July 8th 2014

Daily Market Commentary



  • The Redbook index, which measures same-store sales growth in U.S. general merchandisers, was reportedly down 1.2% and up 6% in month-over-month and year-over-year terms, respectively.
  • The NFIB Business Optimism Index for the U.S. was reported at 95, below estimates of 96.6.
  • Industrial production in Great Britain was reportedly down 0.7% and up 2.3% in month-over-month and year-over-year terms, respectively.
  • Manufacturing Production in Great Britain was reportedly down 1.3% and up 3.7% in month-over-month and year-over-year terms, respectively. 


  • Brent crude fell below $110 a barrel, reversing a rally that started when Islamist militants seized the northern Iraqi city of Mosul almost a month ago. West Texas Intermediate also traded near a one-month low.
  • Gold held a retreat from a three-month high as investors weighed the timing of U.S. interest-rate increases and escalating tensions in the Middle East. Palladium reached the highest price since February 2001.
  • Zinc reached the highest price in almost three years in London and copper rose as stockpiles shrank and Morgan Stanley said industrial metals will benefit from policy easing in China.


  • Demand for high-end real estate in Canada continues to rise as low mortgage rates and international buyers spur demand and boost prices for million-dollar homes. Sales of houses valued at C$1 million ($936,680) and more in Toronto, Vancouver, Calgary and Montreal climbed 32 percent in the first six months this year over the same period in 2013.
  • Rising oil prices, stronger than expected inflation and U.S. economic stumbles in the first half of the year have combined to take the lure out of shorting the Canadian dollar. The reversal in sentiment is also causing new headaches for BoC Governor Stephen Poloz, who has counted on a weaker currency to boost exports and help drive the economic recovery (Globe.)

United States:

  • U.S. stock-index futures were little changed, after equity gauges dropped from records, as investors weighed valuations before the start of the earnings season.
  • Intel Corp. rejected an attempt by rival chipmaker Qualcomm Inc. to set technological standards for the next generation of connected electronic devices, instead signing up companies for a competing specification.
  • The $27 billion of Treasury three-year notes to be auctioned today traded at the highest yield since April 2011, on speculation the Federal Reserve will raise its short-term interest-rate target next year.


  • European stocks fell for a third day, led by travel and leisure companies, after Air France-KLM Group cut its full-year profit forecast.
  • Marks & Spencer Group Plc, the U.K.’s largest clothing retailer, said apparel sales resumed their decline in the first quarter as customers’ unfamiliarity with a redesigned website led to a slump in online revenue.
  • Commerzbank AG, Germany’s second-largest lender, will probably be the next bank to resolve alleged U.S. sanctions violations, a person with knowledge of the matter said.
  • Asian stocks fell from a six-year high, dragging the benchmark regional index lower for the first time in three days, as the yen held gains against the dollar and materials producers retreated.
  • Samsung Electronics Co. forecast a recovery in sales after the world’s biggest smartphone maker posted second-quarter profit that missed analyst estimates on competition from Chinese makers and gains in the Korean won.
  • India said it will start bullet-train services and seek overseas investment to modernize its railways as Prime Minister Narendra Modi begins unveiling his policies after taking charge in May.
  • Japan’s weather agency warned of storms and high waves as Typhoon Neoguri skirted the country’s islands of Okinawa, grounding flights and prompting some to flee their homes for emergency shelters.