June 15th, 2016

Daily Market Commentary



  • Manufacturing Shipments in Canada were up 1% in month-over-month terms, above estimates.
  • The Producer Price Index in the US was up 0.4% and down 0.1% in month-over-month and year-over-year terms, respectively.
  • The NY Empire State Manufacturing Index was reported at 6, above estimates.



  • Oil fell a fifth day, heading for the longest run of declines since February, as U.S. industry data showed crude stockpiles expanded, exacerbating an oversupply.
  • Gold has been a big winner, with the U.K.’s “Leave” campaign to ditch the European Union leading in recent polls. The metal priced in pounds has climbed almost 9 percent this month.
  • Copper led a rebound in industrial metals as European shares ended their steepest selloff since January and traders took respite from fears of the U.K. voting to leave the European Union.


  • Saskatchewan Premier Brad Wall said he’d prefer to sell the province’s government-owned telecom provider rather than take it public — as long as a sale passed a referendum.
  • Over in Canada, a $7 billion fund manager is loading up on cash in an attempt to profit if the U.K. votes to leave the European Union. Investors are wrong to assume bookies, who see a lower chance of a so-called Brexit than polls do, are better guides, says Stephen Lingard, a multi-asset portfolio manager at Franklin Templeton Solutions.


United States:

  • U.S. stock-index futures inched higher, following a four-day decline that sent the S&P 500 to a three-week low, before the Federal Reserve’s rate decision.
  • Chair Janet Yellen’s Federal Reserve wraps up a two-day meeting on Wednesday in Washington. Officials are expected to debate whether the economy can handle another interest-rate increase after they hiked in December for the first time in almost a decade.
  • Exxon Mobil Corp. and BHP Billiton Ltd. are studying plans to sell depleting energy assets in Australia, including the largest oil field ever discovered in the nation.
  • The oil and gas industry will cut $1 trillion from planned spending on exploration and development because of the slump in prices, leading to slower growth in production, according to consultant Wood Mackenzie Ltd.


  • A rally in miners and retailers lifted European stocks out of a five-day rout, while traders speculated that the Federal Reserve’s latest policy review will offer encouragement to beleaguered markets.
  • Volkswagen AG is shifting away from its era of empire building with plans to bundle its fragmented components businesses and review its portfolio for possible asset sales.
  • Ericsson gains as much 4.8% after Svenska Dagbladet reports co. is preparing new cost-cut program that may impact 25,000 employees, citing unattributed internal information.
  • Royal Dutch Shell Plc Chief Executive Officer Ben Van Beurden spelled out his main goal last week — surpass Exxon Mobil Corp. to become the best-performing oil major. There are signs Van Beurden is winning over some investors following his record $54 billion acquisition of BG Group Plc.
  • Asian stocks climbed as Shanghai shares rallied, snapping the biggest four-day decline since February that was spurred by concerns over the U.K. leaving the European Union.
  • India, the source of the priceless Koh-i-Noor diamond, is looking to open up mining of gems and precious metals to cut reliance on imports under proposed new regulations.
  • The yuan pulled back from a five-year low to climb the most in more than a week amid speculation China’s central bank is supporting the currency.

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