October, 12th 2016

Daily Market Commentary




  • Deutsche Bank raised more cash ($1.5 billion) through a sale of five year notes Tuesday, following Friday’s offering that raised $3 billion. (Business Insider)
  • U.S. stock-index futures were little changed before the Federal Reserve releases the minutes if its latest policy meeting, while investors assessed one of the worst starts to an earnings season since the bull market began.
  • Asian stocks headed for a fourth day of declines after U.S. markets slumped on disappointing earnings, volatility spiked, and a stronger yen weighed on Japanese shares.




  • Metals: Gold: 1254.32 (+$1.52, +0.12%), Silver: 17.44 (-$0.01, -0.08%); Copper: 2.1840 (-0.07%); Zinc: 1.0295 (+0.88%)
  • Energy: Crude: 50.73 (-0.12%); Brent: 52.55 (+0.27%); Nat Gas: 3.19 (-1.36%)
  • Oil gained after OPEC said it had firm commitments from Russia that the world’s largest energy exporter is willing to participate in a coordinated effort to curb oil production.
  • Gold held above a four-month low as investors awaited minutes of the Federal Reserve’s latest meeting for more clues on how close policy makers are to raising interest rates.



  • Canadian stocks ended the day lower, extending a three-day slide, as a rally in energy companies stoked by crude trading near a 15-month high was offset by declines among raw-materials producers amid slumping gold prices.
  • Energy Transfer Partners LP is moving forward with construction of the controversial Dakota Access Pipeline, rejecting the Obama administration’s request that it voluntarily halt some work on the $3.8 billion project.
  • Germany’s top court opened hearings on Wednesday as opponents sought to put the brakes on a controversial EU-Canada trade pact scheduled to close later this month.

United States:


  • Sprint Corp., the unprofitable wireless carrier controlled by SoftBank Group Corp., is seeking to borrow $3.5 billion using airwaves as collateral to fund its business, the Wall Street Journal reported.
  • Turmoil in Washington over a biodiesel tax credit is threatening to cut production and profits for refiners who use plant-based fuel as a petroleum additive. The $1-a-gallon tax credit for mixing biodiesel, an incentive that helps to sustain demand for the fuel by reducing its costs, will lapse at the end of the year if there’s no action from lawmakers.
  • Newell Brands Inc. agreed to sell its tools business to Stanley Black & Decker Inc. for $1.95 billion in cash.





  • European stocks were little changed as investors assessed earnings releases for signs of growth against the backdrop of an expected tightening of U.S. monetary policy.
  • Samsung Electronics Co. cut its third-quarter operating profit by $2.3 billion after ending production of its fire-prone Galaxy Note 7 smartphones.
  • China Southern Airlines Co. agreed to buy Dreamliners valued at $3.2 billion in list prices from Boeing Co. as Asia’s biggest carrier by passenger numbers expands its fleet to meet a surge in travel demand.
  • Australia’s government sold its biggest-ever bond, raising A$7.6 billion ($5.8 billion) in a debut offering of 30-year securities. Yields on benchmark 10-year debt jumped to the highest since June.
  • Kyushu Railway Co., the state-owned bullet-train operator seeking to raise as much as 416 billion yen ($4 billion) in an initial public offering.
  • Nippon Steel & Sumitomo Metal Corp. has agreed to pay the most for metallurgical coal supplies in four years after China’s effort to trim its coal output helped spot prices nearly triple this year.
  • Suzuki Motor Corp. said its exploring collaboration with Toyota Motor Corp. amid unprecedented costs to make cars safer and cleaner.



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