October 21st

Daily Market Commentary



  • A 10-year bond auction in Great Britain resulted in yields of 2.15%.
  • The all industry activity index in Japan was reportedly down 0.1% in month-over-month terms. 


  • Brent crude rose for the third time in four sessions as China’s economic growth beat analysts’ estimates, increasing demand for oil. West Texas Intermediate also climbed.
  • Gold rose to the highest in more than five weeks in London as the dollar weakened and traders pushed back estimates for when the U.S. Federal Reserve will raise interest rates.
  • WTI crude oil will find support around $75 a barrel should it break through $80 on a sustained basis, according to Auerbach Grayson & Co.


  • The tax regime governing multibillion-dollar proposals to export liquefied natural gas from British Columbia to Asia by companies from Royal Dutch Shell Plc to Petroliam Nasional Bhd. will be unveiled today. Petroliam Nasional Bhd. is testing lender interest for as much as $12 billion of financing for a Canadian liquefied natural gas project.
  • Valeant Pharmaceuticals International Inc. may raise its offer for Allergan Inc., the company said yesterday after reporting better-than-expected third-quarter earnings and raising its 2014 forecast.
  • CP Railway Ltd. reported third-quarter profit that missed analysts’ estimates as the carrier spent more on stock-based compensation.
  • TransCanada will have to spend $1 billion more than planned on an oil pipeline to Canada’s Atlantic Coast if natural gas customers get their way, a move it says would threaten the viability of the project.

United States:

  • U.S. stock-index futures were little changed after falling as much as 0.7 percent.
  • The U.S. government’s move to hamper tax-inversion deals is good for the drug industry because it forces companies to focus on intrinsic business reasons for transactions, Actelion Ltd. Chief Executive Officer Jean-Paul Clozel said.
  • AbbVie Inc. and Shire Plc agreed to terminate what would have been the biggest U.S. tax inversion after AbbVie pulled its support for the deal in the wake of proposed changes to U.S. rules governing such transactions.


  • European stocks rose after companies including Actelion Ltd. and Swedbank AB posted better-than- estimated earnings.
  • Asos Plc rose the most in almost two months in London trading after the U.K.’s biggest online-only fashion retailer reported annual profit that beat analysts’ estimates.
  • The European Central Bank bought Italian covered bonds as it returned to the market for a second day under its asset purchase program.
  • China’s stocks fell, sending the benchmark index to the lowest level in almost a month, on speculation the nation’s economic growth isn’t weakening enough for the government to enact large-scale stimulus.
  • China’s vehicle sales will probably miss a revised growth forecast for the year as demand slows in the world’s second-largest economy.
  • China’s economic growth beat analysts’ estimates last quarter as export demand quickened and services expanded, bolstering the government’s case for avoiding broader stimulus measures.

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