November, 2nd 2016
Daily Market Commentary
- European shares fell for an eighth day, intensifying a global selloff, as a gauge of market turmoil posted its longest jump since 2011.
- U.S. stock-index futures retreated, indicating equities will extend losses into a seventh day, as investors assess the chances of a Donald Trump presidency, while the Federal Reserve prepares to release its latest monetary-policy statement.
- Metals: Gold: 1295.47 (+$7.27, +0.56%), Silver: 18.52 (+$0.16, +0.86%); Copper: 2.2110 (-0.81%); Zinc: 1.1048 (-1.19%)
- Energy: Crude: 45.88 (-1.69%); Brent: 47.42 (-1.50%); Nat Gas: 2.81 (-3.24%)
- Oil fell to the lowest level in more than a month after weekly industry data showed U.S. crude stockpiles expanded while supplies from some OPEC members increased.
- Gold advanced for a fifth straight day, gaining toward $1,300 an ounce, as mounting anxiety ahead of next week’s U.S. election spurs demand for haven assets and investors await the outcome of the year’s penultimate Federal Reserve policy meeting.
- Valeant Pharmaceuticals International is in talks to sell its Salix gastrointestinal drugs business to Japan’s Takeda Pharmaceutical Co. The unit could go for as much as $10 billion and there is at least one other bidder interested.
- The once positive relationship between oil prices and the Canadian dollar has faltered during crude’s recent retreat following a nine-month rally, as rate differentials are now a greater contributor to movements in the loonie.
- JPMorgan Chase & Co. has access to customers in the Canadian bond market that Goldman Sachs Group Inc. doesn’t. The bank led by Jamie Dimon won an exemption from Canada’s Toronto-based financial regulator allowing it to trade certain bonds that remain off-limits to other foreign-based banks.
- Allergan plc today announced that it has completed its initial $5 billion in share repurchases under its previously announced share repurchase program, and its Board of Directors has approved the expansion of the share repurchase program and the initiation of a regular quarterly cash dividend for shareholders as part of the Company’s capital allocation strategy.
- The Pentagon will need as much as $500 million extra to finish the development phase for Lockheed Martin Corp.’s F-35, the most expensive U.S. weapons system ever.
- The dollar slid for a second day against the yen before the Federal Reserve announces an interest-rate decision on Wednesday and as the U.S. presidential race tightens before next week’s vote.
- KKR & Co. has dropped out of the bidding for Takata Corp. as the troubled air-bag maker seeks to finalize a shortlist of suitors by mid-November.
- Sirius Minerals Plc plans to raise as much as $940 million through a share sale and convertible bond offering to develop a U.K. potash mine. The shares fell to a three-month low.
- U.K. house prices failed to rise in October and annual inflation slowed to the weakest since the start of the year, according to Nationwide Building Society. The stagnation in values on the month ends 15 consecutive months of increases, Nationwide said on Wednesday.
- Shares in Danske Bank A/S dropped after A.P. Moller-Maersk A/S sold its remaining stake in Denmark’s biggest bank, bringing to an end a divestment it started early last year.
- Australia’s Woodside Petroleum Ltd. has held talks in Iran about its interest in the nation’s energy industry, joining a group of international companies including Gazprom of Russia and Malaysia’s Petronas making approaches to the OPEC member as it seeks investment to boost output of oil, gas and petrochemicals. The nation is seeking $200 billion of investment to raise production and sales.
- NN Group NV reaffirmed its intention to make a public offer for Delta Lloyd NV without saying whether it would increase a bid that was rejected last month. NN will submit a draft offer to regulators by Dec. 28 as it seeks to boost its scale in the pensions and insurance industries, the company said in a statement on Wednesday.
- Malaysia said it will buy at least four Littoral Mission Ships from China as Prime Minister Najib Razak announced “new steps” in military cooperation between the two countries.
- Situs Group LLC has bought Hatfield Philips International, the European real estate loan servicing unit of Starwood Property Trust Inc., in a deal that boosts the company’s assets under management to more than $160 billion.
*All information is taken from Bloomberg, unless otherwise noted.