July 16th 2014

Daily Market Commentary



  • Manufacturing Shipments in Canada were reportedly up 1.6%, above estimates o f1%.
  • MBA Mortgage Applications in the U.S. were reportedly down 3.6%.
  • The Producer Price Index in the U.S. was reportedly up 0.4% and 1.9% in month-over-month and year-over-year terms, respectively.
  • Industrial Production in the U.S. was reportedly up 0.2% in month-over-month terms, below estimates of 0.4%.
  • Capacity Utilization in the U.S. was reported at 79.1%, below estimates of 79.3%. 


  • West Texas Intermediate rose from the lowest price since May as crude stockpiles shrank in the U.S. Brent recovered from a three-month low as China’s economic growth exceeded forecasts.
  • Gold traded near the lowest price in more than three weeks in London as investors weighed a stronger dollar against tension in the Middle East.
  • Surging demand for high-performance batteries triggered the largest-ever deal for lithium, the lightweight metal that’s a key component of the power systems in smartphones, electric cars and cordless screwdrivers.


  • Bank of Canada Governor Stephen Poloz is expected to reiterate his view today that unused capacity in the world’s 11th-largest economy will keep a lid on inflation, allowing policy makers to stay neutral on borrowing costs.
  • Onex Corp., Canada’s largest buyout firm, agreed to buy York Risk Services Group Inc. from ABRY Partners LLC in a deal valued at $1.33 billion, boosting its insurance business.
  • Royal Bank of Canada’s offering of $1 billion in subordinated debt is likely to be the first of about $25 billion in sales over the next decade by Canadian lenders seeking to meet Basel III capital requirements.

United States:

  • U.S. stock-index futures advanced as China’s second-quarter economic growth topped estimates and as Apple Inc. and International Business Machines Corp. rallied after announcing a partnership.
  • Apple Inc. and International Business Machines Corp. deal unveiled yesterday gives Apple access to an IBM sales force that will recommend Apple’s devices to customers in industries such as health care and banking.
  • Rio Tinto Group said second-quarter iron-ore production increased 11 percent after the world’s second-largest mining company expanded operations in the remote Pilbara region of Western Australia.


  • European stocks advanced, rebounding from yesterday’s decline, as a report showed China’s economy expanded at a better-than-expected pace, meeting the government’s target for growth this year.
  • U.K. unemployment slid to the lowest in 5 1/2 years and the number of people in work rose to a record as the economic recovery strengthened. The jobless rate fell to 6.5 percent.
  • Asia’s benchmark stock index was little changed after China reported the world’s second-largest economy grew in line with the government’s target. Technology firms led declines, while material producers climbed.
  • China’s economic growth accelerated for the first time in three quarters after the government sped up spending and freed up more money for loans to counter a property slump.