August 17th, 2016

Daily Market Commentary



  • Mortgage applications in the US were down 4%in August.
  • The Unemployment Rate in the Great Britain was quoted at 4.9%, in line with estimates.


  • U.S. stock-index futures were little changed as investors awaited minutes from the Federal Reserve’s last meeting for cues on the path of monetary policy.
  • Oil slipped from the highest closing price in five weeks as industry data showed U.S. gasoline stockpiles expanded, keeping supplies at the highest seasonal level in more than two decades.
  • Gold declined before the release of the Federal Reserve’s minutes from its July meeting after central bank officials signaled that U.S. interest rates could be increased at least once this year. Silver headed for the lowest close in three weeks.


  • Canadian stocks fell, joining losses in the U.S. after comments from a Federal Reserve official increased speculation the central bank will raise interest rates by the end of the year, overshadowing a rally in commodities prices.
  • Alimentation Couche-Tard says it’s in discussions with third parties about potential business transactions; hasn’t reached any formal agreements.
  • Canada’s beleaguered energy companies are joining the party taking place in the corporate-bond market. Almost a third of the C$7.6 billion ($5.9 billion) of bonds issued by energy producers and pipeline companies in Canada in 2016 were sold this month, according to data compiled by Bloomberg.

United States:

  • U.S. stock-index futures were little changed as investors awaited minutes from the Federal Reserve’s last meeting for cues on the path of monetary policy.
  • Lowe’s Cos. posted second-quarter profit that trailed analysts’ estimates, showing it isn’t taking as much advantage of a continued boom in renovation spending as larger rival Home Depot Inc.
  • Target Corp. cut its annual forecast after sales slumped last quarter, hit by what Chief Executive Officer Brian Cornell described as a “difficult retail environment.”
  • Cisco Systems Inc., the largest maker of networking equipment, will cut as many as 14,000 employees worldwide, or 20 percent of its workforce, CRN reported, citing people close to the company.


  • European stocks fell, heading for their longest run without gains in two months, as investors assessed the possibility of a Federal Reserve rate increase this year.
  • Deutsche Bank AG’s supervisory board should discuss scrapping bonuses for top executives for a second year after Germany’s largest bank put dividend payments on hold, consumer banking chief Christian Sewing said.
  • Since the U.K.’s June 23 vote to leave the European Union, pension deficits have swelled as record-low U.K. government bond yields have reduced returns on fund investments. That has added to pressure on companies facing gaps in their retirement funding, including telecommunications provider BT Group Plc, grocer Tesco Plc and military contractor BAE Systems Plc.
  • Norway’s $890 billion sovereign wealth fund, the world’s biggest, took the step of independently cutting the value of its massive U.K. real estate portfolio by 5 percent after Britain voted to leave the European Union.
  • Asian stocks outside of Japan fell for the first time in four days after hawkish comments from Federal Reserve officials. Shares in Tokyo climbed as the yen halted its advance after briefly surpassing 100 per dollar.

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