June 16th, 2016
Daily Market Commentary
- The Consumer Price Index in the US was reportedly up 1% in year-over-year terms, slightly below estimates.
- Initial Jobless claims in the US were quoted at 277K, above estimates.
- Foreign portfolio investment in Canadian securities was quoted at $15.50B
- Oil fell a sixth day, heading for the longest run of declines since February on speculation that easing global supply disruptions will offset a decline in U.S. crude stockpiles and production.
- Gold surged to the highest in almost two years as the outlook for low U.S. interest rates and concern that the U.K. will leave the European Union boosted demand for a haven.
- Visa Inc. appealed to the public as it responds to Wal-Mart Stores Inc.’s decision to stop accepting the network’s cards in Canada, accusing the retailer of “unfairly dragging” millions of shoppers into private negotiations over card fees.
- A bond to fund Canada’s largest solar-power project, located on aboriginal land in Ontario, is proving a magic combination for investors who are scooping up the new green debt. The C$613 million ($475 million) of notes maturing in 2035 with a 3.926 percent coupon to finance the Grand Renewable Solar Project represent Canada’s largest solar-bond sale.
- U.S. stock-index futures fell, indicating the S&P 500 will head for its longest losing streak since last August, as oil prices deepened a drop and concern lingered that central-bank stimulus has reached its limits.
- Ford Motor Co. executives spared no expense in overhauling the crown jewel of their empire, the F-150. They gave the truck a new aluminum body, smaller turbocharged engines and a lighter and stronger steel frame — all with an eye to appease U.S. regulators demanding cleaner vehicles. The initiative took six years and cost Ford more than $1 billion.
- The Federal Reserve pared its 2016 economic-growth forecast to 2.0 percent from 2.2 percent on Wednesday, signaling the probability of two interest-rate hikes this year has significantly diminished.
- Wednesday’s respite from a European stocks selloff is proving short-lived. The region’s shares are falling for the sixth time in seven days as an oil decline deepens, while concerns over monetary policy and the economic expansion grow with central banks in Japan and the U.S. keeping their policies unchanged.
- Volkswagen AG will introduce more than 30 electric vehicles by 2025, accounting for up to one-quarter of its unit sales, as it recasts itself to emerge from the diesel emissions-cheating scandal.
- Europe’s largest banks slumped, with Deutsche Bank AG andCredit Suisse Group AG hitting fresh record lows, reflecting investors’ concern in European economic prospects after the Federal Reserve scaled back its interest-rate outlook, citing a potential Brexit among risks.
- The European Union is moving closer to imposing tighter restrictions on money-market funds after years of wrangling, while stopping short of restrictions the industry said would upend the 1 trillion-euro ($1.1 trillion) market.
- Lloyds Banking Group Plc won a U.K. Supreme Court ruling Thursday over whether it was permitted to do an early redemption of 3.3 billion pounds ($4.7 billion) of bonds, ending a disagreement springing from the bank’s attempts to weather the financial crisis.
- Asian stocks fell to a three-week low as Tokyo shares led losses after the Bank of Japan disappointed investors by refraining from expanding monetary stimulus. Energy shares sank after crude extended declines.
- The Bank of Japan refrained from expanding monetary stimulus ahead of the U.K. vote on Brexit next week that could roil global markets, and before a domestic election in which the political opposition has made the bank’s negative interest-rate policy an issue.
*All information is taken from Bloomberg, unless otherwise noted.