July 8th, 2016
Daily Market Commentary
- The Canadian Unemployment rate reportedly dropped to 6.8% in June, below estimates of 7%.
- The participation rate in Canada also slightly dropped 0.2% to 65.5%.
- US Nonfarm payrolls were quoted at 287K, far above estimates of 175K.
- The US participation rate ticked up 0.1% to 62.7%.
- The US Unemployment rate also increased slightly to 4.9%.
- Oil trimmed its biggest weekly decline in five months as investors weighed the largest drop in U.S. output since 2013 against a smaller-than-expected stockpile decline.
- Gold headed for the first back-to-back daily drop since the U.K.’s Brexit vote as investors turned their focus to a U.S. jobs report that’ll shed light on the health of the labor market in the world’s top economy. Gold and silver prices declined in Shanghai.
- Copper posted the biggest three-day loss in more than two months amid concern that stumbling economies in Europe will hurt demand for base metals.
- Canada stocks fell the most in almost two weeks as energy producers joined a decline in gold miners, erasing gains with oil after U.S. inventories dropped less than expected.
- Canada’s biggest newspaper chain proposed a debt restructuring plan aimed at buying it more time to turn its business around amid the global plunge in print advertising revenue. Postmedia Network Canada Corp. is pushing out the maturity dates for some of its debt, while swapping out the rest of its debt for equity in a proposed restructuring plan that would reduce the amount it owes by around C$307 million ($236 million).
- U.S. stock-index futures edged higher as investors awaited a monthly jobs report. Federal Reserve officials flagged concern over job creation at their last meeting, signaling fading urgency for the need to increase interest rates.
- S. regulators plan to require banks to adopt baseline safeguards to shield themselves from cyberthreats after a series of assaults cost the industry billions of dollars and shook consumer confidence, said people with knowledge of the matter.
- Signaling a shift in enforcement tactics against big companies that make money from intellectual property, federal tax officials have sought a court order demanding internal corporate records related to one of Facebook Inc.’s offshore tax strategies.
- European shares extending their rebound into a second day, with investors awaiting a U.S. employment report that’s forecast to show an increase in hiring.
- U.K. consumer confidence plunged the most in 21 years, the latest sign that Britons’ vote to leave the European Union is harming the nation’s outlook.
- Volkswagen AG is considering teaming up with electric-car battery specialists such as LG Chem Ltd. or Panasonic Corp. as it overhauls its strategy to emerge from the diesel-emissions scandal, according to people familiar with the matter.
- Air France-KLM Group Chief Financial Officer Pierre-François Riolacci announced he’s stepping down a week after a new CEO took charge, leaving the airline scrambling to find a successor amid tensions with French pilots over cost-cutting efforts. The stock dropped to a 3 1/2-year low.
- Asian stocks fell, capping a weekly decline, as a stronger yen weighed on Japanese shares and investors waited for a U.S. jobs report to assess its implications for monetary policy.
- China Logistics Property Holdings Co., the warehouse developer backed by Carlyle Group LP, is poised to raise about $433 million in its Hong Kong initial public offering, according to people familiar with the matter.
*All information is taken from Bloomberg, unless otherwise noted.