December 17th

Daily Market Commentary

 

ECONOMIC NEWS

  • Wholesale sales in Canada were reportedly up 0.1%, which was in line with estimates.
  • The Consumer Price Index in the U.S. was reportedly down 0.3% and up 1.3% in month-over-month and year-over-year terms, respectively. Both figures were below estimates.
  • The Current Account in the U.S. was reported at -$100.26B, slightly below estimates.

Commodities:

  • Oil in New York traded near a five-year low as Russia reiterated that it will keep crude production steady next year, echoing OPEC’s strategy of refraining from curbing supply to tackle a global surplus.
  • Gold prices will recover next year as demand in China and India improves, according to Australia & New Zealand Banking Group Ltd., which forecast an advance for bullion even as the Federal Reserve raises interest rates.

Canada:

  • Canada’s share of U.S. oil imports is dwarfing Mexico and Saudi Arabia, as the country is faced with few outlets for its growing oil sands production.
  • Alberta’s ability to borrow more cheaply than other Canadian provinces in the bond market is fading along with the outlook for crude oil.
  • Billionaire Carl Icahn stands to lose about $286 million on his investment in Talisman Energy Inc. following the company’s sale to Repsol SA for $8.3 billion.

United States

  • U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 Index will rebound from a three-day slump, before a policy decision from Federal Reserve policy makers.
  • The U.S. housing market will resume its recovery in 2015 after a “disappointing” year as sales accelerate, construction increases and mortgage credit eases, according to a Bloomberg survey of 25 economists and analysts.
  • FedEx Corp. posted a quarterly profit that missed analysts’ estimates as the operator of the world’s largest cargo airline spent more on aircraft maintenance and collected less in fuel surcharges.

International:

  • European stocks resumed losses, led by banks, after the Stoxx Europe 600 Index snapped a six-day losing streak yesterday.
  • U.K. unemployment fell in the three months through October and earnings growth outstripped inflation for the first time since March as the labor market continued to recover.
  • Russia struggled for a second straight day to reverse a rout in the ruble with emergency measures, narrowing President Vladimir Putin’s options in confronting the country’s deepest financial crisis since 1998.
  • The People’s Bank of China rolled over at least a portion of a three-month lending facility from September that was set to expire, according to a government official familiar with the matter.
  • Japan’s exports rose less than forecast in November, underlining challenges to Prime Minister Shinzo Abe’s efforts to steer the economy out of recession.

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