July 19, 2017 Newsletter

Dear Friends,

Tangents:
On July 19, 1979, Sandinista rebels took control of Managua following the flight of President Anastasio Somoza Debayle, completing the defeat of the National Guard and ending the civil war in Nicaragua.
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PHOTOS OF THE DAY

Smoke and flames rise from a fire in the village of Podstrana, near the Adriatic coastal town of Split. Montenegro asked for international help to fight wildfires in the Lustica peninsula on the country’s Adriatic coast, while forest fires in neighbouring Croatia spread to suburbs of the coastal city of Split. CREDIT: AFP/GETTY IMAGES

A British photographer took these stunning photographs of the lavender fields of Provence this month (July). Guy Edwardes, from Dorchester, captured the vibrant hues of the rural region during the flowering plant’s harvesting season. The fragrant plant blooms from June to August, and is used in a range of items including soap, cosmetics and honey. CREDIT: GUY EDWARDES/COVER IMAGES
Market Closes for July 19^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1990, Wall Street sets a then-record when six IPOs take place in a single day. The companies–Command Security, In-Store Advertising, MECA Software, Modtech Holdings, OCharleys, and Wisconsin Pharmacal–raise a total of $100.4 million.

Number of the Day
10.2%
The decline in the S&P GSCI commodity index in the first half of 2017, the worst first-half performance since 2010.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose as energy shares posted their biggest gain in two months and Rogers Communications Inc. hit an all-time high.
     The S&P/TSX Composite Index added 95 points or 0.6 percent to 15,244.71, its highest since June 23. Energy shares jumped 2.1 percent after U.S. government data showed significant declines in crude and gasoline stockpiles. Precision Drilling Corp. gained 13 percent and Crew Energy Inc. added 8.7 percent.
     The telecom index gained 0.7 percent as Rogers rose 1.7 percent ahead of earnings Thursday. The industrials index was the only major decliner, falling 0.8 percent.
     In other moves:
* TransAlta Renewables Inc. fell 5.1 percent. Shareholder Alberta Investment Management Co. sold 16.5 million shares
* Saputo Inc. gained 5 percent, the most in nearly a year, after RBC upgraded it to outperform
* Canadian National Railway Co. fell 1.6 percent and Canadian Pacific Railway Ltd. lost 1.3 percent after competitor CSX Corp. didn’t boost its outlook for the year.
US
By Samuel Potter
     (Bloomberg) — Stocks surged Wednesday on earnings strength, with the S&P 500 Index and Nasdaq Composite Index hitting records for a second straight day. The euro retraced some recent gains as European policy makers gathered in Frankfurt before Thursday’s decision on interest rates. Oil advanced.
     Every S&P 500 sector was higher, with energy stocks and materials companies pacing the rise. Vertex Pharmaceuticals Inc. led gainers, adding more than 20 percent after reporting promising results for its cystic fibrosis treatment. Technology remained hot as well, with the Nasdaq 100 Index also reaching an all-time high. The Dow Jones Industrial Average was up as well, but IBM, which reported disappointing quarterly sales, weighed on the index.
     In Europe, it was a day of reversing trends, with the common currency coming off its highest close since August 2015 as investors weighed the European Central Bank’s plans for stimulus measures and the possibility of a change of tone when the decision is announced. The dollar steadied after the implosion of the U.S. health-care reform bill sent it to the lowest since September a day earlier. The Stoxx Europe 600 Index advanced following its largest drop this month. Electrolux AB and ASML Holding NV were among gainers after reporting earnings.
     Read more: Euro Rally at Risk Should Draghi Rein in Hawkish Tone
     Investors will be closely watching Europe’s central bank — as well as the Bank of Japan — this week for clues on the fate of easy monetary policies that have helped stoke growth and spur equity markets to record highs. Amid mixed economic data, anemic inflation numbers and a U.S. administration struggling to implement its agenda, traders may be forgiven for reassessing hawkish expectations.
     “President Draghi will certainly have his work cut out in keeping a lid on the euro at this rate,” Michael Hewson, chief market analyst at CMC Markets U.K., wrote in a note. A move to the 1.20 level is “a distinct possibility on a break of 1.1620 and last year’s high,” he said.
     Here are some other key events coming up:
* The industry-funded American Petroleum Institute was said to report an increase in U.S. crude stockpiles; official data is Wednesday.
* The Bank of Japan is forecast to stand pat at its meeting Thursday.
     And here are the main moves in markets:
     Stocks
* The S&P 500 closed up 0.5 percent, while the Nasdaq Composite and Nasdaq 100 increased 0.6 percent.
* The Stoxx Europe 600 climbed 0.8 percent, its biggest gain in a week. The U.K.’s FTSE 100 Index added 0.6 percent.
* The MSCI All-Country World Index rose 0.5 percent to 476.61, the highest on record and its ninth straight day of gains.
     Bonds and Currencies
* The yield on 10-year Treasuries added one basis point to 2.27 percent.
* Germany’s 10-year yield slid one basis point to 0.54 percent.
* Britain’s 10-year yield dropped one basis point to 1.191 percent.
* The Bloomberg Dollar Spot Index rose less than 0.1 percent.
* The euro declined 0.3 percent to $1.1518, the biggest fall in a week.
* The British pound retreated 0.2 percent to $1.302.
* The Japanese yen fell 0.2 percent to 111.82 per dollar.
     Commodities
* Gold dropped 0.1 percent to $1,241.88 an ounce.
* West Texas Intermediate crude rose 1.5 percent to $47.10 a barrel.
* Iron ore added 2.7 percent to reach its highest level since May 3.
     Asia
* Australia’s S&P/ASX 200 Index rose 0.8 percent as bank shares climbed. Analysts said new capital requirements looked fairly benign. More on that story here.
* Chinese shares led in Asia, with the Shanghai Composite Index jumping 1.4 percent. Hong Kong’s Hang Seng Index was up 0.6 percent. Japan’s Topix Index swung between gains and losses, while South Korea’s Kospi Index rose 0.2 percent.  

Have a wonderful evening everyone.

Be magnificent!

The intellectual aspect is, that love sees and understands.
The emotional aspect is to feel as one with the other person.
Love is unity.  There is no “me” in love, only “you.”
The behavioral aspect is, that love inspires us to give.
There is no expectation; we do not expect to receive.
Such love is wisdom and liberation in itself.
Swami Prajnanpad

As ever,

Carolann

Talent is only the starting point.
            -Irving Berlin, 1888-1989

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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