August 5th, 2015

Daily Market Commentary

 

ECONOMIC NEWS

  • International Merchandise trade, or Exports minus Imports, for Canada was quoted at -$0.48B for June, a deficit which was less than expected.
  • MBA Mortgage Applications in the U.S. were up 4.7%.
  • The ADP Employment Change for the U.S. was 185K, below estimates of 215K.
  • Retail Sales in Europe were down 0.6% and up 1.2% in month-over-month and year-over-year terms, respectively.
  • The Markit Services PMI for Great Britain was reported at 57.4.

Commodities:

  • Oil held gains before U.S. government data forecast to show crude stockpiles fell in the world’s biggest consumer.
  • Gold fell after a U.S. Federal Reserve voting member said the bank is close to raising interest rates, boosting the dollar and cutting demand for the metal.
  • Corn in parts of France, Europe’s biggest grower, is about half as tall as it should be and in the worst condition that Luc Esprit has seen since 2003.
  • Copper sank for the fourth time in five days on speculation U.S. interest rates will rise as soon as next month. Tin fell to a one-week low.

Canada:

  • Brookfield Property Partners LP climbed the most in two years after the landlord said it’s in the process of selling at least $1.3 billion in apartment, industrial and office assets, taking advantage of demand for real estate.
  • The results of a two-week vote on whether WestJet pilots will form the company’s first union are expected today. (Globe)
  • Apple Canada Inc. has demanded that Ingram Micro Inc. stop selling used iPhones in Canada after the distributor struck a deal to supply the devices to Wind Mobile Corp., according to sources. (Globe)

United States:

  • U.S. stock-index futures rose, signaling equities will rebound from a three-day drop, as investors awaited a private jobs report and corporate earnings.
  • Tesla Motors Inc. reporting a loss in the second quarter is pretty much a given. The youngest and smallest publicly traded U.S. automaker is projected to lose about 60 cents a share, excluding certain items, and $1.11 a share on a net basis. Still, investors remain bullish — pushing up the stock 2.4 percent on Tuesday to $266.28.
  • General Electric Co. will spend $500 million this year to promote and sell tools that link factories, equipment and computer systems, seeking to become a one-stop technology provider for industrial companies.

International:

  • European stocks resumed their gains as commodity producers rose for a second day and Societe Generale SA jumped after reporting its highest profit since the financial crisis.
  • Liberty Global Plc reported a decline in second-quarter revenue as its Dutch unit Ziggo lost customers, highlighting the difficulties faced by billionaire John Malone’s European cable company in its hunt for growth.
  • Neiman Marcus Group Inc., the century-old luxury department-store chain acquired two years ago in a $6 billion leveraged buyout, is already planning to go public.
  • Societe Generale SA gained the most in two years after the bank reported the highest profit since the financial crisis, bolstered by equity trading revenue, and raised its capital targets.

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