January 6th, 2016

Daily Market Commentary



  • International Merchandise Trade in Canada was reported at -$2B, a better than expected result.
  • The Markit PMI Composite for the US was 54 in December, while the Markit Services PMI was 54.3 and the ISM non-manufacturing PMI was 55.3.
  • MBA Mortgage Applications in the US were quoted at being down 11.8% at the end of December.
  • The ADP Employment Change in December in the US was an increase of 257K jobs, far above estimates.


  • Gold climbed for a third day as a selloff in equities and North Korea’s nuclear test boosted demand for a haven. Palladium dropped to the lowest in a month.
  • Brent crude dropped below $35 a barrel to an 11-year low before weekly U.S. government data forecast to show fuel supplies rose in the world’s biggest consuming nation.



  • Royal Bank of Canada, the country’s second-largest lender by assets, said it’s raising some mortgage rates even as the costs for funding home loans declines.
  • There’s a new player joining Canada’s audio streaming market: iHeartRadio, a U.S.-based rising competitor in online music and live radio, is moving north through a partnership with Bell Media. (Globe)
  • Suncor Energy Inc. and Canadian Oil Sands Ltd. remained entrenched in their positions as the deadline neared for Suncor’s offer to buy the largest stakeholder in the Syncrude oil-sands operation.




United States:

  • When it comes to deal-making, the health-care industry defied belief in 2015 with $605 billion of takeovers. While 2016 may be a good year, it’s unlikely to beat that record.
  • Halliburton Co. passed on a chance to offer early concessions to European Union regulators, meaning it will likely face a protracted antitrust review of its plan to buy oil services rival Baker Hughes Inc. for $26 billion.


  • European stocks fell after China’s latest weakening of its currency refreshed concerns about the outlook for global growth. U.S. Futures declined.
  • Volkswagen AG vowed to emerge from the diesel scandal even as authorities in the U.S. toughen their stance.
  • A U.K. services gauge eased in December as risks including a British exit from the European Union weighed on hiring and business expectations fell to a three-year low.
  • Asian stocks fell for a third day as concern about the strength of China’s economy deepened a rout that’s wiped about $2 trillion from the value of global equities this year.
  • North Korea said it tested its first hydrogen bomb, risking reigniting tensions with China and the U.S. after months of calm even as some experts cast doubt on the full extent of Pyongyang’s claim.
  • AirAsia Bhd., Southeast Asia’s biggest budget carrier, plans to raise as much as $1 billion under a multi-currency medium-term note program to refinance debt and buy airplanes after last year’s plunge in the Malaysian ringgit pushed the carrier to a third-quarter net loss.

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