October 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

Farmer Verity Bachelor sits with the new pumpkin crop at “PYO Pumpkins” in Hoo, England. The company began in 2009 and allows families to visit the site to pick their own pumpkins, ahead of Halloween events on October 31.
CREDIT: LEON NEAL/GETTY IMAGES

A red deer stag during the deer rutting season in Richmond Park, Richmond upon Thames.
CREDIT: DOMINIC LIPINKSI/PA
Market Closes for October 5^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks gained as copper prices jumped the most since July, while the loonie fell to a five-week low as Canada’s trade picture deteriorated.
     The S&P/TSX Composite Index added 55 points or 0.4 percent to 15,776.30, the highest since February. Materials stocks rose 0.8 percent as the price of copper jumped 3 percent. Ivanhoe Mines Ltd. added 6.8 percent and First Quantum Minerals Ltd. rose 4.8 percent.
     The energy sector rose 0.5 percent as West Texas Intermediate crude prices added 1.6 percent, boosted by signs of growing cooperation between Saudi Arabia and Russia. CES Energy Solutions Corp. rose 5.2 percent.
     In other moves:
                            Stocks
* Shopify Inc. fell 2.1 percent, moderating an earlier drop of as much as 9.3 percent. Analysts broadly dismissed a short- seller report that alleges Shopify is a “get-rich-quick scheme”
* Canopy Growth Corp. jumped 6.7 percent, the most since June, a day after Canada proposed a C$1 per gram tax on recreational pot, lower than expected
* TransCanada Corp. rose 1.1 percent. The company has scrapped two pipeline projects and said it expects to record a C$1 billion charge in the fourth quarter
                            Commodities
* Western Canada Select crude oil traded at an $11.25 discount to WTI
* Aeco natural gas traded at a $2.50 discount to Henry Hub
* Gold fell 0.3 percent to $1,269.90 an ounce, the lowest since early August
                             FX/Bonds
* The Canadian dollar weakened 0.7 percent to C$1.2568 per U.S. dollar, the lowest since August, after Canada’s trade deficit unexpectedly widened in August
* The Canada 10-year government bond yield fell one basis point to 2.10 percent
US
By Randall Jensen
     (Bloomberg) — U.S. stocks extended records with an eighth straight gain, the dollar rose to a two-month high and Treasuries dipped as a batch of U.S. data and hawkish Fed speakers strengthened the case for higher rates.
     The S&P 500 Index capped its longest winning streak since July 2013, with tech shares pacing gains as the prospect for faster economic growth got a lift from better-than-forecast factory orders. The CBOE Volatility Index closed at a record low in data going back to 1990. U.S. 10-year note yields edged higher, and the dollar pushed its gain in the past month to 2 percent as comments by regional Fed President John Williams reinforced optimism in the economy. The U.S. government releases September jobs data Friday.
     In Asian markets, holidays this week across the region and a lack of major economic data may curb trading. The Japanese yen was little changed after Bank of Japan Deputy Governor Hiroshi Nakaso commented on inflation during a speech in London.
     “The data we’ve had has been pretty good and again hawkish — better than the inflation data we got with the PCE data last week,” Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC, said by phone. “There’s more re- pricing necessary in bonds, especially considering we’re seeing pretty good economic data that’s definitely going to keep the Fed on course.”
     European markets firmed Thursday after reports that Catalans were stalling their push for independence from Spain. That sent the nation’s bond yields and equities higher. Minutes from the European Central Bank released showed members discussed how to adjust monetary stimulus next year as policy makers raised concern about the rapid appreciation of the euro.
     Coming Up:
* The U.S. September nonfarm payrolls report, likely to be affected by the impact of hurricanes on southern states, comes out on Friday. Read here why a better look at the data will be coming on Oct. 20.
     Here are the main moves in markets:
                        Stocks
* The S&P 500 Index advanced 0.6 percent to a record 2,552.07 at 4 p.m. New York Time.
* The Dow Jones Industrial Average added 114 points to 22,755, rising for the seventh day in a row to a record.
* The Nasdaq 100 Stock Index rose 1 percent to 6,057.
* The Stoxx Europe 600 Index gained 0.2 percent after falling as much as 0.3 percent.
* Spain’s IBEX Index rose 2.5 percent, the most since in almost six months.
                        Currencies
* The Bloomberg Dollar Spot Index increased 0.6 percent, touching the highest in 11 weeks.
* The Japanese yen fell less than 0.1 percent.
* The Australian dollar dropped 0.9 percent to $0.7793.
* The euro declined 0.5 percent to $1.1705.
* The British pound fell 1 percent to $1.3114, the weakest in four weeks.
                         Bonds
* The yield on 10-year Treasuries rose two basis points to 2.34 percent.
* Germany’s 10-year yield rose less than one basis point to 0.46 percent.
* Spain’s 10-year yield fell 9 basis points to 1.699 percent.
                         Commodities
* West Texas Intermediate crude gained 1.4 percent to settle at $50.86 a barrel.
* Gold fell 0.6 percent to $1,267.80 an ounce.
* Copper surged 2.9 percent to $304 per pound, the biggest gain in more than five weeks.

Have a wonderful evening everyone.

Be magnificent!

“A dream doesn’t become reality through magic; it takes sweat, determination and hard work.” Colin Powell

As ever,

Karen

 “Peace begins with a smile..”  Mother Theresa

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