July 17th 2014

Daily Market Commentary



  • Canadian Portfolio Investment in foreign securities was reported at $2.03B.
  • Foreign portfolio investment in Canadian securities was reported at $21.43B, far above estimates of 14.23B.
  • Building Permits in the U.S. were reported at 0.936M, and Housing Starts were reported at 0.893M, both were below estimates.
  • Initial Jobless Claims in the U.S. were reported at 302K, below estimates of 310K.
  • Continuing Jobless Claims were reported at 2.507M, below estimates as well.
  • The Construction Output in the Eurozone was reportedly up 3.5% in year-over-year terms.


  • West Texas Intermediate rose to a four-day high after U.S. crude stockpiles fell as refiners in the world’s biggest oil consumer boosted processing to the highest level since 2005. Brent was steady in London as tougher sanctions on Russia were seen having limited market impact.
  • Gold rose for a second-day in London as new sanctions on Russia increased haven demand and on speculation prices near a three-week low will spur more buying. Palladium advanced to the highest level since 2001.
  • Copper dropped to a two-week low in London as most industrial metals fell after the U.S. and the European Union imposed new sanctions on Russia.


  • BlackBerry Ltd. shares have been hit hard by Apple Inc.’s announcement of a partnership with International Business Machines Corp. On Wednesday, BlackBerry shares fell nearly 12 per cent after IBM and Apple announced a strategic alliance that would allow the two companies to sell mobile devices and software to business and government clients – the exact same market niche BlackBerry has long targeted. (Globe)
  • Athabasca Oil Corp., the Canadian company awaiting a C$1.32 billion ($1.23 billion) payment from PetroChina Co., fell the most in two months after a Chinese newspaper reported that an executive tied to the companies’ partnership is being probed.
  • The Canadian Bond Investors Association asked regulators to look into Royal Bank of Canada’s issuance of a new type of security, saying members were denied timely access to information about the debt.
  • Canadian Pacific Railway Ltd. reported second-quarter earnings that beat analysts’ estimates as revenue at the country’s second-largest railroad climbed faster than expenses, powered by a rise in grain and coal shipments.

United States:

  • U.S. stock-index futures declined, after the Dow Jones Industrial Average reached an all-time high, after the Treasury Department and European Union imposed further sanctions on Russian business over Ukraine.
  • Twenty-First Century Fox Inc. is willing to pay more than $75 billion for Time Warner Inc., according to people with knowledge of the matter, a sign Rupert Murdoch is undeterred after being rebuffed in an initial offer for the media company. Time Warner shares soared.
  • UnitedHealth Group Inc., the largest U.S. health insurer by revenue, beat analyst profit estimates as it continued to see revenue gains from its technology and consulting unit.
  • Microsoft Corp. said it will eliminate as many as 18,000 jobs, the largest round of cuts in its history, as CEO Satya Nadella integrates Nokia’s handset unit and slims down the software maker.


  • Stocks in Europe fell, after rising the most since April yesterday, as the European Union and U.S. imposed further sanctions on Russia over Ukraine.
  • European car sales rose 4.3 percent in June as demand at Renault SA’s budget Dacia division and Volkswagen AG’s Seat nameplate contributed to the longest stretch of monthly delivery gains in four years.
  • Asian stocks were little changed, after the regional benchmark index touched a six-year high, as material and industrial shares rose and technology firms slid.
  • China faces what would be the second default in the nation’s onshore bond market after a builder said it may fail to make a payment next week, the latest sign of stress in the world’s biggest corporate debt load.