August 30th, 2016
Daily Market Commentary
- Consumer Confidence in the US was reported at 101.1, above estimates.
- The S&P Case Shiller Indices were up 5.1% in year-over-year terms, slightly below estimates.
- The Redbook Index, which measures same-store sales growth of US general merchandisers, were down 0.3% and up 0.6% in month over month and year-over-year terms, respectively.
- Industrial Product Prices in Canada were up 0.2% in month-over-month terms.
- Oil declined amid doubts producers will agree on a deal to stabilize the market when suppliers meet next month for informal talks.
- Gold dropped for a seventh day, heading for the longest run of declines since May, and silver fell to a two-month low as comments from leading central bankers boosted speculation that U.S. interest rates may rise as soon as next month, buoying the dollar.
- Copper in Shanghai held a loss after posting its biggest weekly decline since May as stockpiles surged and Barclays Plc analysts flagged that recent weakness in the metal may signal a slowdown in China, the biggest consuming nation.
- Prime Minister Justin Trudeau is heading for his first official visit to China, seeking to reset relations and boost economic ties with Canada’s second-largest trading partner.
- U.S. index futures were little changed, with stocks heading for their first monthly decline since February, as investors awaited more economic data to help assess the timing of Federal Reserve rate increases.
- A gauge of the dollar rose to a two-week high after Federal Reserve officials fueled bets that the U.S. central bank may increase interest rates as soon as next month.
- European stocks slid as the possibility of a U.S. interest-rate increase as soon as next month outweighed upbeat comments about the world’s biggest economy.
- Fiat Chrysler Automobiles NV Chief Executive Officer Sergio Marchionne is looking into a tie-up with Samsung Electronics Co., as the Italian-American company widens its search for a technology partner to gird against being left behind in the race to develop self-driving cars.
- Asian stocks outside Japan fell after Federal Reserve Chair Janet Yellen said the case for raising interest rates is getting stronger. Shares in Tokyo rallied as the yen weakened and the Bank of Japan’s governor vowed to add stimulus if needed.
- The world’s biggest pension fund has room for a Japan stock shopping spree after the value of its investments tumbled last quarter. The $1.3 trillion Government Pension Investment Fund would need to spend $52 billion on domestic shares to meet its target for the asset, according to Bloomberg News calculations, after the fund said Friday that holdings fell to 21 percent of investments at the end of June.
*All information is taken from Bloomberg, unless otherwise noted.