December, 5th 2016
Daily Market Commentary
- The ‘NO’ vote won the Italian Referendum, and as such the Italian PM Renzi is resigning
- The euro clawed back losses and equities climbed as contagion from political turmoil in Italy was contained. The common European currency pared declines, after reaching its weakest point in 20 months.
- Metals: Gold: 1166.57 (-$10.86, -0.92%), Silver: 16.62 (-$0.12, -0.72%); Copper: 2.6635 (+1.45%); Zinc: 1.2367 (+2.16%)
- Energy: Crude: 52.17 (+0.95%); Brent: 55.11 (+1.19%); Nat Gas: 3.54 (+3.08%)
- Oil traded at a 16-month high as OPEC prepared to meet non-members in an effort to secure additional output cuts following last week’s surprise deal to curtail supply.
- Gold fell near a 10-month low as the dollar strengthened following Italy’s vote against constitutional reform that prompted the country’s prime minister to resign.
- Canadian provinces have rolled out a flurry of bond sales as they scramble to lock in borrowing costs before a global-market rout intensifies. Five of Canada’s 10 provinces sold bonds last week, raising C$2.55 billion ($1.92 billion).
- Bellatrix Exploration agrees to sell non-core assets Cardium light oil, Mannville liquid-rich gas in Harmattan area of west central to TransGlobe Energy for C$80m
- China Three Gorges Corp. and SDIC Power Holdings Co. are among companies bidding for Canadian renewable energy producer Northland Power Inc. First-round bids for the Toronto-based company, which has a market value of C$3.7 billion ($2.8 billion).
- Michigan judge issues order to start voter recount (CNN)
- Dakota Pipeline to be rerouted following protests (CNN)
- The jolt Mario Draghi is set to give the euro-area economy may well be his last, economists say. The European Central Bank president will announce an extension of asset purchases on Thursday at the current pace of 80 billion euros ($84 billion) a month.
- The U.K. services sector grew at the fastest pace in 10 months in November, keeping the economy on track to maintain its pace of expansion this quarter. IHS Markit’s activity gauge rose to 55.2 from 54.5 in October, beating the median forecast of economists for a reading of 54.
- The euro-area economy expanded at the fastest pace this year in November as companies took on workers and kept political concerns at bay.
- Aixtron SE was left with a narrow path to salvage its sale to Chinese investors after U.S. President Barack Obama limited his opposition to the semiconductor-equipment supplier’s U.S. assets.
- Volkswagen AG, which is shifting priorities in the wake of the diesel scandal and stepping up competition against the likes of Uber Technologies Inc., plans to launch a business focused on ride-hailing, autonomous driving and electric cars in two European cities next year before expanding to other regions.
- Air Berlin Plc will receive 300 million euros ($319 million) from Etihad Airways, the main backer of the troubled German airline, gaining an important lifeline as it restructures.
- Indians have validated 82 percent of bank notes rendered worthless by Prime Minister Narendra Modi’s surprise move last month, according to people with knowledge of the matter, undermining the government’s estimate of unaccounted wealth in the economy.
- Royal Bank of Scotland Group Plc moved closer to clearing a backlog of charges for misconduct that have slowed its return to profitability, agreeing to pay as much as 800 million pounds ($1 billion) to settle investor lawsuits over its 2008 emergency rights offering.
- Billionaire Anil Agarwal plans to invest $5.9 billion over the next three years across his oil production and metals businesses in India, predicting a positive turn in the commodity cycle. Cairn India Ltd., the nation’s largest onshore crude producer, will invest $4.4 billion to increase output by as much as 250,000 barrels a day of oil and gas from around 200,000 barrels currently.
*All information is taken from Bloomberg, unless otherwise noted.