May 31st, 2016

Daily Market Commentary



  • GDP fell 0.2% in Month-over-month terms in Canada, slightly below estimates.
  • Quarter-over-quarter annualized GDP in Canada was up 2.4%, below estimates of 2.9%.
  • Personal Spending in the US was up 1% in April, above estimates.
  • Personal Income was up 1% in month-over-month terms.


  • Oil is set for the longest run of monthly gains in five years as output disruptions from Nigeria to Canada reduce supply before OPEC meets Thursday in Vienna to discuss production policy.
  • Gold advanced for the first time in 10 days to snap its longest sell off in more than a year, ahead of data from the U.S. which may determine the timing of monetary policy tightening.
  • Copper fell and headed for the biggest monthly drop since November as a resurgent dollar cut demand for commodities priced in the currency. Nickel rose for a third day as workers at the world’s second-biggest ferronickel mine agreed to strike.


  • Bank of Nova Scotia said fiscal second-quarter profit fell 12 percent after recording restructuring charges from job cuts and its shift toward digital banking.
  • Canadian stocks fell, retreating from the highest level since August, as commodities producers declined with gold in a light trading day with U.S. and U.K. markets closed for a holiday.

United States:

  • U.S. stock-index futures were little changed before data that may indicate how ready the economy is for higher interest rates that could come as soon as next month.
  • BlackRock Inc., the world’s largest money manager, received 20 billion yuan ($3 billion) of quota to invest in mainland Chinese stocks and bonds.
  • Warren Buffett is about to get back the $8 billion — plus a little extra — that his Berkshire Hathaway Inc. invested in Kraft Heinz Co.
  • Jazz Pharmaceuticals Plc agreed to buy Celator Pharmaceuticals Inc. for about $1.5 billion to gain an experimental medicine for a rare blood cancer.


  • European stocks fell for the first time in six days as Volkswagen AG led declines in auto-related shares.
  • Volkswagen AG’s profit rose 3.4 percent in the first quarter, the first time the carmaker hasn’t set aside billions of euros in provisions since admitting in September to rigging vehicles to pass emissions tests.
  • Asian stocks rose, paring the worst monthly loss since February, as China shares surged and the dollar maintained strength against the yen.
  • Billionaire Chen Feng’s HNA Group agreed to purchase a stake in Virgin Australia Holdings Ltd. as the Chinese conglomerate adds to its more than $91 billion of assets worldwide.
  • Tata Motors Ltd. rose to its highest intraday level in almost a year after Jaguar Land Rover sales gains in Europe and China helped triple its profit, beating analyst estimates.
  • The odds of Chinese stocks winning inclusion to MSCI Inc.’s global indexes in June have shot up to 70 percent with the government’s efforts to curb trading halts and clarify beneficial ownership rules, according to Goldman Sachs Group Inc.

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