June 22nd, 2016
Daily Market Commentary
ECONOMIC NEWS
- Retail Sales in Canada were up 0.9% in month-over-month terms, in line with estimates.
- Retail sales in Canada excluding Autos were up 1.3%, far above estimates of a 0.6% increase.
- US Housing Prices increased 0.2% in month-over-month terms.
Commodities:
- Oil traded above $50 a barrel as U.S. industry data showed crude stockpiles declined, trimming a glut.
- Gold traded near a two-week low as speculation that the U.K. will vote to stay in the European Union curbed demand for a haven.
Canada:
- Canadian stocks were little changed, rebounding from losses earlier in the day, as gains by banks and energy companies offset a decline in commodities prices, while central bankers in the U.S. and Europe signaled caution about economic growth and inflation threats.
- Rio Tinto Group looks like it’s putting about $9 billion of unwanted assets from coal and uranium to Canadian iron ore into a single basket ready to spin off, according to Sanford C. Bernstein.
- Birchcliff Energy Ltd., the company backed by Canadian businessman Seymour Schulich, has agreed to buy natural gas producing properties from Encana Corp. for C$625 million ($488 million) in cash.
United States:
- U.S. stock-index futures fluctuated between gains and losses as traders weighed the probability of the U.K. voting to remain.
- Fed Chair Janet Yellen sketched a cautious and uncertain view of the economy in testimony before lawmakers in Washington Tuesday. After her remarks, Tannenbaum was among several economists who said they believe Yellen is among the six Fed officials who last week predicted just one rate increase this year.
- Elon Musk called the proposed marriage of Tesla Motors Inc. and SolarCity Corp. a “no brainer,” saying his $2.86 billion plan to combine the companies would benefit both.
- FedEx Corp. forecast an annual profit in line with analysts’ projections, excluding any effect from its recently completed purchase of Dutch shipper TNT Express for $4.8 billion.
International:
- European stocks were little changed as investors turned cautious before Thursday’s U.K. vote on European Union membership.
- While Volkswagen vowed to shore up internal processes to prevent a repeat of the cheating, it offered little new insight into the origins of the crisis. The company also stopped short of committing to cut management pay, with Chairman Hans Dieter Poetsch promising merely to “review” remuneration policies.
- Asian stocks outside Japan rose with shares in Tokyo declining on low volume as the yen strengthened.
- Mitsubishi Motors Corp. said the fallout from its fuel-economy manipulation scandal is contained and temporary as the Japanese automaker forecast its first loss in eight years on related compensation costs.
*All information is taken from Bloomberg, unless otherwise noted.
