September 7, 2017 Newsletter

Dear Friends,

Tangents:
On Sept. 7, 1940, the German air force began its blitz on London during World War II.
Go to article » 

September 7, 1914: Opening of the New York post office.
September 7, 1533: Queen Elizabeth l is born. 

PHOTOS OF THE DAY

Prince George arriving with the Duke of Cambridge at Thomas’s Battersea in London, as he starts his first day of school.
CREDIT: RICHARD POHLE/PA

Japanese-Australian artist Hiromi Tango performs in her installation titled Red Room at a preview of the Sydney Contemporary Art Fair. The fair is Australiasias premier international art fair, with more than 80 leading Australian and international exhibitors from around the pacific rim and further afield including China, Hong Kong, The Philippines, Singapore, Chile and New Zealand.
CREDIT: WILLIAM WEST/AFP

The moon rises over St Mary’s Lighthouse in Whitley Bay. 
CREDIT: OWEN HUMPHREYS/PA
Market Closes for September 7^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2008, the U.S. government seizes control of troubled mortgage giants Fannie Mae and Freddie Mac and replaces the companies’ chief executives.
Number of the Day
10%
The price of diesel futures has risen roughly 10% since Hurricane Harvey tore into the U.S. Gulf Coast, contributing to a shortfall of the fuel in Europe, a region with massive diesel appetites for passenger cars.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell as Hurricane Irma weighed on insurance shares, while the loonie continued its upward march to the highest level since May 2015.
     The S&P/TSX Composite Index lost 35 points or 0.2 percent to 15,024.53, the benchmark’s fourth consecutive decline and its lowest close in more than two weeks.
     Financial shares lost 0.6 percent as Power Corp. of Canada fell 2.4 percent, Manulife Financial Corp. slipped 1.6 percent and Sun Life Financial Inc. lost 1 percent.
     The biggest gainers, meanwhile, were consumer discretionary stocks, up 1.6 percent. The sector was led by an 11 percent rise in shares of Dollarama Inc., which posted earnings that topped estimates and raised its gross-margin forecast.
     In other moves:
                             Stocks
* Hudson’s Bay Co. rose 6.7 percent. Austrian real estate company Signa Holding is examining a bid for the retailer’s German operations, Reuters reported
* Transcontinental Inc. added 6.1 percent after reporting adjusted earnings per share that beat the highest analyst estimate
* Restaurant Brands gained 3.3 percent. The stock was upgraded to outperform by Credit Suisse on expectations it will sustain earnings growth
                          Commodities
* Western Canada Select crude oil traded at a $11.20 discount to West Texas Intermediate, the narrowest in more than a week
* Aeco natural gas traded at a $1.56 discount to Henry Hub
* Gold rose 0.9 percent to $1,346.50 an ounce
                            FX/Bonds
* The Canadian dollar rose 1 percent to C$1.2111 per U.S. dollar, adding to Wednesday’s 1.2 percent gain. It has risen 14 percent since its May low
* The Canada 10-year government bond yield fell 1 basis point to 1.94 percent
US
By Andrew Dunn
     (Bloomberg) — U.S. stocks were little changed, while the dollar tumbled and Treasuries rallied as investors sounded a note of caution with Hurricane Irma barreling toward Florida and North Korea issuing threats. 
     The S&P 500 Index, Nasdaq Composite Index and Dow Jones Industrial Average barely budged, while the euro strengthened after the European Central Bank signaled prolonged stimulus. The ECB’s dovish tone boosted the region’s currency to the highest in almost three years, fueling demand for dollar-denominated debt. That sent 10-year Treasury yields down to 2.05 percent.
Gold advanced on signs that inflation in the U.S. and Europe remains subdued.
     ECB President Mario Draghi said he’s watching the euro’s gains as policy makers edge toward settling the future of their bond-buying program. The euro’s surge — more than 14 percent against the dollar this year — was reflected in a downgrade to the ECB’s inflation outlook even as Draghi said economic growth remains solid.
     Meanwhile, U.S. President Donald Trump’s surprise debt- ceiling deal with Democrats temporarily bolstered markets, but traders are alert to a potential escalation of North Korea risks amid concerns Pyongyang may fire a ballistic missile. Trump said that military action against the country wasn’t his first choice as South Korea moved to bolster its missile shield.
    Fed Deputy Chairman Stanley Fischer’s impending departure added to uncertainty about leadership at the central bank as the end of Janet Yellen’s term approaches.
          The key events this week:
* China trade figures are anticipated to show another month of solid export growth, according to Bloomberg Intelligence.
* Irma is expected to maintain strength and make landfall on the U.S. coast on Sunday.
     And here are the main moves in markets:
                             Stocks
* The S&P 500 Index fell less than 0.05 percent as of 4 p.m. in New York.
* The Nasdaq Composite Index rose 0.07 percent while the Dow Jones Industrial Average fell 0.1 percent.
* The Stoxx Europe 600 Index gained 0.3 percent and the U.K.’s FTSE 100 Index rose 0.6 percent.
                           Currencies
* The Bloomberg Dollar Spot Index dipped 0.7 percent, hitting the lowest in more than two years with its sixth straight decline.
* The euro increased 0.9 percent to $1.2019, the strongest in almost three years.
* The British pound gained 0.4 percent to $1.3097, the strongest in almost five weeks.
* The Japanese yen increased 0.7 percent to 108.49 per dollar.
                             Bonds
* The yield on 10-year Treasuries fell six basis points to 2.05 percent.
* Germany’s 10-year yield declined four basis points to 0.31 percent, the lowest in more than 10 weeks.
* Britain’s 10-year yield fell three basis points to 0.972 percent.
                          Commodities
* Gold gained 1.1 percent to $1,349.04 an ounce, the highest in a year.
* West Texas Intermediate crude fell 0.1 percent to $49.11 a barrel.
* Copper sank 0.1 percent to $3.15 a pound, the first retreat in more than a week.
                              Asia
* The Topix index rose 0.4 percent at the close in Tokyo, while the Kospi index in South Korea was up 1.1 percent and Australia’s S&P/ASX 200 Index was flat.
* Hong Kong’s Hang Seng Index fell 0.3 percent as Chinese indexes fluctuated.
* The MSCI Asia Pacific Index climbed 0.4 percent.

Have a wonderful evening everyone.

Be magnificent!

We are fragmented.  We are one person at the office and another at home,
we speak of democracy and are autocrats in our hearts;
we speak of love for our neighbors even as we kill that love with our competitive spirit;
one part of us works, watches, and acts independently of the other.
Are you conscious of the fragmentation of your existence?  Is it possible for a mind
that has splintered the structure of its thought to perceive the broad field of consciousness?
Krishnamurti

As ever, 

Carolann 

Imparting knowledge is only lighting other men’s candles at our lamp,
without depriving ourselves of any flame.
-Jane Porter, 1776-1850

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