November, 1st 2016
Daily Market Commentary
- Bank of Japan and the Reserve Bank of Australia decided to leave rates unchanged (CNN Money)
- Bank of England announced Mark Carney will stay in his role until 2019 (CNN Money)
- U.S. stock-index futures rose, after an unexpected pickup in Chinese manufacturing eased global-growth concerns ahead of Wednesday’s Federal Reserve meeting.
- Metals: Gold: 1284.47 (+$7.26, +0.57%), Silver: 18.14 (+$0.23, +1.31%); Copper: 2.2045 (-0.02%); Zinc: 1.1102 (-0.57%)
- Energy: Crude: 46.87 (+0.02%); Brent: 48.77 (+0.33%); Nat Gas: 3.00 (-0.83%)
- U.S. gasoline futures spike most in almost 8 years due to a shutdown at the largest fuel pipeline in the U.S., caused by an explosion (Reuters)
- Oil traded near the lowest close in more than a month as estimates of increased U.S. stockpiles added to concern that OPEC will struggle to decisively tackle a global crude surplus.
- Gold nudged higher as investors assess the likelihood of a Federal Reserve interest-rate increase before the year’s end, ahead of a meeting of policy makers this week.
- Valeant dropped to the lowest level since 2010, falling more than 12% in yesterday’s trading, as reports emerge over its former CEO, & CFO who are the focus of U.S. prosecutors.
- Ford Motor reached a tentative agreement with workers in Canada that includes investment to help ensure the future of an engine plant in Windsor and alleviate concern about the potential for a strike. The deal would see about C$700 million ($522 million) invested by Ford in Canada.
- Performance Sports Group files for protection, & gets lifeline from Fairfax Financial & Sagard (Globe & Mail)
- TD makes $600 million dollar bid for Richardson GMP (Globe & Mail)
- Blackberry inks deal with Ford over use of its QNX auto technology (BNN)
- Thanks to a record October for mergers and acquisitions, 2016 is on track to beat every year since 2007 except for last year in deal volume for transactions valued at more than $10 billion. Year-to-date, 32 deals have been struck for a total of $818 billion.
- The dollar held near its highest level since March after advancing against all of its developed market peers last month amid increased confidence the Federal Reserve will raise interest rates this year.
- 3 of the Feds primary dealers (HSBC, RBC, & RBS) warn rate hikes on hold until 2017 (Bloomberg)
- The Pentagon will request about $6 billion more for the current fiscal year to pay for troop increases in Iraq, a slower draw-down of troops from Afghanistan and more intense air operations, according to Pentagon Comptroller Mike McCord.
- Occidental Petroleum Corp., the world’s largest independent oil explorer, agreed to pay $2 billion for drilling rights and crude wells in the Permian Basin, expanding its dominant position in the biggest U.S. oil field.
- India’s largest ride-hailing startup, Ola, is in talks to raise about $600 million and may close the deal by year end, as it seeks to counter an increasingly aggressive Uber Technologies Inc in the coveted India market.
- Prime Minister Narendra Modi needs at least $100 billion more to finance India’s goals for clean energy even after his government’s policies brought in record investment in wind and solar power stations.
- BP Plc reported a 49 percent decline in third-quarter earnings after crude prices fell, refining margins shrank and its exploration and production division posted a loss. Profit adjusted for one-time items and inventory changes dropped to $933 million from $1.8 billion a year earlier.
- Royal Dutch Shell Plc reported third-quarter profit that beat analyst estimates after its acquisition of BG Group Plc boosted oil production.
- Guangzhou Automobile Group Co., which makes the Camry with Toyota Motor Corp. in China, rose by as much as the daily limit in Shanghai trading after proposing to raise up to 15 billion yuan ($2.2 billion) to fund the development of electric vehicles and its own brand.
*All information is taken from Bloomberg, unless otherwise noted.