July 31st

Daily Market Commentary



  •  Canadian GDP was reportedly up 0.4% in the month of May, above estimates of 0.3% growth.
  • Initial Jobless claims in the U.S. were reported at 302K, slightly above estimates of 301K.
  • Continuing jobless claims were reported at 2.539M, above estimates of 2.495M.
  • The Chicago Purchasing Manager’s Index was reported at 52.6, below estimates of 63.
  • The Consumer Price Index Core was reportedly up 0.8% in the Eurozone in year-over-year terms. 


  • West Texas Intermediate dropped for a fourth day, slipping below $100 a barrel, as the dollar headed for its biggest monthly gain against the euro since last February, curbing the appeal of the commodity. Brent decreased in London.
  • Gold futures dropped to a six-week low after a government report showed improvement in the U.S. labour market, damping demand for a haven.
  • Iron ore is heading for the biggest monthly increase this year on speculation that demand for imports in China may be improving, helping to absorb a global surplus as local supplies in the largest buyer are displaced.


  • Barrick Gold Corp. appointed former Goldman Sachs Group Inc. Vice Chairman J. Michael Evans as a director, joining his former colleague John Thornton on the board of the world’s largest miner of the precious metal.
  • Suncor Energy Inc.’s spending on scaling back its Joslyn oil-sands mining project led Canada’s largest oil producer to post a 69 percent profit slump to the lowest in six quarters.
  • Bombardier Inc. reported quarterly profit that beat analyst estimates as the company delivered more commercial planes and said the CSeries model, its biggest-ever jet, remains on schedule to enter service next year.
  • Valeant Pharmaceuticals International Inc., which is attempting a hostile takeover of Botox-maker Allergan Inc., met analysts’ profit expectations as sales grew in the U.S. contact lens business.

United States:

  • The threat of tit-for-tat sanctions between Russia, the European Union and the U.S. is sending the cost of equity hedges to the highest level since 2012.
  • T-Mobile US Inc. ended its streak of four straight quarterly losses, proving that it can lure customers away from its rivals without sacrificing profits.
  • The Federal Open Market Committee’s policy statement yesterday diminished the unemployment rate as a measure of progress toward its full-employment goal, saying “a range” of indicators suggest significant underutilization of labour resources.”


  • European stocks declined the most in two weeks as Adidas AG lowered its profit forecast and Banco Espirito Santo SA led a plunge in Portuguese equities. U.S. stock-index futures and Asian shares also dropped.
  • Euro-area inflation unexpectedly slowed in July to the weakest in almost five years, underscoring the European Central Bank’s concerns that the economy is too feeble to drive price growth.
  • BNP Paribas SA, France’s biggest bank, posted its largest loss ever and replaced its compliance chief after a record fine for doing business with countries blacklisted by the U.S.
  • China’s stocks rose, sending benchmark indexes to their largest monthly gain since December 2012, amid optimism government stimulus will boost economic growth.
  • Japan’s Topix Index fell for the first time in five days, retreating from a six-month high and paring its monthly gain, as earnings from Nintendo Co. to Denso Corp. disappointed investors at the peak of reporting season.
  • HTC Corp. forecast a 12th consecutive quarter of declining sales, with revenue and earnings to miss analyst estimates as mid-priced models fail to make up for a slowdown in premium devices.


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