August 16th, 2016

Daily Market Commentary



  • The Consumer Price Index in the US was up 0% and 0.8% in month-over-month and year-over-year terms, respectively.
  • Housing starts in the US were up 1.211M in July, above estimates.
  • Building Permits in the US were up 1.15M, below estimates.
  • The Redbook Index, which measures same-store sales growth in US General Merchandising companies, was reportedly down 0.3% and up 0.2% in month-over-month and year-over-year terms, respectively.


  • Oil traded near $46 a barrel after the biggest three-day gain since April as Nigeria’s oil minister signaled the prospect of production cuts from OPEC was unlikely.
  • Gold rallied for a second day as falling equities lifted demand for a haven and the outlook for supportive monetary easing made non-yielding assets more attractive.
  • Nickel and zinc retreated in London after posting their biggest advances in more than two weeks as investors await signs of a pick-up in Chinese demand.


  • Canadian stocks rose, closing near the highest level in a year, as energy producers advanced for a third session amid speculation crude prices will continue to rebound and Valeant Pharmaceuticals International Inc. jumped after an analyst upgrade.

United States:

  • U.S. stock-index futures were little changed as traders assessed gains after equities rose to a record yesterday.
  • Praxair Inc. of the U.S. and Germany’s Linde AG are in talks to combine in a transaction that would create the world’s largest supplier of industrial gases, according to people familiar with the matter. The deal could be valued at more than $30 billion.
  • Home Depot Inc., the world’s largest home-improvement retailer, posted second-quarter profit that rose 9.3 percent and boosted its earnings forecast for the year as Americans continued a spree of spending on their houses.
  • Noble Group Ltd. pushed back after a two-level downgrade by Moody’s Investors Service, with the commodity trader saying a planned sale of a U.S. energy unit was progressing well and efforts to cut costs and debt were making headway. Bond prices fell, while shares rose.


  • European stocks pared earlier declines after data showing a rebound in German investor confidence, while miners extended a rally.
  • BHP Billiton Ltd., the world’s biggest mining company, flagged it’s emerging from the worst commodities price collapse in a generation with renewed impetus after reporting a record full-year loss.
  • U.K. inflation accelerated in July and there were signs the weak pound will fuel further price pressures with import costs jumping the most in more than four years.
  • Asian stocks retreated from a one-year high after Japanese shares sank as the yen advanced toward 100 per dollar.
  • Xiaomi Corp., the once-hot Chinese smartphone maker, saw shipments tumble 38 percent in China in the second quarter as Huawei Technologies Co. took over the top spot in the world’s largest market.
  • Chinese authorities are planning not to impose an aggregate quota on trading via the Shenzhen-Hong Kong stock exchange link, according to two people familiar with the matter. Daily trading will still be subject to a cap, the people said. Officials are also considering removing the overall limit for equity trades through Hong Kong’s existing link with Shanghai, one of the people said.

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