October 23, 2017 Newsletter

Dear Friends,
Tangents:  Happy Monday!

On this day in 2001, Apple releases the iPod.
1956: Hungarian Revolution.
1989: Hungarian Independence.
1993 – Toronto Blue Jays win second World Series on Joe Carter’s three-run homer in the bottom of the 9th.

POINTS OF PROGRESS:

THE NETHERLANDS
The Dutch are now the world’s No. 2 exporter of food – and they are doing it sustainably.  The tiny low-lying nation is second only to the United States, which has 270 times the landmass, in food exports by value (US agricultural exports are valued at $149 billion).  Using science and technology to push the boundaries of agriculture, the nation has also cut the use of water by 90 % and that of antibiotics by 60 %; it’s also almost entirely eradicated the use of pesticides. –National Geographic, World Economic Forum, Worldatlas.

ZIMBABWE
The landlocked country’s rhino population has more than doubled.  In the 1990’s, the rhino population in Zimbabwe dropped to a little more than 300, but now, thanks largely to the work of pioneering conservationist Clive Stockil, it is home to 700 rhinos.  Mr. Stockil, chairman of the Lowveld Rhino Trust and a driving force behind the Save Valley Conservancy, one of the largest private game reserves in Africa, has helped to combat the two biggest threats to rhinos – habitat loss and poaching. –Chicago Tonight.
PHOTOS OF THE DAY

Perseid meteors named as ‘Orinoid’ streak across the sky over Kula town on Manisa, Turkey.

A cheetah climbs an Acacia Tree during sunrise in Masai Mara, Kenya.

Australian artist Irene Barberis (left) with her design The Tapestry of Light: Intersections of Illumination, at Canterbury Cathedral in Kent.
Market Closes for October 23^rd, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks were little changed after giving up earlier gains, as declines in energy shares offset increases in most other sectors.
     The S&P/TSX Composite Index closed down 1 point or less than 0.1 percent to 15,855.76 after earlier rising as much as 0.3 percent. The energy sector was the biggest decliner, losing 0.6 percent as gains in the price of crude moderated throughout the day. Baytex Energy Corp. fell 4.4 percent.
     Consumer staples added 0.7 percent, led by a 1.5 percent gain in shares of Alimentation Couche-Tard Inc. Technology rose 0.6 percent and telecom stocks gained 0.3 percent.
     In other moves:
                                  Stocks
* Eldorado Gold Corp. tumbled 28 percent, the most ever, to its lowest level since 2003. The company cut its 2017 production forecast for its flagship mine in for the second time this year
* Canfor Corp. rose 6.3 percent after third-quarter earnings beat the highest analyst estimate
* Hudson’s Bay Co. fell 1.8 percent. Executive Chairman Richard Baker is assuming the CEO role again, while activist investor Jonathan Litt said he plans to call a special shareholder meeting
                                Commodities
* Western Canada Select crude oil traded at a $12.50 discount to WTI, 50 cents higher than Friday’s close
* Aeco natural gas traded at a $2.54 discount to Henry Hub
* Gold was little changed at $1,277.70 an ounce
                                FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.2651 per U.S. dollar, the lowest in more than two months
* The Canada 10-year government bond yield was little changed at 2.03 percent
US
By Samuel Potter and Sarah Ponczek
     (Bloomberg) — U.S. stock indexes saw their first declines in more than a week as investors prepared for a big week of earnings reports and monitored the progress of tax legislation.
     “Earnings will be center stage, and then tax reform,” Ernie Cecilia, the chief investment officer at Bryn Mawr Trust Co. in Pennsylvania, said by phone. “Those are the two, whatever order you want to put them in.”
     The S&P 500 Index and Dow Jones Industrial Average both fell Monday, pulled down by technology and industrial stocks. Europe’s bonds were broadly stronger as Treasuries steadied. West Texas crude approached $52 a barrel after OPEC reported record compliance with pledged production cuts. The dollar advanced to a 14-week high. 
     There’s no shortage of other potential catalysts out there for investors this week, from the reaction to the election in Japan to the boiling Catalonia crisis and very different moves toward autonomy in parts of Italy. Central banks also loom large, with a pivotal European Central Bank meeting due and the possible unveiling of President Donald Trump’s pick for Federal Reserve chair. The U.S. president said Monday that he’s “very, very close” to announcing his nominee.
     The euro weakened as Catalan separatists planned their response to Spain Prime Minister Mariano Rajoy’s moves to stamp his authority on the region. European stocks got support from the common currency’s slip, while Spanish shares underperformed. The pound advanced as U.K. Prime Minister Theresa May told Parliament that progress had been made in Brexit talks. In Japan, Shinzo Abe’s election victory sent the Nikkei to the longest winning streak on record.
     These are some of the key events coming up:
* The U.S. economy probably expanded at about a 2.5 percent annualized pace in the third quarter, restrained in part by the effects of two hurricanes, economists forecast the government to report on Friday.
* Among other U.S. data this week, orders for big-ticket durable goods probably increased in a sign of firmer manufacturing growth.
* Australia updates on third-quarter inflation on Wednesday, while South Korea reports on GDP and Hong Kong on imports and exports. Japan reports on CPI later in the week.
* The European Central Bank holds a policy meeting on Thursday at which it’s expected to announce its stimulus plan for 2018.
* Brazil, Argentina, Russia and Canada also announce rate decisions in the coming days.
* Companies reporting earnings this week include Alphabet Inc., Microsoft Corp. and Twitter Inc. in the technology sector. Ford Motor Co., Volkswagen AG and Boeing Co. headline cars and planes. Fast food giant McDonald’s Corp., Coca-Cola Co. and brewer Heineken NV join European banks including UBS Group AG, Deutsche Bank AG and Barclays Plc.

      And here are the main moves in markets:
                            Stocks
* S&P 500 Index fell 0.4 percent Monday, the biggest decrease in almost seven weeks; the Dow declined 0.23 percent.
* The Nasdaq Composite Index dropped 0.67 percent.
* The Stoxx Europe 600 Index gained about 0.2 percent.
                            Currencies
* The Bloomberg Dollar Spot Index climbed 0.1 percent to its highest in more than 14 weeks.
* The euro fell 0.3 percent to $1.1748, the weakest in two weeks.
* The pound rose 0.1 percent to $1.3198.
                            Bonds
* The yield on 10-year Treasuries declined one basis point to 2.37 percent.
* Germany’s 10-year yield dropped two basis points to 0.43 percent.
* Britain’s 10-year yield fell two basis points to 1.312 percent.
                            Commodities
* Gold climbed 0.1 percent to $1,281.94 an ounce.
* West Texas Intermediate crude increased 0.1 percent to $51.91 a barrel.
                             Asia
* Japan’s Topix index climbed 0.8 percent, cementing a rally to the highest since mid 2007. The Nikkei jumped to once again hit the highest since 1996.
* MSCI’s Asia Pacific Index added 0.1 percent. South Korea’s Kospi index was little changed. Hong Kong’s Hang Seng fell 0.6 percent. Australia’s S&P/ASX 200 lost 0.2 percent. 

Have a splendid evening.

Be magnificent!

Give with faith and never without faith.
Give with  dignity.  Give with humility.  Give with joy.
And give with understanding of the effects of your gift.
Taittiriya Upanishad

As ever,

Carolann

When your work speaks for itself, don’t interrupt.
–Henry J. Kaiser, 1882-1967

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
Toll Free: 1.877.430.5895
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www.carolannsteinhoff.com