July 22nd, 2016

Daily Market Commentary

 

ECONOMIC NEWS

  • The Consumer Price Index in Canada was up 0.2% and 1.5% in month-over-month and year-over-year terms, respectively.
  • Retail Sales in Canada were up 0.2% in month-over-month terms.

 

Commodities:

  • Oil headed for a weekly decline as the U.S. is set to end the summer-driving season with ample stockpiles, sustaining a glut in the world’s largest fuel consumer.
  • Gold headed for a second weekly decline, with gains in equity markets and the dollar hurting prices as investors return to riskier assets and weigh the possibility of additional economic stimulus.

Canada:

  • TransCanada Corp. is preparing to gauge interest this fall in a cheaper service for customers using its pipelines to move natural gas across Canada following months of talks with producers. The company is discussing the potential for new 10-year transportation contracts from Alberta to Ontario that would cost 40 to 50 percent less than a current comparable toll.
  • Canadian Prime Minister Justin Trudeau is considering a request to guarantee new debt offerings to finish an over-budget and delayed hydroelectric project, a test of his support for low-emission energy development. The estimated cost of the Muskrat Falls project in Newfoundland and Labrador has ballooned to C$11.4 billion ($8.7 billion) from C$7.4 billion.

United States:

  • U.S. stock-index futures inched higher, signaling a rebound in equities after they fell from a record, as investors weighed earnings reports.
  • Goldman Sachs Group Inc. is about to start raising money for its first private-equity fund since the financial crisis, potentially gathering $5 billion to $8 billion, according to a person with knowledge of the matter.
  • Starbucks Corp., the world’s largest coffee-shop chain, reported third-quarter revenue that missed analysts’ estimates after same-store sales growth slowed in the Americas, its biggest region.

International:

  • European equities were little changed amid mixed data on the services and manufacturing industries.
  • HSBC Holdings Plc, Europe’s largest bank, is selling $2.7 billion of loans as part of a plan to cut risk-weighted assets by $290 billion over the next three years, according to two people with knowledge of the sale.
  • Volvo Car Group plans to sell a model able to pilot itself down the highway by 2021, joining BMW AG in a promise of self-driving technology within five years.
  • Asian stocks fell after Bank of Japan chief Haruhiko Kurodada shed hopes for so-called helicopter money, triggering the yen’s steepest rally in a month and weakening the outlook for exporters in Tokyo.
  • The onshore yuan was set to end the year’s longest run of weekly losses, with suspected central bank support negating pressures from a strengthening dollar and prompting concern about China’s commitment to market forces.

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