December 11th

Daily Market Commentary

 

ECONOMIC NEWS

• Capacity Utilization in Canada was reported at 83.4% in the third quarter, above estimates of 83.1%.
• The New Housing Price Index in Canada was reportedly up 0.1% and 1.6% in month-over-month and year-over-year terms, respectively.
• Imports in the U.S. were reportedly down 1.5% and 2.3% in month-over-month and year-over-year terms, respectively.
• Export prices in the U.S. were reportedly down 1% and 1.9% in month-over-month and year-over-year terms, respectively.
• Business Inventories in the U.S. were reportedly up 0.2%.
• EIA Natural Gas storage changes were reportedly down 51B, a larger decline than the expected 45B drop.

Commodities:

• Brent and West Texas Intermediate traded near the lowest price since July 2009 as Saudi Arabia questioned the need to cut output, bolstering speculation that OPEC’s biggest producer will defend market share.
• Gold held below the highest in more than six weeks as investors weighed prospects for deflation spurred by tumbling energy prices against signs of rising demand. Palladium rose toward the highest level since September, while platinum advanced.

Canada:

• Air Canada’s five-year drive to trim costs is getting a boost from the global oil selloff, setting up the country’s biggest carrier to extend a stock rally into 2015.
• Canadian stocks are close to wiping out their gains for the year as the rot from plunging oil stocks spreads to every corner of the market.
• TransForce Inc. may accelerate a stock buyback plan or increase its dividend, in addition to paying down debt in 2015, as acquisitions bolster cash flow, Chief Executive Officer Alain Bedard said.
• Canadian heavy crude fell to near $40 a barrel, threatening projects under construction as producers boosted output and space on a pipeline was rationed.

United States

• U.S. stock-index futures advanced, as oil-related companies rebounded, and before a report forecast to show retail sales increased in November.
• Google Inc.’s rivals are being questioned by European Union regulators as part of a four-year antitrust probe into the U.S. company after a planned settlement stalled this year, according to people familiar with the investigation.
• Lululemon Athletica Inc., the yogawear maker that ended a dispute with its founder earlier this year, posted third-quarter profit that topped analysts’ estimates and raised its full-year forecast as shoppers buy more workout clothing for everyday use.

International:

• European stocks extended a three-week low, led by a slump in miners.
• The European Central Bank’s second round of long-term loans came in at the low end of analysts’ estimates, bolstering the case for the institution to start large-scale quantitative easing.
• Russia’s fifth interest-rate increase this year failed to stem the ruble’s worst rout in 16 years, risking further damage to an economy battered by sanctions and oil prices near the lowest since 2009.
• Asian shares extended a global selloff as energy companies slid with crude trading near $61 a barrel and Japanese exporters tumbled after the yen jumped the most in 18 months.
• China’s central bank injects 400b yuan into the interbank market via China Development Bank, according to a person familiar with the matter.
• India wants to buy more rough diamonds directly from mining companies as the world’s biggest polisher of the gems seeks to bypass traditional dealers.

*All information is taken from Bloomberg, unless otherwise noted.