June 19th, 2014

Daily Market Commentary

 

ECONOMIC NEWS

• Initial Jobless Claims in the U.S. were reported at 312K, below estimates of 314K.
• Continuing Jobless Claims were reported at 2.561M, below estimates of 2.6M.
• The Philadelphia Fed Manufacturing Survey was reported at 17.8, above estimates of 14.
• Retail Sales in Great Britain were reportedly down 0.5% and up 3.9% in month-over-month and year-over-year terms.

Commodities:

• Brent crude traded at a nine-month high as Iraqi forces battled insurgents north of Baghdad. West Texas Intermediate rose for the first time in four days after a government report showed U.S. crude supplies shrank.
• Wheat rose for a second day on concern that rain from Oklahoma to Kansas may delay harvesting and cause crop quality to deteriorate in the U.S., the world’s biggest exporter.
• Commodities rose to a nine-month high as crude advanced after a government report showed U.S. inventories shrank and amid concern that violence in Iraq will disrupt supplies from OPEC’s second-largest producer.
• Gold futures jumped the most in 14 weeks, as the Federal Reserve said U.S. interest rates will remain low, driving the dollar lower and boosting demand for the precious metal as an alternative investment.

 

Canada:

• Canadian stocks have rallied to a record amid resurgence in energy producers and gold mining shares, delivering investors the second-best returns among the world’s largest markets this year.
• Profits at Canadian energy companies are rising at the fastest pace in decade as global economic growth pushes up oil prices and worries over pipeline bottlenecks fade.
• Chances are good an oil pipeline to Canada’s east coast will beat to market Enbridge Inc.’s Northern Gateway project, even with its approval this week by Prime Minister Stephen Harper’s government.

United States:

• U.S. stock-index futures were little changed, after equities closed at a record as the Federal Reserve said interest rates will remain low, and before data that may show jobless claims fell.
• Markit Ltd., the London-based financial-information provider whose price data forms the basis for much of the global derivatives and bond markets, raised $1.3 billion in a U.S. initial public offering after selling an increased number of shares at the midpoint of the range.
• The index of U.S. leading indicators rose in May for the fourth straight month, showing the economy will gain momentum following a slowdown at the start of 2014.

International:

• European stocks rose after the Federal Reserve repeated its pledge to leave interest rates near their record low and said the world’s largest economy should experience sustained growth.
• U.K. retail sales fell for the first time in four months in May as a World Cup boost failed to offset a slump in demand at food stores.
• Asian stocks headed for a six-year high after the Federal Reserve said interest rates will remain low for some time as U.S. growth rebounds, and Premier Li Keqiang pledged to meet China’s target for economic expansion.
• China’s stocks fell, capping the benchmark index’s biggest loss in seven weeks, amid concerns new share sales will divert funds from existing shares and a property slowdown will hurt economic growth.