September 5, 2017 Newsletter

Dear Friends,

Tangents: 

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

PHOTOS OF THE DAY

A lizard climbing a flower stock proves she is the real lord of the rings. Nature photographer and vacation rental manager Danny Young, 69 from Hollywood, GA, USA, snapped a lizard using its tail to create a full circle in his own front garden. Danny snapped the cute anole lizard after it unexpectedly climbed into shot of feeding hummingbirds and made a complete circle as it changed direction.
CREDIT: DANNY YOUNG/CATERS

Queen Elizabeth II officially opens the Queensferry Crossing as the Duke of Edinburgh and First Minister Nicola Sturgeon look on, across the Firth of Forth.
CREDIT: ANDREW MILLIGAN/PA WIRE
Market Closes for September 5^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell as gains in commodity producers were offset by a broad-based decline elsewhere on the benchmark.
     The S&P/TSX Composite Index lost 54 points or 0.4 percent to 15,137.37 at 9:50 a.m. in Toronto. Energy shares were the biggest gainers, adding 0.2 percent as the price of West Texas Intermediate crude jumped 2.7 percent. Prices are normalizing as refineries restart operations following Hurricane Harvey.
     Materials shares also gained, adding 0.2 percent as gold and copper prices rose. This was offset by declines of 0.7 percent in the financial and industrials indexes.
     In other moves:
* Canadian Natural Resources Ltd. rose 1.5 percent and Cenovus Energy Inc. gained 3.3 percent. Canadian Natural is buying Cenovus’s Pelican Lake operations and other assets in northern Alberta for C$975 million
* Metro fell 1.6 percent after the stock was cut to hold at TD
* Cineplex Inc. rose 0.6 percent after announcing a normal course issuer bid to buy back up to 10% of its common shares
* Colliers International Group Inc. fell 0.8 percent. The real estate company is buying Australian firm NixAnderson for an undisclosed amount
* Cott Corp. rose 1.3 percent after Refresco Group NV shareholders approved a $1.25-billion takeover of Cott’s soda business
* WCS traded at a $13 discount to WTI, the widest gap since March
* Aeco natural gas traded at a $1.58 discount to Henry Hub
* Gold rose 0.6 percent to $1,338.50 an ounce
* The Canadian dollar rose 0.3 percent to 80.81 U.S. cents ahead of the Bank of Canada’s rate decision Wednesday
* The Canada 10-year government bond yield fell 1.8 percent to 1.88%
US
By Andrew Dunn
     (Bloomberg) — U.S. stocks slipped while Treasuries rallied the most in 10 months as tensions with North Korea mounted and another Atlantic hurricane threatened to make landfall.
     The Dow Jones Industrial Average fell 234 points at the start of a week packed with central-bank decisions, Federal Reserve speakers and economic data that will help illuminate the path of the global economy. The S&P 500 Index dropped the most since Aug. 17, ending a six-day rally. Ten-year Treasuries climbed amid lingering unease over North Korean plans for a ballistic missile launch, while Hurricane Irma threatened a region already dealing with the devastation from Harvey. 
     West Texas intermediate crude climbed for a third day and copper extended its rally. Gold also rose. The Stoxx Europe 600 Index dropped slightly as the euro and yen gained against the dollar. The greenback declined amid dovish comments from Fed Governor Lael Brainard. Buyers of four-week Treasury bills demanded the highest yields since 2008 in Tuesday’s auction as the deadline to raise the U.S. debt ceiling neared.
     Big economic news still awaits. Mario Draghi may give more clarity on paring the European Central Bank’s bond-buying program when he speaks after a rates decision on Thursday. U.S. durable-goods figures, the trade balance, unemployment claims, and the release of the Fed’s Beige Book will add to the global data mix after a purchasing managers’ index Tuesday indicated the euro area is poised for the fastest economic expansion in a decade.
     Meanwhile, U.S. President Donald Trump agreed to support billions of dollars in new weapons sales to South Korea after North Korea’s largest nuclear test, while his ambassador to the United Nations said America would seek the strongest possible sanctions against Kim Jong Un’s regime. Tensions escalated after Asia Business Daily reported North Korea was preparing to fire an ICBM.
     The key events coming this week:
* Among other economic numbers out of China, trade figures are anticipated to show another month of solid export growth, while FX reserves probably continued to rise on stricter capital controls, robust growth and a stronger yuan, according to Bloomberg Intelligence.
* Other Fed speakers this week include New York Fed President Bill Dudley and Dallas Fed President Robert Kaplan.
* The European Central Bank meets on Thursday. Draghi will express concern over the euro’s strength, but won’t say much about his asset-purchase program’s future, according to a survey.
     And here are the main moves in markets:
                              Stocks
* The S&P 500 Index sank 0.76 percent to 2,457.85 as of 4:12 p.m. in New York. The Dow lost 1.1 percent.
* The Stoxx Europe 600 Index dipped 0.1 percent.
* The U.K.’s FTSE 100 Index declined 0.5 percent.
* Germany’s DAX Index climbed 0.2 percent.
                              Currencies
* The Bloomberg Dollar Spot Index declined 0.3 percent to 1,147.87, the lowest in more than two years. 
* The euro increased 0.2 percent to $1.1914. 
* The British pound gained 0.8 percent to $1.303, the biggest jump in over seven weeks. 
* The Japanese yen climbed 0.8 percent to 108.87 per dollar, the strongest in almost 20 weeks.
                              Bonds
* The yield on 10-year Treasuries fell 10 basis points to 2.07 percent. 
* Germany’s 10-year yield declined three basis points to 0.34 percent. 
* Britain’s 10-year yield fell three basis points to 1.026 percent.
                              Commodities
* Gold increased 0.4 percent to $1,338.97 an ounce, the highest in a year. 
* West Texas Intermediate crude rose 2.7 percent to $48.57 a barrel. 
* Copper increased 0.3 percent to $3.13 a pound.
                               Asia
* Japan’s Topix index fell 0.8 percent at the close, while South Korea’s Kospi index lost 0.1 percent. Australia’s S&P/ASX 200 Index rose 0.1 percent. 
* Hong Kong’s Hang Seng Index fluctuated with indexes higher in China and Singapore.
* The MSCI Asia Pacific Index edged higher. It slid 0.6 percent on Monday, the steepest drop since Aug. 11.  

Have a wonderful evening everyone.

Be magnificent!

 “If life were predictable it would cease to be life, and be without flavor.” —Eleanor Roosevelt

As ever,

Karen

“You get in life what you have the courage to ask for”. Oprah Winfrey

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