Daily Market Commentary
- The Consumer Price Index in Canada was reportedly up 0.1% and 2.4% in month-over-month and year-over-year terms, respectively. Both figures were above estimates.
- The Bank of Canada Consumer Price Index Core figures also beat estimates, coming in at 0.3% and 2.4% for in month-over-month and year-over-year terms, respectively.
- Brent crude traded above $80 a barrel for the first time in a week after China, the world’s second-largest oil consumer, cuts its interest rates for the first time since 2012 to bolster its economy. West Texas Intermediate also rose in New York.
- Iron ore is headed for a fifth straight weekly drop with prices trading near the lowest since 2009 on concern that slowing growth in China will hurt demand just as rising low-cost supplies spur a global surplus.
- Royal Bank of Canada is shutting down its international client-wealth-management business in the Caribbean, along with some international advisory businesses in Canada and the United States, following a “strategic review.”
- Tim Hortons plans to raise prices by around a dime for both coffee and breakfast sandwiches at its Canadian locations starting next Wednesday, amidst higher operating costs, which included rising prices for coffee beans and meat
- Canada’s inflation rate was faster than all economist forecasts in October, led by annual gains in gasoline and clothing.
- U.S. stock-index futures rose, with the Standard & Poor’s 500 Index poised for a fifth week of gains, amid optimism central banks around the world will do what it takes to support the global economy.
- BNSF Railway Co. Chairman Matt Rose said expansion of crude-oil shipments is threatened with the commodity’s decline in price, even as a strengthening U.S. economy boosts rail freight.
- The Federal Reserve faces pressure to restrict Wall Street’s control over commodities such as oil, aluminium and coal after lawmakers said banks tried to exploit rules and influence prices to their benefit.
- Stocks in Europe climbed to a seven-week high as European Central Bank President Mario Draghi reiterated his commitment to raising inflation as fast as possible, while China cut interest rates.
- The euro weakened the most in a year against the yen as European Central Bank President Mario Draghi said policy makers would broaden asset purchases should the inflation outlook for region diminish.
- Volkswagen AG will keep pouring money into new vehicles, technology and factories as it chases Toyota Motor Corp. for the lead as world’s largest automaker.
- China’s stocks rose, erasing a weekly loss, amid speculation the government is taking steps to prevent a cash crunch before initial public offerings next week.
- Blackstone Group LP agreed to buy GE Japan Corp.’s residential-property business for more than 190 billion yen ($1.61 billion) to expand its apartment holdings in Japan.
- The billionaire founders of Alibaba Group Holding Ltd. and Tencent Holdings Ltd. said China needs stronger protections for intellectual property if the nation wants to create more of its own online content.
*All information is taken from Bloomberg, unless otherwise noted.