February 23rd, 2016

Daily Market Commentary



  • The Redbook Index, which measures same-store sales growth in US General Merchandising stores, was reportedly down 2.3% and up 1.2% in month-over-month and year-over-year terms, respectively.
  • The Case-Shiller Home Indices were up 5.7% in year-over-year terms, slightly below estimates.



  • Oil retreated from a two-week high in New York as signs of rising U.S. inventories and weaker Chinese economic growth compounded forecasts that a global surplus will endure for the rest of this year.
  • Gold advanced to snap two days of losses as haven demand returned after metals fell. Assets in bullion-backed exchange-traded funds jumped to the highest in almost a year.


  • Bank of Montreal said fiscal first-quarter profit rose 6.8 percent as contributions from its purchase of General Electric Co.’s transportation-finance business added to U.S. earnings.
  • Valeant Pharmaceuticals International Inc said it would restate its financial results for 2014 and 2015 after identifying some sales to Philidor that should have been recognized when products were dispensed to patients. (Globe and Mail)
  • With falling oil prices eroding Canada’s revenue base, newly elected Prime Minister Justin Trudeau is fully embracing deficits, with his finance minister hinting Monday the country will run a deficit of about C$30 billion ($22 billion) in the fiscal year that starts April 1
  • Canada Finance Minister Bill Morneau will announce C$250m stabilization funding for Alberta today. (Globe and Mail)

United States:

  • U.S. stock-index futures were little changed as investors assessed global growth prospects and earnings amid renewed concern over the Chinese economy.
  • Home Depot Inc. posted fourth-quarter profit that topped analysts’ estimates, showing consumers are still willing to spend on their houses.
  • Western Digital Corp. will buy SanDisk Corp. for $15.8 billion, sticking with plans to combine the makers of memory chips after a potential Chinese investor backed out of another deal amid a national security probe.



  • A retreat in miners pushed European stocks down for the second time in three days.
  • ING Groep NV is seeking to expand in commodity trade finance as other European banks retreat from a business squeezed by tougher regulatory demands and plunging prices, said Chief Executive Officer Ralph Hamers.
  • Mark Carney said Bank of England officials have “considerable” room to loosen monetary policy if needed as fears that Britain could leave the European Union piled further pressure on the pound.
  • Equity market volatility returned to the Asia Pacific region after China’s central bank weakened the yuan by the most in six weeks and the yen strengthened, dragging Japanese shares lower.
  • Standard Chartered the Asia-focused lender reported a pretax loss of $1.5 billion in 2015, down from profit of $4.2 billion a year earlier, as revenue missed estimates and loan impairments almost doubled to the highest in the bank’s history.


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