March 5th, 2015

Daily Market Commentary



  • The Ivey Purchasing Manager’s Index for Canada was reported at 49.7 in seasonally-adjusted terms, slightly below estimates of 50.
  • Initial Jobless Claims in the U.S. were reported at 320K, above estimates of 295K.
  • Continuing Jobless Claims in the U.S. were reported at 2.42M, slightly above estimates of 2.4M.
  • Unit Labour costs in the U.S. were reportedly up 4.1%, above estimates of 3.3%.


  • Oil rose in London after Libya suspended its obligation to deliver supplies from 11 oil fields. Prices gained in New York as inventory growth at the largest U.S. storage hub slowed.
  • Saudi Arabia pledged to supply as much oil as its customers need and sees no sign their requirements will slow down as OPEC’s strategy to defend market share proves successful.
  • Iron ore slumped below $60 a metric ton after China set the lowest target for economic growth in more than 15 years, highlighting the slowdown in the largest buyer as low-cost supplies expand further amid a glut.



  • Canadian banks are trading near the cheapest levels relative to their U.S. peers in six years, offering higher profitability and dividends even as economic growth lags behind the U.S.

United States

  • U.S. stock-index futures were little changed after equities posted their biggest two-day slump in more than a month.
  • AbbVie Inc. agreed to buy Pharmacyclics Inc. in a $21 billion deal after beating out Johnson & Johnson for control of a blockbuster blood cancer therapy that will help it expand in the lucrative area of oncology.
  • Costco Wholesale Corp., the largest U.S. warehouse-club chain, said second-quarter profit rose 29 percent as sales outpaced discount rivals such as Wal-Mart Stores Inc.


  • European stocks advanced for a second day, pushing the Stoxx Europe 600 Index near a seven-year high, as investors await details of the European Central Bank’s bond-buying program.
  • Bank of England Governor Mark Carney’s Monetary Policy Committee starts its seventh year of holding the key interest rate at a record-low 0.5 percent on Thursday. Economists and investors are betting there won’t be an eighth.
  • German factory orders fell in January, signaling a potential weak spot in the recovery of Europe’s largest economy.
  • China’s stocks fell, led by energy and power companies, after the government set the lowest economic growth target in more than 15 years and concern grew new share offerings will divert funds from existing equities.
  • China set the lowest economic growth target in more than 15 years and flagged increasing headwinds as leaders tackle the side effects of a generation-long expansion that spurred corruption, fueled debt and hurt the environment.
  • China is investing more than 800 billion yuan ($128 billion) in domestic railway construction in 2015, the same as last year’s final target, while pledging to increase its railway makers’ overseas market share.

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