July 21st, 2016

Daily Market Commentary



  • MBA Mortgage Applications in the US were reportedly down 1.3%.
  • Average earnings excluding bonuses were up 2.3% in quarter-over-quarter terms in the UK.



  • Oil traded near a two-month low in New York as total U.S. oil inventories climbed to a record, signaling the surplus will be slow to clear.
  • Gold held near the lowest level in three weeks as stocks climbed, signaling growing investor confidence as concerns ease over global growth and expectations rise for additional stimulus.


  • Canadian Pacific Railway Ltd. climbed to the highest level in eight months on earnings and a rebound in crude lifted energy producers to offset a slump in gold, as Canadian equities ended the day near the highest in a year.
  • BlackBerry is hosting a live online event on July 26. Although it hasn’t confirmed phones will be on the agenda, Chen said Tuesday the company would talk about them in the next “week or two” and Chief Operating Officer Marty Beard said last week the next phone launch was “very, very imminent.”

United States:

  • U.S. index futures were little changed as investors assessed the rally that pushed the S&P 500 Index to a fresh record, with the earnings season in full swing.
  • Elon Musk unveiled his latest “master plan” for Tesla Motors Inc., delivering a long-term vision that includes an integrated solar and battery product, the addition of a pickup, freight truck and bus to its electric vehicle lineup, and plans for a ride-sharing business.


  • European stocks fell as prospects for global stimulus dimmed after Bank of Japan Governor Haruhiko Kuroda quelled speculation of so-called helicopter money.
  • The U.K. economy may be heading for its first recession since 2009, with economists slashing their forecasts in the wake of the Brexit vote and now seeing two quarters of contraction this year.
  • Italy’s Enav SpA, the state-run air traffic controller attempting the first large, European listing since Brexit roiled markets, may raise 759 million euros ($836 million) after seeking to price shares near the top of the announced range.
  • Asian stocks rose toward their highest closing level since November as expectations for a stimulus package lifted Japanese shares and better-than-anticipated corporate earnings in the U.S. eased concerns over global growth. Shares in Hong Kong entered a bull market.
  • Japan’s probe into whether the resale restrictions in most of its liquefied natural gas contracts violate fair trade laws may lead to the renegotiation of more than $600 billion worth of deals that run until almost the middle of the century.
  • Chinese coal producer Shenhua Group Corp. is seeking a merger with state-owned China General Nuclear Power Corp., people with knowledge of the matter said, a deal that would create a utility giant with about $204 billion of assets.

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