August 17, 2017 Newsletter

Dear Friends,

Tangents:
On Aug. 17, 1969, the Woodstock Music and Art Fair concluded near Bethel, N.Y.
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On this day in 1998, Russia devalues the ruble and declares a moratorium on paying its foreign debt, sending the global bond markets crashing. The move would trigger the collapse of the giant U.S. hedge fund Long-Term Capital Management and sends shockwaves through the world’s financial system.

NEW GAUDI
Spanish architect Gaudi is well known for the colorful visuals found at the structures he worked on such as Barcelona’s Sagrada Familia and the Park Guëll.  Now, Casa Vicens, the first house to be created by the artist, will be opening for the first time in the fall; you can get a preview from the Casa Vincens YouTube channel, found at http://bit.ly/casavinceschannel.  The video on restoring the ceramic parts of the building is particularly intriguing.
PHOTOS OF THE DAY

Royal Photographic Society of Aurora over a glacier lagoon by James Woodend, one of the 100 images shortlisted for the Royal Photographic Society’s International Images for Science competition. The competition is supported by Siemens as part of the Curiosity Project, a three-year programme which aims to engage young people with science and engineering. The five winners will be announced in an award ceremony in London on 12 September. CREDIT: JAMES WOODEND/PA

HMS Queen Elizebeth, the UK’s newest aircraft carrier arrives in Portsmouth. The 65,000-tonne carrier, the largest warship ever to be built in Britain, is expected to be the Navy’s flagship for at least 50 years. CREDIT: GARETH FULLER/PA

Royal Photographic Society “Angel In Love”, a pair of sea slugs by Andrey Nachuk, one of the 100 images shortlisted for the Society’s International Images for Science competition. CREDIT: ANDREY NARCHUK/PA
Market Closes for August 17th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
13.4%
Japanese exports rose 13.4% in July from a year ago, helped by exports of cars and automotive components. It was the eighth straight monthly gain in exports, data from Japan’s Ministry of Finance showed Thursday.
Canada
By Natalie Wong
     (Bloomberg) — Canadian stocks slumped for the seventh day in eight, following the retreat of global markets amid tension over the future of President Donald Trump’s policy proposals and a terrorist attack in Barcelona.
     The S&P/TSX Composite Index dropped 0.3 percent to 15,033.64. Materials led the decline and fell 0.5 percent as Eight Capital initiated research coverage on four mining stocks.
Hudbay Minerals Inc. dropped 4.2 percent and First Quantum Minerals Ltd. lost 1.8 percent despite both being rated new buys. Nevsun Resources Ltd. and Tahoe Resources Inc. also dropped more than 2 percent after being rated new neutrals.
     Health care was the only group that advanced and rose 0.5 percent. Extendicare Inc. jumped 2.7 percent, Knight Therapeutics Inc. gained 1.8 percent and Valeant Pharmaceuticals International Inc. rose 1.6 percent, after Cantor analyst said it was ’hard to ignore’ recent positives.     In other moves:
* Financials fell 0.4 percent. Bank of Montreal dropped 0.5 percent to the lowest in 10 weeks.
US
By Eric J. Weiner and Oliver Renick
     (Bloomberg) — A sense of growing unease gripped financial markets as President Donald Trump exacerbated the controversy sparked by a racist rally in Virginia and terrorists struck a crowded street in Barcelona.
     U.S. stocks retreated, with the S&P 500 Index posting its second biggest one-day decline of the year, and a measure of market volatility spiked higher. Treasuries rose with the yen as investors sought havens. Gold jumped.
     Stocks began the day lower on speculation that Trump’s policy agenda was increasingly imperiled after he disbanded two advisory councils staffed by CEOs and slammed Republican members of Congress who were critical of his remarks on race. Rumors that former Goldman Sachs President Gary Cohn would resign as head of the national economic council added to the selling until reports that he’d opted to stay momentarily buoyed the market.
Cohn has been leading the president’s efforts on tax reform.
     “Certainly the Cohn stuff started it and while there isn’t much out there yet about what’s happening now in Barcelona, it’s also adding to it,” Robert Parks, managing director in equity derivatives at RJ O’Brien and Associates LLC, said by phone.
“And in the background is Donald Trump and everything negative that’s swirling around him. Is he going to be able to get anything done that was expected?”
     While Cohn’s continued presence in the White House brought a measure of calm to markets, it failed to end the controversy sparked by Trump’s polarizing remarks, leaving his agenda with an uncertain future. The terror news was a reminder that geopolitical unrest remains a threat to global growth, with nerves still raw after last week’s escalation of tensions on the Korean peninsula.
     Still, some strategists cautioned that equity markets don’t appear poised to crack — at least not right now. The S&P 500 Index sits 2 percent below its all-time high reached 10 days ago.
     “A correction is coming at some point, catalysts are not always obvious,” Andrew Brenner, head of international fixed income for National Alliance Capital Markets, wrote in an email.
“But with central banks pulling back from the tapering mode, we doubt this is it.”
     Earlier, European stocks dropped as minutes from the region’s last central bank meeting revealed concern among officials that the currency could overheat. Gold and tin were among the best performing metals, and zinc traded near a 10-year high. Most European bonds edged higher as they tried to catch up to U.S. yields. Sterling slipped after growth in U.K. retail sales dropped.
          Here are the main moves in markets:
                            Stocks
* The S&P 500 plunged 1.5 percent to 2,430.04, the biggest decline since May. The Dow Jones Industrial Average fell 274 points, and the Nasdaq Composite Index lost 1.9 percent.
* The Stoxx Europe 600 Index dipped 0.6 percent.
* The U.K.’s FTSE 100 Index sank 0.6 percent.
* Germany’s DAX Index slid 0.5 percent, the biggest slide in a week.
* The MSCI Emerging Market Index dropped 0.8 percent.
                           Currencies
* The Bloomberg Dollar Spot Index increased 0.2 percent after Wednesday’s decline.
* The euro dipped 0.3 percent to $1.1729.
* The British pound fell 0.2 percent to $1.2871.
                             Bonds
* The yield on 10-year Treasuries fell three basis points to 2.1888 percent.
* Germany’s 10-year yield decreased two basis points to 0.43 percent.
* Britain’s 10-year yield slid two basis points to 1.087 percent.
                          Commodities
* West Texas Intermediate crude rose 0.5 percent to $47.03 a barrel.
* Gold climbed 0.4 percent to $1,288.68 an ounce.

Have a wonderful evening everyone.

Be magnificent!

When the poor come to you in great need, begging for food,
do not harden your hearts against them.
Remember that the poor may once have been rich,
and you may one day be poor.
…remember that you may need their friendship in times to come.
Rig Veda

As ever, 

Carolann

Only those who dare to fail greatly can ever achieve greatly.
–Robert F. Kennedy, 1925-1968

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