June 26, 2017 Newsletter

Dear Friends,

Tangents:

June 26, 1925 – Edward S. Rogers Sr. invents AC tube which allows world’s first plug-in batteryless radios.

James Agate wrote on June, 26^th, 1932, Ego:

Dined at Pec’s [in Brighton], on balcony about nine o’clock.  Anchovies. Cold lamb, an excellent Beaune and a good cigar.  L’heure bleue, and all that sort of thing.  Felt at once cheerful and sentimental – a rare combination…About ten o’clock the electric sign over our heads began to function, turning our lamb into pink, newly butchered slabs.  Is there anything more romantic than a pier lit up, or more desolating than one whose lights suddenly go out? –from The Book of Days.

PHOTOS OF THE DAY

Smoke billows from a charred forest after a wildfire in Mazagon, near the Donana National Park in Spain. CRISTINA QUICLER/AGENCE FRANCE-PRESSE/GETTY IMAGES


The City of São Paulo, Brazil, announced a partnership with the Italian embassy and Italian firms to revitalize three plazas in the city. CRIS FAGA/ZUMA PRESS
Market Closes for June 26^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1950, the Dow Jones Industrial Average falls 4.7% to 213.91, a day after North Korea invades the South.

Number of the Day :
$3.5 billion
The amount billionaire activist investor Daniel Loeb’s Third Point has taken in Nestlé, its largest-ever initial bet on a public company.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were little changed as falling gold prices weighed on miners, offsetting gains in the health-care and consumer sectors.
     The S&P/TSX Composite Index fell 4 points or less than 0.1 percent to 15,316.02. Materials stocks lost 0.6 percent as gold prices fell following what appeared to be a fat-finger trade. Oceanagold Corp. lost 3.3 percent and Guyana Goldfields Inc. fell 2.8 percent.
     The health-care index jumped 3.9 percent, bringing its total gain since June 15 to 19 percent as the U.S. Senate works to get enough votes to replace Obamacare. Valeant Pharmaceuticals International Inc. gained 8 percent.
     In other moves:
* ShawCor Ltd. fell 5.8 percent following a downgrade to sector perform at National Bank Financial
* BlackBerry Ltd. added 5.7 percent, rebounding from Friday’s 13 percent drop. Analysts at TD see opportunities that could contribute to a strong second half
* Alimentation Couche-Tard Inc. added 3.6 percent after it won approval from the U.S. Federal Trade Commission for its acquisition of CST Brands Inc.
US
By Samuel Potter and Jeremy Herron
     (Bloomberg) — Selling in technology shares that have led markets higher in 2017 resumed Monday, as U.S. stocks failed to sustain a rally in global equities that started in Asia. Treasuries advanced after data showing a steeper drop in durable goods than forecast raised concern about the pace of U.S. economic growth.
     The Nasdaq 100 Index retreated, leaving it 1.8 percent below its June 8 high. Most stocks in the S&P 500 Index advanced, with rate-sensitive shares pushing the gauge to a slight gain even as its largest cohort declined. European shares rose on news of an Italian bank clean-up and Dan Loeb’s investment in Nestle SA. Treasuries turned higher as an unexpected drop in orders for business equipment last month signaled slowing momentum in the world’s largest economy. The dollar advanced.
     Gains in global stocks to start the week faded in the U.S., where major benchmark indexes were mixed before a jam-packed agenda for central-bank speakers in the next days. Comments are due from Janet Yellen, Mario Draghi, Mark Carney, Haruhiko Kuroda and more. The report on U.S. durables goods kicks off a string of economic data that may also drive momentum in financial markets, with key reports due on inflation, employment, manufacturing and housing from China to the U.S.
     There is “very little risk we see any central bank surprises,” Robert Rennie, Sydney-based head of global market strategy at Westpac Banking Corp., told Bloomberg TV. “It looks like it’s a positive summer for risk sentiment. That certainly favors higher equity and higher yielding currencies at least in the very short term.”
     Meanwhile, multiple markets will be disrupted this week because of public holidays, including in India, Malaysia, Indonesia, the Philippines, Singapore, Bangladesh, Saudi Arabia, Bahrain, Egypt, Kuwait, Oman, Qatar, Turkey and the United Arab Emirates.
     Central bankers aren’t the only things to watch this week:
* U.S. spending data may reveal consumers are only moderately rebounding and the inflation backslide is continuing.
* The U.S. Energy Information Administration holds its 2017 energy conference this week.
* President Donald Trump will host India’s Prime Minister Narendra Modi and South Korean President Moon Jae-in.
* The Bank of England’s Financial Policy Committee releases its stability report on Tuesday and Governor Mark Carney holds a press conference.
* The Federal Reserve is set to announce the results of the second part of its annual U.S. bank stress test on Wednesday.
* China’s PMI might have declined in June after unexpectedly remaining unchanged in May, reflecting government offers to cut overcapacity and leverage.
* Also due this week: Japanese inflation, factory output, unemployment, household consumption and housing starts; rate decisions in Colombia, the Czech Republic and Armenia.
     Here are the main moves in markets:
     Stocks
* The S&P 500 Index rose less than one point to 2,439.01 at 4 p.m. in New York. The index erased early gains before rebounding in the afternoon to post a modest advance.
* The Nasdaq 100 fell 0.4 percent after surging more than 0.7 percent in the first hour of trading.
* The Stoxx Europe 600 Index rose 0.4 percent to the highest in a week. Nestle surged 4.3 percent.
* The MSCI Emerging Market Index rose 0.8 percent to the highest since May 26.
* Italy’s FTSE MIB Index surged 0.8 percent, falling back after touching its highest level in a month.  
     Commodities
* West Texas Intermediate crude rose 0.9 percent to settle at $43.38 a barrel after five weeks of losses.
* Gold futures sank 0.9 percent to $1,246.60 an ounce.
     Currencies
* The Bloomberg Dollar Spot Index was little changed after three days of declines.
* The British pound was virtually unchanged at $1.2722.
* The euro was flat at $1.1193.
     Bonds
* The yield on 10-year Treasuries fell one basis point to 2.13 percent.
* U.K. benchmark yields fell two basis point to 1.01 percent.
* Italian yields fell two basis points to 1.89 percent.

Have a wonderful evening everyone.

Be magnificent!

We cross the infinite with every step, and encounter the eternal with every second.
Rabindranath Tagore

As ever,

Carolann

You’ve got to take the bitter with the sour.
                 -Samuel Goldwyn, 1879-1974

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