June 18th, 2014

Daily Market Commentary



  • MBA mortgage applications in the U.S. were reportedly down 9.2%.
  • The Current Account in the U.S. for the first quarter was reported at -$111.2B.
  • Wholesale Sales in Canada were reportedly up 1.2% in month-over-month terms, above estimates of 0.6%.
  • Construction Output in the Eurozone was reportedly up 0.8% and 8% in month-over-month and year-over-year terms, respectively.


  • The gold industry will discuss changes to the century-old gold fixing benchmark that’s used by mining companies to central banks to trade and value the metal.
  • A five-year-long link between crude oil and gold has come apart as the economic recovery boosts energy consumption and lowers the metal’s appeal as a haven, encouraging investors to buy oil and sell gold.
  • Brent rose to the highest level this week as fighting in Iraq damaged northern energy infrastructure, while the main oilfields in OPEC’s second-biggest producer were spared. West Texas Intermediate also gained.

Company News:



  • Enbridge Inc. now faces its sternest challenge — selling Northern Gateway’s benefits to skeptical British Columbians — after the federal government approved the C$6.5 billion ($6 billion) pipeline project.
  • Lululemon Athletica Inc. plunged 16% after the company cut its full-year earnings forecast last week. The decline added to the $5.5 billion already wiped out in the last year amid a product recall and management shakeup.

United States:

  • U.S. stock-index futures were little changed, following a three-day gain for the Standard & Poor’s 500 Index, as investors awaited the latest monetary-policy decision from the Federal Reserve.
  • Royal Dutch Shell Plc will sell shares in a U.S. pipeline business in the second half of this year as Europe’s largest oil company takes advantage of investor appetite for North America’s energy infrastructure.


  • European stocks were little changed as investors awaited a Federal Reserve monetary-policy decision, while oil and gas companies advanced amid violence in Iraq. U.S. stock-index futures and Asian shares were also little changed.
  • Ukraine seeking closer ties to the European Union means natural gas flows from Russia to the 28- nation bloc are unlikely to be disrupted, according to Maplecroft Ltd. and Energy Aspects Ltd.
  • Bank of England policy makers said an interest-rate increase this year may be more than likely than investors anticipate as the debate on the timing of the first policy tightening in seven years heats up.
  • Emerging market currencies in Asia fell with stocks outside Japan before the Federal Reserve reports on monetary policy and amid speculation U.S. interest-rate increases will be brought forward.
  • India will offload about a quarter of its rice stock-pile and ease restrictions on selling fruits and vegetables to stem Asia’s second-fastest inflation as a weak monsoon threatens to curb crop output.