May 8, 2017 Newsletter

Dear Friends,

Tangents:

PHOTOS OF THE DAY

Tourists takes photos of Russian jets flying over the Kremlin in Moscow on Thursday during a rehearsal for the Victory Day military parade, which will take place on May 9 to celebrate 72 years since the victory of World War II. Pavel Golovkin/AP

A group of tourists walk behind a window covered with raindrops on a rainy, windy day in the historic center of Berlin on Thursday. Markus Schreiber/AP
Market Closes for May 8^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed higher as energy companies hit their highest level in two weeks, bolstered by assurances from Saudi Arabia and Russia that they’re working to extend production cuts.
     The S&P/TSX Composite Index added 70 points or 0.5 percent to 15,652.08. Energy shares jumped 1.3 percent as the price of crude gained for a second day to $46.45 a barrel. The biggest gainers were Nexgen Energy Ltd., up 8.7 percent, and Bonavista Energy Corp., up 6.9 percent.
     The materials index rose 0.3 percent as miners backtracked some of last week’s losses, when they were pressured by falling metals prices. Eldorado Gold Corp. gained 4.5 percent.
     In other moves:
* Home Capital Group Inc. jumped 17 percent after earlier falling as much as 13 percent. The troubled mortgage lender suspended its dividend and added two former pension fund executives to its board
* Enerplus Corp. added 6.1 percent after gaining 11 percent Friday. The energy company’s price target was boosted to a Street high at Macquarie after its first-quarter results “smashed” expectations
* DHX Media Ltd. gained 4.6 percent. Fine Capital said it sees the shares rising to C$20 to C$30 as its children’s content is monetized
* AGT Food & Ingredients Inc. tumbled 13 percent after the pulse processor missed first-quarter earnings per share estimates by C$0.15
US
By Samuel Potter
     (Bloomberg) — U.S. stocks ended virtually unchanged near all-time highs, while the dollar rose with Treasury yields as volatility drained from financial markets after a convincing defeat of populism in France’s presidential election. 
     The CBOE Volatility Index slumped to its lowest closing price since 1993. The S&P 500 Index rose by less than one point to close at a fresh record. The euro weakened after climbing for five of the past six days, as the result of the French vote was largely priced into equity markets. That added to dollar gains, while declines in Treasuries sent the 10-year yield to 2.38 percent. Oil edged above $46 a barrel.
     Volatility faded from the U.S. equity and bond markets after Emmanuel Macron’s decisive triumph over the anti-euro Marine Le Pen dealt a blow to the populist wave that has roiled western democracies for the past year. But there was little room for a relief rally as the outcome was largely priced into markets. Investor focus now shifts to reading on the global economy for fresh signs that growth is accelerating after better-than-forecast data on American jobs.
     Here’s what investors will be watching this week:
* South Korea heads to the polls on Tuesday to elect a new president following the ouster of Park Geun-hye in a corruption scandal.
* Earnings this week include results from Walt Disney Co., Mitsubishi Corp., Toyota Motor Corp. and Deutsche Telekom AG.
     Here are the main moves in markets:
     Stocks
* The S&P 500 rose less than one point to 2,399.38 as of 4 p.m. in New York, a new record. It pushed 0.1 percent higher shortly after the open to a fresh intraday high of 2,401.36, before falling as much as 0.2 percent. * The Nasdaq 100 Index edged up 0.2 percent to claim another closing record, while small caps slumped 0.4 percent. 
* The Stoxx Europe 600 slipped 0.1 percent, dragged down by miners.
* Emerging-market shares jumped 0.6 percent.
     Currencies
* The euro fell 0.6 percent to $1.0931, after gaining as much as 0.2 percent earlier. The currency has been trading near the highest level since November.
* The Bloomberg Dollar Spot Index advanced 0.5 percent following four straight weeks of declines.
     Bonds
* The yield on 10-year Treasury notes rose three basis points to 2.38 percent.
* French benchmark yields ended virtually unchanged at 0.841 percent while German equivalents stayed at 0.418 percent.
     Commodities
* West Texas Intermediate fluctuated before settling 21 cents higher at $46.43 a barrel in New York.
* Copper, the most actively traded commodity on the London Metal Exchange, slumped to a four-month low on Monday, wiping out gains for the year. Refined imports by China fell 30 percent to 300,000 metric tons in April, the lowest since October, according to preliminary customs data.
* Gold futures were little changed at $1,227 an ounce.

Have a wonderful evening everyone.

Be magnificent!

 “The real opportunity for success lies within the person and not in the job.”– Zig Ziglar

As ever,

Karen

“The journey of a thousand miles begins with one step.”– Lao Tzu

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

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