Posted on

June 30, 2017 Newsletter

Dear Friends,

Tangents:
On June 30, 1971, the Supreme Court, in a 6-3 decision, freed The New York Times and The Washington Post to resume immediate publication of articles based on the secret Pentagon Papers on the origins of the Vietnam War.
Go to article »

My philosophy is it’s none of my business what people say of me and think of me.  I am what I am, and I do what I do.  I expect nothing and accept everything.  And it makes life so much easier. –Anthony Hopkins.
PHOTOS OF THE DAY

Young children catch paper helicopters falling from the sky as the world’s most popular colour of Marrs Green is revealed during the exhibition “Paper City” in Hull, England.  After a major global survey by Hull based paper company, G.F. Smith, the world’s favourite colour was revealed.
CREDIT: PHOTO BY CHRISTOPHER FURLONG/GETTY

Undated handout photo issued by the National Trust of a rare male Purple Emperor butterfly, which has put in its earliest appearance in more than 120 years after warm spring temperatures, experts said.
CREDIT: MATTHEW OATES/NATIONAL TRUST IMAGES.
Market Closes for June 30th, 2017 

Market

Index

 Close Change
Dow

Jones

 21350.69 +63.66

 

+0.30%
 
S&P 500 2431.58 +11.88

+0.49%
 
NASDAQ 6140.422 -3.929

 

-0.06%
 
TSX 15183.01 -30.41

 
-0.20%

International Markets

Market

Index

 Close Change
NIKKEI 20033.43 -186.87
-0.92%
HANG

SENG

 25764.58 -200.84
-0.77%
SENSEX 30921.61 +64.09
+0.21%
FTSE 100* 7312.72 -37.60
-0.51%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.772 1.705
CND.

30 Year

Bond

 2.149 2.116
U.S.   

10 Year Bond

 2.2984 2.2648
U.S.

30 Year Bond

 2.8309 2.8142

Currencies

BOC Close Today Previous  
Canadian $ 0.77114 0.76877
US

$

 1.29679 1.30077
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.48119 0.67517
US

$

 1.14216 0.87554

Commodities

Gold Close Previous
London Gold

Fix

 1242.25 1243.50
     
Oil Close Previous
WTI Crude Future 46.04 44.93

Market Commentary:
On this day in 1952, the New York Stock Exchange’s first nationwide survey of stock ownership finds 6.5 million Americans, or 4% of the total population, own common stock.
Number of the Day

1.3%
The percentage that the KBW Nasdaq Bank Index of U.S. commercial lenders rose Thursday.
Canada
By Kristine Owra
     (Bloomberg) — In a microcosm of year-to-date trading patterns, Canadian stocks closed lower while their U.S. counterparts rose on the last trading day of the second quarter.
     The S&P/TSX Composite Index fell 31 points or 0.2 percent to 15,182.19 amid lower-than-usual volume ahead of holidays in Canada and the U.S. The benchmark lost 2.4 percent in the second quarter, making it the worst performer among developed world indexes. It is down 0.7 percent year-to-date, significantly underperforming the 8.2 percent gain on the S&P 500.
     The energy index led the decline with a 0.4 percent drop even as the price of crude jumped 2.5 percent. Financials were down 0.4 percent as bond yields steadied.
     In other moves:
* NexGen Energy Ltd. jumped 8.7 percent, its biggest gain since November, after entering into an agreement with CEF Holdings Ltd. for a financing package worth $110 million
* Cameco Corp. fell 3.8 percent. The company was cut to underperform at BofAML on a continued uranium supply glut
* Aeterna Zentaris Inc. gained 2.3 percent after resubmitting its FDA application seeking approval of its Macrilen drug.
US
By Oliver Renick
     (Bloomberg) — U.S. stocks climbed for the 3rd time this week as industrials led advances in every industry group in the S&P 500. European markets were little changed after their worst 3-day selloff in almost eight months, as a rebound in the recently hammered technology stocks countered bank losses.
     U.S. Market
* S&P 500 up 0.2% to 2,423
* Dow Industrials up 0.3% to 21,350
* Nasdaq Composite down 0.1%
* Consumer discretionary shares jump 0.6%
* Industrial, materials shares up at least 0.5%
* Financial stocks reverse earlier gains, down less than 0.1%
* Real estate and health-care stocks little changed
* Energy up 0.4% as oil jumped 2.9%
** Oil rose for a 7th day, its longest advance this year, as signs of slipping U.S. supply eased pressure on OPEC-led curbs
* The S&P 500 surged 8.2% in the 1H of the year; technology stocks, the best performers in the period, have recently been giving up gains
* Banks rallied this week as they boosted shareholder payouts after clearing annual stress tests, and benefited from speculation of higher interest rates following central banker comments
* POLITICS:
** The Trump administration is preparing to make a decision on steel tariffs, though it’s likely to miss a self-imposed deadline to conclude its investigation today, according to a White House official
** Trump on Friday said that if Republican senators can’t strike a deal on their health bill, they should immediately repeal Obamacare and then replace it later
* ECONOMY:
** U.S. June MNI Chicago Report rises to 65.7 vs est. 58; forecast range 55-60.9 from 38 economists surveyed
** After-tax disposable income adjusted for inflation climbed 0.6 percent in May, the most since April 2015, Commerce Department data showed Friday
* EARNINGS: none 

 

Have a wonderful weekend everyone.

 

Be magnificent!

In the search for the Truth, for dharma, the real effort does not preclude action
(does not consist in neglecting action), but by trying to accord oneself more and more exactly
with the exterior harmony.  The currency of this effort is in becoming:
whatever work you take on, dedicate it to Brahman.

 Rabindranath Tagore.

As ever,

 

 

Carolann

 

 

Every noble work is at first impossible.
          -Thomas Carlyle, 1795-1881

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

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Posted on

June 29, 2017 Newsletter

Dear Friends,

Tangents:
On June 29, 1995, the shuttle Atlantis and the Russian space station Mir docked, forming the largest man-made satellite ever to orbit the Earth.
Go to article »
700 MILLION: Time (in years) that the Gale Crater on Mars had the right conditions to support life, according to new findings from NASA’s Curiosity rover. 

Robert Burke and William John Wills accomplished the first crossing of Australia from south to north, reaching the Gulf of Carpentaria in February, 1861.  Both died of starvation at Cooper’s Creek on the return journey; John King, another member of the expedition, survived.  Will’s last entry in his Journal, dated June 29th, 1861: 

Clear, cold night, slight breeze from the east, day beautifully warm and pleasant.  Mr. Burke suffers greatly from the cold and is getting extremely weak; he and King start tomorrow up the creek to look for the blacks [aborigines]; it is the only chance we have of being saved from starvation.  I am weaker than ever, although I have a good appetite and relish the nardoo [a seed cake] much; but it seems to give us no nutriment, and the birds here are so shy as to not to be got at.  Even if we got a good supply of fish, I doubt whether we could do much work on them and the nardoo alone.  Nothing now but the greatest good luck can save any of us; and as for myself I may live four or five days if the weather continues warm.  My pulse is at forty-eight, and very weak, and my legs and arms are nearly skin and bone.  I can only look out, like Mr. Micawber, “for something to turn up”;  starvation on nardoo is by no means very unpleasant, but for the weakness one feels, and the utter inability to move one’s self; for as far as appetite is concerned, it gives the greatest satisfaction.

Birthday: June 29, 1861, William James Mayo, cofounder of the Mayo Clinic.
Whenever you find yourself on the side of the majority, it is time to pause and reflect. –Mark Twain.
PHOTOS OF THE DAY

Indian Prime Minister Narendra Modi spins cotton during a visit to the Gandhi Ashram in Ahmedabad, India. AMIT DAVE/REUTERS

A police officer looks at a hole in the road that swallowed a car in St. Louis. CHRISTIAN GOODEN/ST. LOUIS POST-DISPATCH/ASSOCIATED PRESS
Market Closes for June 29th, 2017 

Market

Index

 Close Change
Dow

Jones

 21287.03 -167.58

 

 -0.78%
 
S&P 500 2419.70 -20.99

 

-0.86%
 
NASDAQ 6144.352 -90.063

 

-1.44%
 
TSX 15213.42 -142.16

 
-0.93%

International Markets

Market

Index

 Close Change
NIKKEI 20220.30 +89.89
+0.45%
HANG

SENG

 25965.42 +281.92
+1.10%
SENSEX 30857.52 +23.20
-0.08%
FTSE 100* 7350.32 -37.48
-0.51%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.705 1.613
CND.

30 Year

Bond

 2.116 2.058
U.S.   

10 Year Bond

 2.2648 2.2191
U.S.

30 Year Bond

 2.8142 2.7728

Currencies

BOC Close Today Previous  
Canadian $ 0.76877 0.76705
US

$

 1.30077 1.30369
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.48751 0.67227
US

$

 1.14406 0.87408

Commodities

Gold Close Previous
London Gold

Fix

 1243.50 1248.00
     
Oil Close Previous
WTI Crude Future 44.93 44.74

Market Commentary:
On this day in 2007, the Apple iPhone goes on sale.

Number of the Day 

$10
The price at which Blue Apron sold shares in its IPO, well below its initial range of between $15 and $17 apiece. 

Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks tumbled in a broad-based decline as investors weighed the implications of hawkish comments from central banks around the world.
     The S&P/TSX Composite Index lost 142 points , or 0.9 percent, to 15,213.42, its lowest close in six trading days. The benchmark fell below its 200-day moving average (15,271) on slower than usual volume ahead of holidays in Canada and the U.S.
     Materials shares slumped 1.8 percent, pressured by gold stocks, which tend to underperform when interest rates are rising. The energy index lost 0.8 percent even as crude prices gained 0.4 percent. Financial stocks slipped 0.3 percent.

     In other moves:
* Shaw Communications Inc. lost 5.1 percent, leading the telecom index lower, as investors fled dividend stocks ahead of a potential Bank of Canada rate hike on July 12
* Jean Coutu Group Inc. fell 4.2 percent. Quebec said it will seek lower generic drug prices after negotiations over a compromise plan with pharmaceutical companies fell through
* Shopify Inc. lost 3.5 percent as the tech index tumbled 1.7 percent. Renewed selling in the sector sent U.S. software and chipmaker shares to the lowest in seven weeks.
US
By Samuel Potter and Jeremy Herron
     (Bloomberg) — The shift in tone from central banks in Europe and the U.S. continued to drive financial markets, with stocks and bonds selling off and currencies from the euro to the loonie padding gains versus the dollar.
     The U.S. technology sector’s woes deepened as renewed selling in the year’s biggest winners sent software and chipmaker shares to the lowest in seven weeks. Investors rotated into banks after the Federal Reserve cleared them to repurchase stocks. The 10-year Treasury note rate topped 2.26 percent, while government debt in Europe sold off faster on hawkish sings from the European Central Bank. The euro hit the highest level in more than a year and sterling rose a seventh day.
     Volatility returned the financial markets as investors grapple with the fallout from central banks that seem intent on raising interest rates amid signs that the global economy is picking up steam, signaling the start of the end to nine years of stimulus. Tech remained a victim of investor rotation from growth to value stocks, suggesting that investors may be questioning the growth prospects in the world’s largest economy.
          Here are some key upcoming events and data releases:
* The Trump travel restrictions start from 8 p.m. New York time today, a person familiar said.
* China’s PMI might have declined in June after unexpectedly remaining unchanged in May, reflecting government offers to cut overcapacity and leverage. That reading is due Friday.
* Japan’s calendar is even heavier with economic data on Friday, with reports due on inflation, factory output, unemployment, household consumption and housing starts.
     These are the main moves in markets:
     Stocks
* The S&P 500 Index fell 0.9 percent as of 4 p.m. in New York, paring a drop that at its worst reached 1.4 percent. It’s still up 2.4 percent in the quarter.
* Goldman Sachs Group Inc. and JPMorgan Chase & Co. rose more than 0.5 percent, the only two members of the Dow Jones Industrial Average to advance.
* The Nasdaq 100 Index lost 1.7 percent, pushing its loss in June past 2 percent. The measure rose as much as 21 percent this year, before a selloff that started three weeks ago took 3 percent back.
* The Stoxx Europe 600 Index fell 1.3. Emerging-market equities were little changed.
     Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent.
* The euro increased 0.6 percent to $1.1444, for the highest level since last year’s Brexit vote.
* The pound climbed 0.6 percent to $1.3000, heading for a seventh straight day of gains, the longest winning streak since April 2015.
* The Canadian dollar rose 0.3 percent after jumping 1.2 percent on Wednesday as Bank of Canada Governor Stephen Poloz reiterated he’s considering tighter policy.
     Commodities
* WTI futures advanced 19 cents to $44.93 a barrel, capping a sixth day of advances and the longest rally since April. Prices gained as government data showed a drop in U.S. gasoline supplies that have remained stubbornly high at the start of the summer driving season.
* Gold futures fell 0.4 percent to $1,244.30 an ounce.
* Copper futures jumped 1 percent, advancing for a seventh day.
     Bonds
* The yield on 10-year Treasuries rose four basis points to 2.27 percent, after gaining two basis points on Wednesday and jumping seven basis points in the previous session.
* The yield on U.K. gilts increased 10 basis points to 1.25 percent. French 10-year yields added seven basis points, as did those of 10-year German bunds.
 

Have a wonderful evening everyone.

Be magnificent!

Civilization, in the real sense of the term, consists not in the multiplication
but in the deliberate and voluntary restriction of the wants.
This alone promotes real happiness and contentment, and increases the capacity for service.
A certain degree of physical harmony and comfort is necessary, but above that level,
it becomes a hindrance instead of a help.
Therefore the ideal of creating an unlimited number of wants and satisfying them
seems to be a delusion and a snare.  The satisfaction of one’s physical needs, even the intellectual needs
of one’s narrow self, must meet at a point a dead stop before it degenerates into physical
and intellectual voluptuousness.  A man must arrange his physical and cultural circumstances
so that they may not hinder him in his service of humanity,
on which all his energies should be concentrated.
Mahatma Gandhi

As ever,
Carolann

 

Attitude determines the altitude of life.
         -Edwin Louis Cole, 1922-2002
Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President 

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Posted on

June 28, 2017 Newsletter

Dear Friends,

Tangents:
On June 28, 1919, the Treaty of Versailles was signed in France, ending World War I.

Go to article »

SEEING STARS
When you’re stargazing this summer with your family, learn even more about what you’re seeing with the Skyview app, which can identify satellites, constellations, and stars.  If you’re out on a hike, don’t worry –Wifi isn’t needed.  The app is free for iOS and Android.
PHOTOS OF THE DAY

Lightening flashes over Munich, southern Germany.
CREDIT: MARCEL KUSCH/GETTY IMAGES

A worker carries a bunch of delphiniums at the Real Flower Petal Confetti Company in Wick near Pershore, Worcestershire. The delphiniums are turned into confetti and have been planted in a Union Jack pattern to celebrate the company’s 20th year of growing.
CREDIT: JOE GIDDENS/PA
Market Closes for June 28th, 2017

Market

Index

 Close Change
Dow

Jones

 21454.61 +143.95

 

 +68%
 
S&P 500 2440.56 +21.18

 

+0.88%
 
NASDAQ 6234.414 +87.792

 

+1.43%
 
TSX 15352.69 +71.47

 
+0.47%

International Markets

Market

Index

 Close Change
NIKKEI 20130.41 -94.68
-0.47%
HANG

SENG

 25683.50 -156.49
-0.61%
SENSEX 30834.32 -123.93
-0.40%
FTSE 100* 7387.80 -46.56
-0.63%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.613 1.566
CND.

30 Year

Bond

 2.058 2.029
U.S.   

10 Year Bond

 2.2191 2.2051
U.S.

30 Year Bond

 2.7728 2.7533

Currencies

BOC Close Today Previous  
Canadian $ 0.76705 0.75839
US

$

 1.30369 1.31858
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.48325 0.67419
US

$

 1.13773 0.87894

Commodities

Gold Close Previous
London Gold

Fix

 1248.00 1249.55
     
Oil Close Previous
WTI Crude Future 44.74 44.24

Market Commentary:
On this day in 1995, Spyglass Inc., which had licensed the Mosaic web browser from the University of Illinois, sold 2 million shares on the Nasdaq for $8.50 apiece. It was the first internet company to go public. Shares more than tripled in their debut, paving the way for the dot-com boom.

Number of the Day
0.398%
The yield on the German 10-year bund rose to 0.398% on Wednesday, up from 0.342% on Tuesday. That was its largest one-day move since 2015, and up sharply from 0.247% at Monday’s close, after investors were rattled Tuesday when ECB President Mario Draghi hinted the bank may start unwinding its crisis-era stimulus programs.

Canada
By Kristine Owram
    (Bloomberg) — Canadian stocks gained as rising bond yields and oil prices injected some life into the lackluster benchmark.
    The S&P/TSX Composite Index rose 74 points or 0.5 percent to 15,355.58, its first gain of the week. Financial shares added
0.9 percent to their highest level since April 26 as bond yields spiked.
    Energy shares added 0.4 percent as the price of oil gained
1.1 percent. U.S. government data showed a drop in gasoline supplies that have remained stubbornly high.
In other moves:
* Empire Co. Ltd. jumped 10 percent after reporting fourth- quarter earnings and sales that beat estimates and boosting its quarterly dividend
* Alaris Royalty Corp. added 9.7 percent after hitting a record intraday high. The company was upgraded to buy at GMP and announced a $20-million contribution to Accscient LLC
* Home Capital Group Inc. rose 6 percent ahead of its annual shareholder meeting, scheduled for Thursday. The company is wrapping itself in the Canadian flag in a bid to win back depositors.
US
By Jeremy Herron
    (Bloomberg) — Central banks set the tone on global financial markets Wednesday, with the latest comments from policy officials sparking a risk-on mood that sent U.S. stocks to the biggest gain in two months and roiled currencies from the pound to the loonie.
    The S&P 500 Index rebounded from the biggest selloff in six weeks, with bank shares rising to March highs Treasury 10-year note yields climbed above 2.21 percent. Technology firms snapped back to halt a selloff that dented confidence in the year’s biggest gainers. Small caps led the way with a rally that topped
1.5 percent and took the Russell 2000 Index within a point of an all-time high.
    The mood in U.S. equities reversed shortly before the open, when European Central Bank officials said markets had misinterpreted as hawkish comments Tuesday from Mario Draghi.
That sent the euro tumbling from the highest in a year versus the dollar on bets stimulus would remain robust in the region.
The shared currency reversed again and the pound soared when Bank of England’s Mark Carney, in a sign of confidence in the U.K. economy, said rates may need to rise soon. Canada’s Stephen Poloz then reiterated he’s considering tightening, sending the loonie tearing higher.
    The optimistic reading of the latest central bank proclamations — economies around the globe can withstand tighter financial conditions as growth picks up — changed the tone in financial markets less than a day after a host of events from an IMF cut to its U.S. growth forecast, a fresh blow to the Republican agenda in Washington and a global cyberattack had ushered in note of caution. A trio of Federal Reserve speakers had also suggested that some assets had gotten rich by conventional measures. Markets also got a boost Wednesday as oil’s rebound continued.          Here’s what lies ahead for investors:
* China’s PMI might have declined in June after unexpectedly remaining unchanged in May, reflecting government offers to cut overcapacity and leverage. That reading is due Friday.
* Also slated this week: Japanese inflation, factory output, unemployment, household consumption and housing starts.
    Here are the main moves in markets:
    Stocks
* The S&P 500 Index added 0.9 percent to 2,440.51 as of 4 p.m.
in New York, bouncing back from a loss of 0.8 percent. It’s on pace for a quarterly gain of 3.3 percent, the seventh straight advance.
* Financial shares surged 1.6 percent, touching the highest since March.
* The Nasdaq Composite Index jumped 1.4 percent, while small caps in the Russell 2000 Index rallied 1.5 percent, the most since June 1.
* The Stoxx Europe 600 Index closed little changed as it heads for a monthly slide of about 1 percent.
* MSCI’s emerging markets index fell 0.3 percent, paring a quarterly gain of 5.8 percent.
    Currencies
* The Bloomberg Dollar Spot Index dropped 0.4 percent to the lowest since October.
* The euro rose 0.4 percent to $1.1385, the highest level since June 2016. The shared currency surged 1.4 percent on Tuesday.
* The pound jumped 0.9 percent to $1.2933 and the loonie surged
1.3 percent to 1.30293.
    Bonds
* The yield on 10-year Treasuries added one basis point to 2.21 percent after jumping seven basis points Tuesday.
* The yield on German bunds was little changed at 0.37 percent.
    Commodities
* WTI futures advanced 1.1 percent to settle at $44.74 after climbing 4 percent in the previous four sessions. Prices gained as government data showed a drop in U.S. gasoline supplies that have remained stubbornly high at the start of the summer driving season.
* Gold rose 0.3 percent to $1,251.35 an ounce, climbing for a second day.
    Asia
* The MSCI Asia Pacific Index fell 0.3 percent as declines in technology shares overshadowed gains in banks and raw-materials companies. Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co. and Tencent Holdings Ltd. led the selloff with losses of at least 1.2 percent.
* The yuan continued to rise on speculation of central bank intervention, with the offshore currency up 0.2 percent after surging 0.6 percent Tuesday.

Have a wonderful evening everyone.

Be magnificent!

Is there any motion in a straight line?  A straight line infinitely projected becomes a circle,
it returns to the starting point.  You must end where you begin, and as you begin in God,
you must go back to God.  What remains?  Detail work.  Through eternity you have to do the detail work.
Swami Vivekananda

As ever, 

Carolann

 

Unless we remember we cannot understand.
                         -E.M. Forster, 1879-1970 

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

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7 

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Posted on

June 27, 2017 Newsletter

Dear Friends,

Tangents:
June 27, 1980 – ‘O Canada’ is officially proclaimed Canada’s National Anthem.

On June 27th, 1787, Edward Gibbon wrote in his Autobiography:
Between the hours of eleven and twelve I wrote the last lines of the last page [of The Decline and Fall of the Roman Empire], in a summer-house in my garden  [in Lausanne, Switzerland].  After laying down my pen I took several turns in a berceau, or covered walk of acacias, which commands a prospect of the country, the lake, and the mountains.  The air was temperate, the sky was serene, the silver orb of the moon was reflected from the waters, and all nature was silent.  I will not dissemble the first emotions of joy on recovery of my freedom, and, perhaps, the establishment of my fame.  But my pride was soon humbled, and a sober melancholy was spread over my mind, by the idea that I had taken an everlasting leave of an old and agreeable companion, and that, whatsoever might be the future fate of my History, the life of the historian must be short and precarious. –from The Book of Days.
PHOTOS OF THE DAY

Aerial photo shows flocks of flamingos in Lake Bogoria, Kenya.
CREDIT; IMAGO/BARCROFT IMAGES LONDON.

The Milky Way over the Radar Memorial of St. Aldhelm’s Head, Dorset, UK.
CREDIT: STEVE REGAN/BPNS
Market Closes for June 27th, 2017

Market

Index

 Close Change
Dow

Jones

 21310.66 -98.89

 

-0.46%
 
S&P 500 2419.38 -19.69

 

-0.81%
 
NASDAQ 6146.621 -100.528

 

-1.61%
 
TSX 15281.22 -34.81

 
-0.23%

International Markets

Market

Index

 Close Change
NIKKEI 20225.09 +71.74
+0.36%
HANG

SENG

 25839.99 -31.90
-0.12%
SENSEX 30958.25 -179.96
-0.58%
FTSE 100* 7434.36 -12.44
-0.17%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.566 1.463
CND.

30 Year

Bond

 2.029 1.957
U.S.   

10 Year Bond

 2.2051 2.1370
U.S.

30 Year Bond

 2.7533 2.6970

Currencies

BOC Close Today Previous  
Canadian $ 0.75839 0.75491
US

$

 1.31858 1.32466
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.49607 0.66842
US

$

 1.13422 0.88167

Commodities

Gold Close Previous
London Gold

Fix

 1249.55 1245.25
     
Oil Close Previous
WTI Crude Future 44.24 43.38

Market Commentary:
Canada
By Natalie Wong
     (Bloomberg) — Canadian stocks fell amid declining gold prices and global cyber attacks that weighed on technology shares.
     The S&P/TSX composite index fell 0.2 percent to 15,281.22. Tech stocks tumbled 2.5 percent, the most in over five weeks, as Shopify Inc. dropped 6.2 percent after today’s cyber attacks, following a 2.8 percent decline yesterday following a SunTrust Robinson Humphrey hold recommendation.
     Material stocks sank 1.3 percent as Barrick Gold Corp. fell 1.6 percent and Goldcorp Inc. declined 2.2 percent.
     In other moves:
* Health care fell 2.6 percent as Valeant Pharmaceuticals International Inc. dropped 2.5 percent and Canopy Growth Corp. declined 5.6 percent
* Oil stocks continued a four-day rally, gaining as much as 2.4 percent, the most in five weeks, as Suncor Energy Inc. rose 1.1 percent and Enbridge Inc. moved up 0.6 percent
* Consumer staples advanced 0.7 percent as Alimentation Couche- Tard Inc. gained 5.6 percent, the most in 10 months, after its $4.4b acquisiton of CST Brands won approval from FTC antitrust officials Monday.
US
By Jeremy Herron and Dani Burger
     (Bloomberg) — U.S. equities fell the most in six weeks and a measure of market volatility spiked higher as investors grew uneasy amid a global cyberattack and a fresh setback to the Republican agenda in Washington. Treasuries plunged as Janet Yellen signaled the economy is robust enough to withstand higher interest rates.
     The Nasdaq 100 Index fell more than 1.7 percent to its lowest level since May 19, as investors continue to punish some of the year’s highest flyers. Selling accelerated as the Federal Reserve chair said financial assets had become “somewhat rich.” Financial shares advanced, but not enough to save the S&P 500 Index from its worst drop in six weeks. Treasury 10-year yields rose to the highest in two weeks as Yellen indicated the Fed remains on track to tighten even as data comes in spoke on the economy. Oil climbed above $44 a barrel.
     Senate Republicans delayed a vote on health-care reform in a fresh hit to the Trump administration’s policy agenda, fueling speculation tax cuts and regulatory rollbacks may also be delayed. The International Monetary Fund earlier cut its growth forecast for the U.S. in part because of policy uncertainty, while the latest cyberattack to disrupt global business added to the cautious mood.
     “Market participants may view health care legislation as stalling a move on taxes that could include a repatriation tax holiday,” said Jeffrey Kleintop, Charles Schwab Corp.’s chief global strategist.
     Yellen gave no indication her plans for continued monetary policy tightening had shifted while acknowledging asset prices continued to appreciate. Some investors worry the Fed is taking too rosy a view as it sets the path for increasing borrowing costs, especially after weakness in data Monday added to concerns about the strength of growth. 
     “Yellen is expressing confidence that banking is stronger, economic growth is relatively firm and there’s not going to be a crisis in our lifetime,” said Dennis Debusschere, Evercore ISI’s head of portfolio strategy and quant. “It’s sending a signal that they can continue on rising rates, despite the weaker inflation we’ve seen. That’s where the concern is in the market.”
     Here are some important upcoming events:
* The inaugural session of the new French parliament will start today.
* The Federal Reserve is set to announce the results of the second part of its annual U.S. bank stress test on Wednesday.
* China’s PMI might have declined in June after unexpectedly remaining unchanged in May, reflecting government offers to cut overcapacity and leverage. That reading is due Friday.
* Also due this week: Japanese inflation, factory output, unemployment, household consumption and housing starts; rate decisions in Colombia, the Czech Republic and Armenia.
     These are the main moves in markets:
     Stocks
* The S&P 500 lost 0.8 percent to 2,419.38 at 4 p.m. in New York. That’s the lowest since May 31.
* The Nasdaq 100 lost 1.8 percent, the most since a 2.4 percent rout on June 9. The index is at its lowest level since May 19. Alphabet Inc. dropped 1.9 percent after being hit with a record EU fine.
* The Stoxx Europe 600 Index dropped 0.8 percent, as declines in travel and leisure shares overshadowed the rally in miners.
     Currencies
* The euro surged 1.4 percent to $1.1336.
* The Bloomberg Dollar Spot Index fell 0.5 percent after gaining 0.1 percent in the previous session.
* The British pound added 0.6 percent to $1.2799. 
     Commodities
* West Texas Intermediate crude rose 2 percent to $44.25 a barrel, adding to a three-day rally following oil’s drop into a bear market.
* Gold futures increased 0.3 percent to $1,250.40 an ounce. The precious metal sank almost 1 percent on Monday.
     Bonds
* The yield on 10-year Treasuries rose six basis points to 2.20 percent, after dropping less than one basis point on Monday.
* European government bonds dropped across the board, with the yield on benchmark French bonds climbing 14 basis points and that of Germany gaining 13 basis points.
     Asia
* The Chinese yuan jumped both onshore and overseas amid speculation of central bank intervention.
* Hong Kong’s Hang Seng index fell 0.1 percent and the Shanghai Composite Index advanced 0.2 percent. A string of small-cap Hong Kong stocks suddenly plunged during the day, with traders pointing to links between some of the companies and a brokerage that’s under regulatory investigation.
* Japan’s Topix climbed 0.4 percent to the highest closing level since August 2015.

 

Have a wonderful evening everyone.

 

Be magnificent!

Sensibility is the capacity to feel,
recognize, and distinguish the most tiny and subtle changes.
Swami Prajnanpad

As ever,

 

Carolann

 

The best time to make friends is before you need them.
                                -Ethel Barrymonre, 1879-1959

 

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

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

 

Posted on

June 26, 2017 Newsletter

Dear Friends,

Tangents:

June 26, 1925 – Edward S. Rogers Sr. invents AC tube which allows world’s first plug-in batteryless radios.

James Agate wrote on June, 26th, 1932, Ego:

Dined at Pec’s [in Brighton], on balcony about nine o’clock.  Anchovies. Cold lamb, an excellent Beaune and a good cigar.  L’heure bleue, and all that sort of thing.  Felt at once cheerful and sentimental – a rare combination…About ten o’clock the electric sign over our heads began to function, turning our lamb into pink, newly butchered slabs.  Is there anything more romantic than a pier lit up, or more desolating than one whose lights suddenly go out? –from The Book of Days.

PHOTOS OF THE DAY

Smoke billows from a charred forest after a wildfire in Mazagon, near the Donana National Park in Spain. CRISTINA QUICLER/AGENCE FRANCE-PRESSE/GETTY IMAGES


The City of São Paulo, Brazil, announced a partnership with the Italian embassy and Italian firms to revitalize three plazas in the city. CRIS FAGA/ZUMA PRESS
Market Closes for June 26th, 2017

Market

Index

 Close Change
Dow

Jones

 21409.55 +14.79

 

+0.07%
 
S&P 500 2439.07 +0.77

 

+0.03%
 
NASDAQ 6247.148 -18.101

 

-0.29%
 
TSX 15316.02 -3.54

 
-0.02%

International Markets

Market

Index

 Close Change
NIKKEI 20153.35 +20.68
+0.10%
HANG

SENG

 25871.89 +201.84
+0.79%
SENSEX 31138.21 -152.53
-0.49%
FTSE 100* 7446.80 +22.67
+0.31%

Bonds

Bonds % Yield Previous  % Yield
CND.

10 Year Bond

 1.463 1.479
CND.

30 Year

Bond

 1.957 1.977
U.S.   

10 Year Bond

 2.1370 2.1423
U.S.

30 Year Bond

 2.6970 2.7147

Currencies

BOC Close Today Previous  
Canadian $ 0.75491 0.75378
US

$

 1.32466 1.32665
     
Euro Rate

1 Euro=

   Inverse
Canadian $ 1.48145 0.67501
US

$

 1.11836 0.89417

Commodities

Gold Close Previous
London Gold

Fix

 1245.25 1255.70
     
Oil Close Previous
WTI Crude Future 43.38 42.81

Market Commentary:
On this day in 1950, the Dow Jones Industrial Average falls 4.7% to 213.91, a day after North Korea invades the South.

Number of the Day :
$3.5 billion
The amount billionaire activist investor Daniel Loeb’s Third Point has taken in Nestlé, its largest-ever initial bet on a public company.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were little changed as falling gold prices weighed on miners, offsetting gains in the health-care and consumer sectors.
     The S&P/TSX Composite Index fell 4 points or less than 0.1 percent to 15,316.02. Materials stocks lost 0.6 percent as gold prices fell following what appeared to be a fat-finger trade. Oceanagold Corp. lost 3.3 percent and Guyana Goldfields Inc. fell 2.8 percent.
     The health-care index jumped 3.9 percent, bringing its total gain since June 15 to 19 percent as the U.S. Senate works to get enough votes to replace Obamacare. Valeant Pharmaceuticals International Inc. gained 8 percent.
     In other moves:
* ShawCor Ltd. fell 5.8 percent following a downgrade to sector perform at National Bank Financial
* BlackBerry Ltd. added 5.7 percent, rebounding from Friday’s 13 percent drop. Analysts at TD see opportunities that could contribute to a strong second half
* Alimentation Couche-Tard Inc. added 3.6 percent after it won approval from the U.S. Federal Trade Commission for its acquisition of CST Brands Inc.
US
By Samuel Potter and Jeremy Herron
     (Bloomberg) — Selling in technology shares that have led markets higher in 2017 resumed Monday, as U.S. stocks failed to sustain a rally in global equities that started in Asia. Treasuries advanced after data showing a steeper drop in durable goods than forecast raised concern about the pace of U.S. economic growth.
     The Nasdaq 100 Index retreated, leaving it 1.8 percent below its June 8 high. Most stocks in the S&P 500 Index advanced, with rate-sensitive shares pushing the gauge to a slight gain even as its largest cohort declined. European shares rose on news of an Italian bank clean-up and Dan Loeb’s investment in Nestle SA. Treasuries turned higher as an unexpected drop in orders for business equipment last month signaled slowing momentum in the world’s largest economy. The dollar advanced.
     Gains in global stocks to start the week faded in the U.S., where major benchmark indexes were mixed before a jam-packed agenda for central-bank speakers in the next days. Comments are due from Janet Yellen, Mario Draghi, Mark Carney, Haruhiko Kuroda and more. The report on U.S. durables goods kicks off a string of economic data that may also drive momentum in financial markets, with key reports due on inflation, employment, manufacturing and housing from China to the U.S.
     There is “very little risk we see any central bank surprises,” Robert Rennie, Sydney-based head of global market strategy at Westpac Banking Corp., told Bloomberg TV. “It looks like it’s a positive summer for risk sentiment. That certainly favors higher equity and higher yielding currencies at least in the very short term.”
     Meanwhile, multiple markets will be disrupted this week because of public holidays, including in India, Malaysia, Indonesia, the Philippines, Singapore, Bangladesh, Saudi Arabia, Bahrain, Egypt, Kuwait, Oman, Qatar, Turkey and the United Arab Emirates.
     Central bankers aren’t the only things to watch this week:
* U.S. spending data may reveal consumers are only moderately rebounding and the inflation backslide is continuing.
* The U.S. Energy Information Administration holds its 2017 energy conference this week.
* President Donald Trump will host India’s Prime Minister Narendra Modi and South Korean President Moon Jae-in.
* The Bank of England’s Financial Policy Committee releases its stability report on Tuesday and Governor Mark Carney holds a press conference.
* The Federal Reserve is set to announce the results of the second part of its annual U.S. bank stress test on Wednesday.
* China’s PMI might have declined in June after unexpectedly remaining unchanged in May, reflecting government offers to cut overcapacity and leverage.
* Also due this week: Japanese inflation, factory output, unemployment, household consumption and housing starts; rate decisions in Colombia, the Czech Republic and Armenia.
     Here are the main moves in markets:
     Stocks
* The S&P 500 Index rose less than one point to 2,439.01 at 4 p.m. in New York. The index erased early gains before rebounding in the afternoon to post a modest advance.
* The Nasdaq 100 fell 0.4 percent after surging more than 0.7 percent in the first hour of trading.
* The Stoxx Europe 600 Index rose 0.4 percent to the highest in a week. Nestle surged 4.3 percent.
* The MSCI Emerging Market Index rose 0.8 percent to the highest since May 26.
* Italy’s FTSE MIB Index surged 0.8 percent, falling back after touching its highest level in a month.  
     Commodities
* West Texas Intermediate crude rose 0.9 percent to settle at $43.38 a barrel after five weeks of losses.
* Gold futures sank 0.9 percent to $1,246.60 an ounce.
     Currencies
* The Bloomberg Dollar Spot Index was little changed after three days of declines.
* The British pound was virtually unchanged at $1.2722.
* The euro was flat at $1.1193.
     Bonds
* The yield on 10-year Treasuries fell one basis point to 2.13 percent.
* U.K. benchmark yields fell two basis point to 1.01 percent.
* Italian yields fell two basis points to 1.89 percent.

Have a wonderful evening everyone.

 

Be magnificent!

We cross the infinite with every step, and encounter the eternal with every second.
Rabindranath Tagore

As ever,

Carolann

 

You’ve got to take the bitter with the sour.
                 -Samuel Goldwyn, 1879-1974

 

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

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com