Daily Market Commentary
- Building Permits in the U.S. were reportedly up 1.052M in month-over-month terms, above estimates of 1M.
- The Consumer Price Index in the U.S. was reportedly up 0.1% and 2% in month-over-month and year-over-year terms, respectively. Both were in line with estimates.
- Housing starts in the U.S. were reported at 1.093M, above estimates of 0.970M, in month-over-month terms.
- The Redbook Index, which measures same-store sales growth in general merchandise stores in the U.S., were reportedly up 0.5% and 3.7% in month-over-month and year-over-year terms, respectively.
- Gold traded little changed above the lowest price in more than a week in London as investors weighed the standoff over Ukraine against a stronger dollar. Palladium held below a 13-year high.
- West Texas Intermediate advanced for the second time in three days before supply data that may signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent traded near the lowest in almost 14 months.
- Rain is forecast to bring relief to drought-stricken parts of China, complicating government plans to trim stockpiles that are estimated to be the world’s largest.
- Magna International Inc., the largest auto supplier in North America, will consider purchases of as much as $4 billion as it distances itself from debt-averse founder Frank Stronach. Magna, which hasn’t done an acquisition of more than $500 million in a decade, is more willing to take on debt to finance transformative acquisitions than it was when Stronach was still involved with the company, Chief Executive Officer Don Walker said in an interview in Bloomberg’s Toronto offices.
- Alimentation Couche-Tard Inc and Tencent Holdings on list to buy $16b minority stake in China’s Sinopec Sales, Reuters says, citing unidentified people. China Life Insurance, ENN Energy, Fosun Group, Hopu Investment Management, Affinity Equity Partners also in next round.
- Canadian industrial companies plan to reduce their spending on research and development this year as they anticipate a weak economy, a government survey showed.
- U.S. stock-index futures advanced, after the Nasdaq Composite Index climbed to a 14-year high, as investors awaited a report on housing starts to gauge the strength of the world’s biggest economy.
- Home Depot Inc., the largest U.S. home-improvement retailer, posted second-quarter profit that topped analysts’ estimates and raised its forecast for the year as sales of seasonal merchandise rebounded. The shares gained.
- European stocks advanced for a second day as A.P. Moeller-Maersk A/S and Imperial Tobacco Group Plc climbed after posting earnings.
- U.K. inflation cooled more than economists forecast in July, giving the Bank of England room to keep its key interest rate at a record low. The rate of consumer-price growth fell to 1.6 percent from 1.9 percent in June, the Office for National Statistics said today in London.
- German government bonds rose amid speculation that yesterday’s selloff was excessive given the prospect of central banks around the world maintaining stimulus.
- Asian stocks rose after confidence in the U.S. housing industry climbed to the highest level in seven months and tensions eased over global political conflicts. Hong Kong shares climbed to a six-year high.
- Indian Prime Minister Narendra Modi’s administration called off the first formal talks with Pakistan in two years, a setback for relations after the nations sought to boost ties following his election win in May.
- Bank of China Ltd. reported its slowest profit growth since the first quarter of 2013 after bad loans rose to the highest level in more than five years and the lender set aside priovisions for more soured debt.
*All information is taken from Bloomberg, unless otherwise noted.