October, 20th 2016

Daily Market Commentary



  • Brazil’s central bank cut its benchmark interest rate for the first time in four years, cautioning that the extent and pace of the easing cycle will depend on further progress on economic reforms and inflation.
  • ECB decided to leave rates unchanged


  • Metals: Gold: 1269.90 (+$0.67, +0.05%), Silver: 17.65 (-$0.03, -0.19%); Copper: 2.0930 (-0.50%); Zinc: 1.0399 (-0.65%)
  • Energy: Crude: 51.03 (-1.10%); Brent: 52.12 (-1.04%); Nat Gas: 3.18 (+0.44%)
  • Oil traded near the highest closing price in 15 months after U.S. crude inventories unexpectedly slid to the lowest level since January.
  • Gold held near a two-week high before a European Central Bank meeting that may shed light on the outlook for stimulus and as holdings in bullion-backed funds extended gains.


  • Canadian Solar bought a 49 percent stake in two 15-megawatt solar projects in Telangana, Suzlon. Unisun Energy took a 49 percent stake in a third 15-megawatt project, the Pune, India-based Company said.
  • Canada’s largest city, facing low apartment vacancies and soaring real estate prices, is considering regulating short-term home rentals amid concern that companies such as Airbnb Inc. are removing much-needed supply.
  • Canadian stocks jumped to a 15-month high as the nation’s resource-rich equity index advanced with oil and gold prices. Shares also got a boost from the prospect for additional stimulus as the Bank of Canada dimmed its outlook for the domestic economy.

United States:

  • Starbucks Corp. plans to open as many as 1,000 locations of a new upscale chain that will tout its premium Reserve coffees, escalating an effort to reach more sophisticated customers.
  • Wells Fargo probed for identity theft over fake accounts (Business Insider)
  • Dell CEO eyes more acquisitions (Business Insider)
  • Nestle SA forecast the slowest full-year sales growth in more than a decade as Food Company’s worldwide struggle against consumer resistance to price increases.
  • Intel Corp.’s fight to overturn a record 1.06 billion-euro ($1.16 billion) European Union antitrust fine received a boost from an adviser to the bloc’s top court in a case that could have ramifications for a growing list of disputes involving U.S. tech giants from Google to Apple Inc.



  • Australia’s New South Wales state sold power network Ausgrid to two local funds for A$6 billion ($4.6 billion), two months after the federal government blocked substantially higher foreign bids on security concerns.
  • After six years as a minority partner in a Chinese investment-banking joint venture, JPMorgan Chase & Co. has had enough of playing second fiddle. The U.S. bank is in talks to sell its stake in JPMorgan First Capital Securities as it seeks to free itself up to get more control in a potential new venture.
  • Exxon Mobil Corp. has bought a majority stake in Eni SpA’s Area 4 gas discoveries in Mozambique for an undisclosed amount.
  • Nissan Motor Co. completed its acquisition of a $2.3 billion stake in Mitsubishi Motors Corp., clearing the way for Carlos Ghosn to take over as chairman and embark on a bid to turn around a third major automaker.
  • China’s campaign to crack down on illegal capital outflows saw its currency regulator bust underground banking operations that involved more than 1 trillion yuan ($148 billion), according to a newspaper published by the country’s central bank.
  • Glencore Plc, the world’s biggest commodity trader, sold its coal haulage unit in Australia to U.S. railroad operator Genesee & Wyoming Inc. For A$1.14 billion ($873 million) as part of a broader plan to almost halve its debt.


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