July 18, 2017 Newsletter

Dear Friends,

Tangents:
On this day in 1999, David Cone pitches the 16th perfect game in major league history and 14th in the modern era, leading the New York Yankees to a 6-0 victory over the Montreal Expos. A 33-minute rain delay interrupts the game in the third inning.
Also…
On July 18, 1936, the Spanish Civil War began as Gen. Francisco Franco led an uprising of army troops based in North Africa.
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PHOTOS OF THE DAY

An Atlantic puffin holds a mouthful of sand eels on the island of Skomer, off the coast of Wales. REBECCA NADEN/REUTERS

People take part in the 101st International Four Days Marches in Nijmegen, Netherlands. ROMY ARROYO FERNANDEZ/NURPHOTO/ZUMA PRESS
Market Closes for July 18^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
5.2 million
The number of new users added by Netflix Inc. in the second quarter, far more than the 3.2 million it had projected, and well above Wall Street’s consensus estimate of 3.5 million net additions.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks failed to find traction despite higher oil and gold prices, falling for a second day as the benchmark stock index was pressured by a mixed basket of financials, industrials and miners.
     The S&P/TSX Composite Index lost 16 points or 0.1 percent to 15,149.57. Energy stocks edged up 0.2 percent as the price of crude gained 0.8 percent, boosted by fears of a worse-than-usual hurricane season.
     The health-care index was the biggest decliner, losing 0.9 percent as U.S. Republicans were unable to make progress on repealing Obamacare, and still less in replacing it. Materials stocks slipped 0.2 percent even as gold prices rose to the highest this month. Turquoise Hill Resources Ltd. fell 2.4 percent after it announced flat grades and production.
     In other moves:
* Element Fleet Management Corp. jumped 7.6 percent following seven days of declines. Raymond James said current prices represent an attractive entry point
* Dream Global Real Estate Investment Trust fell 5.9 percent. The REIT is buying 135 office and light industrial properties in the Netherlands for C$903 million
* Cameco Corp. fell 3.8 percent after the uranium miner was cut to underperform by analysts at Credit Suisse.
US
By Adam Haigh
     (Bloomberg) — Asian stocks faced a mixed start to trading following a surge in global bonds as investors weigh the potential for tepid economic growth.
     Treasuries climbed with bunds and gilts as weak inflation data combined with concern around the U.S. administration’s ability to enact reforms, leaving investors questioning the strength of the global economy. The dollar held at the lowest level in almost a year, while an uninspiring session for U.S. equities left futures signaling a muted start for Asian stocks. The euro extended its advance ahead of Thursday’s European Central Bank meeting.
     With global equities at record highs, investors are assessing whether earnings results will be strong enough to warrant lofty prices and if economies are in a position to handle higher interest rates. The next clues come from meetings of central banks in Japan and Europe this week and profits due Wednesday at companies including Morgan Stanley and Qualcomm Inc.
     The market-implied probability of a hike from the Federal Reserve by year-end has declined in the past two weeks with Treasury yields. The odds are now about 40 percent, down from 60 percent on July 7, based on the current effective fed funds rate and the forward overnight index swap rate. Part of that is due to signs that Trump’s health-care reform bill is effectively dead in its current form, after two more Republican senators announced their opposition to the plan.
     Here are some key upcoming events:
* The ECB meets Thursday. Bloomberg Intelligence expects no change then, and no rate increase before 2019. Reuters cited unidentified officials as saying the bank is keen to keep asset purchases open-ended.
* The Bank of Japan is forecast to stand pat at its meeting Thursday.
     Here are the main moves in markets:
* The yield on 10-year U.S. Treasuries is down seven basis points this week to 2.26 percent after dropping five basis points last week. The Bloomberg Dollar Spot Index sank 0.5 percent on Tuesday to its weakest level since August.
* Gilts with a similar maturity saw yields fall six basis points to 1.21 percent on Tuesday as traders reduced bets on a U.K. rate increase this year following weak inflation data. The pound traded at $1.3043.
* The euro was at $1.1555 after rising 0.7 percent amid speculation the ECB could signal its intent to scale back monetary stimulus at its meeting on Thursday.
* The S&P 500 Index rose 0.1 percent to a record 2,460.61, reversing a loss of 0.4 percent earlier in the session. The Dow Jones Industrial Average declined 0.3 percent. The Nasdaq Composite Index gained for a eighth day to reach an all-time high.
* The Australian dollar traded at 79.16 U.S. cents after surging 1.5 percent.

Have a wonderful evening everyone.

Be magnificent!

Whenever there is a touch of color,
a note of a song, grace in a form,
this is a call to our love.
Rabindranath Tagore

As ever,

Carolann

The greatest glory in living lies not in never falling, but in rising every time we fall.
                                                                           -Nelson Mandela, 1918-2013

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