August 14, 2017 Newsletter

Dear Friends,

Tangents:
On Aug. 14, 1945, President Truman announced that Japan had surrendered unconditionally, ending World War II.
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Be yourself; everyone else is already taken.

PHOTOS OF THE DAY

Sir Mo Farah stands at the tip of the Coca-Cola London Eye as he bids a final farewell to British track athletics after winning gold in the 10,000m and silver in the 5000m at the IAAF World Championships in his home city. CREDIT: Martin Rickell/PA

A  cardboard tower with a height of 20 meters and a weight over a ton is brought down during the street festival “Les Jeux du Castrum” in Yverdon-les-Bains, Switzerland.  The piece and performance designed by French artist Olivier Grossetete has brought back to life a replica of the former 19^th century “Tour de la Plaine” tower from Yverdon-les-Bains. CREDIT: Valentin Flauand/Keystone VIA AP.
Market Closes for August 14th, 2017 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
60
The number of consecutive trading sessions in which the Dow industrials has not moved 1% or more in either direction, the longest streak in more than a decade.
Canada
By Natalie Wong
     (Bloomberg) — Canadian stocks, which had fallen every day last week, rebounded amid a broader tech rally as concern eased about escalating rhetoric over North Korea, leading to gains across global share markets.
     The S&P/TSX Composite Index jumped 0.6 percent to 15,119.91. Technology gained 1.3 percent as Kinaxis Inc. rose 3.4 percent, Shopify Inc. increased 2.8 percent and BlackBerry Ltd. added 2.3 percent.
     Industrials rose as much as 1.6 percent, the most since March, as Badger Daylighting Ltd. soared 14.8 percent after earnings per share for the second quarter beat the highest analyst estimate.
     Health care dropped 0.8 percent, continuing a four-day slump, as Prometic Life Sciences Inc. lost 5 percent ahead of second quarter results, becoming the worst performing stock in the index. Knight Therapeutics Inc. fell 3.5 percent despite announcing today that it has amended its loan agreement with Crescita Therapeutics Inc. to receive early repayment of $2.5 million of the loan.
     In other moves:
* Consumer staples increased as much as 1.5 percent, the most since April, as Premium Brands Holding Corp. jumped 7.3 percent after second quarter revenue and earnings per share beat analyst estimates
* Telecom stocks gained 1 percent as Telus Corp. added 1.2 percent.
US
By Eric J. Weiner
     (Bloomberg) — Stocks gained and volatility receded as the prospect of war between the U.S. and North Korea cooled. Havens such as gold, Treasuries and the yen fell. Oil retreated.
     U.S. shares were broadly higher, with the S&P 500 Index gaining the most since April and the Dow Jones Industrial Average and Nasdaq Composite Index also rising. Volatility retreated, as the CBOE Volatility Index, or VIX, fell below 12.5 after topping 16 on Aug. 10.
     The Stoxx Europe 600 Index posted its first gain in four days, tracking increases across markets including South Korea, Australia and Hong Kong. Most European government bonds followed Treasuries lower. Bitcoin posted yet another surge.
     Volatility gauges jumped last week and risk assets tumbled as the sudden increase in tension around the Korean peninsula jolted markets globally. The reaction was exacerbated by rich valuations in numerous asset classes, many of which had barely corrected this year. White House officials sought to calm the crisis on Sunday by assuring that war was not about to break out, and media attention shifted to strife within the U.S.
following the violent white-supremacist rally in Charlottesville, Virginia, over the weekend.
     Meanwhile, there was a mixed bag of data out of Asia on Monday. Japan’s second-quarter growth topped estimates, reflecting better domestic demand. China’s economy posted its worst showing this year as curbs on property, excess borrowing and industrial overcapacity began to have an impact.
          Here are the big events to watch this week:
* A crowded U.S. data docket will give some indication of whether second-half GDP will outperform the first half. July retail sales are expected to rise from June, while housing starts and industrial production may be muted.
* On Wednesday, the Federal Open Market Committee will issue minutes from a July policy meeting that may hold clues to the Federal Reserve’s next rate hike. The same day, Euro-area second-quarter GDP data is due.
* Chinese tech titans Tencent Holdings Ltd. and Alibaba Group Holding Ltd. are among the companies reporting results this week. After rising 76 percent in 2017, Alibaba shares trade at a multiple of 65 times earnings. Tencent is trading at 56 times profits after a 71 percent jump.
* Russia’s factory output growth probably dipped to 3.3% in July year-on-year from 3.5% in June. The data is due in the early part of the week.
     And here are the main moves in markets:
                            Stocks
* The S&P 500 finished up 1 percent. The Dow added 0.6 percent, while the Nasdaq Composite rose 1.3 percent.
* The Stoxx Europe 600 climbed 1.1 percent.
* The U.K.’s FTSE 100 Index gained 0.6 percent.
* Germany’s DAX Index advanced 1.3 percent, its biggest rally in a month.
* The MSCI All-Country World Index increased 0.7 percent. 
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent.
* The euro dipped 0.3 percent to $1.1786.
* The British pound fell 0.4 percent to $1.2967.
* The Japanese yen slid 0.4 percent to 109.66 per dollar, the first retreat in a week.
                             Bonds
* The yield on 10-year Treasuries increased three basis points to 2.22 percent.
* Britain’s 10-year yield gained one basis point to 1.07 percent.
* Germany’s 10-year yield rose two basis points to 0.41 percent.
                          Commodities
* West Texas Intermediate crude plunged 2.8 percent to $47.47 a barrel.
* Gold dipped 0.6 percent to $1,282.14 an ounce, its first retreat in a week.* Japan’s Topix index finished 1.1 percent lower.
* South Korea’s Kospi index advanced 0.6 percent.
* Australia’s S&P/ASX 200 index rose 0.7 percent.
* The Shanghai Composite Index added 0.9 percent, while in Hong Kong the Hang Seng Index gained 1.4 percent. 

Have a wonderful evening everyone.

Be magnificent!

Differentiation, infinitely contradictory, must remain,
but it is not necessary that we should hate each other;
it is not necessary therefore that we should fight each other.
Swami Vivekananda

As ever,

Carolann 

He who wonders discovers that this in itself is wonder.

                                      -M.C. Escher, 1898-1972

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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