December 19, 2017 Newsletter

Dear Friends,

Tangents:

TRUE BLUE
Photographers know about “blue hour” – the time just before sunrise or just after sunset when objects take on a blue appearance.  Artist Journey Gong took photos of sights including Grand Central Terminal during “blue hour,” and the resulting images are beautiful and sometimes eerie.  You can find the work at http://bit.ly/bluehourphotos.
PHOTOS OF THE DAY

The spire of St. Mary’s Church appears through the mist cloaking Ambleside at the north end of Windermere in the Lake District, as fog is forecast to cause problems across England and Wales.

A Nepalese man walking a bridge, arrives to perform rituals during Gaya Aunsi festival in Kathmandu, Nepal. In this festival people gather and perform holy rituals to offer prayers and pay tribute to the deceased family member. Also, believed that doing this will help departed soul to find the way to the heaven.

The morning sun illuminating paddle boarders near Cuckmere Haven, East Sussex on a beautiful crisp morning on the south coast.
Market Closes for December 19^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1927, the Dow Jones Industrial Average closes above 200 for the first time, finishing the day at 200.93.

Number of the Day
$600 billion
More than $600 billion is remitted world-wide every year, and the race is on to become the top global app for international money transfers.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks ended the day little changed after earlier gaining as much as 0.4 percent, in what appeared to be a classic case of buy the rumor, sell the news on the U.S. tax debate.
     The S&P/TSX Composite Index rose two points or less than 0.1 percent to 16,133.35. Consumer discretionary stocks added 0.4 percent as Great Canadian Gaming Corp. jumped 15 percent to the highest in three months. The company won a bid to operating gambling facilities in the Toronto area.
     The utilities index fell 0.7 percent as Canadian government bond yields rose the most since September. Fortis Inc. lost 1.7 percent.
     In other moves:
                         Stocks
* Kirkland Lake Gold Ltd. gained 6.7 percent, the most in six weeks. The miner reported positive drilling results at its Cosmo Mine in Australia
* Canadian Imperial Bank of Commerce rose 1 percent to a record high. The stock was upgraded two notches at Barclays
* National Bank of Canada and Canadian Western Bank both fell 0.8 percent after downgrades at Barclays
                         Commodities
* Western Canada Select crude oil traded at a $26 discount to WTI
* Aeco natural gas traded at a $1.26 discount to Henry Hub
* Gold fell 0.1 percent to $1,260.70 an ounce
                         FX/Bonds
* The Canadian dollar weakened 0.1 percent to $1.2870 per U.S. dollar
* The Canada 10-year government bond yield jumped eight basis points to 1.93 percent, the biggest gain since early September
US
By Cormac Mullen and Kailey Leinz
     (Bloomberg) — Treasuries slumped and U.S. stocks slid in pre-holiday period trading as Republicans in Washington made progress in implementing a sweeping tax overhaul.
     The S&P 500 Index retreated for the first time in three days as the U.S. House of Representatives approved the tax bill and sent it to the Senate, where passage is all but assured. The index had surged 1.5 percent in the prior two sessions as approval for the first major tax overhaul in 31 years grew more certain.
     With the Republicans closing in on a major legislative victory that gives corporations lasting tax cuts, investors are assessing how the bill will impact the world’s largest economy. It’s largely anticipated to add to growth in the next year, but the longer-term impact is less certain.
     Longer-dated U.S. bonds endured their steepest two-day selloff in a year. The dollar was mixed against its major developed-market peers, gaining versus the yen and sliding against the euro. 
     Equity markets were mixed in Europe. The region’s core bonds declined, with German yields seeing their biggest gains in more than five months after a European Central Bank Governing Council member said discussions were moving to the future use of interest rates rather than asset purchases to regulate the economy.
     The Mexican peso dropped to its weakest in more than a month after a news report alleged that the nation’s Finance Ministry has funneled money to political campaigns. Oil traded above $57 a barrel before U.S. data forecast to show crude stockpiles in the world’s biggest consumer fell for a fifth week. Gold fell and copper rose.
     It was a mixed picture for equities in Asia, with benchmarks in Japan and South Korea falling earlier as stocks in Sydney, Hong Kong and China climbed. 

     Among the key events investors will be watching this week:
* The U.S. and U.K. publish updated estimates of third-quarter GDP.
* The Bank of Japan meets on Thursday to set monetary policy.
* 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.

     And these are the main moves in markets:
                          Stocks
* The S&P 500 Index declined 0.2 percent as of 4:02 p.m. New York time
* The Stoxx Europe 600 Index dipped 0.4 percent.
* The U.K.’s FTSE 100 Index gained 0.1 percent.
* Germany’s DAX Index sank 0.7 percent.
* The MSCI Emerging Market Index increased 0.2 percent.
                         Currencies
* The Bloomberg Dollar Spot Index fell 0.1 percent.
* The euro climbed 0.5 percent to $1.1842.
* The British pound rose less than 0.05 percent to $1.3387.
* The Japanese yen declined 0.3 percent to 112.85 per dollar.
* The Mexican peso fell 0.7 percent to 19.2108 per dollar.
                          Bonds
* The yield on 10-year Treasuries advanced six basis points to 2.45 percent, the highest in more than seven weeks.
* Germany’s 10-year yield climbed seven basis points to 0.38 percent, the highest in more than two weeks.
* Britain’s 10-year yield advanced six basis points to 1.205 percent.
                          Commodities
* West Texas Intermediate crude advanced 0.5 percent to $57.46 a barrel.
* Gold fell less than 0.05 percent to $1,262.25 an ounce.
* Copper rose 0.5 percent to $6,942 a metric ton, the highest in more than three weeks.

Have a wonderful evening everyone.

Be magnificent!

Truth is that which one wishes in its totality.  Have you reached it?
Krishnamurti

As ever,

Carolann

When the character of a man is not clear to you, look at his friends. -Japanese Proverb

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