November 1, 2017 Newsletter

Dear Friends,

Tangents:
All Saints Day
November 1, 1993: European Union established
On Nov. 1, 1952, the United States exploded the first hydrogen bomb, in a test at Eniwetok in the Marshall Islands.
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Poems Inspired by Donald Trump con’t:  (from The New York Times)
Michael Collins of Salem, Ore., wrote about making a difference in “No Matter How Small”:

I’m sorry for my tone, of late. 
It’s tiring, decrying hate, 
And likely tiresome as well
But ever since the hammer fell 
And Trump ascended to the throne 
I’ve told myself my voice alone 
Won’t make a difference, but that I 
Should not interpret that: Don’t try.
The Whos that only Horton hears 
In Dr. Seuss’ book reached ears 
Besides the elephant’s when they 
Cried all together, so, O.K., 
I’ll keep on shouting, We are here!
A waste? Perhaps, but it’s sincere.

Advanced Placement students at Pittsburg High School in a high-poverty part of the San Francisco Bay Area offered several excellent poems. Natalie Calderon, a 17-year-old Latina student, wrote “Deception”:

America, the so-called land of the free 
But is it still free if I take a knee? 
Our president wants to “Make America Great Again” 
But keeps putting roadblocks in the path of equality 
I’m worried things will only get worse from here 
I adjure to feel secure but how can I when 
My so-called leader is acting so immature 
My hope in humanity is fading 
Because of all the degrading 
My heart hurts as racism is pervading 
I feel anger in my soul as it anchors my stomach 
My spirit is damaged by the baggage of hate I carry 
But I must stay strong for the struggles to come 
I just hope my pride doesn’t go numb            

PHOTOS OF THE DAY

A group of divers are dwarfed as they swim alongside two enormous humpback whales. The amazing scene was captured by photographer Paul Carlyon over the Ningaloo Reef near Coral Bay in Western Australia. He said:  We do get very curious whales sometimes that will stop and come back to have a better look at the swimmers.

Hikers walk amongst the unique U-shaped troughs of ‘The Wave’ rock formation at the Coyotes Buttes North wilderness area near Page, Arizona.  The Wave is a sandstone rock formation in northern Arizona and was formed by a combination of water and wind erosion and due to its fragile nature, access is limited to only 20 hikers per day.

Theatrical designer Debbie Rees Deacon with her creation, a King Midas stature made out of one pound coins and other recycled material, at the British Ironwork Centre in Oswestry, Shropshire.

Flame Handover Ceremony For Pyeongchang 2018 Olympics – Panathenaic Stadium, Athens, Greece.
Market Closes for November 1^st, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1999, the Dow Jones Industrial Average adds Home Depot, Intel, Microsoft and SBC Communications. The companies removed from the 30-member index are Chevron, Goodyear, Sears and Union Carbide.
Number of the Day
10.13
The average level of the CBOE Volatilty Index, or VIX, in October, its lowest on record for the month going back to 1990, according to The Wall Street Journal’s Market Data Group. The fall months tend to be more volatile for stock markets, but this year the market is bucking the trend.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks eked out a fourth straight record, as gains in energy offset declines in financials and industrials.
     The S&P/TSX Composite Index added 4 points or less than 0.1 percent to 16,029.33. Energy stocks rose 0.9 percent even as crude prices fell 0.2 percent, erasing earlier gains after a U.S. government report showed a smaller-than-expected decline in stockpiles.
     Financials fell 0.2 percent and industrials lost 0.8 percent. WestJet Airlines Ltd. fell 5.4 percent after its earnings and guidance prompted two analyst downgrades. Air Canada fell in sympathy, losing 5.7 percent.
     In other moves:
                            Stocks
* Hudson’s Bay Co. rose 9.1 percent. The company received an unsolicited bid for Germany’s Kaufhof chain from Signa Holding GmbH
* Centerra Gold Inc. lost 9 percent, the most in nearly a year, after cutting its full-year gold production forecast
* NuVista Energy Ltd. added 5.7 percent to the highest since May 2015 following analyst upgrades at Raymond James and Eight Capital
* Thomson Reuters Corp. fell 5.6 percent, the most since 2014. Third-quarter revenue missed analyst estimates
                            Commodities
* Western Canada Select crude oil traded at a $13.40 discount to WTI, the widest gap since March
* Aeco natural gas traded at a 78 cent discount to Henry Hub, the narrowest gap since March
* Gold rose 0.5 percent to $1,277.30 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 0.2 percent to C$1.2859 per U.S. dollar
* The Canada 10-year government bond yield rose two basis points to 1.97 percent, the first gain in six trading days
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — Most U.S. stocks advanced and the dollar rose after the Federal Reserve acknowledged economic growth is solid. Small caps fell as the prospects for tax reform remained uncertain amid political wrangling in Congress.
     The S&P 500 Index edged higher after the Fed reinforced expectations for a December rate increase by subtly upgrading its assessment of the economy, a day before President Donald Trump plans to unveil his choice to lead the U.S. central bank. The dollar briefly erased a gain on the Fed decision before reclaiming a small advance. The 10-year Treasury yield slipped to 2.37 percent.
     The Fed meeting did little to alter perceptions, with investors focused on the prospects for tax cuts, corporate earnings and Friday’s U.S. jobs report. The Russell 2000 Index took a hit on speculation that failure to cut taxes would weigh on small companies hardest. Facebook Inc. added more than 2 percent in late trading after its results topped estimates. Apple Inc. is due to report Thursday.
     Earlier, European equities hit a two-year high and share measures from Tokyo to Sydney climbed as corporate earnings poured in ahead of expectations. Nickel surged to the highest since 2015 on speculation demand will grow, while oil slumped from an eight-month high following a U.S. inventories report.
     U.S. equity markets continue to show sensitivity to the tax plan as its prospects ebb and wax from headline to headline. Congress intended to release details Wednesday but delayed that until at least tomorrow as legislators debate how to pay for big reductions. Trump has insisted that the legislation be passed before Thanksgiving. The back-and-forth threatened to overshadow a raft of strong corporate earnings and sales that had bolstered optimism in the global economy.
     “The market is pounding the table asking, ‘Where is this plan, why have I not seen it yet, the calendar is getting short,”’ said Michael Antonelli, managing director of institutional equity trading at Robert W Baird. “The Russell 2000 has been going lower every second of the day so far.”
     Meanwhile, central banks remain on the docket. An announcement on who will helm the Fed is due Thursday, with current board member Jerome Powell said to have the edge over John Taylor. The Bank of England will probably lift borrowing costs on for the first time in a decade.
     There were few developments of note in the unfolding investigation by Special Counsel Robert Mueller into Russia’s meddling in last year’s presidential campaign.
     Here are some other key upcoming events this week:
* The U.S. October payroll report comes out Friday.
* Trump starts an 11-day trip to Asia, his first as president, on Friday. Trade and security issues — particularly North Korea — will probably be in focus.
* A probable Bank of England rate hike on Thursday will be the first in a decade.
* The slew of earnings releases will culminate with Apple Inc. results.

      And these are the main moves in markets:
                           Stocks
* The S&P 500 rose 0.2 percent to 2,579.37 as of 4 p.m. in New York.
* The Dow Jones Industrial Average added 0.3 percent and the Russell 2000 lost 0.7 percent.
* The Stoxx Europe 600 Index advanced 0.4 percent.
* Japan’s Nikkei 225 Stock Average climbed 1.9 percent to the highest in more than 21 years.
* The MSCI Asia Pacific Index climbed 0.9 percent to the highest in about 10 years.
* The MSCI Emerging Market Index jumped 0.9 percent to the highest in more than two weeks.
                           Currencies
* The Bloomberg Dollar Spot Index advanced 0.1 percent.
* The euro fell 0.3 percent to $1.1615.
* The British pound increased less than 0.05 percent to $1.3288, the strongest in more than a month.
* The Japanese yen decreased 0.5 percent to 114.20 per dollar, the weakest in about six months.                            
                           Bonds
* The yield on 10-year Treasuries fell two basis points to 2.36 percent.
* Germany’s 10-year yield advanced two basis points to 0.38 percent.
* Japan’s 10-year yield declined one basis point to 0.061 percent, the lowest in more than three weeks.                                                       Commodities
* West Texas Intermediate crude slipped 0.3 percent to $54.23 a barrel, after touching the highest in eight months.
* Gold futures increased 0.4 percent to $1,276 an ounce.
* Copper advanced 1.6 percent to $3.15 a pound.

Have a wonderful evening everyone.

Be magnificent!

Nonviolence is the greatest force at the disposal of mankind.
It is mightier than the mightiest weapon of destruction devised by the ingenuity of man.
Mahatma Gandhi

As ever,

Carolann

Inspiration is a guest the does not willingly visit the lazy.
                               -Pyotr Ilyich Tchaikovsky, 1840-1893

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
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