January 5th, 2016

Daily Market Commentary



  • The Raw Material Price Index in Canada was reportedly down 4% in November. This was below estimates.
  • The Industrial Product Price Index in Canada was down 0.2% in month-over-month terms, below expectations.
  • The Redbook Index, which measures same-store sales growth in US General Merchandising companies, was reportedly down 0.3% and up 2.9% in month-over-month and year-over-year terms, respectively.
  • The Consumer Price Index in the Eurozone was up 0.2% in year-over-year terms, slightly below estimates.


  • Oil held near $37 a barrel before U.S. government stockpile and production data.
  • Gold rose for a second day as a global equity rout, ignited by concerns over slowing economic growth, and tensions between Saudi Arabia and Iran prompted a return to haven assets.



  • Industry groups representing major freight customers of Norfolk Southern Corp. have asked the U.S. rail regulator to reject any bid for the railroad by Canadian Pacific Railway Ltd., according to letters viewed by Reuters. (Globe)
  • Major changes to the television industry are set to roll out later this year, but a new study warns that rules designed to unbundle large cable and satellite packages could cause nearly 7,000 job losses and take away about $400-million in funding for Canadian programs. (Globe)
  • Assessed values for single-family detached properties in large parts of Greater Vancouver have jumped at least 15 per cent over a one-year period as the region’s real estate market booms. (Globe)



United States:

  • U.S. stock-index futures pointed to more losses after equities started 2016 with the worst rout in 15 years.
  • Manhattan home prices surged to a record in the fourth quarter, propelled by closings of luxury deals in new developments that were agreed to years ago, when construction was just starting on many of the buildings.


  • An early recovery in European stocks fizzled amid investor concern over prospects for a global recovery, after yesterday’s worst-ever start to a year.
  • Volkswagen AG’s top executives will visit the U.S. in coming days as tensions rise with the U.S. government, which is seeking penalties as high as $80 billion amid a lack of progress on fixing vehicles rigged to cheat emissions tests.
  • Orange SA is in talks to acquire Bouygues SA’s telecommunications unit in a 10-billion-euro ($10.8 billion) transaction that would boost profits in the French mobile-phone market by reducing competition.
  • Asian stocks fell, extending the worst start to a year since 1988, as investors were whipsawed in a volatile session punctuated by Chinese authorities’ efforts to stabilize markets.

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