May 25th, 2016

Daily Market Commentary



  • The trade balance of goods in the US was reported at -$58B for April in the US.
  • Mortgage applications in the US were up 2.3% in April.


  • Oil extended its advance to near $50 a barrel as weekly U.S. industry data showed crude stockpiles declined, easing a glut.
  • Gold dropped to the lowest level in seven weeks as home sales in the U.S. rose, adding to speculation the economy can withstand higher interest rates and the Federal Reserve may tighten policy this summer.


  • Canadian stocks rose to the highest level since October, as the nation’s largest lenders joined a global rally in financial shares amid speculation the U.S. central bank is prepared to raise interest rates this summer. Miners plunged with the price of gold.
  • Bank of Montreal, Canada’s fourth-largest lender by assets, said fiscal second-quarter profit fell 2.6 percent after setting aside more money for soured loans and taking a restructuring charge. The firm raised its dividend 2.4 percent to 86 cents a share.
  • Bank of Canada Governor Stephen Poloz will probably stand pat Wednesday as he balances damage from Alberta wildfires against the risks of a recent housing boom.

United States:

  • Microsoft Corp. will cut as many as 1,850 jobs and take a new impairment charge as Chief Executive Officer Satya Nadella pares back the company’s ambitions in smartphones.
  • US Foods Holding Corp., the food distributor taken private at the peak of the leveraged buyout boom in 2007, is going public this week, almost a year after a thwarted takeover by its larger rival.
  • Apollo Global Management LLC, the credit and private equity manager led by Leon Black, is seeking $3.5 billion to buy bad debt from European banks and asset managers, three people with knowledge of the plans said.



  • European equities climbed, poised for their biggest two-day advance in two months, as optimism grew the U.S. economy is strong enough to withstand higher interest rates. S. stock-index futures rose.
  • Bayer AG, whose $62 billion takeover bid was rejected earlier by Monsanto Co., said it’s confident it can overcome the seed company’s concerns about the regulatory and financing risks related to a deal that would create the world’s largest supplier of seeds and crop chemicals.
  • Greece’s creditors reached a preliminary accord to ease the country’s debt burden but left the important details to be hammered out after Germany’s federal election next year.
  • Leaving the European Union could add tens of billions of pounds to U.K. government borrowing and force Chancellor of the Exchequer George Osborne to extend austerity into the next decade, according to the Institute for Fiscal Studies.
  • Deutsche Lufthansa AG is struggling to hire cabin crews for new routes, putting growth plans at risk as low wages and years of labor conflict complicate the airline’s recruiting amid a tight German job market.
  • Asian stocks rose, with the regional equities benchmark gauge rebounding from a seven-week low.
  • Toyota Motor Corp.’s investment in Uber Technologies Inc. has drawn the battle lines between the world’s largest automakers, which have now solidified partnerships with competing ride-hailing apps in the burgeoning field of on-demand transportation.

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