July 31, 2017 Newsletter

Dear Friends,

Tangents:
Birthday: J.K. Rowling, b. 1965.

We had the singular summer pleasure yesterday of watching an outdoor baseball game on a brilliantly warm and sunny  July day with the requisite hot-dogs and beer….the stands at Safeco Field in Seattle were packed with animated fans who wildly cheered when the Mets were defeated by the Mainers at the top of the ninth inning.  A contingent of Canadian fans could be seen and heard in the stands, cheering Canadian pitcher James Paxton from Ladner, B.C. who gave a stellar performance;  the Canadians held signs that were painted in red with the chant (which could also be loudly heard) eh eh eh eh…. Summer is truly a magical time! 🙂 

On July 31, 1964, the American space probe Ranger 7 transmitted pictures of the moon’s surface.
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PHOTOS OF THE DAY

Prime Minister Theresa May, the Duke and Duchess of Cambridge, King Philippe and Queen Mathilde watch the poppies fall from the roof of the Menin Gate in Ypres, Belgium for the official commemorations marking the 100^th anniversary of the Battle of Passchendale. CREDIT: ANDREW MATTHEWS/PA
Rare special Citroen model cars are displayed inside the Royal Palace of Mafra, Portugal during the World 2017 2CV Meeting. CREDIT: JOSE MANUAL RIBEIRO/AFP
Market Closes for July 31^st, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
*On this day in 1914, the New York Stock Exchange closes its doors. The exchange stays shut for four-and-a-half months amid the outbreak of World War I.*
Canada
By Natalie Wong
     (Bloomberg) — Canadian stocks rallied as financials broke a three-day slump, offsetting losses in health care and tech companies.
     The S&P/TSX Composite Index rose 0.1 percent to 15,143.87. Financial stocks added 0.4 percent as Manulife Financial Corp. increased 0.9 percent and the Canadian Imperial Bank of Commerce gained 0.6 percent. 
     Materials extended a two-day gain, adding 0.3 percent as Ivanhoe Mines Ltd. jumped 2.7 percent and Norbord Inc. increased 5.6 percent after being raised to outperform at Credit Suisse.
     Health care fell 1.4 percent, continuing a three-day slump, as Valeant Pharmaceuticals International Inc. dropped 2 percent, Prometic Life Sciences Inc. lost 1.9 percent and Canopy Growth Corp. slipped 1.3 percent. 
     In other moves:
* Tech decreased 0.5 percent, falling for the third-day straight as Blackberry Ltd. slipped 3.5 percent and Sierra Wireless Inc. lost 1.3 percent
* Exchange Income Corp. rose as much as 7.8 percent, the most in three weeks, the best-performing stock in the index
* B2gold Corp. fell 6.9 percent, the most since May, the worst- performing stock in the index after gold production reached 121,448 oz.
US
By Robert Brand and Jeremy Herron
     (Bloomberg) — U.S. stocks slumped Monday despite a strong performance for the month, spurred by healthy corporate results and growing optimism in the strength of the global economy. Treasuries slid and the dollar added to its biggest monthly retreat since January.
     The S&P 500 Index swung between gains and losses on light volume, but the gauge still posted its fourth straight monthly gain. European shares retreated for July. Copper rose to a two- year high and iron ore surged. The dollar pushed its decline this month to 2.6 percent, while the 10-year Treasury yield held near 2.30 percent. West Texas Intermediate crude traded above $50 a barrel for the first time since May.
     U.S. stocks stumbled to the end of July after powering to fresh records amid evidence of resilient growth around the world. China’s official factory gauge showed continued expansion in June, even as it slipped amid government efforts to curb financial risks. Japan’s industrial output expanded in June, while numbers on Friday showed the U.S. economy accelerating in the second quarter.
     “Global expansion dynamics are well underway,” analysts at Candriam Investors Group wrote in a report. “The European recovery is well on track and is leading to above-trend growth in 2017-18. This has led us to increase our profit earnings expectations for euro-zone equities. The economic news flow is starting to become more supportive in the U.S., while emerging markets are benefiting from a good economic momentum.”
     Meanwhile, the slew of corporate earnings continues. Apple Inc., Tesla Inc., Berkshire Hathaway Inc. and Toyota Motor Corp. are all set to unveil results this week. HSBC’s second-quarter profit beat analysts’ estimates as outgoing Chief Executive Officer Stuart Gulliver boosted revenue while also trimming costs, and the lender said it will spend up to $2 billion buying back stock.
     Terminal users can read more in our Markets Live blog.
     In a packed week, here are some of the key events:
* There’s a stack of data on the U.S. economy due this week; highlights include jobs data that probably shows employers added about 180,000 workers in July. That’s Friday. Also watch out for manufacturing and automaker data on Tuesday.
* Brazil’s Congress votes on whether to put President Michel Temer on trial on Wednesday.
* The Bank of England announces a monetary-policy decision on Thursday, with investors expecting the key rate to remain at a record low 0.25 percent.
* Australia (Tuesday), India (Wednesday), Czech Republic and Ukraine (Thursday), and Romania (Friday) also announce rate decisions.
* The U.S. Energy Information Administration releases monthly reports Monday.
     Here are some of the key moves in markets:
     Stocks
* The S&P 500 closed down less than 0.1. at 2,470.3, but posted a gain of 1.9 percent in July.
* The Nasdaq 100 Index dropped 0.5 percent, paring its monthly advance to 4.1 percent.
* The Stoxx Europe 600 Index slipped 0.1 percent, for it second straight monthly loss.
* The MSCI All-Country World Index advanced 0.2 percent.
* The U.K.’s FTSE 100 Index increased less than 0.1 percent.
* The MSCI Emerging Market Index climbed 0.4 percent.
     Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent and posted its fifth straight monthly drop.
* The euro rose 0.8 percent to $1.184.
* The British pound added 0.5 percent to $1.3196.
     Bonds
* The yield on 10-year Treasuries declined less than one basis point to 2.29 percent.
* Germany’s 10-year yield was little changed at 0.54 percent.
* Britain’s 10-year yield rose one basis point to 1.23 percent.
     Commodities
* West Texas Intermediate crude gained 1.1 percent to $50.25 a barrel, reversing earlier losses.
* Copper climbed 0.6 percent to $2.89 a pound, the highest in more than two years.
* Gold rose less than 0.1 percent to $1,270.25 an ounce.
     Asia* The Japanese yen increased 0.1 percent to 110.58 per dollar, the strongest in six weeks.
* Japan’s Topix index closed 0.2 percent lower after swinging between gains and losses. Australia’s S&P/ASX 200 Index rose 0.3 percent and South Korea’s Kospi index added 0.1 percent. Hong Kong’s Hang Seng Index added 1.1 percent. HSBC was among the biggest contributors to the advance.

Have a wonderful evening everyone.

Be magnificent!

You are unique as you are here and now.
You are never the same.  You will never be the same again.  You have never before been what you are now. You will never be it again.
Swami Prajnanpad.

As ever,

Carolann

Success breeds confidence.
-Beryl Markhan, 1902-1986

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

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

Tel: 778.430.5808
(C): 250.881.0801
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www.carolannsteinhoff.com