February 19th, 2016

Daily Market Commentary



  • Retail Sales in Canada were down 2.2% in month-over-month terms, far below estimates. Chief among concerns named was food inflation.
  • The US Consumer Price Index was flat in month-over-month terms and up 1.4% in year-over-year terms.
  • Excluding energy, the US CPI was up 2.2% year-over-year.
  • Consumer Confidence in the Eurozone was reported at -8.8, below estimates.



  • Oil traded below $31 a barrel after U.S. crude stockpiles rose to the highest in more than eight decades as Saudi Arabia and Russia propose to freeze output amid a worldwide surplus.
  • Gold fell for the first time in three days, putting the metal on course for a weekly drop, as investors weighed losses in financial markets and crude oil against the outlook for the U.S. economy.


  • Cenovus Energy Inc. and Encana Corp. had their debt ratings lowered to junk by Moody’s Investors Service as a prolonged crude-price rout saps cash flows.
  • BCE Inc. is weighing in on Rogers Communications Inc.’s dispute with upstart discount wireless provider Sugar Mobile, which is using a combination of WiFi access and cellular roaming to support its business model.
  • Quebec lawmakers and business leaders are cranking up pressure on the Canadian government to help Bombardier Inc. as the struggling plane maker lays plans to refresh its board of directors in the weeks ahead.

United States:

  • U.S. stock futures were little changed, with the Standard & Poor’s 500 Index posting a relief rally that’s pushing it toward its best week since November.
  • Wall Street’s biggest banks boosted their Treasury holdings to the highest level in more than two years, and one of them says that’s a warning sign for the market.
  • Deere & Co., the world’s largest agricultural equipment maker, cut its fiscal full-year profit and sales forecasts amid a worsening outlook for farmers as they face declining incomes.


  • European shares declined, paring a weekly advance, as investors assessed valuations and corporate earnings after the recent rally.
  • David Cameron’s negotiations with fellow European Union leaders ground on into a second day as he pleaded for a deal on the U.K.’s membership of the bloc that he can sell to British voters.
  • Allianz SE missed analyst estimates for fourth-quarter profit because of claims from natural catastrophes.
  • Volkswagen internal memos and emails suggest that company executives pursued a strategy of delay and obfuscation with United States regulators after being confronted in early 2014 with evidence that VW diesel vehicles were emitting far more pollutants than allowed.
  • K. retail sales surged the most in more than two years in January, boosted by demand for clothing and computers.
  • Asian stocks fell, paring the biggest weekly rally since December 2011, as the yen strengthened.


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