December 6, 2016 Newsletter

Dear Friends,

Tangents:

St. Nicholas Day in Europe.  One of the most popular saints in Christendom, especially in the East.  He is the patron saint of Russia, of Aberdeen, of parish clerks, of scholars (who used to be called clerks), of pawnbrokers (because of the three bags of gold, transformed to the Three Golden Balls, that he gave to the daughters of a poor man to save them from earning their dowers in a disreputable way), of young boys (because he once restored to life three little boys who had been cut up and pickled in a tub to serve for bacon), and is invoked by sailors (because he allayed a storm during a voyage to the Holy Land) and against fire.  Finally, he is the original of Santa Claus.

Little is known of his life but he is said to have been bishop of Myra (Lycia) in the early 4^th century, and one story related that he was present at the Council of Nicaea (325) and buffeted Arius on the jaw.  His day is 6^th December and he is represented in Episcopal robes with either three purses of gold, three golden balls or three little boys, in allusion to one or other of the legends.

On this day in 1865, the 13th Amendment to the U.S. Constitution, officially ending the institution of slavery, is ratified.
Whenever I hear anyone arguing for slavery, I feel a strong impulse to see it tried on him personally. –Abraham Lincoln.
PHOTOS OF THE DAY

People stand next to a merry-go-round at the Christmas market in Frankfurt, Germany on Tuesday. Michael Probst/AP

Men exercise amid trees on a cold winter morning on the outskirts of Srinagar on Tuesday. Danish Ismail/Reuters
Market Closes for December 6^th, 2016

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose for a third day, closing at the highest level in 18 months, as Bank of Montreal rallied to a record after reporting quarterly earnings that beat analysts’ estimates.
     The S&P/TSX Composite Index added 0.2 percent to 15,125.66 at 4 p.m. in Toronto, the highest close since June 2015. The index has risen 16 percent in 2016, the top performer among developed markets tracked by Bloomberg, well ahead of No. 2 market Norway’s 10 percent advance.
     Bank of Montreal, Canada’s fourth-largest lender, climbed 2.8 percent for a fourth day of gains, trading at a record high after fourth-quarter profit exceeded analysts’ estimates on gains in capital markets and U.S. banking. The bank also increased its quarterly dividend.
     Canada’s trade deficit narrowed more than forecast in October, to C$1.13 billion, the smallest since January as imports fell for the first time in three months. Economists had forecast a C$1.7 billion deficit, according to data compiled by Bloomberg. Canada remains mired in a 15-year slump in exports, with a record cumulative trade deficit in the first 10 months of this year at C$28.3 billion.
     In other moves:
* Energy stocks reversed losses of as much as 0.6 percent to end the day flat. Crude fell from the highest close in 16 months; West Texas Intermediate oil had rallied 15 percent over the previous four sessions
* Neovasc Inc. surged 69 percent, the biggest one-day increase in six years, after providing an update to its mitral valve program; the device, used to treat a condition that can lead to heart failure and death, has been implanted successfully in 19 of 22 patients
* Hudson’s Bay Co. tumbled 7 percent to a record low; the retailer reported a normalized loss of 56 Canadian cents a share, compared with estimates for 22 cents. Third-quarter sales of C$3.3 billion fell short of expectations of C$3.44 billion.
US
By Lukanyo Mnyanda and Jeremy Herron
     (Bloomberg) — U.S. stocks advanced, rising with emerging- market assets as investors speculated the European Central Bank will extend its monthly bond purchases to stoke growth in the region. Oil slipped from a 16-month high.
     The S&P 500 Index neared its Nov. 25 record, buoyed by continued gains in financial shares and an advance in Verizon Communications Inc. on its agreement to sell a data-centers business. The dollar rallied in light currency trading, with the European Central Bank expected Thursday to extend its bond- buying program beyond March. Crude oil fell for the first time since OPEC agreed to cut production, and gold also declined. Treasuries were steady.
     The stock rally sparked by speculation U.S. President-elect Donald Trump’s policies will stoke growth continued, driving the Dow Jones Industrial Average to a fresh record as prospects European monetary policy will remain accommodative also fueled gains. Italian bond investors moved on from the prime minister’s resignation in a sign that concerns the nation will move to leave the euro have faded. Questions over how successful major oil producers will be in their attempt to bolster prices weighed on crude prices Tuesday.
* The S&P 500 rose 0.3 percent to 2,212.23 as of 4 p.m. in New York, while the Dow Average gained another 0.2 percent. Verizon led a 1.5 percent advance in phone stocks, while Goldman Sachs Group Inc. added 1.2 percent in a second day of gains.
* The Stoxx Europe 600 Index rose 1 percent, building on its 0.6 percent advance from Monday. German utilities RWE AG and EON SE climbed by at least 2 percent after a court ruled the pair must be compensated for the government’s shift away from nuclear energy.
* Italy’s FTSE MIB Index jumped 2 percent, helped by gains in UniCredit SpA and Mediobanca SpA.
* The MSCI Emerging Markets Index increased 1 percent.
* Asian index futures signaled gains for Wednesday, with contracts on Japan’s Nikkei 225 Stock Average up 0.4 percent in Osaka.
* West Texas Intermediate crude slipped 1.7 percent to $50.93 a barrel, while Brent oil dropped 1.8 percent to $53.93, ending a four-day
winning streak that was the longest since August.
* Aluminum fell 1.5 percent in London to $1,709 a metric ton, its biggest drop in a week.
* The metal will probably tumble next month as an “irrational” increase in prices prompts companies to restart plants, while new capacity also ramps up in the world’s largest supplier, according to China’s top metals industry group.
* Copper lost 1.1 percent.
* Gold for immediate delivery was little changed at $1,169.66 an ounce.
* The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, added 0.2 percent after falling 0.4 percent on Monday.
* The euro weakened 0.4 percent to $1.0720 after ending Monday up 0.9 percent, erasing an earlier slide of as much as 1.5 percent in the wake of the Italian vote.
* The pound touched a two-month high as the U.K.’s top court heard a second day of arguments in a court case over who has the right to trigger Britain’s exit from the European Union, climbing as much as 0.3 percent to $1.2775.
* The Australian dollar fell 0.2 percent to 74.61 U.S. cents after the nation’s central bank kept interest rates unchanged and Governor Philip Lowe said “some slowing in the year-ended growth rate is likely.”
* Italy’s 10-year bond yields declined by one basis point, or 0.01 percentage point, to 1.98 percent, after Monday’s increase of eight basis points.
* Yields on Portugal’s bonds with a similar due date decreased four basis points to 3.66 percent, while Germany’s rose two basis points to 0.35 percent.
* Almost all economists surveyed by Bloomberg expect the ECB to announce on Thursday that its bond-buying program will be extended after March, and most foresee an extension of about six months at the current 80 billion euros ($86 billion) a month.
* Ten-year Treasury yields edged down by one basis point to 2.39 percent

Have a wonderful evening everyone.

Be magnificent!

First of all, accept yourself.
When you do not accept yourself and imagine yourself to be someone different,
a conflict arises between what you believe you are and what you really are.
Swami Prajnanpad

As ever,

Carolann

Education is what survives when what has been learned has been forgotten.
                                                                -B.F. Skinner, 1904-1990

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

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