June 8, 2017 Newsletter

Dear Friends,

Tangents:
On June 8, 1968, authorities announced the capture in London of James Earl Ray, the suspected assassin of civil rights leader Martin Luther King Jr.

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Frank Lloyd  Wright, architect, b. 1867
PHOTOS OF THE DAY

German Chancellor Angela Merkel speaks with U.S. President Barack Obama outside the Elmau Castle following a working session of the G-7 summit in southern Germany on Monday. MICHAEL KAPPELER/AGENCE FRANCE-PRESSE/GETTY IMAGES

View of the “Parthenon of Books” by Argentinian artist Marta Minujin, at the Documenta 14 art exhibition in Kassel.   The Parthenon of books, a full-scale replica of the temple on the Acropolis, is made up with some 100,000 copies of banned books donated from the public as well as publishers and institutions.
CREDIT: John Macdougall/AFP
Market Closes for June 8^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
2.3%
GDP growth in the European Union came in at an annualized 2.3% rate in the first quarter, the best since 2015, which may if maintained accelerate the ECB’s plans to wind down its stimulus measures.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks gained as financials rose the most in more than six weeks and health-care shares jumped on a nearly $1-billion deal.
     The S&P/TSX Composite Index added 51 points or 0.3 percent to close at 15,423.09. Financial stocks added 1 percent, rallying along with U.S. banks after former FBI Director James Comey said Donald Trump was never under investigation by the bureau, potentially easing concerns about the president’s stalled agenda.
     The health-care index jumped 4 percent after Valeant Pharmaceuticals International Inc. said it will sell its iNova unit to two private equity firms for $930 million. Valeant accounts for 42 percent of the index.
     In other moves:
* Home Capital Group Inc. jumped 13 percent following a report that the company has received preliminary takeover offers
* Sierra Wireless Inc. added 11 percent to the highest level in more than two years. Sierra is the best-performing stock on the Canadian benchmark year-to-date
* Hudbay Minerals Inc. rose 11 percent as copper futures posted the biggest advance in nine weeks.
US
By Cecile Gutscher and Jeremy Herron
     (Bloomberg) — U.S. stocks ended an up-and-down session little changed, while Treasuries fell and the dollar advanced as the European Central Bank decision and testimony from former FBI Director James Comey did little to impact financial markets.
     The S&P 500 Index edged higher, with markets weighing his testimony for clues on the fate of the Trump administration’s policy agenda. Banks advanced as the 10-year Treasury yield climbed to 2.20 percent. U.K. assets were weighed down by risks of shock outcomes as British voters head to polls in a general election. The euro weakened after Mario Draghi signaled that inflation in the region remains tepid, overshadowing improved prospects for the economy. Crude closed at a five-week low.
     The ousted FBI director called Trump’s explanations for firing him “lies,” though his comments had little implications for financial markets. The ECB’s earlier decision failed to have any lasting impact on assets as investors now turn to the results of the U.K. election, due at 5 p.m. in New York.
     At a press conference after the ECB rates decision, President Draghi said risks to the euro-area economy were “broadly balanced,” while revising inflation forecasts weaker. Until they see stronger evidence of a recovery and a pickup in prices, policy makers will hesitate to shut off stimulus taps, Aberdeen Asset Management Senior Investment Manager Patrick O’Donnell, said before Draghi’s briefing.
Here are some of the key upcoming events:
* Investors are awaiting results from the U.K. elections. The polls close at 10 p.m. Thursday night in the U.K.
     Here are the main moves in markets:
     Stocks
* The S&P 500 rose less than one point to 2,433.78 at 4 p.m. in New York, for a second day of gains. It briefly rose above its closing record during Comey’s testimony but faded in afternoon trading.
* Banks led gains for a second day, while energy shares slid. Rate-sensitive shares fell the most.
* Small caps rallied 1.4 percent to the highest since April 27. It closed 0.2 percent below a record.
* The Stoxx Europe 600 Index edged lower, while the FTSE 100 dropped 0.4 percent.
* The MSCI Emerging Market Index added 0.4 percent.
     Currencies
* The Bloomberg Dollar Spot Index added 0.2 percent.
* The euro fell 0.4 percent to $1.12108, while the pound weakened 0.2 percent to $1.294.
     Bonds
* The yield on 10-year Treasuries rose two basis points to 2.19 percent.
* Benchmark U.K. gilt yields rose three basis points to 1.03 percent, underperforming European peers.
* German bund yields fell one basis point to 0.26 percent.
     Commodities
* Oil fell to the lowest level in five weeks in New York after an unexpected increase in U.S. crude stockpiles cast doubt on OPEC’s ability to rebalance world crude markets.
* Futures settled lower by 0.2 percent to $45.72. The contract fell as much as 0.9 percent in New York after sinking 5.1 percent Wednesday.
* Gold futures fell 1.1 percent to settle at $1,279.50 an ounce in New York.
* Rubber capped its longest run of losses in at least 42 years, dropping to a seven-month low on concern that a shaky Chinese economy may slow demand just as supply picks up.

Have a wonderful evening everyone.

Be magnificent!

Thought is crooked
because it can  invent anything
and see things that are not there.
It can perform the most extraordinary tricks,
therefore it cannot be depended upon.
Krishnamurti

As ever,

Carolann

No amount of skillful invention can replace the essential element of imagination.
                                                                   -Edward Hopper, 1882-1967

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
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