September 10, 2014 Newsletter

Dear Friends,

Tangents:

On this date in 2000, the Broadway musical “Cats” closed after 7,485 performances. The show, which ran for almost 18 years, ranks as the second longest-running musical in Broadway history.

Web Excursions:

Chowhound.com is  a community discussion sit.  Post a question and get immediate advice and insider tips on places to eat from local foodies – great if you’re planning a trip.

Movie-locations.com features a world map of movie set locations.  Navigate the site using movie titles or a favorite actor or director.

PHOTOS OF THE DAY

Horse whisperer Martin Tata lies with his five-year-old horse ‘Primavera’ as he performs a demonstration of ‘Indian taming’ at the Polo Club Puesto Viejo ranch in Canuelas, northeast of Buenos Aires. Tata says the techniques that he uses to tame unbroken horses avoids unnecessary violence and helps build a more harmonious relationship between humans and the horses. Enrique Marcarian/Reuters

British history enthusiasts portraying ‘Feldwebelleutnant’ officer Fritz Brandt (front) of the Sturmabteilungbrandt group, holding a dog in his arms, and German Gefreiter Gunter Meyer (back) attend the re-enactment of the First Battle of the Marne, which took place a century ago, at Chauconin-Neufmontiers, Eastern Paris. Dozens of volunteers dressed in French and German military uniforms recreated the battle from two trenches dug out by local residents to mark the 100th anniversary of the start of the First World War (WWI). Charles Platiau/Reuters

Market Closes for September 10^th, 2014    

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

     Sept. 10 (Bloomberg) — Canadian stocks fell to the lowest level in three weeks as energy shares followed losses in oil.

     Bankers Petroleum Ltd. and Legacy Oil & Gas Inc. declined more than 2.2 percent as crude in New York dropped to the lowest in eight months. AuRico Gold Inc dropped 5.6 percent for the biggest loss in the Standard & Poor’s/TSX Composite Index.

     The S&P/TSX fell 64.92 points, or 0.4 percent, to 15,471.89 at 4 p.m. in Toronto. The gauge has dropped in four of the past five days and fallen 1.2 percent since a record on Sept. 3. Trading volume was 5.7 percent below the 30-day average at this time of day.

     Bankers Petroleum sank 2.2 percent to C$5.69 and Legacy Oil & Gas slumped 3.2 percent to C$6.92 to pace declines among energy producers. Brent traded below $100 a barrel for a third day and West Texas Intermediate fell 1.2 percent in New York to settle at $91.67 a barrel.

     OPEC cut forecasts for the amount of crude it will need to pump by the most in three years as surging U.S. output reduces reliance on the group’s barrels. Crude prices are poised to drop next year as American production climbs to a 45-year high, the Energy Information Administration said yesterday.

     AuRico Gold declined 5.6 percent to C$4.20 and Torex Gold Resources Inc. tumbled 4.8 percent to C$1.58 as gold futures for December delivery fell to a three-month low.

USA

By Callie Bost and Jeremy Herron

     Sept. 10 (Bloomberg) — U.S. stocks rose, following a two- day slide, as Apple Inc. rallied to boost technology shares. Treasuries declined with emerging-market equities, while the dollar gained on speculation interest rates may rise sooner than anticipated.

     The Standard & Poor’s 500 Index climbed 0.4 percent at 4 p.m. in New York. Apple jumped 3.1 percent, the most since April, to lead the Nasdaq 100 Index higher. The MSCI Emerging Markets Index sank the most since March. The yield on 10-year Treasury notes rose three basis points to 2.53 percent, the highest since July. The Bloomberg Dollar Spot Index rose 0.2 percent and commodities retreated as Brent crude slid to a 17- month low.

     Apple rallied a day after introducing new products including a smartphone, watch and online payments processor. BlackRock Inc., the world’s biggest money manager, is among investors speculating that an improving labor market and signs of inflation may justify sooner-than-forecast rate increases by the Federal Reserve. Data this week may show that claims for unemployment benefits fell, retail sales improved, and consumer confidence rose, strengthening the case for higher rates next year.

     “Everybody has been watching Apple,” Matt Maley, the Newton, Massachusetts-based equity strategist at Miller Tabak & Co. LLC, said via phone. “It’s an Apple-dominated market, especially in a week where we don’t have a lot of macro data coming out.”

     The S&P 500 advanced after closing yesterday at its lowest level since Aug. 22 following a two-day decline of 1 percent. The gauge has rallied 8 percent this year.                       

     The Nasdaq 100 Index jumped 0.8 percent, bolstered by Apple and Garmin Ltd., which rallied 4 percent to rebound from a selloff yesterday. Health-care stocks gained 0.7 percent as a group.

     EBay Inc. sank 3.1 percent after Apple introduced a mobile- payment service that may hurt EBay’s PayPal business.

     Energy producers lost 0.3 percent for the second-biggest slide of the 10 main S&P 500 groups, as Brent traded below $100 a barrel for a third day. West Texas Intermediate crude fell to a 16-month low.

     OPEC reduced forecasts for the amount of crude it will need to supply by the most in at least three years as surging North American shale output reduces reliance on the group’s supplies. Crude prices are poised to drop next year as American production climbs to a 45-year high, the Energy Information Administration said yesterday.

     Ten-year Treasuries declined for a fifth-straight day, the longest streak since June, as yields climbed to a one-month high. Spain’s 10-year yield increased seven basis points to 2.27 percent, while Italy’s increased four basis points to 2.40 percent.

     Traders are bringing forward bets for when the Fed will begin raising interest rates. They see a 79 percent chance of an increase to at least 0.5 percent by September 2015, federal fund futures data showed yesterday. That compares with a 73 percent probability seen on Aug. 29. Policy makers have kept their target for overnight lending between banks in a range of zero to 0.25 percent since December 2008.

     BlackRock’s Chief Investment Officer Rick Rieder said interest rates are likely to drift higher as research from the Federal Reserve Bank of San Francisco Sept. 8 indicated investors may be underestimating how quickly U.S. policy makers may tighten policy. Rieder said last month in a Twitter post that the Fed may increase rates early in 2015. Fed officials next meet Sept. 16-17.

     “The bond market had a strong rally in August and it seems to be catching up with reality a bit,” said Luca Jellinek, head of European rates strategy at Credit Agricole SA’s investment banking unit in London.

     The Bloomberg Dollar Spot Index, which tracks the greenback against a basket of 10 leading currencies, rose to its strongest level since July 2013. The greenback gained 0.6 percent to 106.79 yen, the highest since September 2008. It was little changed at $1.2912 per euro after reaching $1.2860 yesterday, the strongest since July 2013.

     “The U.S. dollar has had a really nice rally against everything else,” said Chris Weston, chief market strategist in Melbourne at IG Australia, a unit of IG Group. “The euro and the pound are so oversold that now people are looking to a positive U.S. dollar bias against the Aussie.”                       

     The MSCI Emerging Markets Index fell for a fifth day, capping its longest slide since June, as China’s money supply growth unexpectedly eased and economic gains in Turkey missed estimates.

     The Shanghai Composite Index dropped 0.4 percent and the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong sank 2.6 percent, the most in seven months. The city’s markets were shut yesterday for a holiday.

     Apple’s Asian suppliers retreated after the company introduced new products yesterday. Taiwan Semiconductor Manufacturing Co. slid 1.6 percent, Taipei-based Foxconn Technology Co. fell 1.2 percent and China’s AAC Technologies Holdings Inc. dropped 2.3 percent in Hong Kong.

     The Borsa Istanbul National Index dropped 0.7 percent and the lira fell for a third day. Russia’s ruble declined 0.5 percent, weakening for a third day, while the Micex equity index was little changed.

     Ukrainian President Petro Poroshenko said Russia has withdrawn more than two-thirds of its troops from his country as European Union governments met to consider imposing tougher sanctions on Moscow.

     The Stoxx Europe 600 Index fell 0.1 percent, paring an earlier drop of 0.6 percent. The gauge has lost 1.2 percent since reaching a two-month high on Sept. 4, when the region’s central bank unexpectedly cut interest rates and announced a plan to buy securitized debt.

     Banco Santander SA slid 0.7 percent after Spain’s biggest bank said Chairman Emilio Botin died of a heart attack at the age of 79. The board will meet today to name a successor.

     Kingfisher Plc rose 4.3 percent after Europe’s largest home-improvement retailer said Ian Cheshire will step down as chief executive officer and hand leadership of the company to the head of the French Castorama unit, Veronique Laury.

Have a wonderful evening everyone.

Be magnificent!

I must confess that I do not draw a sharp line

or any distinction between economics and ethics.

Mahatma Gandhi

As ever,

Carolann

Imagination is a poor substitute for experience.

                           -Havelock Ellis, 1859-1939

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7