August 15, 2017 Newsletter

Dear Friends, 

Tangents:
Napoleon Bonaparte, French emperor, b. August 15^th, 1769.

On Aug. 15, 1947, India and Pakistan became independent after some 200 years of British rule.
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PHOTOS OF THE DAY

Jockey Luigi Bruschelli of the “Bruco” (Caterpillar) parish struggles with his horse on the starting ropes of the third practices for the Palio of Seina. CREDIT: STEFANO RELLANDINI/REUTERS.

Hundreds of revelers try to navigate their hand-made rafts in the port of the northern Spanish Basque city of San Sebastian during the “Abordaje” (boarding) festival event. CREDIT: GARI GARAIALDE/AFP.

French bullfighter Sebastian Castella fights a bull during the third bullfighting as part of Malaga’s Fair, southern Spain. CREDIT: JORGE ZAPATA/EFE.
Market Closes for August 15th, 2017 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1971, President Richard Nixon ends direct international convertibility of the U.S. dollar to gold.
Canada
By Natalie Wong
(Bloomberg) — Canadian stocks weakened for the fifth day in six as losses in energy and materials stocks overcame gains in health care, amid diminishing rhetoric between North Korea and the U.S.
The S&P/TSX Composite Index fell 0.2 percent to 15,097.84.
Energy stocks dropped 0.6 percent, cementing a six-day slump, as Precision Drilling Corp. lost 5.6 percent and CES Energy Solutions Corp. slipped 3 percent.
Materials lost 0.4 percent, dropping to the lowest price in over two weeks, as Intertape Polymer Group Inc. lost 3.5 percent after Scotiabank cut the stock to sector outperform, B2Gold Corp. decreased 3.4 percent and First Quantum Minerals Ltd. fell 3.4 percent as Zambia’s power restrictions hit the Kansanshi pit.
Health care gained 1 percent, snapping a four-day loss, as Prometic Life Sciences Inc. jumped 3.8 percent after falling for four days straight after the sudden departure of CFO Greg Weaver, which the Canadian Imperial Bank of Commerce said was a negative sign for the company.
In other moves:
* Nevsun Resources Ltd. jumped 5 percent, snapping a five-day loss, after being resumed at market perform at Raymond James; it was the top-performing stock in the index
* Badger Daylighting Ltd. fell 6 percent, the worst-performing stock in the index. Shares jumped 14.8 percent yesterday after second quarter earnings beat the highest analyst’s estimate.
US
By Eric J. Weiner
(Bloomberg) — The dollar rallied and U.S. stocks fell, halting a two-day advance, as the threat of war with North Korea diminished. Treasuries extended losses after U.S. retail sales exceeded forecasts last month, boosting speculation that the Federal Reserve might raise interest rates again this year.
The S&P 500 Index and Nasdaq Composite Index drifted lower, while the Dow Jones Industrial Average rose slightly for a third straight day. Meanwhile, traditional havens such as gold and the yen slumped. Oil shrugged off early losses to post a gain. The CBOE Volatility Index, also known as the VIX, continued to tumble amid a return to calm in the stock market.
The Stoxx Europe 600 Index edged up after the German economy extended its growth spurt in the second quarter, albeit at a slower pace than expected. The British pound dropped to a five-week low after U.K. inflation unexpectedly held steady in July, clouding the outlook for rate increases.
July retail sales in the world’s biggest economy advanced by the most in any month this year, bolstering the case for more policy tightening. Federal Reserve Bank of New York President William Dudley earlier said he favored another rate hike in 2017.
Meanwhile, Japan’s currency — a haven in times of global tension — slumped after a North Korean media report indicated that dictator Kim Jong Un had decided not to launch a threatened missile attack on Guam. In addition, South Korean President Moon Jae-in vowed to avoid a conflict at any cost.
In Germany, data showed the economy expanded 0.6 percent in the second quarter, driven by domestic demand. That missed estimates slightly, but was accompanied by a revision in the first-quarter number. The euro retreated.
Here are some key events to watch this week:
* On Wednesday, the Federal Open Market Committee will issue minutes from its 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.
And here are the main moves in markets:
Stocks
* The S&P 500 and Nasdaq Composite closed down 0.1 percent. The Dow gained five points, or less than 0.1 percent, and the Russell 2000 Index dropped 0.8 percent.
* The Stoxx Europe 600 Index increased 0.1 percent.
* The MSCI All-Country World Index declined 0.1 percent.
* Germany’s DAX Index jumped 0.1 percent.
* The U.K.’s FTSE 100 Index surged 0.4 percent.
Currencies
* The Bloomberg Dollar Spot Index jumped 0.4 percent.
* The euro fell 0.4 percent to $1.1739, the lowest in three weeks.
* The British pound dipped 0.8 percent to $1.2865.
* The Japanese yen decreased 0.8 percent to 110.54 per dollar, the biggest decline since July 3.
Bonds
* The yield on 10-year Treasuries climbed four basis points to 2.26 percent, the highest in a week.
* Germany’s 10-year yield advanced three basis points to 0.43 percent, the highest in a week.
* Britain’s 10-year yield gained one basis point to 1.08 percent.
Commodities
* Gold declined 0.7 percent to $1,273.09 an ounce.
* West Texas Intermediate crude rose less than 0.1 percent to $47.61 a barrel after falling 2.5 percent on Monday.
Asia
* Japan’s Topix index finished the day 1.1 percent higher and Australia’s S&P/ASX 200 Index gained 0.5 percent at the close. Hong Kong’s Hang Seng index dropped 0.3 percent as the Shanghai Composite Index rose 0.4 percent.
* Markets in South Korea and India are closed Tuesday for holidays.

Have a wonderful evening everyone.

Be magnificent!

The golden rule of conduct therefore, is mutual toleration,
seeing that we will never think alike and we shall see the Truth
in fragments and from different angles of vision.
Conscience is not the same thing for all.
While, therefore, it is a good guide for individual conduct,
imposition of that conduct upon all will be an insufferable interference
with everybody’s freedom of conscience.
Mahatma Gandhi

As ever, 

Carolann

Never interrupt your enemy when he is making a mistake.
                                   -Napoleon Bonaparte, 1769-1821

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
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www.carolannsteinhoff.com