December 18, 2017 Newsletter

Dear Friends,

Tangents:
Paul Klee, painter, b. 1879
Steven Spielberg, filmmaker, b. 1947
Brad Pitt, actor, b. 1964
Katie Holmes, actor, b. 1978

1898 – Canada’s First Christmas Stamp

PHOTOS OF THE DAY

A man stargazes as he stands on Brimham Rocks, a collection of balancing rock formations on Brimham Moor in the Nidderdale Area of Outstanding Natural Beauty (AONB), in North Yorkshire.
CREDIT: DANNY LAWSON/PA

Rowers dressed as Santa take part in the annual Father Christmas Regatta organized by University Ca’Foscari on the Grand Canal in Venice, Italy. The Father Christmas Regatta has become a tradition for the university. Champions and amateurs, men and women, all wearing Santa Suits compete in traditional Venetian boats in the Grand Canal. The race begins at San Marco (Pieta) and ends in front of C Foscari.

French skipper Francois Gabart celebrates his world record with his team, in the Brest harbor, western France. Gahart has broken the record for sailing around the world alone, circumnavigating the planet in just 42 hours days and 16 hours.
Market Closes for December 18^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
69
The number of record closes for the Dow Jones Industrial Average in 2017, tying for the most record highs in a single year.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks posted their biggest gain in more than a week, joining a global rally after U.S. Republicans reached an agreement on wide-ranging tax cuts.
     The S&P/TSX Composite Index rose 90 points or 0.6 percent to close at 16,131.64 after briefly hitting a record high earlier in the day. Health-care stocks jumped 4.6 percent as Valeant Pharmaceuticals International Inc. gained 7.4 percent.
     The energy index added 1 percent, the most this month, as the discount for Western Canadian crude narrowed. Materials stocks gained 0.9 percent, led by gold miners. New Gold Inc. added 4.2 percent and Novagold Resources Inc. rose 4.1 percent.
     In other moves:
                        Stocks
* Northern Dynasty Minerals Ltd. tumbled 13 percent, the most since May, after reaching an agreement with First Quantum Minerals Ltd. to potentially sell 50 percent of the Pebble Limited Partnership for $1.35 billion. First Quantum fell 0.4 percent
* Alaris Royal Corp. gained 4.9 percent to the highest in six weeks. The company said a series of transactions will increase its distributable cash by C$0.13 per share
* Cameco Corp. rose 2.9 percent. The uranium miner is seeking $681.9 million in damages in an arbitration case against Tokyo Electric Power Co.
                       Commodities
* Western Canada Select crude oil traded at a $24.50 discount to WTI, the narrowest gap in a week
* Aeco natural gas traded at a $1.23 discount to Henry Hub
* Gold rose 0.6 percent to $1,262.20 an ounce.
                       FX/Bonds
* The Canadian dollar was little changed at C$1.2869 per U.S. dollar
* The Canada 10-year government bond yield rose two basis points to 1.86 percent
US
By Sarah Ponczek and Kailey Leinz
     (Bloomberg) — Stocks kicked off the penultimate week of the year on a positive note after Republicans reached an agreement on the shape of U.S. tax cuts. The dollar dropped and Treasuries headed lower.
     The S&P 500 Index and Nasdaq Composite Index hit new highs Monday as investors focused on the progress of the proposed tax legislation. Midweek votes in the U.S. House of Representatives and Senate are planned on a measure that will reduce corporate and individual tax rates. Lawmakers are aiming for the bill to land on President Donald Trump’s desk for a signature before Christmas.
     “I think that there’s still a fair amount of skepticism in markets until it actually happens,” said Luke Tilley, chief economist at money manager Wilmington Trust Corp. in Delaware. “But with passage, we think that there’s still room to run. It’s challenging to say what is priced into the markets, but we do think it will be to the upside.”
     The Stoxx Europe 600 Index climbed the most in about five months as real estate, automakers and technology stocks led gains. Sterling advanced as U.K. Prime Minister Theresa May addressed Parliament about her plans for Brexit. The euro strengthened after two days of declines. 
     Copper and gold rose, while oil declined. Bitcoin traded above $18,000 after futures debuted on the CME Group Inc.’s venue, the world’s biggest exchange, giving the cryptocurrency further cachet and access to mainstream investors.
     Earlier, equity benchmarks in Tokyo, Hong Kong and Sydney advanced. Indian shares rebounded as Prime Minister Narendra Modi’s party looked set to return to power in his home state, an election that’s considered a bellwether before the national vote in early 2019. South Africa’s rand extended gains as Cyril Ramaphosa was elected the next leader of the ruling African National Congress party.
     Among the key events investors will be watching this week:
* Xi Jinping kicks off China’s Central Economic Work Conference. Investor focus will be on whether officials will cut the growth target from this year’s “6.5% or higher.”
* U.K. Prime Minister Theresa May meets her cabinet Tuesday to begin work on a trade wish list. Europe will unveil its stance Wednesday.
* The disruption to the Forties oil pipeline is key for commodities traders this week. Details about the extent of the damage and a restart date could come at any time.
* The U.S. and U.K. publish updated estimates of third-quarter GDP; U.S. releases PCE data.
* German December Ifo survey Tuesday.
* Catalonia’s secessionists are at risk of becoming a minority in the Spanish region’s parliament as the main pro-unity party is set to add seats in Thursday’s election.
* The Bank of Japan meets to set monetary policy. The Czech Republic, Hungary, Taiwan and Thailand also set interest rates this week.

      And these are the main moves in markets:
                          Stocks
* The S&P 500 Index gained 0.5 percent at 4:02 p.m. New York time.
* The Stoxx Europe 600 Index climbed 1.2 percent to the highest in almost six weeks.
* The U.K.’s FTSE 100 Index gained 0.6 percent.
* Germany’s DAX Index rose 1.6 percent.
* The Nasdaq Composite Index climbed 0.8 percent to its highest close on record.
                          Currencies
* The Bloomberg Dollar Spot Index declined 0.2 percent.
* The euro rose 0.3 percent to $1.1782.
* The British pound climbed 0.5 percent to $1.3383.
* The Japanese yen increased less than 0.05 percent to 112.56 per dollar.
                          Bonds
* The yield on 10-year Treasuries climbed four basis points to 2.39 percent, the biggest advance in almost three weeks.
* Germany’s 10-year yield rose one basis point to 0.31 percent.
* Britain’s 10-year yield declined less than one basis point to 1.148 percent.
                          Commodities
* West Texas Intermediate crude fell 0.3 percent to $57.13 a barrel.
* Gold increased 0.4 percent to $1,261.55 an ounce, the highest in more than a week.
* Copper gained 0.3 percent to $6,905 a metric ton.

Have a wonderful evening everyone.

Be magnificent!

To reach cosmic understanding,
it is necessary to unite our feeling with that infinite feeling that penetrates everything.
In fact, for man, true progress coincides with the breadth of the base of our feelings.
All our poetry, philosophy, science, art, and religion
serve to embrace with our understanding
the spheres too vast and high.
Rabindranath Tagore

As ever,

Carolann

The most beautiful thing we can experience is the mysterious.
It is the source of all true art and science.
                                        -Albert Einstein, 1879-1955

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
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www.carolannsteinhoff.com