July 5, 2017 Newsletter

Dear Friends,

Tangents:

Carolann is out of the office this afternoon, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Imogen Davis and “Rufus” the Harris Hawk on Centre Court, Wimbledon, UK. Credit: EDDIE MULHOLLAND FOR THE TELEGRAPH

A wide shot of models walking the runway during the Chanel Haute Couture Fall/Winter 2017-2018 show as part of Haute Couture Paris Fashion Week in Paris, France. CREDIT: VICTOR BOYKO/GETTY IMAGES
Market Closes for July 5^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell for a fourth day as oil prices slumped, snapping their longest winning streak of the year.     The S&P/TSX Composite Index fell 0.4 percent or 66 points to 15,064.50 at 10:10 a.m. Energy stocks led the decline, losing
1.7 percent as crude prices tumbled 3.3 percent. Russia said it will oppose deeper production cuts, arguing that they would send the wrong message to the oil market. MEG Energy Corp. lost 7.4 percent and Cenovus Energy Inc. fell 4.3 percent.
     Financial shares slipped 0.3 percent ahead of the release of the minutes from the U.S. Federal Reserve’s June meeting.
     In other moves:
* Exchange Income Corp. fell 4.6 percent after short-seller Marc Cohodes said he’s shorting the stock on concerns that it doesn’t have enough cash to pay its dividend
* Canaccord Genuity Group Inc. gained 2.6 percent. The asset manager is buying U.K.-based Hargreave Hale Ltd. for $67 million
* Enercare Inc. gained 2.5 percent. The stock was upgraded to outperform at Scotiabank
* Shopify Inc. added 2 percent as technology shares rebounded from several days in the red
* Northland Power Inc. fell 1 percent. The company was said to end its sale plans after failing to find a buyer
US
By Samuel Potter and Jeremy Herron
     (Bloomberg) — U.S. equities rose with the dollar while Treasuries pared gains as investors saw a hawkish bent to the latest Federal Reserve meeting minutes, with officials debating the timing of balance-sheet reductions.
     The S&P 500 Index rose a third day to close 0.9 percent from its June 19 all-time high, even as the minutes showed some officials concerned “increased risk tolerance” among investors could be lifting asset prices and building risks to financial stability. Chipmakers beaten down in the past three weeks led a rebound in technology shares. Treasury 10-year note yields held near 2.33 percent and the dollar advanced versus most peers. Oil tumbled toward $45 after an eight-day rally.
     The Fed minutes did little to alter market expectations for a third rate hike this year, most likely December as officials view tepid inflation rates as transitory. The central bank also signaled that September could mark the start of unwinding its $4.5 trillion balance sheet, though that is hardly a sure bet.
The comments on asset prices underscore why three officials, including Chair Janet Yellen, last week mentioned rising valuation metrics in separate speeches.
     Markets had largely ignored the rising tensions on the Korean peninsula, with an emergency United Nations Security Council meeting on Wednesday looking to formulate a response to North Korea’s latest provocation.
     Here’s what’s coming up:
* The European Central Bank on Thursday releases minutes from its last meeting. Investors will look for clues on whether the bank is closer to tightening, after officials last week walked back comments from President Mario Draghi that the market interpreted as hawkish.
* A G-20 summit kicks off in Hamburg this week. U.S. President Donald Trump is expected to hold his first meeting with Russia’s Vladimir Putin as well as meet his Chinese counterpart Xi Jinping.
* American employers probably added around 175,000 workers in June and wage growth probably strengthened, consistent with a solid labor market, economists project the U.S. Labor Department to report on Friday.
     These are the main moves in markets:
     Stocks
* The S&P 500 Index added 0.2 percent to 2,433.64 at 4 p.m. in New York.
* The Nasdaq 100 jumped 1 percent. Advanced Micro Devices climbed 8.6 percent and Micron Technology rose 4.8 percent.
* The Stoxx Europe 600 Index advanced 0.2 percent.
* Emerging-market stocks rose 0.4 percent, adding to gains after the Fed minutes.
     Currencies
* The Bloomberg Dollar Spot Index strengthened 0.1 percent.
* The British pound edged higher to $1.2928.
* The euro was little changed at $1.1341.
     Commodities
* West Texas Intermediate crude futures dropped 4.1 percent to settle at $45.13 a barrel. The loss ended the longest winning streak this year, as Russia was said to oppose any proposal to deepen OPEC-led production cuts.
* Gold futures rose 0.5 percent to $1,225 an ounce.
* Copper futures posted the biggest loss in two weeks as inventories tracked by the London Metal Exchange climbed the most since early March.
     Bonds
* The yield on 10-year Treasuries fell two basis points to 2.33 percent. The market was closed Tuesday.
* U.K. benchmark yields advanced one basis point to 1.26 percent.
* French yields were little changed, while those of Germany slipped one basis point to 0.47 percent.

Have a wonderful evening everyone. 

Be magnificent!

“It is better to know some of the questions, than all of the answers” – James Thurber

As ever, 

Karen

“Put your heart, mind, and soul into even your smallest acts. This is the secret of success” – Swami Sivananda

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