July 10th 2014

Daily Market Commentary



  • The New Housing Price Index in Canada was reportedly up 0.1% and 1.5% in month-over-month and year-over-year terms, respectively.
  • The Initial Jobless Claims in the U.S. were reported at 304K, below estimates of 316K.
  • Continuing Jobless Claims in the U.S. were reported at 2.584M, above estimates of 2.567M.
  • The Bank of England elected to hold their key interest rate at 0.5%, and their asset purchase facility at 375B pounds.


  • West Texas Intermediate crude headed for a record-long slump as government data showed an expansion in supplies where the oil is stored and demand for gasoline weakened. Brent, Europe’s benchmark, slid in London.
  • Gold climbed to the highest in more than three months as Middle East tension spurred haven demand and after the dollar weakened following Federal Reserve minutes. Palladium reached a 13-year high after the longest run of gains since 2000.


  • Canadian stocks rose to a record, following a two-day slide, as materials companies advanced with gold and RBC rallied amid data showing housing starts unexpectedly advanced last month.
  • Timmins Gold Corp. reports preliminary production results for the Company’s second quarter ended June 30, 2014. The Company achieved gold production of 32,932 ounces for the quarter for an increase of 17.5% over the prior year period.
  • Hedge funds and other large speculators turned bullish on the Canadian loonie this month after 70 weeks of net-short wagers, the longest streak of pessimism in the currency’s history. The local dollar was the best Group of 10 performer in the second quarter after being last from January through March.

United States:

  • U.S. stock-index futures fell, after equities rebounded from a two-day drop, as Federal Reserve Bank of St. Louis President James Bullard said the central bank may raise interest rates sooner than investors expect.
  • International Business Machines Corp. plans to spend $3 billion on semiconductor research and development in the next five years, even as the company is said to be selling its chip-manufacturing arm.
  • Alcoa swung to a second-quarter profit, driven by growth in its engineered products segment and as its primary metals business also returned to the black.
  • Consumer sentiment improved last week as Americans were more upbeat about the U.S. economy than at any time in the past six years.


  • European stocks fell for a fifth day as shares of lenders declined to their lowest level this year.
  • Greece raised 1.5 billion euros in a debt sale that fell short of analyst estimates on size and yield as it took place amid a sell-off in higher-yielding bonds across the euro area.
  • Most Chinese stocks rose as power producers climbed after Citic Securities Co. said earnings for utility companies may exceed estimates. Technology companies extended losses. Data showed export growth trailed estimates.
  • China’s exports trailed estimates in June, suggesting support for growth from global demand will be limited as leaders try to defend their economic-expansion goal of about 7.5 percent this year.
  • McLeod Russel India Ltd., the world’s biggest tea grower, forecasts its profit will climb for the first time in three years as prices rally on prospects of dry weather shrinking the crop in the main growing regions.
  • Malaysia raised its key interest rate for the first time since May 2011, after economic growth accelerated and as the central bank seeks to curb the risk of financial imbalances.