February 18th, 2016
Daily Market Commentary
- Wholesale sales in Canada were up 2% in month-over-month terms, above estimates.
- Initial Jobless Claims in the US were reported at 262K, below estimates.
- Continuing jobless claims were 2.27M, slightly above estimates
- Gold held an advance on speculation that the U.S. central bank will probably slow the pace of rate increases this year as global market turmoil and weaker growth impact the world’s largest economy.
- Oil extended gains above $31 a barrel in New York after industry data showed a decline in U.S. crude inventories, while Iran cautiously supported a proposal by Saudi Arabia and Russia to freeze production at near-record levels.
- The U.S. shale industry must come up with $1.2 billion in interest payments by the end of March as $30-a-barrel oil makes it harder for companies to scrape up the cash needed to stay current on their debts.
- Barrick Gold Corp. intends to keep debt in its crosshairs with a plan to cut at least $2 billion this year as the world’s largest producer of the metal seeks to shore up its balance sheet following three annual gold-price declines.
- Bombardier Inc.’s new willingness to offer discounts on its struggling C Series aircraft paid off with its first commitment from Air Canada. Now it needs to score a major customer abroad to build momentum for its biggest jet program.
- The relief rally that swept through U.S. equities is entering a fourth day, with index futures up after the recent recovery lifted the year’s most-battered companies.
- Dish Network Corp. posted profit that missed analysts’ estimates as more TV customers canceled service, further compelling Chairman Charlie Ergen to outline his plans for the satellite-TV provider.
- Boeing Co. won’t face labor strife later this year after engineers and technical workers approved a six-year contract extension that brings a salary boost and more job security.
- Better-than-estimated earnings from companies including Air France-KLM Group helped extend a two-week high for European stocks, even as commodity producers declined.
- European Commission President Jean-Claude Juncker said an accord to keep Britain in the European Union is within reach, leaving U.K. voters to decide whether to stay or go in a referendum as early as June.
- Bank of England Deputy Governor for Financial Stability Jon Cunliffe pushed back against market pricing for no U.K. interest-rate increase until 2019, saying that isn’t his central view.
- Asian stocks jumped, resuming this week’s rally after oil rebounded along with equities in Hong Kong and Japan.
- China’s central bank drained the most funds from the financial system in two years, mopping up excess cash from the financial system after flooding lenders with funds in the run-up to last week’s Lunar New Year holiday.
- Japan’s exports fell for a fourth consecutive month and dropped the most since 2009, underscoring continued weakness in an economy that contracted in the final months of 2015.
*All information is taken from Bloomberg, unless otherwise noted.