October 16th

Daily Market Commentary



  • Canadian portfolio investment in foreign securities were reported at $0.03B in July.
  • Foreign portfolio investment in Canadian securities was reported at $10.28B in July.
  • Manufacturing Shipments in Canada were reportedly down 3.3% in August in month-over-month terms.
  • Capacity Utilization in the U.S. has been reported at 79.3%, above estimates of 79%.
  • Industrial Production in the U.S. was reportedly up 1% in month-over-month terms, above estimates of 0.4%.
  • The Philadelphia Fed Manufacturing Survey in October was reported at 20.7, above estimates of 20.
  • The NAHB Housing Market Index was reported at 54, below estimates of 59.
  • EIA Natural Gas Storage change figures for the U.S. were reported at 94B, above estimates of 91B.


  • West Texas Intermediate crude slumped to almost $80 a barrel, trading near its lowest in more than two years amid speculation rising U.S. supplies are exacerbating a global glut. Brent fell to its lowest in nearly four years.
  • Gold retreated from the highest in almost five weeks in London on speculation some investors will sell the metal to cover losses in other assets amid signs of slowing economic growth.
  • Lead fell to the lowest price since May 2013 as signs of slowing economic growth from China to the U.S. point to weakening demand for industrial metals.


  • Bombardier Inc.’s CSeries aircraft, dogged by delays and rising costs, has emerged as the frontrunner to win an order from Deutsche Lufthansa AG’s Australian unit.
  • Talisman Energy Inc. to Arcan Resources Ltd. are among Canadian energy producers seen by analysts most vulnerable to energy prices sinking near a four-year low as they use debt to embark on new projects.
  • Canadian factory sales fell from a record high in August, with the fastest decline in more than 5 years led by a decrease in automobile shipments.
  • Bank of Nova Scotia, Canada’s third-largest lender by assets, is weighing a sale of its Puerto Rican banking unit that is valued at about $600 million, according to people familiar with the matter.

United States:

  • U.S. stock-index futures declined following yesterday’s rout that sent the Standard & Poor’s 500 Index to its lowest level since April.
  • Goldman Sachs Group Inc. reported third-quarter earnings that surpassed analysts’ estimates as it set aside a smaller portion of revenue to pay employees than in the first half of the year.
  • Blackstone Group LP said third-quarter profit increased 18% as the world’s largest alternative-asset manager collected profits from its biggest buyout fund and sold real estate holdings. The shares slid as the earnings missed analysts’ expectations.


  • European stocks dropped to a one- year low, with the benchmark index posting its longest slump in 11 years, as concern grew that a financial crisis is returning to the region’s so-called peripheral nations.
  • AbbVie Inc.’s board recommended that shareholders vote against a 32.5 billion-pound ($52 billion) takeover of Shire Plc, saying tax-rule changes would undermine the deal’s rationale. Shire shares plunged for a second day.
  • Tesco Plc said Warren Buffett’s Berkshire Hathaway Inc. cut its stake in the troubled retailer to less than 3 percent after the billionaire said his investment was a “huge mistake.”
  • Asian stocks dropped, with the regional benchmark index heading for its lowest since March, extending a rout in global equities after the yen gained the most against the dollar in six months.
  • Taiwan Semiconductor Manufacturing Co., the world’s largest contract manufacturer of chips, forecast sales that beat analyst estimates as it boosts shipments of processors used in Apple Inc. iPhones.
  • Thailand plans to offer new licenses to explore for oil and gas next week for the first time in seven years, as the net oil importer seeks to offset declining supply from fields in the Gulf of Thailand.

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