June 28th, 2016

Daily Market Commentary



  • The Case-Shiller Home Price Indices were up 5.4% in year-over-year terms, in line with estimates.
  • Annualized GDP in the US for Q1 was listed at 1.1%, slightly above estimates of 1%.
  • Non-annualized Q1 GDP in the US was up 0.4%, below estimates of 0.6%.
  • Personal Consumption Expenditures in the US were up 0.2% in quarter-over-quarter terms, slightly below estimates.



  • Oil pared the biggest two-day loss since February before U.S. government data forecast to show crude stockpiles declined for a sixth week.
  • Gold dropped after posting the biggest two-day gain in more than seven years.


  • The fallout from the U.K.’s vote to leave the European Union will likely play out through the Bank of Canada holding off raising interest rates until at least the end of 2017, or cutting them further, and government-bond yields reaching new lows, according to economists and investors.
  • A three-month clock has just started ticking for Canadian Prime Minister Justin Trudeau to decide whether to allow Malaysia’s Petroliam Nasional Bhd to build an ambitious liquefied natural gas project that could transform the nation’s energy exports but raise the ire of environmentalists.


United States:

  • U.S. index futures rose, indicating shares will advance for the first time since Britain voted to leave the European Union.
  • Pfizer Inc. will invest $350 million in eastern China on a plant for biotechnology drugs, bolstering its presence in the world’s second largest pharmaceutical market despite slowing economic growth in the country and rising pressure on prices for medicines.
  • Futures trading suggests the market is starting to price in the possibility the Federal Reserve will cut interest rates this year rather than increasing them, after the U.K.’s decision last week to leave the European Union.


  • European stocks advanced, snapping their worst two-day losing streak since 2008, as investors speculated that policy makers may take action to shore up markets after the post-Brexit rout.
  • Volkswagen AG’s price tag to settle lawsuits in the U.S. over its rigging of diesel emissions tests has jumped to more than $15 billion — $5 billion more than previously reported — on the eve of a settlement to be filed Tuesday in a San Francisco court.
  • Asian stocks erased losses and most Tokyo shares rose with investors watching closely for signs that central banks and governments will help to ease the post-Brexit market turmoil.
  • India is offering global oilfield service providers starved of new contracts a $27 billion lifeline as the government’s ambition to cut fuel imports drives fresh investment.
  • BYD Co., the electric-car maker that counts Warren Buffett’s Berkshire Hathaway Inc. as a shareholder, is in talks with several of China’s smaller cities on building monorail systems to preempt traffic congestion spurred by rapid growth in automobile ownership.

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