January 11th, 2016

Daily Market Commentary



  • Housing Starts in Canada were reported at 173K, below estimates of 200K.
  • A Sentix Survey of Investor Confidence in the Eurozone was reported at 9.6, below expectations of 12.2.


  • Crude extended its slide from an 11-year low, confirming the view of hedge funds that cut bullish price bets to the lowest since 2010.
  • Copper dropped to a six-year low after muted Chinese inflation and more equity losses in Shanghai increased concern that demand will slow in the biggest metals user. BHP Billiton Ltd., the world’s largest miner, reached the lowest in a decade.



  • As he prepares his first budget amid economic gloom, Finance Minister Bill Morneau is under pressure from key groups to come through on the Liberal government’s election promises — despite oil and the Canadian dollar plumbing 12-year lows.
  • Canada’s central bank is cautioning that tighter U.S. monetary policy may spill across the border and further suppress Canadian inflation already weighed down by plunging oil prices.




United States:

  • US. index futures rose, reversing an earlier drop, signaling the first gain in four days for the Standard & Poor’s 500 Index.
  • US. stocks are nearing the end of a long bull market, according to investment strategists at Goldman Sachs Group Inc. who cater to the bank’s wealthy individual clients.
  • Wall Street is struggling to figure out if the worst is over for Chipotle Mexican Grill Inc. The burrito chain, staggering from a foodborne-illness crisis entering its third month, has seen more than $10.7 billion in market value wiped out since August.


  • UBS Group AG will double its staff in China over five years, adding about 600 people as Chief Executive Officer Sergio Ermotti bets a time of volatile markets is as good as any for ramping up operations.
  • Lloyds Banking Group Plc, Britain’s largest mortgage lender, is set to keep a 2,000-pound ($2,906) restriction on cash bonuses until after the U.K. government has sold all of its shares, according to two people with knowledge of the matter.
  • Volkswagen AG’s chief executive officer said the automaker is sticking to investment plans and continues to view the U.S. as a core market, ahead of critical meetings this week with government officials over its admission that it rigged emission tests on its so-called clean diesel vehicles.
  • Chinese stocks tumbled, extending the world’s worst selloff this year, amid waning investor confidence in the government’s efforts to revive the economy and stabilize financial markets.

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