January 27th, 2016

Daily Market Commentary

 

ECONOMIC NEWS:

  • MBA Mortgage Applications in the US were up 8.8%.
  • Consumer Confidence in Germany was reported at 9.4, slightly above estimates.

Commodities:

  • Oil resumed its decline near $30 a barrel after U.S. industry data showed crude stockpiles increased, exacerbating a global glut.
  • Investors bought gold through funds for a seventh day, the longest stretch in a year, before a Federal Reserve statement which may give clues on the pace of interest-rate increases.
  • Iron ore prices are likely to post the biggest loss among metals this year as low-cost supply continues to outstrip consumption, according to the World Bank, which cut its forecasts through 2020.

Canada:

  • Rogers Communications Inc., Canada’s largest wireless operator, reported fourth-quarter earnings that missed analysts’ estimates as increased competition led to higher advertising and promotions costs.
  • Canadian National Railway Co., the country’s biggest railroad, reported fourth-quarter profit that beat analysts’ estimates with the help of falling costs and the stronger U.S. dollar (01/26).

United States:

  • Alcoa Inc., which is spinning off aluminum assets later this year, sees something that much of the market doesn’t: an end to the prolonged surplus that left prices near a six-year low.
  • Federal Reserve officials are expecting to raise interest rates this year and next. Options markets show some investors are taking out protection in case rates instead go negative.
  • Apple Inc. is forecasting a sales decline for the first time in more than a decade, adding to evidence that the market for smartphones is becoming saturated and that expansion in China is no longer enough to maintain the company’s unprecedented run of growth.

International:

  • European stocks deepened a monthly rout as disappointing earnings reports reignited investor concern about global growth prospects and oil prices resumed their downward trend.
  • Fiat Chrysler Automobiles NV’s fourth-quarter profit margin shrank as the company said it took a charge of 834 million euros ($903 million) to adjust its production capacity in North America.
  • Mitsubishi Electric Corp. and Hitachi Ltd. agreed to pay European Union antitrust fines of about $150 million for fixing the prices of alternators and starters sold to car manufacturers.
  • Europe’s investment banks will probably see profit wiped out by restructuring costs in the fourth quarter as they make changes started by their U.S. competitors years earlier, according to Citigroup Inc.
  • Asian stocks rose as Japanese equities rallied ahead of monetary policy decisions by the Federal Reserve and Bank of Japan, while Chinese shares pared losses.

 

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