June 15th, 2015

Daily Market Commentary

 

ECONOMIC NEWS

  • Industrial Production in the U.S. was down 0.2% in month-over-month terms, below estimates.
  • The NY Empire State Manufacturing Index was reported at -1.98 in June, below estimates of 5.2.
  • Capacity utilization in the U.S. was quoted at 78.1%.
  • Canadian Manufacturing Shipments were down 2.1% in month-over-month terms, below estimates.

Commodities:

  • Oil dropped for a third day on speculation the highest production in decades from the U.S. and OPEC’s largest members will keep global markets oversupplied.
  • Gold trimmed an increase as the dollar strengthened after negotiations between Greece and its creditors failed. Palladium fell to the lowest in more than two months.

Canada:

  • Hudson’s Bay Co. agreed to buy Metro AG’s Galeria Kaufhof stores for 2.83 billion euros ($3.2 billion), putting one of Germany’s longest-standing and best-known retailers under the same ownership as Saks Fifth Avenue. Canada’s oldest company beat off competition for the 136-year-old chain and, according to Chairman Richard Baker, has even bigger ambitions in Europe that will involve opening Saks outlets in the same building as some Kaufhof locations.
  • Air Canada and Unifor, the union representing the airline’s approximately 4,000 Customer Service and Sales Agents, today announced that they have reached a tentative agreement on a new contract for five years.
  • Bombardier Inc. reaffirmed a target of winning 300 orders for the CSeries jet before the delayed model enters service in the first half of 2016, even though it needs to boost sales by a quarter to reach that goal.

United States:

  • Jeb Bush will attempt to follow his brother and father into the nation’s highest office when he officially announces Monday that he’ll run for president of the United States.
  • Boeing Co. and Airbus Group SE are poised to win at least 220 orders for competing narrow-body jets at the Paris Air Show, a haul of at least $23 billion, people briefed on the matter said.

International:

  •  European, Asian stocks and U.S. stock-index futures all dropped after the latest round of negotiations between Greece and its creditors fell apart.
  • Londoners are paying record rents when they change homes in the city as rising demand and a lack of supply allows landlords to charge more.
  • Prada SpA fell to the lowest level in more than three years after the luxury retailer reported first-quarter profit that trailed analysts’ estimates as it struggled to reverse slumping sales to Chinese shoppers.
  • Chinese shares sank amid concern a flood of equity sales may lure funds away from existing.
  • Billionaire Anil Ambani’s Reliance Communications Ltd. is in exclusive talks to merge with AFK Sistema’s Indian wireless unit through an all-stock transaction.

 

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