April 4th, 2017

Daily Market Commentary




Economic News:

  • International Merchandise Trade in Canada was reported at -$0.97B, far below expectations.
  • The Redbook Index, which measures same-store sales growth of US General Merchandising companies, was reportedly down 0.7% and up 1.3% in month-over-month and year-over-year terms, respectively.


  • Canadian stocks closed slightly higher, diverging from oil prices late in the day as gains in materials offset declines in energy stocks. The S&P/TSX Composite Index gained 37 points or 0.2 percent to 15,584.40. Materials shares rose 1.7 percent, led by a 5.5 percent gain at Teck Resources Ltd., which was boosted by a big gain in the price of coking coal.
  • Canadian crude shipments to the U.S. are poised to shrink just as the effects of OPEC-led output cuts are being felt in the Caribbean. That’s good news for Mexico and other local oil producers. Syncrude Canada Ltd. told customers that they wouldn’t receive any supply in April from its 350,000 barrel-a-day upgrader.

United States:

  • U.S. index futures declined after stocks fell close to their 50-day moving average and as investors weigh risks to the economy’s outlook, including whether fiscal stimulus will be carried out.
  • Ford Fusion: down 37 percent. Chevrolet Malibu: down 36 percent. Toyota Prius: down 29 percent. As those grim numbers suggest, the U.S. auto industry was blindsided last month by just how fast sedans have fallen out of favor with Americans now embracing roomier sport utility vehicles.
  • Peabody Energy Corp., America’s biggest coal miner, is back. After almost a year in bankruptcy, the St. Louis-based giant will trade yet again on the New York Stock Exchange on Tuesday. Clarksons Platou Securities Inc. estimated a market capitalization of $3.97 billion for the company, which at its height was valued at almost $24 billion.


  • European stocks were little changed after their biggest decline in two weeks, with investors awaiting economic data and minutes from the Federal Reserve’s last meeting. The Stoxx Europe 600 Index rose 0.1 percent at 08:10 a.m. in London. Renault SA and BMW AG paced declines in car-makers after data showed disappointing March sales in the U.S. auto industry.
  • BMW AG topped its rival in the U.S. luxury auto market for the first time this year, eking out a monthly sales increase and gaining ground on Daimler AG’s Mercedes-Benz. Deliveries of the X3 and X5 sport utility vehicles climbed 43 percent and 35 percent last month, respectively, pacing BMW’s total sales of 31,015 vehicles.
  • Airbus Group SE is making a fresh sales pitch for its A380 superjumbo with half a dozen proposals to accommodate more than 80 additional seats, seeking to enhance the flagship jet’s economic credentials after a struggle to win orders in recent years.
  • A positive start to the second quarter for Asian equities was cut short as Japanese stocks led declines on a day when many other markets in the region were shut for holidays.

*All sources from Bloomberg unless otherwise specified