November 25, 2016 Newsletter

Dear Friends,

Tangents:
Number of the Day:  3,000
Cost (in US dollars) of a set of 350 colored pencils, markers, charcoals, and watercolor brushes.  The set, created by Chanel designer Karl Lagerfeld, has a waiting list at New York’s Museum of Modern Art gift shop.

Are These the World’s Most Magical Places?, a short video by National Geographic, introduces four natural wonders in different location on Earth.  It gives a glimpse into their history, explains the science behind their beauty, and features some awe-inspiring pictures.  Whether you are looking for an exciting travel destination or just want to see something extraordinary from where you are right now, this vieo will fascinate.  Find it at http://bit.ly/natgeoplaces.
PHOTOS OF THE DAY

Dogs wait as its owner stands in a polling booth to vote in the first round of the French center-right presidential primary election in Nice, France on Sunday, November 20^th, 2016. Eric Gaillard/Reuters

Waves crash against the harbour wall as Storm Angus passes Newhaven in southern Britain on Sunday, November 20^th, 2016. Hannah McKay/Reuters
Market Closes for November 25^th, 2016

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rallied for a third straight week, the longest winning streak since July, led by Alberta utilities after the province agreed to compensate them for lost revenue from the phase out of coal plants.
     The S&P/TSX Composite Index was flat at 15,075.44 at 4 p.m. in Toronto and gained 1.4 percent on the week as metals and mining companies offset declines in energy stocks. Trading volume in the Canadian equity benchmark was 42 percent lower than the 30-day average with U.S. markets reopening for a half day of trading after the Thanksgiving holiday. The equity benchmark is up 16 percent in 2016, the top performer among developed markets tracked by Bloomberg.
     Energy producers fell 1.1 percent as a group for a second day of losses. Crude futures fell 4.3 percent in New York for the biggest drop in more than two months. Saudi Arabia pulled out of talks with non-OPEC producers including Russia. The meeting, scheduled for Monday, was later abandoned entirely. Members of the production group have wrestled with how to distribute the burden of supply cuts ahead of a ministerial meeting at the end of the month.
     Barrick Gold Corp. and Goldcorp Inc. added at least 1.8 percent to drive a 0.9 percent increase in gold producers. Gold recovered from a nine-month low, posting its first gain in four days as the dollar halted a rally. The Bloomberg Dollar Spot Index retreated from its highest levels in a decade. Gold has struggled, slumping 7.2 percent in November as the prospect of rising interest rates and stimulative spending from President- elect Donald Trump have dimmed the attractiveness of the precious metal as a haven.
     Among other moves:
* Amaya Inc. jumped 7 percent. The online gaming company’s founder David Baazov has secured new financing for his $4.1 billion bid to take the firm private. This comes after a Dubai firm said a previous offer of backing was given without its knowledge.
* Capital Power Corp. and TransAlta Corp. both rallied the most on record as the power generating companies along with Atco Ltd. were granted a total of C$1.1 billion in compensation from Alberta for phasing out coal plants in the coming years.
TransAlta surged 17 percent while Capital Power gained 9.6 percent.
* Ithaca Energy Inc. tumbled 11 percent, the most since July, after first output from its North Sea Stella field was delayed until January as the company works to fix faults in electrical junction boxes at the floating facility.
US
By Emma O’Brien and Stephen Kirkland
     (Bloomberg) — The dollar trimmed a weekly advance that was spurred by prospects of higher U.S. interest rates. U.S. stocks rallied to a record.
     The Bloomberg Dollar Spot Index fell from the highest level in more than a decade, while emerging-market currencies clawed back gains after India’s rupee fell to a record-low on Thursday. All four major U.S. equity benchmarks reached all-time highs as trading resumed following the Thanksgiving holiday. Oil dropped the most in more than two months on doubts OPEC will come to an accord to cut output as planned talks between producers inside and outside the group was canceled.
     Strong economic data and the prospect of increased spending after Donald Trump won the Nov. 8 U.S. presidential vote have fueled a surge in bets on Federal Reserve rate hikes, propelling the greenback higher against all but two of it peers this month. Traders see an increase in borrowing costs in December as a certainty, while the odds of additional moves by June have risen to more than 60 percent, according to futures data tracked by Bloomberg.
     “The dollar bull run had perhaps become a little stretched,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “We’ve had a very strong run since the election and it’s just a bit of a pull back.”
     Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent at 4 p.m. in New York.
* The yen posted the worst weekly performance among major currencies.
* The rupee strengthened after sinking to a record low Thursday.
* China’s yuan, which fell to an eight-year low this week, was little changed.
* South Africa’s rand pared gains after the nation moved closer to a junk credit rating as Fitch Ratings Ltd. changed the outlook on its assessment to negative from stable.

     Stocks
* The S&P 500 Index rose 0.4 percent to a record high. Equity markets in the U.S. are due to shut at 1 p.m. local time Friday.
* European stocks also gained, with trading volume below the 30- day average.
* Actelion Ltd. jumped after people familiar with the matter said Johnson & Johnson has approached the Swiss drugmaker about a potential takeover.
* Emerging-market shares posted their weekly advance in more than a month.

     Bonds
* The difference between German two-year yields and the equivalent swap rate reached the widest level since 2012 amid speculation the European Central Bank may relax its deposit rate floor for bond purchases.
* Yields on 40-year Japanese bonds reversed an earlier climb as an auction saw 499.7 billion yen ($4.4 billion) of securities sold at a highest yield of 0.725 percent.
* “The 40 year bonds were well received in the auction, triggering a bout of bond buying,” said Masahiko Sato, an analyst at Nomura Holdings Inc. in Tokyo.

     Commodities
* Gold’s first gain in four days cut this week’s loss to 2 percent.
* West Texas Intermediate crude oil lost 4.3 percent to $46.06 a barrel.
* Ore with 62 percent content delivered to Qingdao climbed 3.5 percent to $79.61 a dry ton on Friday, according to Metal Bulletin Ltd.

Have a wonderful weekend everyone.

Be magnificent!

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

As ever,

Carolann

It’s not reason that gives us our moral orientation; it’s sensitivity.
                                               -Maurice Barres, 1862-1923

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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