December 14, 2017 Newsletter

Dear Friends,

Tangents:
On Dec. 14, 1981, Israel annexed the Golan Heights, seized from Syria in 1967.
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Also on this day in 1799, George Washington dies of acute laryngitis at his estate in Mount Vernon, Va. He was 67 years old.
1911- Amundsen reaches the South Pole.
1503 – Nostradamus, astronomer, was born.

PHOTOS OF THE DAY

An orangutan crosses a river in Indonesia’s Tanjung Putting National Park. The photo, titled ‘Face to face in a river in Borneo,’ has been selected as the grand-prize winner of the 2017 National Geographic Nature Photographer of the Year contest.

“Paradise Lost,” by John Milton is illuminated by nanobionic light-emitting plants (two 3.5-week-old watercress plants).

Maru, a two-month-old King Penguin chick looks at an adult penguin from a Christmas theme enclosure in the Penguin Coast exhibit at the Jurong Bird Park in Singapore.

A miniature snack bar which wildlife photographer Kate McRae created using doll’s house accessories for the birds in her garden in Lichfield, Staffordshire.
Market Closes for December 14^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
$4 billion
Money raised from initial coin offerings, or ICOs, has surged past $4 billion, even as regulators world-wide have escalated warnings about the new form of corporate funding.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell the most in four months as concerns grew that the U.S. tax overhaul won’t make it through the Senate, pressuring equities on both sides of the border.
     The S&P/TSX Composite Index lost 120 points or 0.7 percent to 16,016.46, the biggest drop since August. Health-care stocks tumbled 5.2 percent as Valeant Pharmaceuticals International Inc. fell 11 percent. JPMorgan downgraded Valeant, saying its valuation looks stretched.
     The consumer discretionary index lost 1.2 percent and energy stocks retreated 1 percent, even as the price of crude gained 0.8 percent. Cenovus Energy Inc. fell 5.1 percent after it said it will cut 15 percent of its workforce in 2018.
     In other moves:
                          Stocks
* Mitel Networks Corp. jumped 11 percent, the most since mid-2016. Analysts at Craig-Hallum said its current valuation doesn’t reflect its growth opportunities
* Transcontinental inc. fell 1.9 percent after fourth-quarter earnings missed the lowest analyst estimate
* Husky Energy Inc. gained 2.5 percent after three analysts raised their ratings on the stock, saying its refining profits will help offset falling heavy crude prices
                          Commodities
* Western Canada Select crude oil traded at a $25 discount to WTI, the first time the gap has narrowed in seven trading days
* Aeco natural gas traded at a $1.36 discount to Henry Hub
* Gold rose 0.7 percent to $1,253.80 an ounce, the biggest gain in three weeks
                           FX/Bonds
* The Canadian dollar strengthened 0.1 percent to C$1.2801 per U.S. dollar
* The Canada 10-year government bond yield rose one basis point to 1.85 percent
US
By Eric J. Weiner
     (Bloomberg) — U.S. equities slumped, with small caps leading losses, and the dollar erased a gain as concern mounted that the Republican tax overhaul package may struggle to pass the Senate.
     All major U.S. equity gauges were lower. The S&P 500 Index dropped in afternoon trading after Republican Senator Marco Rubio’s spokeswoman said he told Senate leaders he’ll oppose tax legislation unless they agree to a larger child tax credit. Republicans can only afford to lose two votes and still guarantee passage.
     “I think it’s primarily the tax headlines,” said Jim Paulsen, chief investment strategist at Leuthold Weeden Capital Management. “We’re getting right down to the wire here, and I think there’s some added pressure, with Moore losing the election, to make sure that this doesn’t get derailed and not get done by the end of the year.”
     The Russell 2000 Index, whose domestically focused members stand to benefit most from cuts, lost roughly 1 percent. The tech-heavy Nasdaq Composite Index retreated from an earlier advance after the U.S. Federal Communications Commission’s decision to sweep aside internet neutrality rules.
     The dollar tumbled despite data showing U.S. retail sales topped estimates last month. Yields on 10-year Treasuries rose slightly. The retail figures signaled a broad strengthening of consumer demand as the holiday shopping season got under way, bolstering optimism in the world’s largest economy.
     The Fed on Wednesday said the labor market was tightening but it still didn’t see inflation accelerating. The euro retreated with the ECB remaining cautious about the prospects of reaching its inflation goals, even as the central bank reiterated its pledge to keep stimulus in place.
     The tax debate appeared to overshadow a raft of central bank decisions affirming optimism that economic growth is picking up around the world. Concern is mounting after Rubio’s statement put him in the company of a handful of Republicans who’ve said they’re undecided. 
     Meanwhile, in comments after Europe’s central bank kept rates steady, ECB President Mario Draghi stopped short of declaring that the lender will meet its inflation goal in 2020, signaling that the euro-area economy isn’t yet strong enough to warrant cutting monetary stimulus.
     “For the ECB, the big question is what is their next steps once tapering is done?” said Alex Dryden, a London-based market strategist at JPMorgan Asset Management. “The most important central bank to be watching in 2018 is the ECB. They are the ones with some of the biggest question marks over their heads, there’s a lot of clarity that is needed on what will be happening there.”
     Elsewhere, the Mexican peso strengthened versus the dollar as the country’s central bank raised its benchmark rate. The pound slipped following the Bank of England’s decision to keep interest rates unchanged. Turkey’s lira fell after its central bank raised a key rate less than investors expected. Gold slid and crude rose, reversing Wednesday’s declines to trade above $57 a barrel.

     Here are some of the key events scheduled for this week:
* European lawmakers continue to debate Brexit and weigh moves on the next step, while North America Free Trade Agreement negotiators meet again.

      And these are the main moves in markets:
                            Stocks
* The S&P 500 finished down 0.4 percent, while the Nasdaq Composite slid 0.3 percent after rising as much as 0.4 percent earlier in the session.
* The Stoxx Europe 600 Index dropped 0.5 percent.
* The MSCI All-Country World Index dipped 0.2 percent for its first decline in a week.
* The U.K.’s FTSE 100 Index fell 0.7 percent, the largest retreat in two weeks.
                            Currencies
* The Bloomberg Dollar Spot Index gave up earlier gains and was little changed.
* The euro decreased 0.3 percent to $1.1787.
* The British pound rose 0.1 percent to $1.343.
* The Japanese yen added 0.3 percent to 112.26 per dollar.
                             Bonds
* The yield on 10-year Treasuries climbed one basis point to 2.3511 percent.
* Britain’s 10-year yield declined four basis points to 1.174 percent, the lowest in three months.
* Germany’s 10-year yield was little changed at 0.316 percent.
* France’s 10-year yield fell one basis point to 0.644 percent.
                             Commodities
* West Texas Intermediate crude added 0.9 percent to $57.11 a barrel.
* Gold dropped 0.2 percent to $1,253.24 an ounce.
* Copper rose 0.7 percent to $3.07 a pound.

Have a wonderful evening everyone.

Be magnificent!

When water joins with water, it is not a meeting but a unification.
Swami Prajnanpad

As ever,

Carolann

Until you value yourself, you won’t value your time.
                               -M. Scott Peck, 1936-2005

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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