May 20th, 2016
Daily Market Commentary
- The Consumer Price Index in Canada was up 0.3% and 1.7% in month-over-month and year-over-year terms, respectively. Both were in line with estimates.
- Retail sales excluding Autos were down 1% in month-over-month terms in Canada, below estimates.
- Oil headed for a second weekly advance as U.S. crude production continued to decline and firefighters defended Canadian oil-sands operations from wildfires.
- Gold is heading for the longest run of weekly losses this year because of the Federal Reserve. While the metal was little changed on Friday, it was set for a third weekly drop. Traders have boosted bets that U.S. policy makers will raise interest rates in the next few months, spurred by comments from Fed officials, minutes of the last policy meeting and quickening inflation.
- Copper futures touched the lowest in three months amid renewed concerns that the Federal Reserve will soon boost U.S. interest rates and mounting speculation that demand will slow in China, the world’s biggest metals consumer.
- The fate of Kinder Morgan Inc.’s plan to triple the capacity of the only pipeline linking Alberta’s oil sands with Pacific markets now rests largely with Prime Minister Justin Trudeau, after two Canadian regulators cleared it of significant environmental impacts.
- Valeant Pharmaceuticals International Inc. received a notice of default from some of its bondholders because of a delay in filing its first-quarter financial results, the company said Thursday.
- Bombardier Inc. can complete a proposed $1 billion funding agreement with Quebec before separate negotiations with the federal government over aid are resolved, Chief Executive Officer Alain Bellemare said.
- U.S. stock-index futures rose, indicating the S&P 500 will pare a fourth weekly decline, as investors awaited a report on the housing market for signs of the strength of the economy.
- Deere & Co., the world’s biggest farm equipment manufacturer, lowered its fiscal full-year profit outlook on projections for reduced sales of tractors and combines as farmers face a decline in income.
- The U.S. Food and Drug Administration granted Pfizer, Inc. orphan drug status for its treatment of hemophilia A and hemophilia B patients with or without inhibitors, which includes routine prophylaxis to prevent or reduce the frequency of bleeding in hemophilia A and hemophilia B patients.
- European shares rebounded from their biggest decline in two weeks as crude and commodity prices recovered, while investors shrugged off concerns that a Federal Reserve rate increase as early as June will derail the U.S. economic recovery.
- Mario Draghi is discovering that the European Central Bank’s purchasing power isn’t as strong as he had hoped. Less than two years since the ECB president said he would boost the institution’s balance sheet to 3 trillion euros ($3.4 trillion) to revive inflation, he has reached that way-point and is on the verge of setting a new record.
- Volkswagen AG agreed to raise German workers’ pay after labor leaders vowed that employees won’t foot the multi-billion-euro bill to resolve its diesel-emissions scandal.
- Since it introduced seeds in 2002, Bayer AG has become the world’s third-biggest seller of crop products. But in the past year, the German chemical giant has seen that position threatened as a flurry of acquisitions sweeps the industry. Bayer’s solution? Buy its way into the No.1 spot.
- Asian stocks rebounded from a six-week low as Japanese shares climbed after the yen weakened and investors snapped up beaten down Chinese equities traded in Hong Kong.
- Japan’s debate over whether to go ahead with a 2017 sales-tax increase is shifting in the wake of stabilization in global financial markets and signs of resilience in its economy.
- Gap Inc. is closing all its 53 Old Navy outlets from Japan this year, ceding ground in the world’s third-largest economy to local-born fashion brands such as Fast Retailing Co.’s Uniqlo and Ryohin Keikaku Co.’s Muji.
*All information is taken from Bloomberg, unless otherwise noted.