June 7th, 2016

Daily Market Commentary



  • The Redbook Index, which measures same-store sales growth of US general merchandising companies, was down 1% and up 0.6% in month-over-month and year-over-year terms, respectively.
  • Eurozone GDP was reportedly up 0.6% and 1.7% in quarter-over-quarter and year-over-year terms, respectively.



  • Oil traded near the highest close in more than 10 months before U.S. government data forecast to show crude stockpiles dropped for a third week, trimming a glut.
  • Gold pared gains made in the past two trading days as Janet Yellen said she sees interest rates rising gradually even after poor jobs data on Friday.
  • Copper led losses in industrial metals after data showed the biggest two-day increase in stockpiles since 2004. Zinc held gains after an eight-day winning streak.


  • Valeant Pharmaceuticals International Inc. cut its 2016 profit forecast as new Chief Executive Officer Joseph Papa starts his attempt to turn around the embattled drug-maker.
  • Raymond James Financial Inc. is looking to acquire additional businesses in Canada after agreeing last month to buy Montreal-based wealth manager MacDougall MacDougall & MacTier Inc., head of Canadian operations Paul Allison said.
  • Suncor Energy Inc., Canada’s largest energy company, lowered its crude output forecast for the year by about 6.2 percent because of facility outages caused by wildfires raging across northern Alberta.


United States:

  • U.S. index futures rose, indicating the S&P 500 Index will inch closer to an all-time high, as optimism grew over the strength of the world’s biggest economy.


  • European shares rose for a second day amid signs of economic progress in Europe, as Federal Reserve Chair Janet Yellen reiterated her faith in U.S. growth, while indicating that interest rates won’t be prematurely raised.
  • Royal Dutch Shell Plc cut spending plans further and promised increased savings following its record purchase of BG Group Plc, as Europe’s largest oil company continues to adjust to the slump in energy prices.
  • Germany’s biggest lender, Deutsche Bank AG missed out on the advisory and top-tier financing roles on Bayer AG’s $62 billion bid for Monsanto Co., according to people with knowledge of the matter.
  • While the U.K. hasn’t built a large-scale power station since 2012, investment in smaller generators will be about 840 million pounds ($1.2 billion) in the next two years, according to U.K. Power Reserve Ltd., which operates about 10 sites and is building more.
  • Asian stocks rose to extend a five-week high, led by commodity shares,
  • At any given minute in India, you can find out how much electricity is for sale and at what price with a few swipes across a smartphone screen — a level of transparency in the nation’s power sector that’s increasing the odds of far-reaching change to end blackouts.
  • Japan Inc. has $59 billion at stake on the June 23 referendum in the U.K., when Britons vote to either leave or stay in the European Union. That’s the amount Japanese companies have invested in the U.K., which benefits more from the Asian nation than any other country outside Europe apart from the U.S.

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