February 2nd, 2015

Daily Market Commentary



  • Personal Income in the U.S. was reportedly up 0.3% in December, above estimates of 0.2%.
  • Personal Consumption Expenditure was reportedly down 0.2% and up 0.7% in month-over-month and year-over-year terms, respectively, in December in the U.S.
  • The Markit Manufacturing PMI for the Eurozone was reported at 51, in line with estimates.


  • Crude oil surged above $50 a barrel in New York and exceeded $55 in London. Speculators who bet against crude missed out on the biggest rally in 31 months, as a record decline in U.S. oil rigs spurred speculation that production will slow.
  • Gold declined, after the biggest monthly advance in three years, amid prospects for higher U.S. interest rates.
  • Copper advanced for a second day in London and rose the most in six months in Shanghai as the number of outstanding contracts on the Chinese bourse rose to a record.


  • Canadian miner SouthGobi Resources Ltd. said it could be forced into insolvency if a Mongolian court’s ruling that it evaded taxes isn’t reversed.
  • Canadian oil sands said it would further slash its dividend and capital spending budget in response to the sharp drop in oil prices and a rising debt load.
  • The U.S. senate passed legislation approving TransCanada’s Keystone XL pipeline, moving the Republican-controlled Congress a step closer to a showdown with President Barack Obama over the long-stalled project.

United States

  • U.S. stock-index futures advanced, indicating equities will rise, after the Standard & Poor’s 500 Index posted its biggest monthly decline in a year.
  • President Barack Obama will send a $4 trillion budget blueprint to Congress today that would raise taxes on corporations and the nation’s top earners, fund major investments in infrastructure and education and stabilize, but not eliminate, the annual U.S. budget deficit.
  • General Motors Co. and its Chinese partners will build a factory to produce Wuling brand vehicles in Indonesia to tap demand in Southeast Asia’s largest economy.
  • Google’s fourth-quarter sales and profit missed estimates as the search engine’s advertising business faced more competition on mobile devices.
  • Amazon reported stronger-than-expected earnings, as North American sales surged during the crucial holiday quarter.


  • A drop in Spanish lenders pushed European stocks lower for a third day amid growing concern that anti-austerity parties are gathering strength.
  • CRH Plc agreed to buy 6.5 billion euros ($7.3 billion) of cement assets from Holcim Ltd. and Lafarge SA as the Irish company saw its rivals’ need to divest businesses to meet merger demands as an opportunity to grab market share.
  • Asian stocks fell for a fourth day after data signalled Chinese manufacturing shrank last month for the first time in more than two years. The Shanghai Composite Index capped a five-day, 7.5 percent slump.
  • Singapore will target lower levels of investment in the next few years, its economic development board said, as the island contends with tighter manpower policies and an uncertain global economic environment.
  • Sony Corp. will invest 105 billion yen ($892 million) to accelerate the shift at its semiconductor operations to image sensors for smartphone and tablet cameras.

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