June 20th, 2016

Daily Market Commentary



  • Wholesale Sales in Canada were up 0.1% in month-over-month terms, below estimates.
  • The Producer Price Index was up 0.4% and down 2.7% in month-over-month and year-over-year terms, respectively.



  • Oil gained for a second day, extending its advance from a one-month low reached last week as equities rose and the dollar slipped.
  • Gold tumbled by the most in almost a month as it has been highly correlated with expectations of the outcome of a U.K. referendum on EU membership, with a greater probability of the U.K. staying in the union negative for the metal.
  • Base metals including copper, zinc and lead rallied as the dollar extended its decline, boosting demand for commodities priced in the U.S. currency, while nickel advanced amid supply concerns. Mining stocks led by BHP Billiton Ltd. gained


  • Money managers reduced bets on rising oil prices by the most in 11 months as Canadian output continued to ramp up after Alberta’s wildfires. The recovery in oil prices remains “fragile” as disrupted supplies return to the market and prolong a global surplus, according to Goldman Sachs Group Inc.
  • Canadian corporate-bond investors are unexpected beneficiaries of the market turmoil leading up to the U.K. vote on whether to exit the European Union.


United States:

  • U.S. stock-index futures rose, indicating a rebound for the S&P 500, after the latest polls showed the U.K. campaign to remain in the European Union is gaining ground before Thursday’s referendum.
  • Boeing Co. is nearing a $4 billion deal with Russia’s largest air-freight company that would help extend the life of the iconic, hump-nosed 747 jumbo jet amid waning demand for four-engine aircraft, people close to the transaction said.


  • European stocks advanced the most since February as a new poll showed an increase in the number of Britons that support staying in the European Union.
  • Volkswagen AG rose the most in two months as the German carmaker showed signs of making progress in its efforts to emerge from the emissions-cheating scandal, with plans to submit a $10 billion settlement in the U.S.
  • Siemens AG’s $11 billion wind-power turbine merger with Gamesa Corp. Tecnologica SA creates a market giant to rival Vestas Wind Systems A/S and General Electric Co. that now faces the challenge of harnessing planned savings, according to analysts at Barclays and Morgan Stanley.
  • Asian stocks rose the most in two months and commodity producers rallied with oil and a weaker yen buoyed the earnings outlook for Japanese exporters.
  • China Development Bank Financial Leasing Co., an arm of the nation’s biggest policy lender, and existing investors will seek as much as $980 million from a Hong Kong initial public offering, people familiar with the matter said.

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