August 9th, 2016

Daily Market Commentary



  • Housing starts in Canada were up 198K, slightly above estimates.
  • The Redbook Index, which measures same-store sales growth in US General Merchandise companies, was down 0.2% and up 0.5% in month-over-month terms, respectively.
  • Unit labour costs in the US in Q2 were up 2%, above estimates.
  • An NFIB Survey on Business Optimism was quoted at 94.6, slightly above estimates.


  • Oil dropped from the highest close in two weeks amid doubts that informal talks between OPEC members next month will lead to any action to tighten supplies.
  • Gold prices have passed a peak after surging by more than a quarter this year and are poised to move lower as concern over Europe eases and the U.S. economy shows signs of strength, according to CMC Markets.
  • Iran’s biggest oil buyer in India is ready to throttle back imports from the Persian Gulf nation once a new supply deal kicks in. Essar Oil Ltd. expects to lower purchases from Iran after shipments from OAO Rosneft begin once the Russian state producer completes a deal to buy a stake in the Indian company.


  • Canadian stocks added to the highest level in a year with a fourth day of gains, as energy producers led a rally in commodities shares amid speculation OPEC may discuss a change in production policy.
  • Valeant Pharmaceuticals International Inc. surprised investors Tuesday and maintained its full-year guidance, despite reporting second-quarter sales and earnings that fell short of analysts’ expectations as it faced pressure to cut prices and give larger rebates on its drugs.

United States:

  • U.S. stock-index futures were little changed, with investors assessing gains as the S&P 500 Index hovers near a record.
  • U.S. Steel Corp. plans to sell shares in a public offering that would generate about $439 million, capitalizing on a tripling of its stock price this year. The Pittsburgh-based steelmaker joins miners including Freeport-McMoRan Inc. and Iamgold Corp. in tapping the equity market after metal producers’ shares rallied as commodity prices stabilized from the biggest rout in a generation.
  • Disruptions from a computer failure spilled into a second day for Delta Air Lines Inc., with cancellations on Tuesday morning reaching about 250 flights after one of the worst system faults experienced by the U.S. carrier


  • European stocks edged higher on better-than-estimated results from Munich Re and Altice NV, while declines in commodity producers tempered gains.
  • British oil giant BP PLC is marketing sterling bonds, the latest in a slew of sales since the Bank of England said it would begin buying corporate debt to boost the economy.
  • Asian stocks rose to the highest level in almost a year as commodity producers rallied after Chinese data bolstered optimism that the world’s second-largest economy is stabilizing.
  • Hong Kong real estate shares haven’t been this hot since the city’s last housing bubble burst almost two decades ago. The industry’s benchmark equity gauge has surged 37 percent from this year’s low in January, climbing to the highest level versus Hong Kong’s Hang Seng Index in 19 years on July 29.
  • China’s passenger-vehicle sales accelerated the most in 17 months, as General Motors Co. and Guangzhou Automobile Group Co. boosted deliveries and dealers offering discounts helped clear inventories in the world’s biggest auto market.

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