November 15, 2017 Newsletter

Dear Friends,

Tangents:
On this day in 1971, the microprocessor is officially born as Intel introduces its new 4004 chip. The holder of the commercial rights, Busicom of Japan, sees no use for the chip and sells its entire interest to Intel for $60,000.

PHOTOS OF THE DAY

A harvest mouse collects berries in Morpeth, Northumberland. These adorable creatures are often seen climbing through meadows and hedgerows but due to the change in farming, sightings are becoming few and far between.
CREDIT: ROGER COAN/SWNS

Dancers, who perform a section of their routine with their faces completely covered by wigs, on stage during in an open technical rehearsal for Scottish Dance Theatre production YAMA (mountain in Japanese) at Dundee Rep in Tay Square, Dundee.

(Left to right) A Ferrari F-40 1987, a Ferrari Testarossa Spyder 1986 and Ferrari 275 GTB/4 1967 on display at the ‘Ferrari:  Under the Skin’ exhibition at the Design Museum in London.
Market Closes for November 16^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at their lowest level in three weeks as falling commodity prices weighed on the benchmark amid a growing global risk-off mood.
     The S&P/TSX Composite Index lost 35 points or 0.2 percent to 15,878.48. The index has fallen six days in a row, the longest streak of declines since January 2016.
     Energy shares declined 0.6 percent as the price of crude fell near $55 a barrel, its lowest level in almost two weeks. Russia is said to be casting doubt on whether OPEC should extend output cuts.
     The consumer staples sector was the only significant gainer, adding 0.4 percent. Premium Brands Holdings Corp. gained 4.9 percent, rebounding from Tuesday’s 6.6 percent drop, after BMO Capital Markets upgraded the stock to outperform.
     In other moves:
                            Stocks
* Martinrea International Inc. jumped 11 percent to the highest since mid-2015. The company beat earnings estimates and said it’s relatively well positioned even if Nafta is scrapped
* Home Capital Group Inc. rose 3.3 percent after third-quarter earnings beat estimates, even as the company struggles to regain customers
* Boardwalk Real Estate Investment Trust fell 6.4 percent. Third-quarter funds from operations missed estimates
                            Commodities
* Western Canada Select crude oil traded at a $14.15 discount to WTI, unchanged from Tuesday
* Aeco natural gas traded at a $1.54 discount to Henry Hub, the widest gap this month
* Gold fell 0.4 percent to $1,277.70 an ounce
                             FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2767 per U.S. dollar, the lowest in more than a week
* The Canada 10-year government bond yield fell four basis points to 1.91 percent, the biggest drop this month
US
— U.S. stocks fell to a three-week low, while the dollar slumped with Treasury yields as concerns persisted over global growth and the prospects for tax cuts.
     The S&P 500 notched its fourth drop in five days, retreating from near session highs in the final half hour of trading on a report that a key Republican opposes the Senate’s latest tax bill. Energy shares led declines as crude continued its slide toward $55 a barrel. A renewed commodities slump overshadowed data showing the U.S. consumer remains robust, while inflation data helped boost bank shares.
     The latest batch of data from the U.S. helped ease concern that the world’s economic growth engine was starting to sputter after the flattest yield curve in a decade spooked investors. Stocks still fell partly on the threat that cracks in the market for high-yield debt could spread and on new obstacles to the passage of tax reform. At the same time, weak data out of China stirred anxiety of a slowdown there, sending commodities prices into a tailspin.
     Investors had a raft of potential market-moving news to digest Wednesday, as President Donald Trump returned from his 12-day Asia trip to a domestic political landscape buffeted by a Congressional battle over tax cuts and a controversial Senate race in Alabama. The House looks set to vote on its version of the tax plan, while the Senate’s latest version would expand temporary cuts for businesses, boosting optimism among investors.
     “When a market wants to move higher, it moves higher, nothing bothers it. But when a market needs to pull back, everything seems to bother it. Every headline bothers it,” Quincy Krosby, chief market strategist at Prudential Financial Inc, said by phone. “That’s where we are right now, but if history is any guide, by history I mean the last eight years, buyers will start to pick up some of the names that they wanted to go into but were waiting for a pullback.”
     Here are some key events investors are watching this week:
* Bank of England officials address the bank’s future on Thursday, while European Central Bank chief Mario Draghi speaks Friday.
* A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.
   And these are the main moves in markets:
                             Stocks
* The S&P 500 Index fell 0.6 percent to 2,564.71 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.5 percent for its seventh consecutive decline.
* The MSCI All-Country World Index declined 0.4 percent, reaching the lowest in almost three weeks on its fifth consecutive decline.
* The MSCI Emerging Market Index fell 0.6 percent, hitting the lowest in almost three weeks with its fifth consecutive decline.
                            Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent, after touching the lowest in almost four weeks.
* The euro was little changed at $1.1797, reaching the strongest in almost four weeks on its sixth consecutive advance.
* The British pound rose 0.1 percent at $1.3175.
* The Japanese yen advanced 0.3 percent to 113.09 per dollar, after touching the strongest in almost four weeks on the biggest increase in almost 10 weeks.
                            Bonds
* The yield on 10-year Treasuries declined five basis points to 2.32 percent.
* Germany’s 10-year yield dipped two basis points to 0.38 percent.
* Britain’s 10-year yield fell four basis points to 1.286 percent, the largest drop in almost two weeks.
                            Commodities
* Gold fell 0.1 percent to $1,278.69 an ounce, after touching the highest in almost four weeks on the biggest gain in a week.
* West Texas Intermediate crude fell 0.8 percent to $55.27 a barrel, touching the lowest in almost two weeks.

Have a wonderful evening everyone.

Be magnificent!

If the recognized leaders of mankind who have control over the engines of destructions
were wholly to renounce their use, with full knowledge of its implications, permanent peace can be obtained. This is clearly impossible without the Great Powers of the earth renouncing their imperialistic design. This again seems impossible without great nations ceasing to believe in soul-destroying competition and to desire to multiply wants and, therefore, increase their material possessions.
Mahatma Gandhi

As ever,

Carolann

It takes twenty years to make an overnight success.
                                 -Eddie Cantor, 1892-1964

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 

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