September 6, 2017 Newsletter

Dear Friends,

Tangents:  FULL MOON TONIGHT.

When the Moon’s in the full, then the wit’s in the wane.

On this day in 1997, 2,000 people attend the public funeral of Princess Diana at Westminster Abbey and an estimated 2.5 billion tune in world-wide.

Also, on Sept. 6, 1901, President William B. McKinley was shot and mortally wounded by anarchist Leon Czolgosz at the Pan-American Exposition in Buffalo, N.Y.
Go to article »

PHOTOS OF THE DAY

A visior looks over the entrants at the National Dahlia Society Show at the opening of the 25^th anniversary Flower Show at RHS Wisley.
CREDIT: JOHN NGUYEN/JNVISUALS

The Milky Way photographed from the Brecon Beacons.
CREDIT: ALYN WALLACE
Market Closes for September 6^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell, the currency rose and bond yields spiked after the Bank of Canada raised interest rates for the second time in two months, against the expectations of several economists who expected the central bank to wait until October.
     The S&P/TSX Composite Index fell 30 points or 0.2 percent to 15,059.83, retreating a third day. Before the rate decision, the benchmark rose as much as 0.6 percent.
     The materials sector led the declines, falling 1.4 percent as the price of gold lost 0.4 percent. Gold reversed earlier gains after U.S. President Donald Trump sided with Democrats on raising the U.S. debt limit for three months after tying the move to a hurricane-relief bill.
     Bond-proxies also fell following the rate hike, with telecom shares down 0.5 percent and utilities retreating 0.3 percent. The energy index rose 0.6 percent as West Texas Intermediate crude gained 1 percent.
     In other moves:
                            Stocks
* Hudson’s Bay Co. jumped 8.2 percent to the highest since May. Activist investor Jonathan Litt said there’s a “highly-qualified third-party buyer with serious interest” in HBC’s European banner at a price approaching C$10 a share
* Centerra Gold Inc. rose 6.6 percent after the miner said it’s in “advanced” settlement talks with the Kyrgyzstan
* Alimentation Couche-Tard Inc. added 2.6 percent after its $4- billion acquisition of CST Brands Inc. boosted quarterly profit
                            Commodities
* Western Canada Select crude oil traded at an $11.25 discount to WTI, $1.70 narrower than on Tuesday
* Aeco natural gas traded at a $1.61 discount to Henry Hub, the widest in a week and a half
* Gold fell 0.4 percent to $1,335.20 an ounce
                             FX/Bonds
* The Canadian dollar jumped 1.2 percent to C$1.2225 per U.S. dollar, the highest in more than two years, after the Bank of Canada raised rates for the second time since July
* The Canada 10-year government bond yield rose eight basis points to 1.94 percent, the highest in more than a month
US
By Andrew Dunn
     (Bloomberg) — U.S. stocks pushed higher while longer-term government debt fell after lawmakers reached a deal with President Donald Trump to extend the U.S. debt limit and fund the government through mid-December.
     The S&P 500 Index added to its gains after Democratic congressional leaders announced the agreement, which also includes aid to victims of Hurricane Harvey. Ten-year Treasury yields jumped, while shorter-term bills showed a mixed reaction. Yields on bills maturing on Oct. 5 and Oct. 12 fell as much as 12 basis points but December yields climbed, as investors anticipated a rerun of the debt drama that roiled markets in recent weeks.
     While the agreement mitigates one threat facing financial markets, plenty of other unresolved matters loom on the horizon. Federal Reserve Vice Chairman Stanley Fischer resigned effective next month after three years at the U.S. central bank. His departure “adds further uncertainty to the already murky outlook for the future of the central bank’s leadership,” according to Royce Mendes, an economist at CIBC. 
     This week will see a raft of central bank speakers and economic decisions and data. Chief among them is Mario Draghi, who may give more clarity on winding down the European Central Bank’s bond-buying program when he speaks after a policy decision on Thursday. U.S. unemployment claims and the release of the Fed’s Beige Book are also on the way. Federal Reserve speakers so far have continued to urge caution on tightening policy.
     The loonie jumped to a two-year high against the U.S. dollar after Canada’s central bank raised its benchmark interest rate to 1 percent. The euro was little changed despite an unexpected decline in German factory orders. Then yen saw its biggest drop in over two weeks; the pound advanced.
     While Hurricane Irma threatens Florida and the cleanup from Harvey continues, Trump is scheduled to appear at a tax event in North Dakota. The president is expected to focus on the state’s history of cross-party support for reductions to the tax rate, according to speech excerpts provided by the White House.
     The hurricanes could “help the children get along in the sandbox because the country is going to have to work together on relief and other things could get done that could stimulate the economy,” said Brian Belski, chief investment strategist at BMO Capital Markets. North Korea remains the biggest threat because it’s a “very binary” situation that markets are “unable to discount,” he said.
     Automakers helped spur a recovery for the Stoxx Europe 600 Index after equities slid from Hong Kong to Sydney as traders girded for a potential intercontinental ballistic missile launch by Pyongyang.  Data showed Australia’s economy grew less than forecast in the second quarter, and the Reserve Bank of Australia left its benchmark rate unchanged.
     The key events coming this week:
* China trade figures this week 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.
* The European Central Bank meets on Thursday. Mario 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 rose 0.31 percent to 2,465.57 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index increased 0.1 percent.
* Germany’s DAX Index increased 0.7 percent
* The U.K.’s FTSE 100 Index fell 0.3 percent. 
                           Currencies
* The Bloomberg Dollar Spot Index decreased 0.1 percent.
* The euro was unchanged at $1.1914.
* The British pound advanced 0.1 percent to $1.304.
* The Japanese yen fell 0.5 percent to 109.32 per dollar.
* The Canadian dollar surged 1.2 percent to C$1.225 per U.S. dollar, the strongest in more than two years.
                            Bonds
* The yield on 10-year Treasuries advanced four basis points to 2.10 percent.
* Germany’s 10-year yield increased one basis point to 0.35 percent.
* Britain’s 10-year yield fell two basis points to 1.005 percent.
                            Commodities
* Gold fell 0.4 percent to $1,334.12 an ounce.
* West Texas Intermediate crude advanced 1 percent to $49.13 a barrel.
* The Bloomberg Commodity Index gained 0.4 percent to 85.72, the highest in more than 20 weeks.
                             Asia
* Japan’s Topix index reversed earlier losses to end up 0.1 percent. The Kospi index in South Korea slid 0.3 percent as did Australia’s main gauge. The Hang Seng Index declined 0.5 percent in Hong Kong on low volumes and China’s equity benchmarks were also lower.

Have a wonderful evening everyone.

Be magnificent!

Why is there this division between man and man, between race and race, culture against culture,
one series of ideologies set one against another?  Why?
Why is there this separation?
Krishnamurti

As ever,

Carolann

What you have become, is the price you paid to be what you used to want.
                                                     -Mignon McLaughlin, 1913-1983

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