January 12th, 2016
Daily Market Commentary
- The Redbook Index, which measures same-store sales growth in US general merchandising stores, was down 1% and up 1.7% in month-over-month and year-over-year terms, respectively.
- The NFIB Business Optimism Index in the US was quoted at 95.2, slightly below expectations.
- Oil traded near the lowest close in more than 12 years before U.S. government data forecast to show crude supplies expanded, exacerbating a global glut.
- Palladium slumped to a five-year low as Chinese car sales increased at the slowest pace in three years, adding to concerns about weaker demand in one of the world’s biggest buyers of the metal. Gold was little changed.
- The plunge in the price of iron ore looks set to claim another casualty with Gindalbie Metals Ltd. questioning its future, as partner Anshan Iron and Steel Group Corp. considers withdrawing funds for their $2 billion mine.
- An influx of Chinese capital is tightening returns on Vancouver buildings including office towers and warehouses to almost the same levels found in Manhattan, brokerage CBRE Group Inc. said in a report.
- S. stock-index futures rallied after China stepped up efforts to shore up its currency, a sign the Standard & Poor’s 500 Index will gain after yesterday’s volatile session.
- A rally in carmakers pushed European stocks toward their biggest gain of the year as investors assessed valuations following a four-day losing streak.
- Airbus Group SE booked an order for three A380 superjumbo aircraft with a combined value of $1.28 billion at list prices, breaking a drought in sales of the world’s biggest passenger jet.
- Asian stocks tumbled as a selloff in China triggered a trading halt in the nation’s equities for the second time this week, deepening a global rout. A measure of mainland Chinese shares in Hong Kong closed at the lowest level since 2011.
- The China-led rout that is sending shock waves through global markets may get worse, and if it does, that’s when investors should turn back to equities, says Goldman Sachs Group Inc.’s Christian Mueller-Glissmann.
*All information is taken from Bloomberg, unless otherwise noted.