November 6th
Daily Market Commentary
ECONOMIC NEWS
- Building Permits in Canada were reportedly up 12.7% in month-over-month terms, above estimates of 6%.
- Initial Jobless Claims in the U.S. were reported at 278K, below estimates of 285K.
- Continuing Jobless Claims in the U.S. were reported at 2.348M, which was also below estimates.
- EIA Natural Gas Storage change figures were reported at 91B, above estimates of 86B.
Commodities:
- West Texas Intermediate held gains from the biggest advance in two weeks after government data showed crude stockpiles fell at the largest U.S. storage hub. Brent was steady as Libya shut its main oil field.
- Gold rebounded from the biggest drop of 2014 as investors speculated recent losses have been excessive and the dollar slipped from a five-year high.
- World food prices tracked by the United Nations fell for a seventh month in October, the longest slide since 2009, adding to falling energy costs in slowing inflation and making nutrition more accessible.
- Crude futures slide for a fifth time in six days after OPEC cut forecasts for the amount of oil it needs to supply and the dollar strengthened.
Canada:
- Canada’s AAA credit rating was affirmed by Standard & Poor’s Corp., which cited the nation’s stable political institutions, predictable policy making and resilient economy.
- Honda Motor Co. Ltd. will announce Thursday that it plans to invest about $800-million at its manufacturing plants in Alliston, Ont., to improve their efficiency and position them for production of future models. (Globe)
- Cott Corp., a Canadian producer of private-label soft drinks and ice teas, agreed to buy DSS Group Inc. for about $1.25 billion to expand into the new markets of water and coffee home and delivery services.
United States:
- U.S. stock-index futures were little changed, after the Standard & Poor’s 500 Index rose to a record, as investors awaited the European Central Bank’s policy meeting for clarity on stimulus measures.
- Qualcomm Inc. shares fell as much as 6.5 percent after the chipmaker said sales and profit in 2015 will be hurt by the fallout from a Chinese government probe and disclosed new regulatory investigations in the U.S. and Europe.
- Home-price increases moderated in much of the U.S. in the third quarter as more properties came to the market and investor purchases declined.
- DirecTV reported third-quarter profit that beat analysts’ estimates as customers paid more for satellite-TV service in the U.S.
International:
- European stocks fell for the third time in four days, as investors any signals on further stimulus from President Mario Draghi.
- Repsol SA, Spain’s largest energy company, posted a 41 percent increase in third-quarter profit after production was boosted by projects from Brazil to Russia.
- Japanese stocks fell, led by developers and utilities as the Topix index retreated from a six-year high amid speculation its recent rally was excessive.
- Takata Corp., the Japanese air-bag maker at the center of a safety crisis, widened its annual loss forecast and warned it can’t estimate the full financial liability as regulators urge automakers to speed up recalls.
- Lenovo Group Ltd. slumped the most in nine months after reporting slower sales and projecting the end of “hyper-growth” in the Chinese smartphone market.
- Emerging-market stocks fell, led by energy and utility companies, as the ECB kept its main rate unchanged. The ruble weakened to a record.
*All information is taken from Bloomberg, unless otherwise noted.
