July 25th, 2016

Daily Market Commentary



  • An IFO survey of the Business Climate in Germany was reported at 108.3, above estimates.
  • A survey of expectations in Germany was placed at 102.2, above estimates.


  • Oil traded near the lowest close in more than two months as U.S. producers increased drilling for a fourth week even as the market contends with abundant supplies.
  • Gold fell, extending the first back-to-back weekly drop since May, as buoyant equity markets and gains in the dollar hurt demand ahead of central bank meetings in the U.S. and Japan this week.


  • Canadian stocks edged higher to cap a fourth weekly advance, pushing the benchmark index to the highest level in a year, as investors weighed contrasting earnings from electronics company Celestica Inc. and lumber producer West Fraser Timber Co.

United States:

  • U.S. index futures held steady, after equities capped their longest run of weekly gains since March amid optimism over corporate earnings.
  • The dollar added to a two-week gain against the yen amid speculation the Federal Reserve will signal policy makers are on course to raise interest rates while the Bank of Japan will expand stimulus at their respective meetings this week.
  • Verizon Communications Inc. will announce plans to buy Yahoo! Inc.’s core assets for about $4.8 billion on Monday, a move that would finally seal the fate of the iconic web pioneer after months of speculation and pressure from investors.


  • European equities resumed their rise, heading for their highest levels in a month, as confidence data showed companies may have withstood the initial shock of the U.K. vote to leave the European Union.
  • Ericsson AB ousted Chief Executive Officer Hans Vestberg after the stock slumped, competition intensified and the maker of wireless-networking gear faced investigations into its business dealings in Europe and Asia.
  • Ryanair Holdings Plc surprised investors by sticking to its fiscal 2017 profit forecast with a plan to lower fares to lure more passengers even as Britain’s decision to quit the European Union and a string of terrorist attacks in major European markets weigh on demand.
  • 888 Holdings Plc and The Rank Group Plc said they’re considering a joint takeover offer for U.K. bookmaker William Hill Plc, proving that the recent wave of industry consolidation isn’t over yet.
  • Asian stocks rose as investors awaited policy meetings by the Federal Reserve and Bank of Japan this week.
  • Agricultural Bank of China Ltd. is planning China’s largest sale so far under a trial program for lenders to offload bad loans by packaging them up as asset-backed securities. The lender plans to sell securities backed by 10.7 billion yuan ($1.6 billion) of nonperforming loans on the interbank bond market.

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