 1000 gingerbread hearts with the word ‘tolerance.’ The proceeds will go toward the Caritas charity. Michaela Rehle/Reuters

Market Closes for September 15, 2015

Market Index	Close	Change
Dow Jones	16599.85	+228.89   +1.40%
S&P 500	1978.09	+25.06   +1.28%
NASDAQ	4860.520	+54.757   +1.14%
TSX	13462.71	+109.37
		+0.82%

International Markets

Market Index	Close	Change
NIKKEI	18026.48	+60.78
		+0.34%
HANG SENG	21455.23	-106.67
		-0.49%
SENSEX	25705.93	-150.77
		-0.58%
FTSE 100	6137.60	+53.01
		+0.87%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.571	1.472
CND. 30 Year Bond	2.321	2.234
U.S.    10 Year Bond	2.2867	2.1831
U.S. 30 Year Bond	3.0674	2.9555

Currencies

BOC Close	Today	Previous
Canadian $	0.75501	0.75436
US $	1.32448	1.32564
Euro Rate 1 Euro=		Inverse
Canadian $	1.49284	0.66986
US $	1.12713	0.88721

Commodities

Gold	Close	Previous
London Gold Fix	1105.95	1104.80
Oil	Close	Previous
WTI Crude Future	44.59	44.00

 Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks rose, after a two-day drop, as utilities and financial services companies rallied before a key meeting of U.S. central bank policy makers.

     Financial stocks climbed 0.7 percent as all 10 industries in the benchmark equity gauge advanced. Fortis Inc. increased 3.4 percent to pace a 2.6 percent advance in utilities stocks.

     Energy producers advanced as oil prices in New York rose. Metals mining companies climbed as copper rose. The gold market has gone quiet ahead of U.S. Federal Reserve meetings, with volume about 47 percent below the 100-day average.

     The Standard & Poor’s/TSX Composite Index rose 109.37 points, or 0.8 percent, to 13,462.71 at 4 p.m. in Toronto.

     Canadian stocks have slid 2.9 percent this month after slumping 4.2 percent in August for the worst performance in a year, amid a rout among global financial markets following China’s shock currency devaluation. China is Canada’s second- largest trading partner after the U.S.

     Pessimism remains acute over the outlook for Canada’s largest stocks, with derivatives traders raising their bets that the turmoil in global equity markets will continue.

     Short positions have more than quadrupled since the beginning of 2015 and the ratio of put to call options remains elevated in the C$9.5 billion ($7.2 billion) iShares Standard & Poor’s/TSX 60 exchange-traded fund, according to data compiled by Bloomberg.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

     Penn West Petroleum Ltd. surged 6.1 percent after agreeing to sell its properties in the Mitsue area of central Alberta for C$192.5 million in cash. The company plans to use the proceeds to pay down debt. Energy producers added 0.1 percent, paring an earlier gain, led by a 3 percent rally in Tourmaline Energy Corp.

     Silver Wheaton Corp. jumped 3.1 percent and HudBay Minerals Inc. increased 4.7 percent as raw-materials producers advanced 0.5 percent as a group. Copper futures for December delivery rose 0.9 percent in New York.

     The U.S. Federal Reserve begins two days of meetings in Washington Wednesday, with traders predicting about a 28 percent chance the central bank will raise interest rates.

US 

By Anna-Louise Jackson

     (Bloomberg) — U.S. stocks rallied, with the Standard & Poor’s 500 Index closing at its highest level in more than two weeks, as retail sales data showed a resilient consumer before the Federal Reserve decides on Thursday whether to raise interest rates.

     United Parcel Service Inc. and FedEx Corp. added more than 2.5 percent to pace industrials. Citigroup Inc. and U.S. Bancorp gained at least 2 percent as lenders rose for the first time in three days. Microsoft Corp. and Google Inc. paced a climb among technology companies, rising more than 1.9 percent. Energy shares rebounded, with Chevron Corp. up 1.9 percent as oil gained.

     The S&P 500 gained 1.3 percent to 1,978.09 at 4 p.m. in New York, its highest since Aug. 28. The Dow Jones Industrial Average added 228.89 points, or 1.4 percent, to 16,599.85. The Nasdaq Composite Index climbed 1.1 percent. About 5.9 billion shares traded hands on U.S. exchanges, about 18 percent below the three-month average.

     “Everybody’s waiting on the Fed,” said John Canally, chief economic strategist at LPL Financial Corp. in Boston. “We saw a pretty solid gain in retail sales in August and an upward revision to July. People have been worried about a possible spillover from China and that’s just not happening.”

     A report today showed retail sales climbed for a second straight month, a sign consumers may be looking past recent volatility in financial markets. Although confidence has taken a hit from stock-market turmoil and global-growth concerns, the data show households are still putting their savings from cheap energy to work.

     Other data showed that while consumers are holding up, factories are struggling. U.S. factory production declined in August by the most since January 2014 as automakers scaled back after a surge the month before and a stronger dollar weighed on demand from overseas customers.

     Meanwhile, a quarterly survey said chief executive officers of large U.S. companies are becoming less optimistic about the prospects for the world’s largest economy, with more leaders planning to cut capital spending and employment in the next six months. The Business Roundtable CEO Economic Outlook Index fell to the lowest level since 2012, according to results compiled by Bloomberg.

     Speculation has increased that the Fed will delay raising rates as China ignited concern that its slowdown could weigh on global growth. While investors remain confident the central bank will increase borrowing costs this year, traders are pricing in just a 30 percent chance of action on Thursday, down from 48 percent before China’s currency devaluation last month. Odds of a move at the December gathering are 63 percent, according to data compiled by Bloomberg.

     Equities have been particularly volatile recently, with the Chicago Board Options Exchange Volatility Index jumping a record 135 percent in August amid the first 10 percent correction in U.S. equities in four years. Since 1990, the measure of market turbulence known as the VIX has averaged 16.9 when U.S. policy makers started raising rates. It fell 7.1 percent Tuesday to 22.54. If the Fed increases rates this week, it would be the first time since 1946 it has done so within a month of a correction.

     The bull market that began in March 2009 is the third longest in history, but it’s the longest ever to go without an increase by the Fed, eclipsing the nearest competitor by more than eight months. Economists are evenly split on whether there will be a hike, with about half the 81 surveyed by Bloomberg predicting a rate increase.

     After sliding into a correction, the S&P 500 has rallied 5.9 percent since Aug. 25, though the benchmark is still down 7.2 percent from its all-time high set in May. The gauge has lost 3.9 percent this year. All of the S&P 500’s 10 main groups advanced Tuesday, with industrial, financial and health-care companies rising the most. Eight groups rose more than 1 percent. Semiconductors climbed for a fourth day, their longest streak in almost three months. Avago Technologies Ltd. and Skyworks Solutions Inc. increased 2.4 percent.

     UPS rallied 3.6 percent, the most in seven weeks. The delivery company plans to hire about the same number of holiday season workers this year as in 2014 as the company recalibrates its response to the annual shipping surge from Christmas-gift shipping. FedEx reached a three-week high, up 2.5 percent. The Dow Jones Transportation Average gained 1.9 percent. Among other industrials, mining equipment maker Joy Global Inc. jumped 5.6 percent.

     Ford Motor Co. and General Motors Co. climbed more than 1.2 percent, while Fiat Chrysler Automobiles NV rose 3.3 percent. GM CEO Mary Barra said the U.S. carmaker will continue to resist Fiat Chrysler CEO Sergio Marchionne’s call to combine with his company. Fiat Chrysler and the United Auto Workers union agreed to extend their current four-year contract, that was set to expire at midnight Monday, while they keep negotiating toward a new accord.

     Financial companies rallied with rising bond yields, as investors speculated that higher interest rates would help lift profitability. The 10-Year U.S. Treasury yield reached the highest since July. E*Trade Financial Corp., Morgan Stanley and Bank of America Corp. each gained at least 2.1 percent.

     Drugmakers led the advance among health-care shares. Allergan Plc and Merck & Co. climbed more than 2.3 percent. Gilead Sciences Inc. and Pfizer Inc. added at least 1.4 percent. The Nasdaq Biotechnology Index increased 1.1 percent to regain the 0.5 percent lost on Monday.

     Ensco Plc and Transocean Ltd. led the energy group higher, climbing more than 4.6 percent. West Texas Intermediate crude advanced 1.3 percent for just its second increase in seven sessions. Cheniere Energy Inc. added 1.2 percent, trimming an earlier 4.2 percent climb, after Carl Icahn increased his stake in the natural-gas exporter this month to 9.6 percent from 8.2 percent.

     Host Hotels & Resorts Inc. lost 2.3 percent and Marriott International Inc. slid 1 percent amid concerns about a gauge of revenue after Pebblebrook Hotel Trust cited weaker-than- anticipated hotel demand in August and September. Pebblebrook fell 1 percent, paring an earlier 9.3 percent drop.

 

Have a wonderful evening everyone.

Be magnificent!

The secret of getting ahead is getting started.

Mark Twain

 

As ever,

Leyla

 

Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.

Helen Keller

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends, 

Tangents: 

PHOTOS OF THE DAY

 The Golden Temple is illuminated as Sikh devotees throng the shrine on the 411st anniversary of the installation of the Guru Granth Sahib, the religious book of Sikhs, in Amritsar, India, Monday. Munish Sharma/Reuters

 A festival goer walks through a so-called ‘luminarium’ (an interactive walk-in sculpture maze) at the Lollapalooza festival at the former Tempelhof airport in Berlin, Germany, Sunday. Britta Pedersen/dpa/AP

Market Closes for September 14, 2015

Market Index	Close	Change
Dow Jones	16370.96	-62.13   -0.38%
S&P 500	1953.03	-8.02 -0.41%
NASDAQ	4805.763	-16.578   -0.34%
TSX	13353.34	-108.13
		-0.80%

International Markets

Market Index	Close	Change
NIKKEI	17965.70	-298.52
		-1.63%
HANG SENG	21561.90	+57.53
		+0.27%
SENSEX	25856.70	+246.49
		+0.96%
FTSE 100	6084.59	-33.17
		-0.54%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.472	1.474
CND. 30 Year Bond	2.234	2.236
U.S.    10 Year Bond	2.1831	2.1866
U.S. 30 Year Bond	2.9555	2.9516

Currencies

BOC Close	Today	Previous
Canadian $	0.75436	0.75400
US $	1.32564	1.32626
Euro Rate 1 Euro=		Inverse
Canadian $	1.49924	0.66700
US $	1.13096	0.88421

Commodities

Gold	Close	Previous
London Gold Fix	1104.80	1101.25
Oil	Close	Previous
WTI Crude Future	44.00	44.63

 Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks fell, adding to last week’s loss, as commodities producers slipped after disappointing Chinese industrial data deepened investor concerns that global economic growth is slowing.

     Energy and raw-materials producers paced declines among equities, dropping at least 1.4 percent. West Texas Intermediate crude fell a fifth time in six days as China’s slowdown stoked fears global oversupply will continue. New York oil tumbled 2.8 percent Friday after Goldman Sachs Group Inc. said prices could fall to as low as $20 a barrel.

     Canadian stocks have continued their slide this month after slumping 4.2 percent in August for the worst performance in a year amid a rout among global financial markets following China’s shock currency devaluation. China is Canada’s second- largest trading partner after the U.S.

     The Standard & Poor’s/TSX Composite Index lost 108.13 points, or 0.8 percent, to 13,353.34 at 4 p.m. in Toronto. The equity gauge has slumped 8.7 percent this year.

     Global stocks retreated, with the Shanghai Composite Index dropping the most in three weeks overnight. Industrial output in China rose 6.1 percent in August, short of economists’ forecasts, while investment in the first eight months increased at the slowest pace since 2000. The S&P 500 slipped 0.4 percent in New York.

     Canada’s federal government posted an unexpected surplus of C$1.9 billion in its last budget for the fiscal year ended March 31, the finance ministry said. Prime Minister Stephen Harper’s government had previously forecast a C$2 billion deficit.

     First Quantum Minerals Ltd. dropped 8.1 percent and Teck Resources Ltd. lost 3 percent as raw-materials producers slumped 1.7 percent as a group. Nickel and copper fell, leading declines in industrial metals.

     B2Gold Corp. tumbled 7 percent and Eldorado Gold Corp. retreated 3.3 percent as gold in New York rose 0.4 percent after a 1.6 percent decline last week. The U.S. Federal Reserve begins two days of meetings in Washington Wednesday, with traders predicting a 30 percent chance the central bank will raise interest rates.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

     SNC-Lavalin Group Inc. dropped 3.9 percent after naming Neil Bruce the engineering firm’s next chief executive officer effective Oct. 5, succeeding Robert Card. Bruce had been SNC’s chief operating officer.

     Bombardier Inc. sank 11 percent for a second day of losses, after soaring a record 56 percent last week amid optimism over the potential value of its rail unit and sales prospects for the CSeries jet. The company is due for a “significant correction” as the market-implied value of Bombardier’s transportation unit is less likely, Macquarie Capital Markets analyst Konark Gupta said in a note.

US 

By Emma O’Brien

     (Bloomberg) — The dollar maintained losses as bets on the Federal Reserve raising interest rates this Thursday held below 30 percent. Concern over China’s deepening slowdown saw futures on most Asian stock indexes signaling declines following a pull back in U.S. equities.

     Japanese index futures bucked the trend, rising in Osaka and Chicago ahead of a monetary policy review and after losses of more than 1 percent in stock gauges there Monday. Oil in New York remained below $45 a barrel, while copper resumed its advance with commodities trading in line with sentiment toward China, the No. 1 consumer of industrial metals.

     While the Fed’s meeting is this week’s marquee event, attention will be trained on the Bank of Japan Tuesday with some economists predicting it will expand stimulus as soon as this month amid a lackluster recovery. With two days to go until the Fed’s statement, interest-rate futures put the odds of a hike this week at 28 percent, down from more than 50 percent before China roiled markets with its surprise currency devaluation. U.S.-traded Chinese stocks followed losses in Shanghai on Monday.

     “The market is in a wait-and-see mode,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab Corp. in Austin, Texas. “Unless we get a major, major move in oil or the dollar or China pulls a crazy stunt, I think we’ll be like this until Thursday.”

The dollar was little changed at 120.27 yen by 7:43 a.m. in Tokyo, after slipping 0.3 percent on Monday. Australia’s dollar was near a two-week high versus the greenback after the sitting prime minister was ousted by a former cabinet minister. Standard & Poor’s 500 Index futures climbed 0.1 percent after the gauge dropped 0.4 percent in its first decline in three days. Nikkei 225 Stock Average futures rose 0.3 percent in Chicago, with contracts on indexes in Australia and Hong Kong down at least 0.3 percent in recent trade. Copper futures advanced for the fifth time in six days.

     Monday’s retreat in U.S. equities followed their best week since July, with uncertainty over the Fed’s move taking hold. While economists are evenly divided on whether the U.S. central bank will pull the trigger on the first American rate increase since 2006, the declining odds hit the dollar Monday, with the Bloomberg Dollar Spot Index slipping a third day to its lowest level in almost three weeks. Treasuries held onto their gains, with 10-year yields down one basis point to 2.19 percent.

     Futures on Australia’s S&P/ASX 200 Index tracked the losses in the U.S., slipping 0.3 percent in most recent trading, while those on the Kospi index in Seoul were little changed. Contracts on the Hang Seng Index in Hong Kong declined 0.6 percent. Futures on the Hang Seng China Enterprises Index, a gauge of Chinese equities listed in the city, were down 0.4 percent as were those on the FTSE China A50 Index.

     While Hong Kong shares rallied last session, the Shanghai Composite Index dropped 2.7 percent, its steepest sell-off in three weeks after disappointing data on investment and industrial output underlined concerns over the economic outlook. The biggest U.S.-listed exchange-traded fund tracking Chinese stocks slid 5 percent on Monday, while the Bloomberg China-US Equity Index lost 2 percent.

Have a wonderful evening everyone.

Be magnificent!

“Aim for the moon. If you miss, you may hit a star.

W. Clement Stone

 

As ever,

Leyla

 

Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.

Helen Keller

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends, 

Tangents: 

PHOTOS OF THE DAY

People visit the ‘Van Gogh Alive’ exhibition at Joy City in Beijing Friday. More than 3,000 images associated with the life and work of Vincent van Gogh are on display. Jason Lee/Reuters

The Weeping Window poppy piece is displayed at Woodhorn Museum in Ashington, England, Friday. The sculpture will be displayed from Sept. 11 to Nov. 1, part of a country-wide tour. Scott Heppell/AP

Market Closes for September 11^th, 2015

MarketIndex	Close	Change
DowJones	16433.09	+102.69  +0.63%
S&P 500	1961.05	+8.76  +0.45%
NASDAQ	4822.340	+26.088  +0.54%
TSX	13461.47	-108.42
		-0.80%

International Markets

MarketIndex	Close	Change
NIKKEI	18264.22	-35.40
		-0.19%
HANGSENG	21504.37	-58.13
		-0.27%
SENSEX	25610.21	-11.96
		-0.05%
FTSE 100	6117.76	-38.05
		-0.62%

Bonds

Bonds	% Yield	Previous  % Yield
CND.10 Year Bond	1.474	1.492
CND.30 Year Bond	2.236	2.262
U.S.   10 Year Bond	2.1866	2.2238
U.S.30 Year Bond	2.9516	2.9900

Currencies

BOC Close	Today	Previous
Canadian $	0.75400	0.75488
US$	1.32626	1.32471
Euro Rate1 Euro=		Inverse
Canadian $	1.50335	0.66518
US$	1.13353	0.88220

Commodities

Gold	Close	Previous
London GoldFix	1101.25	1109.50
Oil	Close	Previous
WTI Crude Future	44.63	45.92

Market Commentary:

Canada

By Dani Burger and Eric Lam

     (Bloomberg) — Canadian stocks fell, erasing a weekly gain, as energy companies slipped after Goldman Sachs Group Inc. said oil could fall to as low as $20 a barrel.

     Energy stocks led the slump among Canadian equities, dropping 2.8 percent as West Texas Intermediate fell below $45 a barrel. The world’s oversupply of crude is even bigger than Goldman thought and that could drive prices lower, the bank said in an e-mailed report Friday as it trimmed its forecasts through 2016.

     The Standard & Poor’s/TSX Composite Index fell 108.42 points, or 0.8 percent, to 13,461.47 at 4 p.m. in Toronto. The equity gauge has dropped 0.1 percent this week, after alternating between gains and losses for four straight days.

     The benchmark slumped 4.2 percent in August after a selloff in the Chinese stock market sent a volatility gauge for 60 of the largest, most liquid stocks in Canada up 78 percent, the most since 2009.

     Baytex Energy Corp. retreated 8.6 percent and Bonavista Energy Corp. dropped 6.8 percent as energy producers fell 2.8 percent as a group.

     Bombardier Inc. fell 1.1 percent. The plane and train maker soared 58 percent in the previous two days after displaying its long-delayed CSeries jet and amid optimism over the potential value of Bombardier’s rail unit. Industrials dropped 0.8 percent as a group.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

     Bank of Montreal slipped 0.7 percent after agreeing to buy General Electric Co.’s transportation finance business in the U.S. and Canada for an undisclosed sum. The unit had net earning assets of about C$11.5 billion as of June 30, the bank said.

     Timber producers Interfor Corp. and West Fraser Timber Co. rose at least 6.5 percent, after Toronto-Dominion Bank noted that a selloff in paper and forest products had created a buying opportunity. Raw-material companies on the benchmark rallied 0.4 percent.

     Gold companies as a group reversed earlier losses, rising 0.9 percent to end a three-day slide even as the metal slid.

US 

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — U.S. stocks rose amid the thinnest trading in three weeks, while Treasuries halted a three-day slump as investors remained cautious before the Federal Reserve meets to debate raising interest rates.

     The Standard & Poor’s 500 ended at session highs after swinging between gains and losses throughout the day. Trading in S&P 500 stocks was 17 percent below the 30-day average as the gauge capped its biggest weekly gain since July. The Dow Jones Industrial Average claimed its best week in five months. Oil dropped below $45 a barrel, as commodities slumped.

     “The market just can’t make up its mind,” Joseph Tanious, an investment strategist at Bessemer Trust in Los Angeles, said in a phone interview. The firm oversees more than $100 billion. “There is confusion around what the Fed is going to do. There is uncertainty around the future of China and where oil prices are heading. Investors are having a hard time wrapping their mind around it.”

     Economists and money-market traders are split on whether the Federal Open Market Committee will raise interest rates at its Sept. 16-17 meeting. Global stocks rose this week as China was able to rein in equity-market volatility and thwart speculation of further currency depreciation, easing concern its financial-market turmoil will derail global growth.

     The S&P 500 rose 0.4 percent at 4 p.m. in New York. The gauge advanced 2.1 percent this week amid volatile trading and light volumes. The gain is the best since July. The Dow added 328 points for its best week since March 20.

     Fed policy makers have already seen the major economic data available to them before their rate decision next week. Investors are also assessing the extent of impact recent market volatility will have on officials’ thinking.

     The turbulence took a toll on consumer sentiment, which declined in September to the lowest level in year as Americans anticipated a weaker economy. Some 17 percent of respondents mentioned unfavorable news about equity markets, the highest share since the height of the last financial crisis in October 2008.

     A separate report showed wholesale prices were little changed in August.

     Energy shares led declines in the S&P 500, as oil slipped after Goldman Sachs Group Inc. said the global surplus of oil is even bigger than it thought, and that could drive prices as low as $20 a barrel. Shares of consumer-discretionary producers advanced.

     “It’s normal to have volatile markets ahead of such an important decision from the Fed,” said Ralf Zimmermann, a strategist at Bankhaus Lampe KG in Munich. “It’s been such a long time — there are a lot of traders who have never seen a rate hike in their career. Markets will have to live with uncertainty until then.”

     The Stoxx Europe 600 dropped 1 percent, ending a three-day rally. The gauge advanced 0.7 percent this week, its best performance since July.

     Treasuries rose for the first time in four days, with the 10-year note yield dropping three basis points to 2.19 percent. Treasuries also advanced as buyers piled into U.S. auctions of notes and bonds this week.

     Germany’s 10-year bund yield declined four basis points to 0.65 percent and Italy’s rate slid three basis points to 1.83 percent.

     Emerging-market stocks pared their biggest weekly gain since April as conflicting speculation about the timing of Fed tightening and the magnitude of China’s economic slowdown drove volatility to the highest levels since 2011.

     The MSCI Emerging Markets Index slipped 0.2 percent, trimming its five-day gain to 1.8 percent. Developing-nation stocks have slumped for four straight months amid widening price swings. Higher U.S. rates would make dollar assets more appealing to investors, spurring them to shift capital from emerging markets.

     The dollar fell against most of its major peers this week, with traders doubting the Fed will increase interest rates this month for the first time since 2006.

     The Bloomberg Dollar Spot Index fell 0.1 percent on Friday, extending its its slide in the week to 0.7 percent. The euro rose 0.5 percent to $1.1336, up 1.7 percent this week, and the yen was at 120.57 per dollar. The Bank of Japan is also scheduled to meet next week.

     West Texas Intermediate crude fell 2.8 percent to $44.63 a barrel on the New York Mercantile Exchange. A failure to reduce production fast enough may require prices near $20 a barrel to clear the oversupply, Goldman said in a report e-mailed Friday while cutting its Brent and WTI crude forecasts through 2016. Brent was down 75 cents to end at $48.14 a barrel in London.

     Corn futures rose after the U.S. government reduced its forecast for domestic production, citing lower yields after excessive rain across parts of the Midwest. The U.S. Agriculture Department unexpectedly raised its forecast for the country’s soybean crop this year as favorable weather boosted yields.

 

Have a wonderful weekend everyone.

 

Be magnificent!

“In order to succeed, we must first believe that we can.” Nikos Kazantzakis

 

As ever,

Karen

 

“The will to win, the desire to succeed, the urge to reach your full potential… these are the keys that will unlock the door to personal excellence.”

Confucius

 

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends, 

Tangents: 

PHOTOS OF THE DAY

The Duke and Duchess of Devonshire look at a piece titled ‘The Dappled Light of the Sun’ by Conrad Shawcross during the Beyond Limits selling exhibition at Chatsworth House near Bakewell, Britain, Thursday. Darren Staples/Reuters

A camel and her calf stand in a field during a sandstorm near Rahat, southern Israel, Thursday. Amir Cohen/Reuters

Market Closes for September 10^th, 2015

Market Index	Close	Change
Dow Jones	16331.14	+77.57   +0.48%
S&P 500	1946.11	+4.07   +0.21%
NASDAQ	4796.250	+39.722   +0.84%
TSX	13550.68	+18.83
		+0.14%

International Markets

Market Index	Close	Change
NIKKEI	18229.62	-470.89
		-2.51%
HANG SENG	21562.50	-568.81
		-2.57%
SENSEX	25622.17	-97.41
		-0.38%
FTSE 100	6155.81	-73.20
		-1.18%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.492	1.492
CND. 30 Year Bond	2.262	2.259
U.S.    10 Year Bond	2.2238	2.2006
U.S. 30 Year Bond	2.9900	2.9611

Currencies

BOC Close	Today	Previous
Canadian $	0.75488	0.75346
US $	1.32471	1.32721
Euro Rate 1 Euro=		Inverse
Canadian $	1.49406	0.66932
US $	1.12784	0.88665

Commodities

Gold	Close	Previous
London Gold Fix	1109.50	1109.85
Oil	Close	Previous
WTI Crude Future	45.92	44.15

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose as oil producers gained while better-than-expected earnings from Dollarama Inc. and Hudson’s Bay Co. boosted retailers.

     Industrial stocks paced gains among Canadian equities as Bombardier Inc. soared a record 28 percent after showing off its long-delayed CSeries jet in Toronto. Energy stocks rose 0.7 percent, erasing an earlier loss. Energy and raw-materials producing companies make up about 30 percent of the broader index. Agnico Eagle Mines Ltd. added 1 percent as gold futures gained 0.7 percent in New York to snap a five-day losing streak.

     Dollarama and Hudson’s Bay rallied at least 4.6 percent to lead consumer discretionary stocks higher, after second-quarter earnings for both companies topped analysts’ estimates.

     Canadian stocks are rebounding from the worst month in a year, slumping 5.2 percent in August after Chinese stocks sank amid increasing concern economic growth in the country was stalling. China is Canada’s second-largest trading partner after the U.S.

     The Standard & Poor’s/TSX Composite Index added 38.04 points, or 0.3 percent, to 13,569.89 at 4 p.m. in Toronto. The equity gauge has advanced 0.7 percent this week, after alternating between gains and losses for four straight days.

     Suncor Energy Inc. added 0.8 percent and Encana Corp. rallied 3.5 percent as energy producers increased 0.7 percent as a group. Crude in New York advanced 4 percent, the first increase in four days. The Energy Information Administration cut forecasts for U.S. oil production in 2015 and 2016.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

     China’s stocks dropped for the first time in three days after the nation’s producer-price index fell 5.9 percent in August, extending slides to 42 straight months. Consumer prices rose at the fastest pace in a year.

     Bombardier, the train and plane maker, one of the worst performers in the benchmark gauge this year, has surged 58 percent in two days amid growing optimism over the potential value of Bombardier’s rail unit and sales prospects for the CSeries jet.

     Sun Life Financial Inc. rose 3.1 percent after agreeing to buy the U.S. employee benefits business of Assurant Inc. for a net investment of $975 million.

US 

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — U.S. stocks rose amid light volumes a week before the Federal Reserve’s policy decision. Apple Inc. led a rally in technology shares, while a retreat in the dollar sparked a surge in commodities from oil to metals.

     The Standard & Poor’s 500 Index rebounded from a selloff yesterday in a market increasingly characterized by sharp shifts in sentiment amid the looming threat of higher interest rates. The dollar slipped to a one-week low on speculation the Fed won’t act next week amid continued turbulence in global financial markets. Oil surged past $45 a barrel in New York.

     While a second day of robust U.S. jobs data bolstered the case for higher rates, money-market derivatives traders see only a 28 percent chance of an increase at next week’s meeting. The Bank of England said turmoil in global markets hasn’t upset its economic outlook, fueling speculation the Fed could also look past recent volatility.

     “People are on the sidelines and you get these violent moves and you don’t know what’s behind them,” Dan McMahon, director of institutional equity trading at Raymond James and Associates, said by phone. “There’s really no rhyme or reason so it’s very difficult to make a rational decision in this kind of environment.”

     Fed officials in recent weeks, while giving a nod to global events including the equity rout that followed China’s currency devaluation, haven’t been willing to rule out a September hike. While futures traders have pared bets, many economists are still predicting the Fed will increase its key rate.

     The S&P 500 rose 0.5 percent by 4 p.m. in New York. The gauge rallied as much as 1 percent before paring the advance throughout the afternoon and then padding out the gain in the session’s final minutes. Volumes in S&P 500 shares were about 9 percent below the 30-day average.

     Apple Inc. rallied 2.2 percent to lead technology shares higher as nine of the 10 main S&P 500 groups advanced. Pfizer Inc. and Merck & Co. climbed at least 1.5 percent as health-care stocks gained amid deal announcements.

     “It’s a pretty choppy trade today and volumes are a little low,” Yousef Abbasi, global market strategist at JonesTrading Institutional Services LLC in New York. “You have a mentality right now where people don’t want to add risk but they do want to play intraday volatility. They’re not taking on new risk but they’re trying to take advantage and trade around the market.”

     In 11 of the last 14 sessions through Wednesday, the S&P 500 had closed with a move exceeding 1.3 percent, as wide market swings have become more prevalent since China’s currency devaluation on Aug. 11.

     Investors are assessing whether the ructions on financial markets would prevent the Fed from raising rates even as the central bank insists its focus will be on economic data. A report Thursday showed fewer Americans lined up last week to file for jobless benefits.

     Equities from Asia to Europe declined on renewed concerns that U.S. policy tightening would damp global growth, while a downgrade of Brazil’s debt rating to junk roiled markets there and underscored weakness in developing nations.

     The MSCI Emerging Markets Index slid 0.7 percent, halting a two-day advance as renewed concern over the U.S. rate outlook and Brazil’s downgrade damped demand for riskier assets. Chinese stocks fell for the first time in three days after data indicated a widening divergence between consumer and producer prices. The Brazilian real slid to the lowest level in 13 years.

     Brazilian bonds fell and Petroleo Brasileiro SA’s American depositary receipts declined after S&P cut the sovereign one step to BB+, with a negative outlook.

     The yen was little changed versus the dollar after recovering earlier losses as an aide to Prime Minister Shinzo Abe said October would be a “good opportunity” for the central bank to boost stimulus.

     China appeared to expand efforts Thursday to bolster the yuan in what traders said is an attempt to align its exchange rates at home and abroad.

     The pound jumped 0.5 percent to $1.5445 after the Bank of England said the turmoil in global markets hasn’t shaken its view that the time for a rate increase is approaching.

     Treasuries extended losses, with 10-year note yields down two basis points to 2.22 percent. Buyers piled into U.S. auctions of notes and bonds this week, with investors undeterred by the chance of a Fed rate hike next week. Thursday’s auction of 30-year bonds drew a yield of 2.98 percent, the highest since July.

     Bond bulls are wagering that even if the Fed does move, slower inflation will keep longer-term Treasury yields in check.

     The Bloomberg Commodity Index rose 1.1 percent after falling 1.3 percent on Wednesday to a two-week low. Metals led gains, with copper climbing for a fourth day in its longest run of gains in three months.

     The jittery equities trading prompted investors to seek the safety of gold as the metal ended a five-session losing streak. Gold futures for December delivery gained 0.6 percent to $1,108.40 an ounce.

     West Texas Intermediate crude advanced 4 percent to settle at $45.92 a barrel, snapping a three-day losing streak. Brent futures added 2.8 percent to end at $48.89 in London.

     The Energy Information Administration cut forecasts for U.S. crude output in 2015 and 2016, predicting a slide to 8.82 million barrels a day next year from 9.22 million a day in 2015 in its monthly Short-Term Energy Outlook Wednesday. The market shrugged off an EIA report Thursday that showed crude supplies climbed last week as refineries idled units to perform seasonal maintenance.

 

Have a wonderful evening everyone.

 

Be magnificent!

“Perfection is not attainable, but if we chase perfection we can catch excellence.” Vince Lombardi

As ever,

Karen

“Try to be a rainbow in someone’s cloud.” Maya Angelou

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends, 

Tangents: 

PHOTOS OF THE DAY

Members of the European Parliament take part in a voting session in Strasbourg, France, Tuesday. Picture taken with a slow shutter speed and a zoom effect. Vincent Kessler/Reuters

A man is silhouetted walking past the Apple logo during a product display for Apple TV following an Apple event Wednesday in San Francisco. Apple staked a new claim to the living room as the maker of iPhones and other hand-held gadgets unveiled an Internet TV system that’s designed as a beachhead for the tech giant’s broader ambitions to deliver a wide range of information, games, music and video to the home. Eric Risberg/AP

Market Closes for September 9^th, 2015

Market Index	Close	Change
Dow Jones	16253.57	-239.11   -1.45%
S&P 500	1942.04	-27.37   -1.39%
NASDAQ	4756.528	-55.402   -1.15%
TSX	13531.85	-98.82
		-0.72%

International Markets

Market Index	Close	Change
NIKKEI	18770.51	+1343.43
		+7.71%
HANG SENG	22131.31	+872.27
		+4.10%
SENSEX	25719.58	+401.71
		+1.59%
FTSE 100	6229.01	+82.91
		+1.35%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.492	1.472
CND. 30 Year Bond	2.259	2.231
U.S.    10 Year Bond	2.2006	2.1846
U.S. 30 Year Bond	2.9611	2.9579

Currencies

BOC Close	Today	Previous
Canadian $	0.75346	0.75706
US $	1.32721	1.32091
Euro Rate 1 Euro=		Inverse
Canadian $	1.48861	0.67177
US $	1.12161	0.89158

Commodities

Gold	Close	Previous
London Gold Fix	1109.85	1121.15
Oil	Close	Previous
WTI Crude Future	44.15	45.94

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks fell, erasing an earlier gain, as a slide in commodities producers overshadowed an equities rally in China and Japan.

     Energy and raw-material producers paced a midday drop in equities. Gold prices fell to a four-week low, and crude declined 3.9 percent in New York on estimates U.S. stockpiles rose ahead of a data release Thursday. Canadian Oil Sands Ltd. lost 3.1 percent.

     The Standard & Poor’s/TSX Composite Index fell 98.82 points to 13,531.85 at 4 p.m. in Toronto. The equity gauge has dropped 7.5 percent this year.

     Canadian and U.S. shares failed to keep pace with increases in Asian and European markets. Japan’s Nikkei 225 Average soared 7.7 percent, the most since October 2008, amid speculation a selloff that drove valuations to an 11-month low was overdone. Equities rallied a second day in China, Canada’s second-largest trading partner.

     Canada’s benchmark index erased an earlier gain of as much as 1 percent after the Bank of Canada maintained its main interest rate at 0.5 percent. The central bank has made two cuts this year amid the plunge in oil prices.

     “In this market the overall sentiment can change very quickly,” said Prab Sagoo, a Canadian equity market analyst at Nasdaq Advisory Services.

     Stephen Poloz, governor of the central bank, was expected to leave the main interest rate unchanged in the lone decision during the Canadian federal election campaign. In its decision the Bank of Canada said a weaker currency and household spending are leading a recovery from the shock of lower oil prices.

     Global shares are rebounding from the worst month since May 2012, as the MSCI World All-Country World Index tumbled 7 percent in August after Chinese stocks slumped amid increasing concern economic growth in the country was stalling.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

     Bombardier Inc. jumped a record 23 percent to pace gains among industrials stocks. The company said its transportation rail unit wasn’t for sale after a report the maker of planes and trains had rejected an offer by a Chinese company. Railway operator Canadian National Railway Co. increased 0.5 percent.

US 

By Oliver Renick and Lu Wang

     (Bloomberg) — U.S. stocks dropped as market volatility remained pervasive, with equities giving back more than half of Tuesday’s gains from the second-strongest climb this year.

     An early advance withered after a report showed job openings rose more than forecast, and declines picked up pace after a jump in Apple Inc. lost momentum during an event unveiling new products. Equity futures had soared at the outset, sparked by strong gains in Japan and China, leading to the brief opening surge. Energy companies led declines as oil slid 3.9 percent. Apple fell 1.9 percent.

     The Standard & Poor’s 500 Index fell 1.4 percent to 1,942.04. at 4 p.m. in New York, after earlier rising as much as 1 percent. The gauge rallied 2.5 percent yesterday, second only in 2015 to a 4 percent jump on Aug. 26. The Dow Jones Industrial Average lost 239.11 points, or 1.5 percent, to 16,253.57. The Dow was up 172 points at its peak today. The Nasdaq Composite Index sank 1.2 percent. About 7.2 billion shares traded hands on U.S. exchanges, in line with the three-month average.

     “Yesterday seemed to be more of a sellers strike with just small buying and today there does not seem to be much buying,” said Rick Fier, director of equity trading at Conifer Securities LLC in New York. “If anything, it’s been selling all day after JOLTS number pointing to higher rates.”

     U.S. data today showed job openings surged to a record in July, as hiring cooled, a sign employers are having a hard time finding qualified workers amid tightening labor market. The number of positions waiting to be filled jumped by 430,000, the biggest gain since April 2010, to 5.75 million. Economists surveyed by Bloomberg forecast 5.3 million openings.

     Equities earlier joined in a global rally as China’s markets climbed amid optimism that more government stimulus is on the way,while stocks in Tokyo staged the biggest rally since 2008 amid speculation a selloff that drove valuations to an 11- month low was overdone.

     “The market is trying to consolidate from a huge move we had yesterday,’’ said Jeffrey Yu, head of U.S. single stock derivatives trading at UBS AG in New York. “We’re sitting in a range. It’s just that it’s very volatile within that range.”

     Wide market swings and rapid shifts in sentiment have become more prevalent since China’s currency devaluation on Aug. 11 sparked concerns that a slowdown in the world’s second- largest economy would spread. The S&P 500 yesterday regained almost three-quarters of its 3.4 percent slide last week, which was the second-biggest retreat since December behind the 5.8 percent plunge it suffered in the five days through Aug. 21. In 11 of the last 14 days, the benchmark has closed with a move of at least 1.3 percent.

     The Chicago Board Options Exchange Volatility Index Tuesday snapped a streak of 11 straight sessions above 25, a level that before August it touched on just five days since 2011. The respite was brief as the measure of market turbulence known as the VIX climbed 5.3 percent today to 26.23.

     Investors remain confident the Federal Reserve will raise borrowing costs this year, even as they pare bets on a move at next week’s meeting. Traders are pricing in a 28 percent chance the central bank will increase rates this month, down from 48 percent before China’s devaluation. Odds of a move at the December gathering are about 59 percent, according to data compiled by Bloomberg.

     A Bank of America study showed that the Fed rarely makes a move amid the level of recent equity turbulence. In four tightenings since 1990, including the tapering of bond purchases announced in 2013, the S&P 500 had posted positive returns over the prior three and six month periods, and was within 3 percent of the gauge’s 52-week high, according to the report. By comparison, the benchmark index is down 6.6 percent over the last three months and is 8.9 percent below its high of 2,130.82 reached in May.

 

     “Today’s job openings report is very important because with the combination of job openings and an unemployment rate down to 5 percent, it’s clearly a tight labor market and it copper- fastens some of the criteria the Fed looks at,” said David Kelly, chief global strategist at JP Morgan Funds in New York.

     The afternoon swoon sent all of the S&P 500’s 10 main groups lower, led by energy, consumer staples and health-care companies as they fell at least 1.6 percent. Nine of the industries lost more than 1 percent.

     West Texas Intermediate crude fell 3.9 percent as estimates that U.S. stockpiles rose reinforced worries that there’s no end in sight for the global supply surplus. Marathon Oil Corp. tumbled 8.6 percent, the most since November, while Apache Corp. and Noble Energy Inc. slumped at least 3.9 percent.

     Coca-Cola Enterprises Inc. sank 4 percent to lead the slide among consumer staples companies. Philip Morris International Inc., Wal-Mart Stores Inc. and Procter & Gamble Co. paced declines, losing more than 1.8 percent.

     Biotechnology shares weighed on the health-care group. Alexion Pharmaceuticals Inc. and Regeneron Pharmaceuticals Inc. slid more than 2.8 percent. Amgen Inc. dropped 2.3 percent after a 5.1 percent jump Tuesday. The Nasdaq Biotechnology Index sank 2.2 percent following a 4.2 surge yesterday.

     Device maker St. Jude Medical Inc. lost 3.7 percent, its biggest slide since last October, after the company said Chief Executive Officer Daniel Starks will retire at the end of the year and be replaced by Michael Rousseau, currently chief operating officer.

     United Continental Holdings Inc. rose 0.3 percent, trimming an earlier 2.5 percent gain following the ouster of Chief Executive Officer Jeff Smisek and two of his lieutenants while federal investigators probe the airline’s ties to the former chairman of the Port Authority of New York & New Jersey.

     Netflix Inc. climbed 4.5 percent to snap a seven-session losing streak, its longest since March 2014. The shares had fallen 19 percent since Aug. 27. The online video-streaming company plans to enter Hong Kong, Taiwan, Singapore and South Korea early next year as it races to complete a global rollout.

 

Have a wonderful evening everyone.

 

Be magnificent!

“Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world.” Joel A. Barker

As ever,

Karen

 

“Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.” Francis of Assisi

  

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends, 

Tangents: 

Carolann will be away on vacation for the next two weeks.

PHOTOS OF THE DAY

The orange sky of sunrise is captured behind the skyline of Washington Tuesday on the US Congress’ first day back to work after their summer recess. J. David Ake/AP

Hot air balloons take off at the international Montgolfiade in Warstein, Germany, Tuesday evening. Balloon pilots from all over the world meet at the festival to display their hot air balloons and flying skills. Martin Meissner/AP

Market Closes for September 8^th, 2015

Market Index	Close	Change
Dow Jones	16492.68	+390.30   +2.42%
S&P 500	1969.41	+48.19   +2.51%
NASDAQ	4811.930	+128.011   +2.73%
TSX	13630.67	+152.36
		+1.13%

International Markets

Market Index	Close	Change
NIKKEI	17427.08	-433.39
		-2.43%
HANG SENG	21259.04	+675.52
		+3.28%
SENSEX	25317.87	+424.06
		+1.70%
FTSE 100	6146.10	+71.58
		+1.18%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.472	1.439
CND. 30 Year Bond	2.231	2.197
U.S.    10 Year Bond	2.1846	2.1244
U.S. 30 Year Bond	2.9579	2.8836

Currencies

BOC Close	Today	Previous
Canadian $	0.75706	0.75304
US $	1.32091	1.32795
Euro Rate 1 Euro=		Inverse
Canadian $	1.47974	0.67579
US $	1.12025	0.89266

Commodities

Gold	Close	Previous
London Gold Fix	1121.15	1118.25
Oil	Close	Previous
WTI Crude Future	45.94	46.05

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks advanced, rebounding from last week’s slide, as signs of stability in China sparked a rally in global equities and commodities.

     Canada’s benchmark index jumped 1.1 percent, led by industrial and raw-material shares. All 10 major industries advanced, with financial companies adding 1.3 percent. Railway companies surged, as Canadian National Railway Co. rose 2.7 percent after TD Securities raised the stock to a buy.

     The Standard & Poor’s/TSX Composite Index rose 152.36 points to 13,630.67 at 4 p.m. in Toronto. The equity gauge rebounded from a 2.8 percent slide last week, and pared its drop this year to 6.9 percent. Canadian equity markets were closed Monday for the Labor Day holiday.

     Canadian shares followed global markets higher today. A gauge of developed and developing equity markets increased 1.8 percent as the S&P 500 jumped 2.5 percent in New York. Brent crude rebounded from a one-week low and copper jumped the most in two years.

     Global shares are rebounding from the worst month since May 2012, as the MSCI World All-Country World Index tumbled 7 percent in August after Chinese stocks slumped amid increasing concern economic growth in the country was stalling.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

     The Shanghai Composite Index climbed 2.9 percent at the close today for the first increase in five days, on speculation state-backed funds bought shares after data showed signs of a weakening economy. Exports from China, Canada’s second-largest trading partner, declined in August.

     First Quantum Minerals Ltd. surged 23 percent and Teck Resources Ltd. increased 5.8 percent today. Copper jumped 5.3 percent in New York after China reported higher imports of the metal. China, the biggest user of copper, said imports soared 19 percent in August from the previous month.

     Royal Bank of Canada and Toronto-Dominion Bank increased more than 1.8 percent to lead the advance in financial-services stocks.

     Concordia Healthcare Corp. lost 11 percent after agreeing to buy drugmaker Amdipharm Mercury Ltd. for about $3.5 billion in cash, shares and a deferred payment. Concordia, along with its much larger competitor Valeant Pharmaceuticals International Inc., are two of the best-performing stocks in the S&P/TSX this year, driven by a spree of acquisitions.

     Penn West Petroleum Ltd. dropped 7.1 percent, for a third day of losses, after the company said it received a notification from the New York Stock Exchange the company’s listing was no longer in compliance as its average close price was less than $1 over a consecutive 30-trading-day period.

US 

By Oliver Renick and Anna-Louise Jackson

     (Bloomberg) — U.S. stocks surged, with the Standard & Poor’s 500 Index’s second-best gain this year, after signs of stability in Chinese markets led global equities higher.

     Apple Inc., Amazon.com Inc., Wells Fargo & Co. and General Motors Co. all posted gains of at least 2.7 percent amid a broad-based rally as investors returned from the Labor Day holiday. Teco Energy Inc. surged 25 percent to a 13-year high after agreeing Friday to a $6.5 billion buyout by Canada’s Emera Inc. Meredith Corp. added 10 percent after Media General Inc. agreed to buy the company in an acquisition valued at about $2.4 billion.

     The S&P 500 jumped 2.5 percent to 1,969.41 at 4 p.m. in New York, after the gauge’s second-biggest weekly retreat in 2015. The Dow Jones Industrial Average rallied 390.30 points, or 2.4 percent, to 16,492.68. The Nasdaq Composite Index advanced 2.7 percent. The Dow and Nasdaq Composite joined the S&P 500 to also mark their second-best rallies in 2015. About 6.8 billion shares traded hands on U.S. exchanges, 4.5 percent below the three- month average.

     “Now that China showed that it was not going to break down further, our market is taking back what it lost on Friday,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York. “The market got hit hard on Friday because people were worried about China.”

     Equities around the world climbed today, led by China. A rally in Shanghai in the final hour of trading followed a pattern that has recently suggested state intervention to prop up the nation’s equities. U.S. stocks have turned more volatile in recent weeks amid concerns that a Chinese economic slowdown will weigh on global growth, while investors bet the Federal Reserve is on course this year for its first interest-rate increase since 2006.

     The S&P 500 swung up or down an average of 2 percent a day for more than two weeks through Friday, while before Aug. 20, the 2015 average was around 0.6 percent. In 10 of the last 13 days, the benchmark has closed with a move of at least 1.3 percent. The Chicago Board Options Exchange Volatility Index snapped a streak of 11 straight sessions above 25, a level that before August it touched on just five days since 2011. The measure of market turbulence known as the VIX fell 10 percent Tuesday to 24.90.

     U.S. stocks slumped last week as August payrolls data gave little guidance on interest rates. The S&P 500 lost 3.4 percent, the second-biggest retreat since December behind the 5.8 percent plunge it suffered in the five days through Aug. 21. The Dow Jones Industrial Average has had declines of more than 270 points in five of the last 12 sessions, the biggest cluster of selloffs since the summer of 2011.

     Investors remain confident the Fed will raise borrowing costs this year, even as they pare bets on policy makers deciding to do so at a meeting next week. Traders are pricing in a 28 percent chance the central bank will increase rates at this month’s gathering, down from 48 percent before China’s currency devaluation on Aug. 11. Odds of a move at the December meeting are 59 percent, according to data compiled by Bloomberg.

     “These next two weeks are very important — the Chinese market has reopened, we have FOMC next week, we may get some guidance from U.S. companies,” said Pierre Mouton, who helps manage $8.3 billion at Notz, Stucki & Cie. in Geneva. “When it comes to the Chinese situation, it’s important that either you’re positive and think the government can handle the situation and everything will come back to normal, or you’re negative and think a downward spiral has started.”

     All of the S&P 500’s 10 main industries climbed at least 1.4 percent Tuesday, with health-care, technology and industrial companies rising the most, up more than 2.7 percent.

     “We’re just enjoying the snapback rally today,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “The market was slightly oversold and there was a lack of any bad news from over the weekend.”

     Semiconductors led the gains in technology shares. Microchip Technology Inc. added 9.4 percent, the most in almost seven years, after raising its fiscal second-quarter profit and revenue outlook. Intel Corp. and Nvidia Corp. rose at least 3.4 percent. Microsoft Corp. and Apple both gained more than 2.7 percent.

     CSX Corp. and Union Pacific Corp. paced an increase among industrial shares, with the two railroads up at least 3.6 percent. The Dow Jones Transportation Average rallied 2.8 percent, and a Bloomberg gauge of U.S. airlines increased 2.1 percent. Among other industrials, General Electric Co. advanced 4 percent after receiving approval from European and U.S. antitrust regulators to buy most of Alstom SA’s energy business. Boeing Co. rose 3.1 percent, its strongest day in seven months.

     Banks climbed for the third time in four sessions. Wells Fargo and Bank of America Corp. gained more than 3.2 percent. Morgan Stanley and Goldman Sachs Group Inc. added at least 3 percent. E*Trade Financial Corp. climbed 7.5 percent, the most since January, after restructuring its bank balance sheet to eliminate $4.4 billion of wholesale funding obligations by the end of the quarter.

     The Nasdaq Biotechnology Index surged 4.2 percent, winning back almost all of its 4.3 percent loss last week. Regeneron Pharmaceuticals Inc., Amgen Inc. and Celgene Corp. each rose more than 4.8 percent. Aetna Inc. and UnitedHealth Group Inc. added at least 3.3 percent to help health-care companies in the S&P 500 rebound 2.9 percent after a 4.4 percent drop last week.

     Freeport-McMoRan Inc. jumped 7.1 percent to lead the raw- materials group as copper rallied the most in two years. People familiar with the matter also said the company is working with JPMorgan Chase & Co. to review its strategy following activist investor Carl Icahn’s entry into the shareholder register. Dow Chemical Co. gained 4.8 percent, while Alcoa Inc. increased 2.4 percent.

     Chesapeake Energy Corp. rose 5.5 percent, the best advance among energy companies today. The oil and natural gas producer reached agreements with pipeline operator Williams Cos. to revise natural gas shipping contracts in Louisiana and Ohio in a move that will help conserve more cash. Refiners Valero Energy Corp. and Tesoro Corp. gained more than 4 percent, the most in nearly a month.

     Strategic Hotels & Resorts Inc., an owner of luxury lodging properties across the U.S., climbed 3.5 percent after agreeing to be bought by Blackstone Group LP for about $3.93 billion in an expansion of its hotel holdings. Blackstone rose 5.2 percent.

     Concordia Healthcare Corp. fell 11 percent, the most since January 2014. The Toronto-based drug maker’s agreed to buy Amdipharm Mercury Ltd. from European private equity firm Cinven and other investors for about $3.5 billion in cash, shares and a deferred payment.

     Netflix Inc. slumped 3.9 percent, the worst in the S&P 500, to fall for a seventh session amid its longest losing streak since March 2014. The online video-streaming service’s shares are down 19 percent since Aug. 27 and reached a two-month low.

 

Have a wonderful evening everyone.

 

Be magnificent!

 
 “The most difficult thing is the decision to act, the rest is merely tenacity.” –Amelia Earhart

As ever,

Karen
 

 “You can never cross the ocean until you have the courage to lose sight of the shore.” –Christopher Columbus

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends, 

Tangents: 

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

PHOTOS OF THE DAY

People watch a competitor riding a homemade vehicle without an engine on a 300-meter-track during the Red Bull Soapbox Race in Amman, Jordan, Friday. Muhammad Hamed/Reuters

Guests take cover from the rain under umbrellas as they make their way through a labyrinth of 125,000 sunflowers, as they head for a ceremony marking the opening of the new entrance to the Van Gogh museum and the 125th anniversary of the Dutch master’s death in Amsterdam, Netherlands, Friday. Peter Dejong/AP

Market Closes for September 4^th, 2015

Market Index	Close	Change
Dow Jones	16102.38	-272.38   -1.66%
S&P 500	1921.22	-29.91   -1.53%
NASDAQ	4683.918	-49.578   -1.05%
TSX	13478.31	-118.10
		-0.87%

International Markets

Market Index	Close	Change
NIKKEI	17792.16	-390.23
		-2.15%
HANG SENG	20840.61	-94.33
		-0.45%
SENSEX	25201.90	-562.88
		-2.18%
FTSE 100	6042.92	-151.18
		-2.44%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.439	1.462
CND. 30 Year Bond	2.197	2.220
U.S.    10 Year Bond	2.1244	2.1596
U.S. 30 Year Bond	2.8836	2.9348

Currencies

BOC Close	Today	Previous
Canadian $	0.75304	0.75810
US $	1.32795	1.31908
Euro Rate 1 Euro=		Inverse
Canadian $	1.48067	0.67537
US $	1.11500	0.89686

Commodities

Gold	Close	Previous
London Gold Fix	1118.25	1128.00
Oil	Close	Previous
WTI Crude Future	46.05	46.75

Market Commentary:

Canada

By Theophilos Argitis

     (Bloomberg) — Canada’s economy unexpectedly added jobs in August, mostly full-time work in services such as education and health care, in another sign of sustained momentum in a labor market that has defied the oil price shock.

     Canadian employment grew by 12,000 during the month, bringing to 193,300 the number of new jobs over the past 12 months, Statistics Canada said Friday in Ottawa. The unemployment rate rose to 7 percent from 6.8 percent as more Canadians entered the labor force. Economists surveyed by Bloomberg had predicted a drop of 5,000 jobs in August.

     The employment gains are defying gross domestic product data that show Canada’s economy contracted in the first two quarters of the year amid a plunge in oil prices, and may give the Bank of Canada pause as it considers whether to cut interest rates again to boost growth.

     “Canada got another signpost from August employment that, at least for now, there’s some momentum in the economy,” Avery Shenfeld, chief economist at CIBC World Markets, said in a note to investors.

     Canada’s central bank cut interest rates twice this year and swaps trading shows some investors have been paring their bets on the possibility of another cut at the next decision on Sept. 9.

     The Canadian dollar pared losses after the report, down 0.3 percent to 1.3212 per U.S. dollar at 9:13 a.m. in Toronto. It had fallen as much as 0.5 percent.

     Services-related industries are doing much of the heavy lifting, adding 17,200 jobs in August to offset job losses for goods producers such as factories. Over the past 12 months, the country has added 201,600 service jobs, while losing 8,300 goods producing jobs.

     The composition of new jobs is also improving. The nation created 54,400 full time jobs in August, offsetting a drop of 42,400 part-time jobs. Over the past 12 months, Canada added 317,900 new full-time workers, offsetting a 124,500 drop in part-time work.

     The total number of actual hours worked jumped 0.8 percent in August from the month before, the most since November 2010.

US 

By Anna-Louise Jackson and Oliver Renick

     (Bloomberg) — U.S. stocks slumped as August payrolls data gave little comfort to investors seeking direction on interest rates amid volatile global markets and growing concern about the economy’s strength.

     The Standard & Poor’s 500 Index lost 1.5 percent to 1,921.22 at 4 p.m. in New York. The benchmark index slid 3.4 percent for the week, its second-worst performance since December. The Dow Jones Industrial Average fell 272.38 points, or 1.7 percent, to 16,102.38. Equity markets will be closed Monday for Labor Day. Trading on U.S. exchanges was 10 percent below the three-month average.

     It’s “a glass-half-empty kind of day,” said Patrick Blais, a fund manager at Manulife Asset Management Ltd. in Toronto. He helps manage about C$280 billion at the firm. “Right now there’s a lot of nervousness so it’s natural for the market to react aggressively.”

     In the U.S. stock market, the S&P 500 had its sixth decline exceeding 1 percent in 12 days. Prior to that there’d been 10 such declines since January. The benchmark gauge has moved up or down by an average of more than 2 percent a day since falling out of its 2015 trading range on Aug. 20 — almost four times as much as in the prior nine months.

     September is historically the worst month of the year for the S&P 500, with the equity gauge falling 1.1 percent on average based on data going back to 1927, according to data compiled by Bloomberg.

     “There’s a risk-off mentality rather than a risk-on one going into a three-day weekend for the U.S. and after the Chinese markets have been closed for four days,” Mark Spellman, a fund manager who helps oversee $4.2 billion at Alpine Funds in Purchase, New York, said by phone. “The weakness in the market is due primarily to continued global growth concerns.”

     Financial markets have been unable to shake off volatility that’s jolted markets amid concern China’s slowdown will spread. The Dow yesterday erased a rally of nearly 200 points as optimism over the European Central Bank’s revamp of quantitative easing faded. The gauge surged 1.8 percent Wednesday after tumbling 2.8 percent the day before.

     Research from a JPMorgan Chase & Co. strategist this week argued that robotic selling by quantitative investment funds tuned to volatility and price trends — which contributed to last month’s losses in U.S. stocks — is only about halfway completed. Marko Kolanovic said such traders probably have to get rid of another $100 billion in stocks in the next one to three weeks.

     Data today showed U.S. employers added 173,000 workers in August and the jobless rate dropped to 5.1 percent. The gain in payrolls, while less than forecast, followed advances in July and June that were stronger than previously reported. The unemployment rate is the lowest since April 2008. Average hourly earnings climbed more than forecast and workers put in a longer workweek, the report also showed.

     The jobs report is the last major data point before the Fed meets later this month on Sept. 16-17 to discuss the timing of its first increase in interest rates in nearly a decade. Investors raised bets on a September liftoff to 30 percent from 26 percent before the jobs data, while that’s still less than the 48 percent odds predicted before China devalued the yuan on Aug. 11.

     “This is the first time the market has looked at a Fed meeting and really has no idea what the Fed is going to do,” said Mark Kepner, an equity trader at Themis Trading LLC in Chatham, New Jersey. “Right now you’re looking at the overall uncertainty and that’s what’s hanging on the market. I don’t think this number in and of itself changes how somebody’s going to vote.”

     Fed Bank of Richmond President Jeffrey Lacker said the central bank should end the era of record-low interest rates, now that the impacts from winter weather and energy prices have passed. He said labor-market slack has been reduced to pre- recession levels, and shorter-term inflation measures are tracking the U.S. central bank’s 2 percent target.

     “It’s time to align our monetary policy with the significant progress we have made,” Lacker said in the text of a speech in Richmond.

     The Chicago Board Options Exchange Volatility Index rose 8.6 percent to 27.80. The gauge of market turbulence known as the VIX is up 6.7 percent for the week, after posting a record 135 percent jump in August.

     All 10 major industries in the S&P 500 fell more than 1.1 percent, with financial and raw-material shares dropping at least 1.9 percent. Goldman Sachs Group Inc. and JPMorgan Chase & Co. lost more than 1.9 percent to lead declines among the largest banks.

     Netflix Inc. slid for the sixth consecutive day, losing 2.3 percent. The stock is down 16 percent since Aug. 27, after more than doubling from the beginning of the year.

     Freeport-McMoRan Inc. tumbled 4.2 percent as copper dropped that most in eight weeks after Germany factory orders fell more than expected in July.

     Caterpillar Inc. lost 1.8 percent after the stock was downgraded to neutral from outperform at Robert Baird by equity analyst Mircea Dobre. Joy Global Inc. fell 1.4 percent, a day after it plunged the most in six years after cutting its 2015 outlook amid the global commodity downturn.

 

Have a wonderful weekend everyone.

 

Be magnificent!

“The most difficult thing is the decision to act, the rest is merely tenacity.” –Amelia Earhart

As ever,

Karen

 “Every strike brings me closer to the next home run.” –Babe Ruth

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends, 

Tangents: 

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

PHOTOS OF THE DAY

The Cotopaxi volcano spews ash and vapor, seen from Quito, Ecuador, early Thursday. Cotopaxi began showing renewed activity in April and its last major eruption was in 1877. Dolores Ochoa/AP

Lebanese anglers cast fishing poles from a rocky coastal area at the Mediterranean Sea in Beirut, Lebanon, Thursday.

Market Closes for September 3^rd, 2015

Market Index	Close	Change
Dow Jones	16374.76	+23.38   +0.14%
S&P 500	1951.13	+2.27   +0.12%
NASDAQ	4733.496	-16.483   -0.35%
TSX	13596.41	+51.16
		+0.38%

International Markets

Market Index	Close	Change
NIKKEI	18182.39	+86.99
		+0.48%
HANG SENG	20934.94	-250.49
		-1.18%
SENSEX	25764.78	+311.22
		+1.22%
FTSE 100	6194.10	+110.79
		+1.82%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.462	1.456
CND. 30 Year Bond	2.220	2.209
U.S.    10 Year Bond	2.1596	2.1861
U.S. 30 Year Bond	2.9348	2.9523

Currencies

BOC Close	Today	Previous
Canadian $	0.75810	0.75379
US $	1.31908	1.32663
Euro Rate 1 Euro=		Inverse
Canadian $	1.46703	0.68165
US $	1.11216	0.89915

Commodities

Gold	Close	Previous
London Gold Fix	1128.00	1137.75
Oil	Close	Previous
WTI Crude Future	46.75	46.25

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canada stocks climbed, joining gains in equities around the world after the European Central Bank revamped its quantitative-easing program and pledged to use all tools to bolster growth. Canadian shares advanced 0.4 percent at 4 p.m. in Toronto, paring an earlier advance of as much as 1.2 percent as anxiety about the U.S. government’s jobs report offset stimulus optimism. Energy and financial-services stocks led gains. The Standard & Poor’s/TSX Composite Index has recovered 0.9 percent in two days, after a 2.7 percent rout on Tuesday.

     A global equity gauge of developed and developing markets rose 0.5 percent as volatile Chinese markets will remain closed for the rest of the week while the country celebrates the 70th anniversary of Japan’s defeat at the end of World War II.

     Exports from Canada surged for a second month in July, led by increases in motor vehicle shipments, aircraft-related sales and consumer goods. Energy product exports declined. The nation’s trade deficit narrowed to C$593 million, the lowest since November 2014. Data earlier in the week indicated Canada’s economy had contracted a second straight quarter, meeting the definition of a technical recession.

     ECB President Mario Draghi increased the purchase limit of a country’s debt stock, allowing officials to buy higher proportions of each euro area member’s debt. European Central Bank officials also cut forecasts for economic growth and inflation, due to the emerging-market rout.

     Gold prices tumbled 0.8 percent, the most in a week, to $1,124.50 an ounce in New York as demand for the metal as an alternative asset declined. Goldcorp Inc. retreated 3.6 percent.

     The S&P/TSX rose 51.16 points to 13,596.41 at 4 p.m. in Toronto, paring a weekly decline to 1.9 percent. The equity gauge has dropped 7.1 percent in 2015.

     Canadian Western Bank fell 2.5 percent, after reporting third-quarter earnings. Bank of Nova Scotia and Royal Bank of Canada, among the nation’s largest lenders, increased at least 0.9 percent.

     Energy producers rose 0.5 percent as a group, halting a two-day slide. TransCanada Corp. rose 1.1 percent. Oil traded above $51 in London and West Texas Intermediate crude added 1.1 percent to $46.75. Oil has fluctuated this week after capping the biggest three-day rally in 25 years on Monday.

     China, Canada’s second-largest trading partner, is shutting down its exchanges and banks until Monday to commemorate the 70th anniversary of Japan’s World War II defeat, giving investors a breather from the volatility that has engulfed Chinese markets and the rest of the world.

     First Quantum Minerals Ltd. advanced 3.4 percent for a second day of gains as copper hit a three-week high to lead an advance in base metals. Teck Resources Ltd. added 2.3 percent.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

US 

By Jeremy Herron and Oliver Renick

     (Bloomberg) — An almost 200-point rally in the Dow Jones Industrial Average faded in afternoon trading as optimism over European stimulus, which provided a boost to government bonds, gave way to anxiety ahead of Friday’s U.S. jobs report.

     U.S. equities ended the day little changed, with attention focused on Friday’s payrolls data, which is expected to provide the last major clue on the state of the economy before the Federal Reserve next meets. Stocks rallied earlier in the session, while the euro tumbled and sovereign debt rose, after Mario Draghi said the European Central Bank is expanding the scope of monetary stimulus amid signs of a slowdown in the region.

     “There’s going to be caution not only going into the jobs report but into the long weekend,” said Tim Ghriskey, who helps oversee $1.5 billion as managing director and chief investment officer at Solaris Asset Management. “Draghi threw a degree of caution on the markets, but now people are waiting for tomorrow, absolutely.”

     The nonfarm payrolls data Friday represents the last major data point before the Fed meets on Sept. 16-17 to discuss the timing of its first increase in interest rates in nearly a decade. U.S. reports Thursday showed jobless claims rose more than forecast last week, while a measure of the services industry hovered just below a 10-year high.

     Futures traders are betting the Fed will push back raising its fed funds rate. The probability of an increase in September has fallen to 28 percent, from 38 percent at the end of last week, according to data compiled by Bloomberg. The figures are based on the assumption that the benchmark will average 0.375 percent after the first hike.

     “The granddaddy of numbers is the report tomorrow and as the Fed moves, the market will move,” Terry Sandven, who helps oversee $126 billion as chief equity strategist at U.S. Bank Wealth Management in Minneapolis, said by phone. “The economics scoreboard seems strong enough to warrant something other than crisis-level rates, but there’s also justification to wait for the end of the year.”

     ECB President Draghi said the central bank will use all tools available to spur growth. He acknowledged a “somewhat weaker economic recovery” in the region, and said the emerging- market rout sparked by China’s shock devaluation of its currency last month threatened global expansion.

     The Standard & Poor’s 500 Index closed up 0.1 percent by 4 p.m. in New York, after briefly erasing a rally of more than 1 percent. The gauge surged 1.8 percent Wednesday after tumbling 3 percent the day before, when it notched up its third-worst drop of 2015. The index remains about 6 percent below the level it traded at on the day China devalued the yuan.

     The pullback in major indexes Thursday coincided with the release of research from a JPMorgan Chase & Co. strategist arguing that robotic selling by quantitative investment funds tuned to volatility and price trends — which contributed to last month’s losses in U.S. stocks — is only about halfway completed.

     Marko Kolanovic said such traders probably have to get rid of another $100 billion in stocks in the next one to three weeks. On Aug. 27, Kolanovic warned in a similar note that “price insensitive” program traders are likely to cause repeated selloffs.

     The Stoxx Europe 600 Index rallied 2.4 percent Thursday as investors welcomed the assurances of ECB support after the China-fueled volatility.

     The MSCI Emerging Markets Index advanced for the first time this week, rising 0.6 percent as benchmark gauges in Egypt, India, Hungary, Poland, South Africa and Dubai all rallied more than 1 percent.

     “One modest positive today is the fact China is offline for its Victory Day commemorations,” said Chris Weston, Melbourne- based chief markets strategist at IG Ltd. “So traders and investors will be focused on domestic data, valuations and trying to understand how to navigate these crazy markets.”

     Markets in Hong Kong were closed Thursday for the World War II anniversary celebrations, while those on the mainland remain shut for the rest of the week.

     The euro slid 0.9 percent to $1.1123, while the yen dropped 0.2 percent to 120.07 per dollar. The euro weakened versus all of its 16 major counterparts after policy makers cut economic forecasts and raised the limit on bond purchases per issue under their quantitative-easing program.

     The British pound fell for an eighth straight day against the greenback, its longest stretch of declines in almost a year, as data showed growth in the U.K. services sector unexpectedly slowed in August.

     Benchmark 10-year Treasury yields fell two basis points, or 0.02 percentage point, to 2.16 percent. German 10-year bunds climbed for a third day while yields on similar-maturity Italian debt dropped the most in more than two weeks.

     The ECB’s 25-member Governing Council kept the main refinancing rate at 0.05 percent Thursday as predicted by all 47 economists in a Bloomberg survey. The deposit rate and the marginal lending rate stayed at negative 0.2 percent, and 0.3 percent, respectively.

     The Bloomberg Commodity Index rose 0.6 percent, advancing for a second day. Copper climbed 2.5 percent in London, while nickel and aluminum gained at least 1.3 percent.

     West Texas Intermediate crude climbed 1.1 percent to $46.75 a barrel in New York, after falling as much as 1.3 percent earlier in the day. Brent oil rose 18 cents to $50.68 in London.

     Gold for immediate delivery fell 0.8 percent to $1,125.46 an ounce. The metal lost 0.6 percent on Wednesday, its first decrease in four days.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“The best and most beautiful things in the world cannot be seen or even touched – they must be felt with the heart.” Helen Keller

As ever,

Karen

 

“Education is the most powerful weapon which you can use to change the world.”

Nelson Mandela

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

September:  The seventh month from March, when the year formerly commenced.  The old Dutch name was Herstmaand, meaning autumn month and the Anglo-Saxon Hoerfestmonath, meaning harvest month.  After the introduction of Christianity, it became Haligmonath in the Anglo-Saxon, meaning “holy month” since the nativity of the Virgin Mary was commemorated on the 8^th and the  Exaltation of the Cross or Holy Cross Day on the 14^th and St. Michael’s Day on the 29^th.  In the French Revolutionary Calendar the equivalent month was Fructidor, or fruit month, corresponding to the period from August 19^th to September 22^nd. – from Brewer’s Dictionary of Phrase & Fable.

On this day in 1969, America’s first ATM debuted, dispensing cash from Chemical Bank in Rockville Center, New York.

PHOTOS OF THE DAY

A view of The Man during the Burning Man 2015 ‘Carnival of Mirrors’ arts and music festival in the Black Rock Desert of Nevada, Tuesday. Participants are still arriving from all over the world for the sold-out festival to spend a week in the remote desert to experience art, music, and the unique community that develops. Jim Urquhart/Reuters

The Atlas V rocket launches from Cape Canaveral, as seen from Viera, Fla., with its reflection in a lake along Murrell Road, early Wednesday. The rocket is carrying a US Navy communications satellite. Tim Shortt/Florida Today/AP

Market Closes for September 2^nd, 2015

Market Index	Close	Change
Dow Jones	16351.38	+293.03   +1.82%
S&P 500	1948.86	+35.01   +1.83%
NASDAQ	4749.980	+113.875   +2.46%
TSX	13545.25	+63.35
		+0.47%

International Markets

Market Index	Close	Change
NIKKEI	18095.40	-70.29
		-0.39%
HANG SENG	20934.94	-250.49
		-1.18%
SENSEX	25453.56	-242.88
		-0.95%
FTSE 100	6083.31	+24.77
		+0.41%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.456	1.432
CND. 30 Year Bond	2.209	2.180
U.S.    10 Year Bond	2.1861	2.1577
U.S. 30 Year Bond	2.9523	2.9182

Currencies

BOC Close	Today	Previous
Canadian $	0.75379	0.75499
US $	1.32663	1.32452
Euro Rate 1 Euro=		Inverse
Canadian $	1.48919	0.67151
US $	1.12253	0.89084

Commodities

Gold	Close	Previous
London Gold Fix	1137.75	1142.30
Oil	Close	Previous
WTI Crude Future	46.25	45.41

Put not your trust in money, but put your money in trust. –Oliver Wendell Holmes.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rebounded from a two-day slide amid an easing of the selloff in global equities.

     The nation’s benchmark index ended higher after fluctuating between gains and losses. Health-care companies surged as Valeant Pharmaceuticals International Inc., the second-largest company by market capitalization, advanced the most since July on deal news. Canada’s largest lenders also advanced.

     The Standard & Poor’s/TSX Composite Index rose 63.35 points to 13,545.25 at 4 p.m. in Toronto, after a two-day slide of 2.8 percent. The equity gauge has dropped 7.4 percent in 2015.

     China, Canada’s second-largest trading partner, is shutting down its exchanges and banks until Monday to commemorate the 70th anniversary of Japan’s World War II defeat, giving investors a breather from the volatility that has engulfed Chinese markets and the rest of the world.

     Global stocks had tumbled in the previous two days amid rising concern a slowdown in China’s economy and slump in its equity markets would affect growth around the world. Data yesterday indicated Canada’s economy slid a second quarter, meeting the technical definition of a recession, amid a rout in crude prices.

     Senior-housing companies in Canada rallied after Amica Mature Lifestyles Inc. agreed to be acquired by a pension fund- backed company, jumping 111 percent. Chartwell Retirement Residences, the largest operator of assisted-living homes across Canada, jumped 6.8 percent, the most since 2009.

     Valeant rose 4 percent, snapping a two-day retreat after agreeing to buy Synergetics USA Inc. in a cash deal worth $6.50 a share. Synergetics, a supplier of precision surgical devices, will enhance Valeant’s Bausch & Lomb eye-care business, the company said in the release.

     Colliers International Group Inc. jumped 4.5 percent, the biggest gain in almost a month, after agreeing to buy real- estate firm Gateway Commercial in St. Louis for an undisclosed sum.

     Alimentation Couche-Tard Inc., operator of gas bars and convenience stores, climbed 2.9 percent for a second straight increase. The company yesterday reported second-quarter earnings ahead of analysts’ estimates thanks to lower fuel prices and higher volumes sold, along with strong merchandise sales, Jennifer Bartashus, a Bloomberg Intelligence analyst, said in a report.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Oil in New York rebounded after tumbling 7.7 percent Tuesday. Suncor Energy Inc. slipped 2.9 percent.

     Energy and raw-materials producers are the worst-performing industries among 10 in the S&P/TSX this year. The S&P/TSX Energy Index has slumped 4.8 percent in two days and is down 20 percent for the year.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks rallied, after the Standard & Poor’s 500 Index posted one of its steepest drops this year, amid a respite from a global equities selloff.

     After pacing the rout yesterday, technology shares led the rebound as Apple Inc. and Microsoft Corp. rose more than 3.6 percent. H&R Block Inc. jumped 7.5 percent after announcing a stock buyback plan. McDonald’s Corp. and Home Depot Inc. added at least 2.7 percent. A gauge of U.S. airlines rallied the most in more than seven months. Energy shares erased a decline along with oil, with crude closing higher after lurching between gains and losses.

     A surge in the final minutes pushed the S&P 500 up 1.8 percent to 1,948.86 at 4 p.m. in New York, closing at the session high after the gauge fell 3.8 percent over the previous two sessions. Equities jumped in early trading and then trimmed their gains by more than half before an afternoon rebound along with oil prices. The Dow Jones Industrial Average added 293.03 points, or 1.8 percent, to 16,351.38. The Nasdaq Composite Index gained 2.5 percent.

     “China’s going to be closed the next few days and that means there won’t be this negative lead-in to markets in the morning so that will be a nice reprieve,” said Stephen Carl, principal and head equity trader at Williams Capital Group LP. “The date for a potential rate raise is certainly going back and forth and with the recent volatility in the market and situation overseas, people don’t have much conviction on when it will be.”

     The benchmark equity gauge’s 3 percent decline on Tuesday – – its third-biggest of 2015 — marked a sour start to what has historically been the worst month of the year. The S&P 500 falls 1.1 percent on average in September, according to data compiled by Bloomberg going back to 1927.

     Another troubling sign is that futures on Chicago Board Options Exchange Volatility Index have climbed, showing traders predict turbulent markets will endure. The gauge known as the VIX fell 17 percent Wednesday to 26.09, after a record monthly jump in August,up 135 percent.

     The S&P 500 slumped 6.3 percent last month as China’s currency devaluation spurred concern over global growth, erasing more than $5.7 trillion in equity market values worldwide, while volatility surged the most on record. The equity index entered a correction last week, only to then rally more than 6 percent over two days. It closed Wednesday 8.5 percent below its all- time high set in May.

     Chinese shares closed lower on the last trading day of this week as investors assessed the level of state support before a major military parade on Thursday. Mainland markets will be closed Thursday and Friday to commemorate the end of World War II.

     “Volatility will stay high for a while,” said Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private- banking unit in Hellerup, Denmark. “China is still making people panic and a lot of us are concerned that we’ll break the lows from last week. But many companies are starting to look very cheap now and the market will eventually find a support level, especially if the Fed doesn’t raise rates this month.”

     Amid continuing concerns that China’s slowdown will weigh on the global economy, traders are now pricing in a 32 percent chance that the Federal Reserve will raise interest rates this month, down from 38 percent on Monday. Policy makers have a little more than two weeks to assess incoming data before deciding whether to act on rates.

     A report from the Fed Wednesday said the economy expanded across most regions and industries in July and August as tighter labor markets boosted wages for some workers. Six of 12 Fed districts reported “moderate” growth, and five others said expansion was “modest,” according to the Beige Book.                          

     Data today on private payrolls showed companies added 190,000 workers in August, below the 200,000 forecast by economists surveyed by Bloomberg. Attention will focus on the government’s monthly jobs report, due Friday, as a major data point before the Fed’s meeting. A separate gauge Wednesday showed July factory orders rose less than forecast by economists.

     All of the S&P 500’s 10 main groups increased today, with technology, consumer discretionary and industrial companies each rising more than 2.1 percent after those industries lost at least 2.6 percent on Tuesday. Energy shares rose 0.9 percent after erasing an early 1.2 percent drop. About 7.5 billion shares traded hands on U.S. exchanges, 7 percent above the three-month average.

     Along with Apple and Microsoft, a handful of semiconductor companies boosted the tech group. Nvidia Corp., Qorvo Inc. and Avago Technologies Ltd. all rose more than 2.5 percent. Intel Corp. added 2.8 percent as it unveiled a new chip design which will help make laptops more powerful and easier to use, the company said. Facebook Inc. and PayPal Holdings Inc. gained more than 3 percent.

     Airlines helped lift industrial shares in the benchmark amid the earlier retreat in oil prices. American Airlines Group Inc. and Delta Air Lines Inc. rallied at least 5 percent, with American posting its strongest increase since March. A Bloomberg index of U.S. carriers climbed 4.3 percent, with JetBlue Airways Corp. up 6.4 percent for its biggest gain in four months. The Dow Jones Transportation Average rose 2.5 percent.

     Health-care shares advanced as biotechnology companies rebounded from a two-day drubbing. Biogen Inc. and Celgene Corp. added at least 3.5 percent. The Nasdaq Biotechnology Index rose3.7 percent after after a 5.6 percent drop during the previous two days. Bristol-Myers Squibb Co. increased 2.4 percent while Waters Corp. added 3.3 percent to snap a three-day slide.

     Energy companies in the S&P 500 closed higher in a tumultuous day for crude. West Texas Intermediate futures rose 1.9 percent, after falling as much as 4.8 percent following a government report that showed U.S. supplies climbed the most since April. Tesoro Corp. and Newfield Exploration Co. gained more than 3 percent to lead the group. Even with oil’s advance, Chesapeake Energy Corp. and Diamond Offshore Drilling Inc. still lost at least 2.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

Wise people are concerned only with what lies behind all these things.

Just as bees fly form one blossom to another, looking only for the essence of each one,

wise people look only for the essence of every person they meet.

Wise people, who know and understand the soul, are indifferent to both pleasure and pain,

they have risen above sensations.  They are indifferent to the past and the future, they have risen above time.

They are indifferent to danger; they have risen above fear.

Wise people know that what is here, is also there; that what was, will also be.

They see unity, not division.

 

Katha Upanishad

As ever,
 

Carolann

 

When angry, count ten before you speak; if very angry, a hundred.

                                                  -Thomas Jefferson, 1743-1826

 

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

Dear Friends,

Tangents:

September 1, 1939: World War ll begins.  I have just finished reading an amazing book, the events of which take place during World War ll.  It is entitled “All the Light We Cannot See” by Anthony Doer.  It won the 2015 Pulitzer Prize for fiction and the 2015 Andrew Carnegie Medal for Fiction.  I highly recommend it.

“A novel to live in, learn from, and feel bereft over when the last page is turned.” — Booklist

“Tackling questions of survival, endurance and moral obligations during wartime, the book is as precise and artful and ingenious as the puzzle boxes the heroine’s locksmith father builds for her. Impressively, it is also a vastly entertaining feat of storytelling.” –New York Times Book Review

PHOTOS OF THE DAY

A double rainbow is seen above a row of terrace houses in Clapham, south London, Britain, Tuesday. The second rainbow, above the main arc has the sequence of its colors reversed, with red on the inner side of the bow. Dylan Martinez/Reuters

An Indian villager rescues his sheep on a makeshift raft at Balimukh village, about 43 miles east of Gauhati, India, Tuesday. Monsoon floods have inundated hundreds of villages across the northeast Indian state of Assam, killing several people and forcing some 800,000 people to leave their homes.Anupam Nath/AP

Market Closes for September 1^st, 2015

Market Index	Close	Change
Dow Jones	16058.35	-469.68   -2.84%
S&P 500	1913.85	-58.33   -2.96%
NASDAQ	4636.105	-140.402   -2.94%
TSX	13481.90	-377.22
		-2.72%

International Markets

Market Index	Close	Change
NIKKEI	18165.69	-724.79
		-3.84%
HANG SENG	21185.43	-485.15
		-2.24%
SENSEX	25696.44	-586.65
		-2.23%
FTSE 100	6058.54	-189.40
		-3.03%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.432	1.490
CND. 30 Year Bond	2.180	2.235
U.S.    10 Year Bond	2.1577	2.2126
U.S. 30 Year Bond	2.9182	2.9579

Currencies

BOC Close	Today	Previous
Canadian $	0.75499	0.76104
US $	1.32452	1.31398
Euro Rate 1 Euro=		Inverse
Canadian $	1.49913	0.66705
US $	1.13174	0.88359

Commodities

Gold	Close	Previous
London Gold Fix	1142.30	1135.00
Oil	Close	Previous
WTI Crude Future	45.41	49.20

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian equities tumbled, after the worst month in nearly a year, as the economic malaise that has gripped stock markets around the world continued into September.

     The Standard & Poor’s/TSX Composite Index slumped 2.7 percent as data showed Canada’s gross domestic product shrank again in the second quarter, meeting the technical definition of a recession. The report followed disappointing China manufacturing data that weighed on global stocks.

     The S&P/TSX sank 377.22 points to 13,481.90 at 4 p.m. in Toronto. Canadian stocks lost as much as 10 percent in August before rebounding 6.2 percent in four days. The equity gauge has dropped 7.9 percent in 2015.

     Gross domestic product in Canada declined at a 0.5 percent annualized pace from April to June, Statistics Canada said Tuesday in Ottawa. The agency also revised its first-quarter contraction deeper, to 0.8 percent from 0.6 percent. Economists had estimated a 1 percent decline in the second quarter.

     “With exports still struggling and business investment falling in response to the fallout in the energy sector, hopes for a sustained rebound beginning in the second half of the year look misplaced,” David Madani, an economist at Capital Economics in Toronto, said in a report to clients. “The economy is still struggling to deal with low oil prices.”

     Equities tumbled around the world as investors digested the latest news from China. The S&P 500 sank 3 percent in New York as the MSCI All-Country World Index retreated 2.7 percent.                      

     China’s official factory gauge fell to the lowest level in three years as monetary easing failed to revive the country’s flagging economy. The benchmark Canadian equities index fell 4.2 percent in August as concerns mount that China’s policy makers won’t be able to prop up its markets at the same time Federal Reserve officials signaled they’re preparing to raise interest rates.

     The resource-rich S&P/TSX has been one of the worst- performing developed markets in the world this year as crude plunged. Oil futures slipped 7.7 percent in New York, after the biggest three-day rally in 25 years, as speculation faded OPEC may coordinate supply restraint with other nations. Oil surged 27 percent in the three days through Monday.

     Energy stocks had the biggest declines among 10 groups in the benchmark index today, sliding 4.2 percent. First Quantum Minerals Ltd. dropped 11 percent as copper prices have fallen in New York for four straight months, the worst streak since 2008.

     Penn West Petroleum Ltd. sank 17 percent after the Calgary oil producer said it will scrap its dividend, fire 35 percent of its work force and look to sell more assets. Penn West is the third-worst performing stock in the S&P/TSX this year with a 65 percent decline.

     Bombardier Inc., the worst-performer in the gauge this year, dropped 9.3 percent. Royal Bank of Canada and Bank of Nova Scotia sank at least 2.7 percent to lead the nation’s largest lenders lower.

     A volatility gauge for 60 of the largest, most liquid stocks in Canada jumped 12 percent. The measure added 78 percent in August, its biggest monthly climb in data back to 2009.

US

By Oliver Renick

     (Bloomberg) — U.S. stocks joined a worldwide selloff, after equities’ worst month in more than three years, amid continuing concerns that China’s slowdown will weigh on the global economy.

     Energy shares fell for the first time in five sessions as oil retreated after the commodity’s strongest three-day rally since 1990. Exxon Mobil Corp. and ConocoPhillips slumped more than 2.8 percent. Banks were among the hardest hit, with Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. losing at least 4.1 percent. Apple Inc. and Microsoft Corp. sank more than 3.9 percent to drag down technology shares. Copper producer Freeport-McMoRan Inc. dropped 8.2 percent.

     The Standard & Poor’s 500 Index slid 3 percent to 1,913.85 at 4 p.m. in New York, the third-worst drop this year. It’s a sour start to September, historically the worst month of the year with the equity gauge falling 1.1 percent on average going back to 1927, according to data compiled by Bloomberg. The Dow Jones Industrial Average sank 469.68 points, or 2.8 percent, to 16,058.35. The Nasdaq Composite Index lost 2.9 percent.

     “The problem is, as much as China is the catalyst for this, it’s also that we’re seeing weakness in fundamentals here,” said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York. “A lot of company earnings were hurt by China in the second quarter and it’s only gotten worse. People are losing confidence with the whole situation there breaking down, not just in the stock market but in data as well.”

     Equities dropped in Asia, with the Shanghai Composite Index slumping as much as 4.8 percent, after manufacturing reports pointed to a deepening Chinese economic slowdown.                     

     International Monetary Fund Managing Director Christine Lagarde said Tuesday the global expansion outlook is worse than the lender anticipated less than two months ago. “This reflects two forces: a weaker than expected recovery in advanced economies, and a further slowdown in emerging economies, especially in Latin America,” Lagarde said in a speech in Jakarta.

     A report today showed U.S. factories expanded in August at the slowest pace since May 2013 as anemic demand from emerging markets such as China translated into leaner factory order books. A measure of exports matched the weakest reading since April 2009. The weak manufacturing data surface ahead of the Federal Reserve’s September policy meeting in which they will debate whether the economy is strong enough to withstand an increase in interest rates in the face of fragile overseas economies.

     Remarks by Fed Vice Chairman Stanley Fischer last week suggested the central bank hasn’t ruled out raising rates when policy makers gather on Sept. 16-17. That has heightened concerns that the Fed may increase rates even as growth slows around the world. Fed Bank of Boston President Eric Rosengren said in a speech today that uncertainty over inflation and global growth justify a modest pace of rate increases, regardless of when the central bank begins tightening.

     Traders are now pricing in a 30 percent chance that the Fed will act this month, down from 38 percent yesterday. Attention will focus this week on the government’s August jobs report, due Friday, as the last major data point before the Fed’s meeting.

     “Markets may have overemphasized China’s impact, but markets are also in relatively bad shape and we’re getting more negative technical signals,” said Otto Waser, chief investment officer at R&A Research & Asset Management AG in Zurich. “It’s a close call for the Fed and as long as markets are in turbulence, I don’t think it will raise rates. If the markets remain too turbulent, they will postpone to October.”

     The S&P 500 ended down 6.3 percent in August as China’s currency devaluation spurred concern over global growth, erasing more than $5.7 trillion in equity market values worldwide, while a measure of volatility surged the most on record. The S&P 500 plunged the most since 2011 and entered a correction last week, only to then rally more than 6 percent over two days. The U.S. benchmark index closed Tuesday 10 percent below its all-time high set in May.

     The Chicago Board Options Exchange Volatility Index rose 10 percent Tuesday to 31.40. The measure of market turbulence known as the VIX had a record monthly jump in August,up 135 percent. About 9 billion shares traded hands on U.S. exchanges today, 28 percent above the three-month average.

     A handful of stocks that had driven much of the S&P 500’s 2015 gains before the August selloff came under pressure Tuesday. Facebook Inc., Amazon.com Inc., Apple, Netflix Inc. and Google Inc. — which had come to be known as the Fab Five — were all down at least 2.4 percent. Among other technology shares, semiconductor makers Avago Technologies Ltd. and Skyworks Solutions Inc. fell more than 4.9 percent.

     All 10 of the S&P 500’s main groups declined today, with energy, financial, technology and raw-material companies all falling more than 3 percent. Energy and financials led the benchmark’s 3.9 percent selloff on Aug. 24, which was its biggest drop in four years.

     Energy shares halted a four-day, 12 percent rally after crude fell the most in two months. Chevron Corp. lost 3.5 percent, while Murphy Oil Corp., Consol Energy Inc. and Devon Energy Inc. retreated more than 5.4 percent.

     Citigroup and Wells Fargo & Co. fell more than 4.3 percent to pace declines among financial companies, where all 88 stocks in the group retreated. E*Trade Financial Corp. and Lincoln National Corp. decreased at least 4.9 percent. The KBW Bank Index sank 4.3 percent, its second-biggest drop this year, with 22 of the gauge’s 24 members down at least 3 percent.

     Dollar Tree Inc. slid 8.7 percent, the most in the S&P 500 and its biggest drop since February 2009. The discount retailer forecast sales that trailed analysts’ estimates, as it works to integrate its acquisition of Family Dollar Stores Inc.

     Netflix lost 8 percent for its biggest drop this year. Along with Dollar Tree, the online video-streaming service led the benchmark’s consumer discretionary group lower. Netflix shares are still up 117 percent this year. Wynn Resorts Ltd. and Whirlpool Corp. decreased more than 4.7 percent Tuesday.

 

Have a wonderful evening everyone.

 

Be magnificent!

Ever tell  yourself, I am He.

These words that will burn up the dross that is in the mind, words that will bring out the tremendous energy

which is within you already, the infinite power which is sleeping in your heart.

Swami Vivekananda

As ever,

 

Carolann

 

A yawn is a silent shout.

-G.K. Chesterton, 1874-1936

 

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