August 5th, 2016

Daily Market Commentary



  • The unemployment rate in the US ticked up to 4.9% from 4.8%, reportedly.
  • The labour force participation rate also ticked up to 62.8% from 62.7%.
  • US Average Hourly Earnings were up 0.3% and 2.6% in month-over-month and year-over-year terms, respectively.
  • Nonfarm Payrolls in the US, a proxy for job growth, were quoted at 255K, far above estimates of 180K.


  • Gold headed for a second weekly advance as investors focus on a key jobs report in the U.S. due Friday, following Thursday’s Bank of England stimulus package that included its first interest-rate cut in seven years
  • Oil declined after the biggest two-day increase in more than a month as prices fluctuated following a fall into a bear market this week.


  • Brookfield Renewable Partners LP is weighing the sale of its Ontario and Irish wind farm portfolios as low interest rates create an attractive market for such assets.
  • Duke Energy Corp. has invited Canada’s Brookfield Asset Management Inc. and French utility Engie SA to submit binding bids for its Latin American power assets, people with knowledge of the matter said

United States:

  • US stock-index futures were little changed as investors awaited government payrolls data for clues on the health of the economy.
  • Pacific Investment Management Co.’s struggles to contain outflows since the departure of money manager Bill Gross in 2014 are coming to an end and the company won’t need additional cost cuts as assets stabilize by the end of the year, according to its owner Allianz SE.
  • Nike Inc.’s decision to stop selling golf equipment and a possible bankruptcy filing by the Golfsmith retail chain are raising concerns that the declining popularity of the sport is taking a toll on the companies that thrive on it.



  • European stocks headed for their biggest two-day rally in two weeks on growing confidence that central banks will keep monetary policy supportive.
  • Mark Carney said his stimulus plans will help revive an economy reeling from the country’s decision to quit the European Union, rejecting criticism that monetary policy has reached its limits.
  • Allianz SE said second-quarter profit almost halved, missing estimates, as Europe’s biggest insurer faced higher claims from natural disasters and charges for the expected sale of its South Korea unit.
  • Asian stocks rose for a second day, paring a weekly decline, after the Bank of England eased policy and as investors looked to Friday’s U.S. jobs report for clues on the likely trajectory of American interest rates.
  • Toyota Motor Corp. said it will collaborate with Japan’s taxi association and emphasized its 80-year history of working with the industry, weeks after the group excoriated the automaker’s alliance with Uber Technologies Inc.
  • Nissan Motor Co., whose plug-in Leaf made it one of the earliest proponents of electric vehicles, is in talks with Panasonic Corp. about selling its hybrid and EV battery unit, according to people familiar with the matter.

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