July 14th, 2016
Daily Market Commentary
- The New Housing Price Index in Canada was up 0.7% and 2.7% in month-over-month and year-over-year terms, respectively.
- The Producer Price Index in the US was up 0.5% and 0.3% in month-over-month and year-over-year terms, respectively.
- Initial Jobless Claims in the US were 254K, below estimates.
- Oil rebounded after closing at the lowest level in two months as equity markets increased and U.S. data showed crude stockpiles slid.
- Gold dropped as equities rallied ahead of potential stimulus measures from policy makers, while silver in China fell from its highest level in almost three years.
- Canadian stocks rose a fourth day to extend an 11-month high, as gains by gold and silver miners offset losses in oil producers and health-care companies, while the Bank of Canada kept the benchmark interest rate unchanged.
- Devon Energy Corp. today announced that it has entered into a definitive agreement to sell its 50 percent ownership interest in Access Pipeline to Wolf Midstream Inc., a portfolio company of Canada Pension Plan Investment Board, for CAD $1.4 billion.
- U.S. index futures rose, with equities at records, amid speculation central bankers will add to stimulus to support the global economy.
- Monsanto Co. has revived talks with BASF SE about a possible combination of their agrochemicals businesses, according to people familiar with the matter, after it rejected a $62 billion takeover offer from Bayer AG.
- The U.S. economy expanded at a modest pace since mid-May amid “slight” price pressures and some softening in consumer spending, according to a report from the Federal Reserve’s 12 districts that lacked any sense of urgency on the need to raise interest rates soon.
- European stocks advanced for the fifth time in six days as investors speculated the Bank of England will cut its benchmark interest rate and companies reported better-than-estimated earnings
- Deutsche Boerse AG’s takeover of London Stock Exchange Group Plc is edging closer to shareholder approval, with the German exchange saying yesterday that 53 percent of shareholders have approved deal so far.
- Volkswagen AG suffered a setback in its efforts to emerge from the 10-month-old emissions-cheating scandal as California regulators rejected a recall proposal for 85,000 diesel-powered vehicles, raising the prospect that the German carmaker will have to buy them all back.
- Asian stocks climbed for a fourth day, led by gains in Japan, amid optimism central banks across the region will keep monetary policy loose and major economies will add stimulus. Trading was halted shortly before noon in Singapore after a technical fault.
- China’s yuan traded near the weakest level in almost six years as a plunge in imports signaled declining demand in an economy growing at the slowest quarterly pace since 2009.
- Tencent Holdings Ltd. is in talks with lenders for a loan of about $3.5 billion to back its purchase of a majority stake in Supercell Oy from SoftBank Group Corp., a person familiar with the matter said.
*All information is taken from Bloomberg, unless otherwise noted.