December 6, 2017 Newsletter

Dear Friends,

Tangents:
1917 – Halifax Explosion Kills Almost 2,000 People

PHOTOS OF THE DAY
A four week old silky shark swims in front of Christmas decoration in the “children” fish tank of the aquarium Aquadom and Sea Life in Berlin.

A visitor passes in front of a painting at the exhibition “13^th Wonder of the World” of Belarusian artist Aleksandr Vyshka at the “Galleria” sopping centre in Minsk, Belarus/. Vyshka uses special luminous paints which gives her artworks their unique glow.
An almost full moon shines down over St. Mary’s lighthouse at Whitly Bay. Tyne, and Wear as  photographer lines up a shot while waiting for the Northern Lights to appear in the sky.

A surfer on Coolangatta beach with a rainbow in the background Seasonal Weather, Coolangatta, Queensland, Austrialine.
Market Closes for December 6^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1974, a nearly two-year long stock-market crash reaches its nadir as the Dow Jones Industrial Average closes at 577.60, down 45% from its high in January 1973
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed little changed, with declines in commodity stocks offset by increases in most other sectors, after a roller-coaster day that saw the benchmark swing a total of about 1 percent from losses to gains and back again.
     The S&P/TSX Composite Index slipped 5 points or less than 0.1 percent to 15,910.63. Energy stocks fell 1.1 percent as oil tumbled the most in two months, the result of a surge in U.S. gasoline inventories.
     The materials sector lost 0.6 percent even as copper rebounded from its biggest 1-day slump in 2 years. Lumber producers fell as the U.S. International Trade Commission prepares to vote Thursday on softwood lumber imports.
     In other moves:

                             Stocks
* Hudson’s Bay Co. tumbled 13 percent, the most ever, after reporting a larger loss than analysts expected and a decline in same-store sales
* Dollarama Inc. closed down 2.1 percent after falling as much as 14 percent. The retailer’s 3Q sales missed estimates
* Laurentian Bank of Canada fell 1.3 percent, adding to Tuesday’s 7.9 percent drop. At least two analysts downgraded the
stock after the bank disclosed problems with its mortgage portfolio

                          Commodities
* Western Canada Select crude oil traded at an $18.50 discount to WTI, the widest gap since 2015
* Aeco natural gas traded at a $1.57 discount to Henry Hub
* Gold rose 0.1 percent to $1,262.80 an ounce

                            FX/Bonds
* The Canadian dollar weakened 0.8 percent to C$1.2789 per U.S. dollar after the Bank of Canada reiterated that it will be “cautious” with future rate increases
* The Canada 10-year government bond yield fell five basis points to 1.85 percent, the biggest drop in three months
US
By Brendan Walsh
     (Bloomberg) — U.S. stocks put the brakes on a global equity selloff as technology shares advanced. Oil tumbled the most in two months, while the dollar strengthened amid a broad risk-off mood.
     Gains in tech shares fought slumps in consumer and financial firms to a virtual draw, leaving the S&P 500 down less than a point. However small, it was the fourth loss in a row, the longest slump since March. European stocks almost erased losses following the Nikkei’s worst rout in nine months. Treasuries rose as investors’ focus turned to efforts to avert a U.S. government shutdown Saturday. Developing-nation stocks sank to a two-month low.
     Global markets have succumbed to a bout of profit taking this week, while U.S. equities struggled to maintain gains, as traders move out of some of 2017’s biggest winners, including technology shares and emerging-market stocks. The pause in the rally comes as investors assess U.S. tax reform developments and wrangling over spending after a Republican plan to avoid a federal shutdown Saturday was thrown into disarray by infighting.
     Investors are “locking in profits earlier than usual for the year and not opening any new positions,” said Andrew Clarke, director of trading at Mirabaud (Asia) Ltd. “Eventually, as profit taking subsides, buying for the new year will appear as people look toward 2018.”
     Elsewhere, sterling weakened as efforts to rescue Brexit talks appeared to stumble. Australia’s dollar dropped as slower- than-expected growth spurred traders to dial back their forecasts on interest-rate increases.

      Here are some of the key events facing markets in the coming days:
* The European Commission College of Commissioners discusses Brexit on Wednesday and will likely make its recommendation on whether sufficient progress has been made to move negotiations onto the future relationship.
* The U.S. faces a partial government shutdown after money runs out on Dec. 8 if Congress can’t agree on a spending bill by then.
* U.S. employers probably hired at a robust pace in November as the unemployment rate held at an almost 17-year low. The Labor Department’s jobs report Friday may also show a bump up in average hourly earnings.
* Brazil’s central bank is set to cut its key rate to record of 7 percent Wednesday.

     These are the main moves in markets:

                             Stocks
* The S&P 500 was little changed as of the close of trading in New York.
* Dow Jones Industrial Average fell 0.2 percent as Nasdaq Composite gained 0.2 percent.
* The Stoxx Europe 600 Index fell 0.1 percent.
* The U.K.’s FTSE 100 Index gained 0.3 percent.
* Japan’s Nikkei 225 Stock Average decreased 2 percent to a three-week low.
* The MSCI Asia Pacific Index sank 1.3 percent to the lowest in almost six weeks.
* The MSCI Emerging Market Index dipped 1.5 percent.

                           Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent.
* The euro declined 0.2 percent to $1.1799.
* The British pound decreased 0.4 percent to $1.3389.
* The Japanese yen rose 0.4 percent to 112.19 per dollar.

                             Bonds
* The yield on 10-year Treasuries decreased two basis points to 2.33 percent.\
* Germany’s 10-year yield declined two basis points to 0.29 percent.
* Britain’s 10-year yield decreased three basis points to 1.23 percent.

                          Commodities
* West Texas Intermediate crude fell 2.9 percent to $55.93 a barrel.
* Gold fell 0.1 percent to $1,264.78 an ounce.
* Copper gained 0.6 percent to $2.9645 a pound.

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

Respect for the truth is an acquired taste.
-Mark Van Doren, 1894-1972

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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