April 7th, 2017

Daily Market Commentary




Economic News:

  • The Canadian Unemployment Rate was quoted at 6.7%, in line with estimates.
  • The US Unemployment rate was quoted at 4.5%, down from 4.7%.
  • Average Hourly Earnings in the US were up 2.7% in year-over-year terms.
  • Industrial Production in Germany was up 2.5% in February.


  • Canadian stocks advanced as crude prices rose to their highest level in a month and U.S. jobless claims came in better than expectations, raising optimism about the health of the world’s biggest economy.
  • The Canadian dollar will weaken in the coming months, as the Federal Reserve is expected to continue increasing rates while the Bank of Canada is bound to stay put, according to the currency’s highest-ranked forecasters.

United States:

  • U.S. stock-index futures dropped after the military’s missile attack on Syria jolted financial markets. S&P 500 contracts expiring in June fell 0.2 percent to 2,348.5 at 5:42 a.m. in New York, clawing back an earlier drop of 0.7 percent as investors also awaited the monthly payrolls data from the U.S. government.
  • The battered American retail industry took a few more lumps this week, with stores at both ends of the price spectrum preparing to close their doors. At the bottom, the seemingly ubiquitous Payless Inc. shoe chain filed for bankruptcy and announced plans to shutter hundreds of locations. Ralph Lauren Corp., meanwhile, said it will close its flagship Fifth Avenue Polo store


  • With little more than two weeks to go before the first round of French elections, expectations for fluctuations in European stocks are growing. The VStoxx Index, which measures volatility bets based on options on the Euro Stoxx 50 Index, has rebounded from suppressed levels and is heading for a third consecutive weekly advance. That’s its longest rising streak since before the U.K. referendum on European Union membership last year.
  • Deutsche Bank AG said shareholders agreed to buy 98.9 percent of the stock on sale in its 8 billion-euro ($8.5 billion) rights offering, the key piece in Chief Executive Officer John Cryan’s second turnaround plan in as many years.
  • After years of struggling to recapitalize, many of Europe’s biggest banks have rallied in stock markets, producing winners and losers in dividend yields. Swedbank AB has had the largest increase in expectations for dividend yield over the past three months, according to analyst estimates compiled by Bloomberg. The Swedish lender’s expected yield jumped 65 basis points, or 0.65 percentage point in the period.
  • Asian stocks rebounded as Japanese equities advanced, shaking off a decline following a U.S. missile strike on Syria. The yen strengthened against the dollar while gold and oil surged.
  • China Merchants Port Holdings Co., an operator of ports and cargo terminals, agreed to sell its entire stake in a container manufacturer for HK$8.54 billion ($1.1 billion) to its parent China Merchants Group Ltd. in a bid to focus on its core business.
  • India is poised to dislodge Japan to become the world’s second-largest steelmaker as mills ramp up production to record levels to feed growing demand for infrastructure, new homes and consumer goods, highlighting the potential for industry’s growth outside China.

*All sources from Bloomberg unless otherwise specified