June 25th, 2014

Daily Market Commentary



  • MBA Mortgage Applications in the U.S. were reportedly down 1%.
  • Durable goods orders in the U.S. were reportedly down 1%, below estimates of a 0% move.
  • Annualized GDP for the U.S. in Q1 was reported at -2.9%, below estimates of -1.7%.
  • The Markit Services PMI for the U.S. was reported at 61.2, above estimates of 58.


  • West Texas Intermediate crude pared gains amid speculation that an Obama administration ruling on U.S. fuel exports would have limited impact on global markets. Brent’s premium narrowed as Iraq pledged to increase exports.
  • Gold fell in London on speculation its advance to a two-month high will spur some investors to sell. Platinum declined as South African miners returned to work following a five-month pay strike.
  • Copper fell from a three-week high as investors viewed the metal’s recent gain as excessive ahead of data that may show the U.S. economy faltered in the first quarter.
  • The world’s three largest platinum producers said workers are returning in large numbers the day after an agreement was signed with the South African union that went on strike for five months over pay.


  • The proportion of unfilled space in Canada’s office buildings has risen for the eighth quarter in a row, amid a boom in construction. The country’s office vacancy rate ticked up by 10 basis points during the second-quarter, to 10.4 per cent, as two-million square feet of new office space became available, according to a new report by CBRE Ltd. The rate topped 10 per cent during the prior quarter for the first time since early 2010.  
  • First Quantum Minerals Ltd., Zambia’s biggest copper producer, said it has slowed down or postponed more than $1 billion of capital expenditure in the country as a tax dispute with the government escalates.

United States:

  • U.S. stock-index futures were little changed, after equities slipped for a second day yesterday, as violence in the Middle East increased, and investor’s awaited data on durable-goods orders in the world’s largest economy.
  • The regulator of Fannie Mae and Freddie Mac will consider suing insurers who charged excessive fees for hazard coverage paid by the two government-owned mortgage companies, an auditor’s report said.
  • Bullish bets on Medtronic Inc. rose to the highest level in seven years, pushed by speculation that reincorporating in Ireland after buying Covidien Plc will unlock cash returns as the company sidesteps U.S. taxes.


  • European stocks fell for a fourth day, the longest stretch in seven weeks, as violence in the Middle East escalated.
  • Romania’s central bank plans to cut foreign-currency reserves for lenders as the European Central Bank’s negative rate boosts the cost of keeping the buffers, according to an official with knowledge of the deliberations.
  • AbbVie Inc., which was rejected on three different takeover offers for Shire Plc, may have to raise its bid to about 30 billion pounds ($51 billion) to persuade the drug-maker’s board to sell.
  • Norway’s $890 billion sovereign wealth fund, the world’s biggest, is building up its organization and preparing for a move into infrastructure and private equity, it’s CEO said.
  • China’s stocks fell, led by material and technology companies, amid concerns the first new share listings in four months will divert funds and surging oil prices may slow the economy.
  • China Vanke Co. jumped 7 percent on its Hong Kong trading debut as investors bet the developer’s focus on small to medium-sized homes is resilient in a slowing Chinese property market.
  • Samsung Electronics Co. expects its second-quarter earnings to be ‘not that good’, CFO Lee Sang Hoon said.