May 20th, 2015

Daily Market Commentary



  • Wholesale sales in Canada were up 0.8%, below estimates of 0.9%.
  • MBA mortgage applications in the U.S. were down 1.5%.
  • Construction output in the Eurozone was reportedly up 0.8% and down 2.7% in month-over-month and year-over-year terms, respectively.
  • The BoE unanimously decided to leave their key rate unchanged.


  • Gold held near a one-week low on speculation an improving U.S. housing market will back the case for higher interest rates.
  • Nickel fell the most in eight months as an increase in inventories added to signs of ample supplies.
  • Oil snapped a five-day retreat on signs the oversupply in U.S. crude stockpiles is moderating.


  • Barrick Gold expected to get at least six final bids this week for assets in New South Wales and Papua New Guinea, the Australian reports, citing unidentified people.
  • Valeant Pharmaceuticals International Inc. is in talks to acquire one of the largest drug-makers in Egypt to expand in both veterinary and human medicines, according to people with knowledge of the matter.
  • Alberta home price level doesn’t match demand based on income, unemployment, mortgage rates: Fitch. Expects actual home price declines to be “significantly more modest” than 17% overvaluation view.

United States

  • U.S. stock-index futures were little changed, with equities near all-time highs, as investors await minutes from the Federal Reserve’s April meeting.
  • Lowe’s Cos. reported first-quarter profit that trailed analysts’ estimates as promotional events failed to attract shoppers.


  • European stocks traded near a three-week high, as earnings disappointments offset advances in telecommunication shares.
  • The European Central Bank’s pledge to front-load its bond buying has given hope to euro bears frustrated by the currency’s sharpest rally in almost five years.
  • Burberry Group Plc, the British maker of $1,895 trench coats, lowered its earnings forecast after the strong pound and decelerating sales in Hong Kong weighed on last year’s profit, sending the shares down the most in seven months.
  • UBS Group AG will pay $545 million to settle U.S. investigations into its role in manipulating currency and interest rates, removing two of the bank’s biggest legal hurdles.
  • Asian stocks climbed as the Nikkei 225 Stock Average closed at the highest since April 2000 after data showed Japan’s economy grew faster than expected.
  • Mitsui & Co., Japan’s top oil trader, is expanding its focus beyond raw materials as its incoming chief executive officer contends with an expected 22 percent decline in profit this year.
  • Yahoo! Inc. is pushing ahead with plans to spin off its stake in Alibaba Group Holding Ltd. after comments by the IRS triggered a share slump amid concerns it could complicate the move

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