June 29th, 2016
Daily Market Commentary
- Personal Spending in the US was up 0.2% in month-over-month terms, slightly below estimates.
- Personal Consumption Expenditures in the US were up 0.2% and 0.9% in month-over-month and year-over-year terms, respectively.
- The Consumer Price Index in Germany was reportedly up 0.1% and 0.3% in month-over-month and year-over-year terms, respectively.
- Oil gained a second day after U.S. industry data showed crude stockpiles declined and markets rebounded from the impact of the U.K.
- Gold advanced as the likelihood of an interest rate increase in the U.S. diminished.
- Copper advanced to the highest in seven weeks, erasing losses following the U.K. vote
- Canadian Imperial Bank of Commerce agreed to buy PrivateBancorp Inc. and one of its units to boost its U.S. presence. CIBC will pay $18.80 in cash and 0.3657 of a CIBC common share for each PrivateBancorp share, it said in a statement on Wednesday. Based on the June 28 closing price of CIBC’s stock, the transaction value is about $3.8 billion, it said.
- U.S. index futures advanced amid a global rally, on speculation policy action will counter the impact of a U.K. exit.
- Energy Transfer Equity LP terminated its merger agreement with Williams Cos. after a court ruled that it can walk away from the deal.
- New Jersey Governor Chris Christie’s hastily proposed 1 percentage point sales-tax cut, his condition for unlocking billions of dollars for transportation projects, would blow a $1.6 billion hole in the general fund.
- European equities rose for a second day, recovering more of the declines triggered in the immediate aftermath of the U.K.’s decision to leave the European Union.
- The U.K.’s vote to leave the European Union may cost about automakers about 2.8 million light-vehicle sales through 2018, researcher IHS Automotive said in its latest projections for industry.
- Lloyds Banking Group Plc, Britain’s largest mortgage lender, will eliminate about 640 jobs and close 23 branches as part of a cost-cutting program that started in October 2014, according to a labor union.
- Asian stocks rose with oil prices as a rally in global equities gathered steam amid optimism that policy makers will introduce measures to limit the economic fallout from the U.K. leaving.
- Sony Corp. expects the profitability of its games division to rise as the Japanese company prepares to launch a virtual-reality headset to complement its PlayStation and streaming services
*All information is taken from Bloomberg, unless otherwise noted.