July 11, 2017 Newsletter

Dear Friends,

Tangents:
On July 11, 1979, the abandoned United States space station Skylab made a spectacular return to Earth, burning up in the atmosphere and showering debris over the Indian Ocean and Australia.
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PHOTOS OF THE DAY

Smoke billows from fires around Mount Vesuvius in Naples, Italy. Fires continue to rage after they broke out on July 5 around the active volcano. CESARE ABBATE/EUROPEAN PRESSPHOTO AGENCY

Fan palm leaves are laid out to dry in Jinyin village in southwest China’s Sichuan province. LAN ZITAO/XINHUA/ZUMA PRESS
Market Closes for July 11^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1985, Coca-Cola announces the return of Coke Classic after the company had tried displacing the old formula with New Coke — such a stunning development that ABC’s Peter Jennings interrupts General Hospital with the news flash.
Number of the Day:
$108 billion
The amount China plans to spend over the next 10 years to build out its chip-making industry, according to Bain & Co.
Canada
By Natalie Wong
     (Bloomberg) — Canadian stocks rose as strong gains in energy and material stocks offset a decline in health care.
     The S&P/TSX composite index gained 0.3 percent to 15,149.14. Energy stocks rose 0.5 percent as oil gained 3 percent after the Energy Information Administration cut its U.S. crude output forecasts for next year.
     Materials rose 1.2 percent as Hudson Minerals Inc. jumped 8.1 percent and First Quantum Minerals Ltd. soared 7.3 percent, becoming the top two performing stocks in the index. Strong growth in material stocks comes amid the Bank of Canada’s expected interest rate hike on Wednesday, as the sector tends to outperform following rate increases.
     In other moves:
* Suncor Energy Inc. moved up 2 percent and Cenovus Energy Inc. increased 1.8 percent, after Barclays wrote that the two companies offered best value over the next 12 months
* Health care fell 0.7 percent as 5 out of 6 companies suffered losses. Prometic Life Sciences Inc. dropped 4.3 percent becoming the worst performing stock on the index, despite reports of positive long term clinical data on Ryplazym
* Financials gained 0.1 percent as Brookfield Asset Management Inc. rose 0.5 percent and the Bank of Montreal increased 0.4 percent
* Alimentation Couche-Tard Inc. rose 1.4 percent, the most this month, after it announced deal to acquire Holiday Stationstores
US
By Jeremy Herron
     (Bloomberg) — Fresh reports on the Trump campaign’s possible involvement with Russia during last year’s election shattered calm on financial markets Tuesday, sending U.S. stocks lower in a brief spurt of late morning selling.
     The move proved short-lived, as the S&P 500 Index rebounded from a quick 0.5 percent slide to end the day little changed. Technology shares advanced, while the Bloomberg Dollar Spot Index was down slightly, Treasury yields held near 2.36 percent, gold fluctuated and oil rose.
     Assets were jolted after the president’s son Donald Trump Jr. released emails he exchanged ahead of a meeting with a Russian lawyer last year that indicated the Russian government was backing his father’s presidential campaign and trying to damage his opponent. Prior to the revelation, trading this week had been listless as the market awaits testimony from Federal Reserve Chair Janet Yellen and the start of corporate earnings season.
     “Until now, the markets have been ignoring political news,” said John Conlon, chief equity strategist at People’s United Wealth Management in Bridgeport, Connecticut, which oversees more than $7 billion. “It surprises me because we’re just beginning earnings season, and in the past that has been a big driver. All this is going to do is push some of this stuff to the background while congress focuses on Russia.”
    Here’s what investors will be watching:
* Federal Reserve Chair Yellen’s testimony before Congress will be in focus later this week as investors look for guidance on when the U.S. central bank could start reducing its balance sheet.
* The U.K. government is due to publish it’s repeal bill on membership of the European Union this week.
* The Bank of Canada announces its interest-rate decision tomorrow, with a hike expected by most analysts.
     These are the main moves in markets:
     Stocks
* The S&P 500 fell 0.1 percent to 2,425.62 as of 4 p.m. in New York. It had been little changed before the report on Trump Jr. The Dow Jones Industrial Average rose 1.1 points, while the Nasdaq 100 Index climbed 0.3 percent.
* The Stoxx Europe 600 Index lost 0.7 percent following a 0.4 percent gain Monday.
* The MSCI Emerging Market Index jumped 0.9 percent.
     Commodities
* West Texas Intermediate crude rose 1.5 percent to settle at $45.04 a barrel before U.S. government data forecast to show oil stockpiles extended declines.
* Gold gained 0.1 percent to $1,215.25 an ounce, adding to its increase on Monday.
     Bonds
* The yield on 10-year Treasuries declined one basis point to 2.36 percent.
* The yield on 10-year bunds added one basis point to 0.55 percent. Benchmark gilt yields increased a similar amount, reversing direction after a two-day recovery.
     Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent, erasing earlier gains that had the greenback strengthening against most of its G-10 peers.
* The pound added 0.3 percent to $1.2848, while the euro rose 0.6 percent to 1.1463.
     Asia
* The yen gained 0.1 percent to 113.90 per dollar, following two days of declines.
* Japan’s Topix Index climbed 0.7 percent. Hong Kong’s Hang Seng Index strengthened 1.6 percent, heading for its first back-to- back gain in three weeks. The Hang Seng China Enterprises Index soared 2.1 percent, its biggest advance since March 16.
* The Shanghai Composite Index was down 0.3 percent after a short-lived advance mid-afternoon local time. Other indexes on the mainland were also lower.

Have a wonderful evening everyone.

Be magnificent!

It is in the very heart of our activity that we search for our goal.
Rabindranath Tagore

As ever,

Carolann

A man’s action is only a picture book of his creed.
–Arthur Helps, 1813-1875

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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