March 14th, 2017
Daily Market Commentary
- The Producer Price Index in the US was up 0.3% and 2.2% in month-over-month and year-over-year terms, respectively. Both figures were above estimates.
- The Redbook Index, which measures same-store sales growth from US General Merchandisers, was reportedly down 0.6% and up 1.3% in month-over-month and year-over-year terms, respectively.
- Industrial Production in the EU was up 0.9% and 0.6% in month-over-month and year-over-year terms, respectively. Both were below estimates.
- A survey of Economic Sentiment in the EU resulted in a score of 25.6, above estimates.
- Officials discouraged Canada’s finance minister from selling further ultra-long maturity debt, and potentially locking in near-record low borrowing costs for a generation, just ahead of a surge in yields spurred by the election of U.S. President Donald Trump. Bill Morneau was told interest-rate forecasts had been “consistently too high” and a weak global economy suggested low rates could persist.
- Bill Ackman has finally conceded defeat on Valeant Pharmaceuticals International Inc. After waging a costly and outspoken public defense of the controversial drugmaker, its once-biggest champion sold his entire stake in the company at a loss and said he will leave the board.
- Futures on the S&P 500 Index slipped 0.1 percent after the benchmark gauge ended Monday virtually unchanged. Expectations the Federal Reserve will raise borrowing costs at a faster pace than was expected at the start of this year have surged as data globally pointed to firming growth and accelerating inflation.
- The Trump administration’s plan to slash corporate tax rates could free up more than $10 billion a year for U.S. oil explorers, opening new opportunities to boost drilling at a time of uncertainty in the marketplace. Crude prices in New York have fallen 10 percent since the end of 2016 as added drilling in America’s shale fields offset an OPEC-led drive to raise prices by cutting production.
- A new estimate showing that 14 million Americans could lose health coverage by next year under the GOP Obamacare proposal leaves House Republicans in a bind with its dire picture of the bill’s effects heading into the 2018 congressional elections.
- European stocks fell in a broad decline as traders were cautious before the Dutch elections and a Federal Reserve meeting on Wednesday. The benchmark ended Monday just 0.3 percent below its highest close of the year, propelled by gains in commodity producers.
- Volkswagen AG’s struggling namesake car brand improved profitability in the fourth quarter as restructuring efforts gradually show signs of progress amid the German automaker’s push to battle back from the diesel-cheating scandal.
- Chinese shares traded in Hong Kong climbed 0.6 percent after surging 1.9 percent on Monday. Data on industrial production and retail sales showed China’s economy started the year on a firm footing.
- China home sales remained resilient in the first two months of the year, signaling policy makers are struggling to check the booming housing market. The value of new homes sold rose 23 percent to 912 billion yuan ($132 billion) in January and February compared with the first two months of 2016.
*All sources from Bloomberg unless otherwise specified