May 4th, 2016
Daily Market Commentary
- International Merchandise Trade in Canada was reported at -$3.41B, a wider deficit than the anticipated $1.40B.
- MBA Mortgage Applications in the US were down 3.4% in April.
- ADP Employment figures in the US for April were up 156K, less than the expected 196K.
- The US Trade Balance was quoted at -$40.40B, slightly better than expected.
- Retail Sales in the Eurozone were down 0.5% in month-over-month terms in March, worse than the expected 0.1%.
- The rout in crude prices is snowballing into one of the biggest avalanches in the history of corporate America, with 59 oil and gas companies now bankrupt after this week’s filings for creditor protection. (Reuters)
- Oil rose above $45 a barrel on Wednesday as reduced production in Canada’s oil sands region due to a wildfire pushed aside concern about excess global supplies and expectations of rising US crude inventories. (Reuters)
- After cutting spending and staff levels to the bone, U.S. oil executives say they are getting ready for new drilling projects as a 50% increase in crude prices since February leads them to believe the worst of the downturn may be over. (Reuters)
- The resurgence in Chinese steel output may continue for at least another month given ongoing strength in iron ore imports, with vessel data suggesting April was at least as strong as the previous month. (Reuters)
- Some Canadian oil and gas companies are curtailing production at their facilities north of Fort McMurray as the fire in the area continues to rage. Suncor Energy Inc. said it is reducing production at its regional facility – about 25 kilometers north of the community – so as ‘to allow employees and their families to get to safety.” (Globe)
- Loblaw Companies Ltd. is reporting double-digit increases to its profit and adjusted earnings for the first quarter. Its common share dividend will rise to 26 cents per quarter, up from 25 cents per share. (Globe)
- Expenses from Torstar Corp’s ongoing shift toward digital publishing caused the newspaper publisher’s first-quarter loss to balloon to $53.5M, as advertising revenue continued to steadily decline. (Globe)
- Canadian meat processor Maple Leaf Foods Inc. reported a better-than-expected quarterly profit, helped by higher earnings in its prepared meats business. (Globe)
- U.S. stock futures are dipping down, most European markets are slipping in early trading and Asian markets ended the day with small losses. (CNN)
- Donald Trump has become the presumptive Republican presidential nominee in the US after Ted Cruz dropped out of the race for the White House. (CNN)
- Twitter is down 40% this year. It is nearly 50% below its IPO price of $26 and more than 80% lower than the peak of $74.73 it hit way back in December 2013. (CNN)
- Hacktivists affiliated with Anonymous successfully took down the Greek Central Bank’s website. They said it was the first in a series of global central banks they plan to target over the course of a month. (CNN)
- Federal prosecutors in Brazil have filed a $44B civil lawsuit against miners BHP Biliton and Vale in relation to a dam collapse that killed 19 people in November. The collapse unleashed a wave of toxic mud, causing what officials have called the worst environmental disaster in Brazil’s history. (CNN)
*All information is taken from Bloomberg, unless otherwise noted.