July 11th, 2016

Daily Market Commentary



  • Housing Starts in Canada were up 218K in year-over-year terms, above estimates.



  • Oil dropped to a two-month low after U.S. producers deployed the most rigs since April, signaling that output losses that trimmed a global glut may slow.
  • Gold fell from its highest level in more than two years as investors weighed a strong U.S. jobs report against signs of risks to the global economy, seeking to gauge the possibility of a U.S. rate increase this year.
  • Copper led a rally in industrial metals as prospects for stimulus in Japan and better-than-expected U.S. jobs data boosted the outlook for commodities demand. U.K. mining stocks rose to the highest in 11 months.



  • Onex Corporation and Baring Private Equity Asia today announced their affiliated private equity funds have agreed to acquire the Intellectual Property & Science business from Thomson Reuters, for $3.55 billion.
  • A nationwide shutdown of mail service was averted at least temporarily when Canada’s government-owned postal carrier dropped plans to lock out union workers in a dispute over pay and pensions.
  • CAE wins more than C$180m in contracts, including long-term training agreements and the sale of 9 full-flight simulators, co. says in statement. Contracts include 10-year agreement for Airbus A320, A350 and Boeing 787 pilot training with Vietnam Airlines; seven-year contract renewal for Airbus A330 training equipment services with Asiana Airlines

United States:

  • U.S. stock-index futures climbed, indicating the benchmark S&P 500 Index may near a record, as investors bet concerns about growth in the world’s largest economy were overstated.
  • Boeing Co. signed a memorandum of understanding to sell 30 aircraft to China’s Xiamen Airlines in a deal worth $3.39 billion at list prices.


  • European equities extended a rebound into a third day as optimism over prospects for global growth and stimulus in Japan lifted investor sentiment.
  • Deutsche Boerse AG said it may reduce the threshold for shareholder approval of its London Stock Exchange Group Plc acquisition to accommodate index funds. A decision will be reached Monday after parties involved in the deal examine a technical issue, the company said Sunday a statement.
  • PepsiCo Inc. is selling its first euro bonds in more than two years as European Central Bank stimulus sends the cost of borrowing in the currency ever lower.
  • Asian stocks rose the most in four months after a strong U.S. jobs report spurred optimism the world’s largest economy can support global growth. Japanese equities rallied the most since February, while India and Thailand were on the cusp of entering bull markets.
  • Takata Corp. rose the most in a week after people familiar with the matter said the scandal-stricken air-bag maker is reaching out to as many as 20 possible buyers in an effort to narrow down a list of suitors.
  • Japan’s Line Corp. set the price of its initial public offering at the top of the targeted range and will exercise an option to sell more stock as investors shrug off market volatility caused by the Brexit decision.

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