July 6th, 2016
Daily Market Commentary
- International Merchandise Trade in Canada was reported at -$3.28B, below expectations.
- The Redbook Index, which measures same-store sales of US general merchandising companies, was reportedly down 0.9% and up 0.6% in month-over-month and year-over-year terms, respectively.
- MBA Mortgage applications in the US were up 14.2% in July.
- Oil traded near a one-week low as investors fled to haven assets including gold and the yen amid renewed concern the U.K.’s decision to leave the European Union will hinder global growth.
- Gold climbed to a two-year high as investors sought a haven from the tumult in financial markets, with UBS Group AG saying bullion is probably at the beginning of its next bull run.
- Canadian government bonds rose, with benchmark 10-year yields falling below 1 percent, as renewed concern about global economic growth pushed investors into the haven of sovereign debt.
- Centerra Gold Inc. agreed to acquire Thompson Creek Metals Co. in a deal valued at $1.1 billion as the Toronto-based miner looks to expand in North America and reduce its dependence on Central Asia.
- U.S. stock-index futures fell, indicating more losses for the S&P 500 as investors fretted about prospects for global growth in the wake of the U.K.’s decision to leave the European Union.
- Bucking the trend of conserving cash at a time of low oil prices, the American oil giant Chevron said on Tuesday that it would go ahead with a $37 billion expansion of a gargantuan oil field on the Caspian Sea in Kazakhstan.
- American companies announced $52 billion of repurchases last week alone, following the Federal Reserve’s approval of capital plans for 33 financial firms, according to data compiled by Birinyi Associates. That pushed total buybacks in June to more than $65 billion, the most since February.
- There’s a deeper debate within the central bank about longer-term prospects for the U.S. economy. Some economists are convinced that discussion took an important turn last month, and the FOMC minutes, due for release at 2 p.m. Wednesday in Washington, may shed light on what the committee was thinking
- A sea of red engulfed all western-European markets and industries, with Spanish, Italian, German and French national gauges falling the most — down more than 2 percent.
- The pound sank to a fresh 31-year low as the fallout from Britain’s vote to leave the European Union continued to reverberate through financial markets.
- Aviva Plc, one of three U.K. managers to suspend trading in real estate investment funds this week, plans to increase its dividend payout ratio even as Britain’s decision to leave the European Union causes uncertainty in the industry.
- Asian stocks fell, following declines in global equities, as concerns over global economic growth sapped confidence for risk assets, boosting the yen and dragging down Japanese shares.
- Apple Inc. dropped to fifth place in Chinese smartphone shipments, losing ground in its biggest overseas market in a fresh blow for the technology giant.
- After ending a two-year smartphone slide with the Galaxy S7,Samsung Electronics Co. could be about to hike capital spending to sustain a revival across the company. At least $5 billion more of investment is headed to the display and semiconductor businesses, according to a survey of analyst estimates, to help Samsung ride out bumps in the phone market.
*All information is taken from Bloomberg, unless otherwise noted.