May 2nd, 2016
Daily Market Commentary
- UK GDP was up 0.4% and 2.1% in quarter-over-quarter and year-over-year terms, respectively.
- MBA Mortgage Applications in the US were down 4.1%
- Pending Home Sales in the US were up 1.4% in both month-over-month and year-over-year terms.
- Money Managers turned the most bullish since May as WTI crude climbed to a five-month high on optimism that falling US production and rising fuel demand will trim the global glut.
- Bullion has been on a tear, with futures last week posting the biggest advance in two months. Hedge funds missed the party, reducing their wagers on a rally by the most since they turned bullish in January. The money managers were more fortunate when it came to silver, taking their holdings to the highest on record just before the metal had its best monthly advance since 2013.
- Halliburton Co. and Baker Hughes Inc. called off their $28 billion merger that faced stiff resistance from regulators in the US and Europe over antitrust concerns.
- BCE Inc. has struck a $3.1B deal to buy Manitoba Telecom Services Inc. The companies said Monday BCE will pay MTS shareholders $40 per share, for a total of approximately $3.1B, and will also assume $800M in net debt for a total of $3.9B. (Globe)
- Enbridge Energy Partners LP is looking at a possible sale of its main natural gas business in the US, which has experienced a 51% decline in Q1 revenue and a higher operating loss compared to last year. (Globe)
- BCE Inc. boosted its first-quarter profit higher than expected as it continues to attract new wireless customers in a hotly contested market. (Globe)
- U.S. stock-index futures are edging higher, and most European markets are also up. (CNN)
- Overall, the majority of investors managed to eek out gains in April, but barely. The average gain for the month was 0.3%, according to Openfolio, an app where investors can compare their performance and asset allocation with others. People who owned popular tech darlings Apple, Netflix, Microsoft and Twitter got slammed. (CNN)
- European markets are mostly up in early trading. But there’s no trading in the UK because of a public holiday. (CNN)
- Asian markets ended the session mostly lower. Japan’s Nikkei was the biggest loser in Asia, shedding 3.1% at the close. The Japanese yen has strengthened further against the dollar since the BoJ’s decision last week to hold fire on more stimulus measures. (CNN)
*All information is taken from Bloomberg, unless otherwise noted.