September 12, 2017 Newsletter

Dear Friends,

Tangents:

On this day in 1940, the prehistoric Lascaux cave paintings are discovered near Montignac, France, by four teenagers who stumbled upon them after following a dog into the cavern.

Birthdays:
1888, Maurice Chevalier, actor.
1913, Jesse Owens, athlete.
1880, H.L. Mencken, critic.

An idealist is one who, on noticing that a rose smells better than a cabbage, concludes that it will also make better soup. –H.L. Mencken.
On Sept. 12, 1977, South African black student leader Steven Biko died while in police custody, triggering an international outcry.
Go to article »

PHOTOS OF THE DAY

A Japan Self-Defense Force (JSDF) officer inspects the honor guard before the arrival of Japanese Prime Minister Shinzo Abe at the Defense Ministry in Tokyo, Japan.  Japanese Prime Minister Shinzo Abe attended the 51^st JSDF senior officers meeting at the ministry.
CREDIT: EPA/FRANCK ROBICHON

Huge waves batter the seafront in Porthcawl in Wales during the stormy weather conditions.
CREDIT: APEX NEWS

A giant land art painting entitled “A story of the future” by French artist Saype, depicting a young girl reading a book, sits on a hillside in Les Rochers-de-Naye, in Veytaux above Montreux, Switzerland. The artwork covering approximately 6000 square meters (1.5 acres) was made with over 600 litres of biodegradable paint made from natural pigments, water and a milk protein and is part of the celebration of the 125^th birthday of the Glion Rochers-de-Naye train line.
CREDIT: VALENTIN FLAURAUD/KEYSTONE VIA AP

Villagers take part in the rural custom of The Horn Dance, performed every year on Wakes Monday, the first Monday after September 4^th ‘to ensure successful hunting’, at Abbots Bromley, in Staffordshire.
CREDIT: AARON CHOWN/PA WIRE
Market Closes for September 12^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Number of the Day
5.7 million
The number of customers without power in Florida as of early Tuesday morning, a slight drop from the day before but a figure that nonetheless represents 54% of all the customers in the state. Officials say it will take weeks to fully restore power after Hurricane Irma.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose the most since June 1 as a broad-based relief rally continued, spurring gains in riskier assets as concern that had been focused on North Korea and Hurricane Irma subsided.
     The S&P/TSX Composite Index added 103 points or 0.7 percent to 15,143.41, a second straight gain following five days of declines. Energy stocks jumped 1.1 percent to the highest in a month as the price of West Texas Intermediate crude gained 0.3 percent.
     Financials rose 0.7 percent with all but two members of the sector gaining. Home Capital Group Inc. added 1.5 percent after investors rejected Warren Buffett’s bid to double his stake in the mortgage lender.
     In other moves:

                                 Stocks
* Air Canada rose 4.8 percent. The airline is resuming operations to destinations affected by Hurricane Irma
* Canopy Growth Corp. jumped 6.5 percent, its third day of gains after Ontario said it will open as many as 150 pot stores and Canopy said it will partner with a Spanish pharmaceutical company
* Cascades Inc. gained 4.2 percent. CIBC said a containerboard price hike would add C$2.25 per share to its base-case valuation of Cascades
                                Commodities
* Western Canada Select crude oil traded at an $11.55 discount to WTI, 10 cents narrower than Monday
* Aeco natural gas traded at a $2.70 discount to Henry Hub, the biggest gap since 2005
* Gold fell 0.2 percent to $1,328.80 an ounce
                                FX/Bonds
* The Canadian dollar weakened 0.6 percent to C$1.2186 per U.S. dollar, the biggest drop this month
* The Canada 10-year government bond yield added two basis points to 2.04 percent, the highest since July.
US
By Brendan Walsh
     (Bloomberg) — U.S. stocks added to records and the dollar held gains while Treasuries fell for a second day as the Trump administration plotted strategy for pushing a tax overhaul.
     The S&P 500, Dow Jones Industrial Average and Nasdaq Composite indexes all closed at unprecedented highs. Apple Inc. slipped, as did some of its biggest suppliers, after investors were underwhelmed at the unveiling of the company’s latest gadgets. The pound jumped as U.K. inflation accelerated more than forecast, and oil rose as producers were said to discuss extending output cuts.
     Demand for riskier assets prevailed Tuesday after North Korea refrained from provocations following the UN Security Council’s move to impose sanctions and as the threat from Hurricane Irma receded. President Donald Trump was said to be planning an aggressive travel schedule to sell the idea of a tax overhaul that he promises will bolster growth.
     “There is no question that the stock market has an expectation that we are going to get tax reform done,” Treasury Secretary Steven Mnuchin said at a New York conference. “The stock market has expectations that we are going to create significant growth. Which is what this president and this administration is focused on.”
     Anticipation surrounding the new iPhone boosted stocks of some European semiconductor makers on speculation they may get a share of the component-manufacturing pie. Apple fell 0.4 percent, and suppliers including Skyworks Solutions Inc., Broadcom Ltd., Cirrus Logic Inc. and Analog Devices Inc. also dropped less than 1 percent. The U.S. company unveiled a new watch that can make calls on its own, an updated version of its Apple TV set-top box, and a top-of-the-line phone that uses facial recognition to unlock it.
     Among the key events this week for markets:
* U.S. retail sales and inflation data are due this week.
* The U.K. reports wage data Wednesday. The Bank of England will almost certainly leave policy unchanged Thursday.
* Also due this week are data on China’s August industrial production, retail sales and fixed-asset investment.
* Australia releases jobs data on Thursday.
* And the Frankfurt Motor Show is still underway.

      Here are the main moves in markets:

                                     Stocks
* The S&P 500 Index rose 0.3 percent to 2,496.49 at the close in New York.
* The Stoxx Europe 600 Index rose 0.5 percent, hitting the highest in five weeks
* The MSCI All-Country World Index gained 0.3 percent to the highest on record.
* The MSCI Emerging Market Index climbed 0.2 percent. 
                                   Currencies
* The Bloomberg Dollar Spot Index gained 0.1 percent. 
* The euro rose 0.1 percent to $1.1965. 
* The British pound advanced 0.9 percent to $1.3284, the strongest in a year
* The Japanese yen fell 0.7 percent to 110.18 per dollar, the weakest since Sept. 1.
                                   Bonds
* The yield on 10-year Treasuries increased four basis points to 2.17 percent, the highest in two weeks. 
* Germany’s 10-year yield rose six basis points to 0.4 percent, the highest in three weeks. 
* Britain’s 10-year yield climbed nine basis points to 1.13 percent, the highest in about a month.
                                   Commodities
* Gold bullion futures fell 1.1 percent to settle at $1,335.70 an ounce. 
* West Texas Intermediate crude gained 0.3 percent to settle at $48.23 a barrel
* Copper dropped to the lowest in almost three weeks.

Have a wonderful evening everyone.

Be magnificent!

In the physical world there is an indestructible continuity of relations
between hot and cold, light and darkness, movement and repose,
as well as between the bass and treble notes of a piano.
This is because opposites do not bring confusion to the world; they bring harmony.
Rabindranath Tagore

As ever,

Carolann

Creativity is the power to connect the seemingly unconnected.
                                              -William Plomer, 1903-1973

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
Fax: 778.430.5828
www.carolannsteinhoff.com