October 20, 2017 Newsletter

Dear Friends,

Tangents:
October 20, 1671 – New France Intendant Jean Talon orders bachelors to marry Filles du Roy or lose hunting and trading rights.

On this day in 1803, the U.S. Senate ratified the Louisiana Purchase.
PHOTOS OF THE DAY

A woman walks down the stairs in Berlin.

A boy walks at a shopping mall in Tokyo, Japan.

Cast perform during a performance of TORUK – The First Flight by Cirque du Soleil at Qudos Bank Arena in Sydney, Australia.

Fountains decorated on Place de la Concorde in Paris, France as part of Fiac 2017 (International Contemporary Art Fair).

St. Patrick’s Cathedral choristers in St. Patrick’s Cathedral for the launch of the Jonathan Swift Festival, marking the 350^th birthday of Ireland’s literary giant.
Market Closes for October 20^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
2.8%
The decline in New Zealand’s currency against the U.S. dollar after the surprise emergence of a Labour-led coalition government there Thursday.
Canada
By Kristine Owram
     (Bloomberg) — Canada’s equity benchmark gained as bank stocks hit a record high, while the loonie weakened to the lowest since August after inflation and retail sales data missed expectations.
     The S&P/TSX Composite Index added 39 points or 0.3 percent to 15,857.22, less than 70 points away from its all-time closing high in February. Nine of 11 sectors rose, led by technology, up 1.2 percent. Shopify Inc. jumped 5.2 percent as investors regained confidence in the stock following a short-seller report earlier in the month.
     An index of bank stocks hit a record as it gained for a sixth consecutive day. Canadian Western Bank rose 1.4 percent.
     In other moves:
                              Stocks
* Canopy Growth Corp. jumped 8 percent following three days of declines. The Toronto Stock Exchange said Monday it may delist pot stocks that flout U.S. federal law
* DHX Media Ltd. gained 0.2 percent after earlier falling as much as 16 percent. A block of 6.2 million shares changed hands at mid-morning, about 10 times an average day’s volume
* New Gold Inc. added 3.4 percent after being upgraded to buy at Canaccord Genuity
                             Commodities
* Western Canada Select crude oil traded at a $12.00 discount to WTI
* Aeco natural gas traded at a $1.79 discount to Henry Hub
* Gold fell 0.7 percent to $1,277.40 an ounce, the lowest in two weeks
                             FX/Bonds
* The Canadian dollar weakened 1 percent to C$1.2615 per U.S. dollar, the lowest since Aug. 30
* The Canada 10-year government bond yield added two basis points to 2.03 percent
US
By Brendan Walsh and Jenna M. Dagenhart
     (Bloomberg) — The dollar climbed, Treasuries fell and U.S. stocks posted a sixth straight weekly gain on bets Donald Trump was closer to pulling off one of his biggest legislative priorities after the Senate approved a budget vehicle for tax cuts.
     All three U.S. equity benchmarks hit records. The dollar reached a three-month high and 10-year Treasury yields approached 2.4 percent amid speculation Trump was moving closer to selecting the next Federal Reserve chief. 
     “A lot of the story line we have been talking about this year is now playing out,” said Mike Wilson, Morgan Stanley’s chief U.S. equity strategist. “We’re going to have a good quarter of earnings again, we now are getting closer to the Fed chair certainty. We have the budget resolution, which is a big step in the direction of tax cuts.”
     European shares erased some of Thursday’s losses on the back of rising metal prices and positive corporate earnings. The euro slipped as investors eyed political developments in Spain and negotiations over Britain’s departure from the European Union. The Canadian dollar tumbled after inflation and retail sales trailed estimates.
     People familiar with the process of selecting the next Fed chief said Trump’s advisers are steering him toward either Jerome Powell, a member of the Fed Board of Governors, or Stanford economist John Taylor. Trump’s goal of rewriting tax laws took a major step forward as the Senate narrowly approved a budget vehicle that could pave the way for a bill.
     Meanwhile, sales of previously owned U.S. homes increased unexpectedly in September, showing demand is stabilizing in the aftermath of hurricanes Harvey and Irma.
     These are some key upcoming events:
* Fed Chair Janet Yellen speaks on Saturday.
* The big highlight of the weekend at China’s Communist Party Congress will be a discussion on reforms for state-owned Chinese companies.
* Japan goes to the polls on Sunday with a win tipped for Prime Minister Shinzo Abe. Read more here.
         Here are the main moves in markets:
                          Stocks
* The S&P 500 Index added 0.5 percent at the close of trading in New York.
* The Stoxx Europe 600 Index rose 0.3 percent.
* Japan’s Nikkei 225 Stock Average gained less than 0.05 percent to the highest in about 21 years.
* The MSCI Emerging Market Index increased 0.2 percent.
                         Currencies
* The Bloomberg Dollar Spot Index gained 0.6 percent.
* The euro fell 0.7 percent to $1.1774.
* The British pound increased 0.2 percent to $1.3185.
* The Japanese yen decreased 0.9 percent to 113.52 per dollar, the weakest in 14 weeks.                            
                          Bonds
* The yield on 10-year Treasuries rose six basis points to 2.38 percent, a three-month high.
* Germany’s 10-year yield climbed five basis points to 0.45 percent.
* Britain’s 10-year yield added five basis points to 1.33 percent.
                          Commodities
* West Texas Intermediate crude rose 0.4 percent to $51.47 a barrel.
* Gold dipped 0.7 percent to $1,281.52 an ounce.

Have a wonderful evening everyone.

Be magnificent!

Duties to self, to the family, to the country,
and the world are not independent of one another.
One cannot do good to the country
by injuring himself or his family.
Similarly one cannot serve the country
by injuring the world at large.
Mahatma Gandhi

As ever,

Carolann

Never regret.  If it’s good, it’s wonderful.  If it’s bad, it’s experience.
                                                       -Victoria Holt, 1906-1993

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