November 17th

Daily Market Commentary



  • Foreign portfolio investment in Canadian securities for September was reported at $4.37B.
  • Canadian portfolio investment in foreign securities was reported at $8.64B.
  • The NY Empire State Manufacturing Index for the U.S. was reported at 10.16, slightly below estimates of 11.
  • The Trade Balance in the Eurozone was reported at 17.7B euros.


  • Brent crude dropped, extending eight weeks of declines, amid concern that demand will fall after Japan, the world’s third-largest oil consumer, unexpectedly sank into a recession. West Texas Intermediate also fell.
  • Gold was little changed below a two-week high as investors weighed the dollar’s advance against signs of more physical buying.
  • Iranian oil minister Bijan Namdar Zanganeh is preparing to visit the U.A.E. this week, underscoring the deepening concern among OPEC members over the slump in oil prices.
  • Iron ore extended a drop to the lowest level in five years as slowing economic growth in China increased concern that demand from the biggest user may weaken, expanding a global oversupply.


  • Onex Corp., Canada’s largest buyout firm, is leading the bidding for Swiss juice-box maker SIG Combibloc Group AG in what would be one of its biggest European acquisitions. Onex may reach an agreement to buy SIG for more than $4 billion as early as this week.
  • Osisko Gold Royalties Ltd. agreed to buy Virginia Mines Inc. for about $461 million, combining two companies that derive their income from royalties from gold mines in Quebec.
  • Badger Daylighting reported excellent Q3/14 financial results, revenue was in line while adjusted EBITDA was well-above expectations on higher margin.

United States:

  • U.S. stock-index futures dropped, signalling equities will pull back after advancing to a record last week, as data has stoked investor concerns about the global-economic outlook.
  • Halliburton Co., the world’s second-biggest provider of oilfield services, agreed to buy No. 3 Baker Hughes Inc. in the largest take-over of a U.S. energy company in three years.
  • Aon Plc, the second-largest insurance broker by market value, authorized $5 billion of additional share buybacks.
  • Nordstrom reported solid earnings growth as it continues to expand its store footprint and benefit from its customer loyalty program.


  • European stocks fell, after a third weekly gain in four, amid global economic growth concerns as Japan unexpectedly slipped into a recession.
  • Allergan Inc. is close to a buyout deal worth up to $65.5-billion by Actavis Plc, one that could end months of pursuit by Canada’s Valeant Pharmaceuticals and William Ackman’s hedge fund, Pershing Square Capital Management, according to a person familiar with the matter. (Globe)
  • Mario Draghi will succeed in boosting the ECB’s balance sheet back toward 3 trillion euros, though he’ll have to override some policy makers’ qualms on quantitative easing to do so.
  • Most stocks in Shanghai climbed versus their Hong Kong counterparts as global investors met the daily limit for buying mainland equities allowed through the China exchange link that started today.
  • A slide in stocks of unsold goods last quarter signals that Japan’s companies were challenged in managing their plans for the April sales-tax increase, the first since 1997.

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