October, 13th 2016

Daily Market Commentary



  • Renewed worries about the health of the global economy, spurred by an unexpected decline in Chinese exports, sent European stocks lower for a third day.
  • U.S. index futures fell after an unexpected drop in Chinese exports revived concerns about the global economy as the Federal Reserve considers raising borrowing costs.



  • Metals: Gold: 1259.13 (+$3.88, +0.31%), Silver: 17.52 (-$0.01, -0.04%); Copper: 2.1585 (-0.83%); Zinc: 1.0127 (-1.39%)
  • Energy: Crude: 50.18 (0.00%); Brent: 51.81 (0.00%); Nat Gas: 3.21 (0.00%)
  • Oil held near $50 a barrel after U.S. industry data showed an increase in stockpiles and differences emerged within OPEC over how members will share output cuts.
  • Gold rose for a second day on signs of growing investor demand even as expectations for a U.S. interest rate lifted the dollar to the highest level since March.



  • Canadian stocks halted three days of declines as miners rallied with groups that pay high dividends as the Federal Reserve’s latest meeting minutes showed officials continue to favor only gradual increases in U.S. interest rates.
  • Canadian software company Vision Critical Communications Inc.is in talks to sell a stake in itself ahead of an initial public offering or sale that could come as early as 2017.
  • Canada’s most populous province is considering measures to enhance housing affordability while avoiding moves to actively lower home prices, people familiar with Ontario’s plans said.

United States:

  • John Stumpf, who led Wells Fargo & Co. through the financial crisis and built it into the world’s most valuable bank, stepped down as chief executive officer and chairman.
  • Great Plains Energy Inc. struck a deal with the staff of Missouri’s utility regulators over its $8.6 billion takeover of rival Westar Energy Inc., a move that may bring the companies closer to completing their merger.
  • Hurricane Matthew, which devastated parts of the Caribbean before battering the U.S. East Coast, may cost insurers as much as $8.8 billion, according to AIR Worldwide. The catastrophe-modeling firm estimates insured losses range from $2.2 billion to $6.8 billion for the U.S. and from $600 million to $2 billion for the Caribbean.




  • China, the world’s biggest producer and user of refined copper, cut imports for a sixth month to the lowest level since February 2015 as demand slowed and domestic production rose.
  • UniCredit SpA raised 552 million euros ($608 million) by selling a 20 percent stake in online lender FinecoBank SpA, advancing Chief Executive Officer Jean Pierre Mustier’s plan to shore up finances and boost capital.
  • Cathay Pacific Airways Ltd. shares tumbled in Hong Kong to the lowest level in more than seven years after Asia’s biggest international carrier scrapped its profit outlook and said it is conducting a “critical review” of its business.
  • ING Groep NV will move as many as 60 trading jobs from Amsterdam and Brussels to London as the biggest Dutch lender seeks to consolidate operations and cut costs. The company also plans to shut its equity derivatives business for financial institutions in New York, Singapore and Brussels.
  • Deutsche Bank AG is implementing a companywide hiring freeze as Chief Executive Officer John Cryan seeks to lower costs and shore up investor confidence
  • Egypt has received a $2 billion deposit from Saudi Arabia, an Egyptian central bank official said, bringing it closer to securing a $12 billion loan from the International Monetary Fund.
  • The Polish government on Thursday sealed a 500 million euro ($550 million) deal with Daimler AG, promoting it as a sign that foreign investors remain interested amid a push for more “economic patriotism” and a row with Airbus Group SE.
  • Neptune Oil & Gas Ltd., the energy acquisition firm set up last year by Carlyle Group LP and CVC Capital Partners, is in talks to buy French utility Engie SA’s oil and gas business, according to people familiar with the matter.
  • Doosan Bobcat Inc., a unit of South Korea’s biggest construction equipment maker, cut the size of a proposed share offering by 60 percent to as much as 991 billion won ($872 million) and reduced the price to boost demand.



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