July 12th, 2016
Daily Market Commentary
- The Redbook Index, which measures same-store sales growth in US general merchandising stores, was down 0.3% and up 0.8% in month-over-month and year-over-year terms, respectively.
- Oil rebounded from a two-month low as a weaker dollar boosted the appeal of commodities while further disruptions worsened supply problems in OPEC member Nigeria.
- Gold held a decline as risk appetite returned to global markets, with equities climbing on the back of possible stimulus in the U.K. and Japan, while a better-than-expected U.S. jobs report helped lift the S&P 500 Index to a record.
- Nickel rallied to near an eight-month high amid expectations for potential supply cuts in the Philippines, the top miner, and as the outlook for more stimulus buoyed metals. Mining stocks reached the highest in a year.
- Canadian stocks rose to the highest since June, joining a rally in global equities sparked by speculation economic growth will persist amid additional central-bank stimulus from Japan to Europe.
- Royal Dutch Shell Plc and its partners delayed for the second time this year a final investment decision on a terminal to export liquefied natural gas from Canada’s Pacific Coast to Asian markets.
- US stock-index futures climbed, indicating a fresh high for the S&P 500 after it reached a record.
- Xerox Corp., which plans to separate into two companies by the end of the year, is in talks to acquire R.R. Donnelley & Sons Co., people with knowledge of the matter said.
- European equities rose toward the highest level since the Brexit vote as Daimler AG’s better-than-estimated earnings buoyed automakers and Japanese premier Shinzo Abe promised greater support to the economy.
- BOE Governor Mark Carney increased the number of funding operations to avoid markets seizing up as investors assessed Britons’ vote to leave the EU at the June 23 referendum. Carney has said officials are ready to pump 250 billion pounds of cash into the financial system, with the central bank now conducting weekly liquidity auctions through to the end of September rather than on a monthly basis.
- Mercedes-Benz solidified its sales lead over the BMW brand in the first half of the year, moving closer to a goal of unseating its rival for the first time since 2005.
- Asian stocks climbed for a second day, with the regional benchmark index heading for its highest close in 11 weeks, as a tumbling yen pushed Japanese equities higher and Indian shares extended a bull market.
- Yamaha Motor Co., the Japanese maker of motorcycles and boat engines, will replace Sharp Corp. on the Nikkei 225 Stock Average as the troubled consumer-electronics company is moved from the Tokyo bourse’s main stock board.
- The Reserve Bank of India has injected 800.1 billion rupees ($11.9 billion) through open-market debt purchases since April, the month in which it announced a series of changes to its liquidity management framework.
*All information is taken from Bloomberg, unless otherwise noted.