October, 21st 2016

Daily Market Commentary



  • The dollar rose, reaching the strongest level against the euro since March, on speculation U.S. monetary policy will diverge from stimulus measures in Europe and Asia.
  • The euro fell to its lowest level since March after Mario Draghi signaled Thursday quantitative easing won’t come to an “abrupt” end.


  • Metals: Gold: 1265.72 (-$0.04, -0.00%), Silver: 17.51 (-$0.03, -0.17%); Copper: 2.0990 (+0.14%); Zinc: 1.0272 (-0.97%)
  • Energy: Crude: 50.84 (+0.41%); Brent: 51.70 (+0.62%); Nat Gas: 3.08 (-2.01%)
  • Gold dropped as the dollar strengthened, trimming bullion’s first weekly gain in four. The metal had risen earlier in the day after an increase in holdings in exchange-traded funds.
  • Crude held above $50 a barrel as investors weighed the likelihood of a deal to reduce supply after Russia’s largest oil company said the country was capable of a significant increase in output.


  • Canadian stocks ended mixed as the nation’s biggest lenders –Royal Bank of Canada and Toronto-Dominion Bank — the nation’s largest lenders, extended highs to offset a slump in railroads.
  • Royal Dutch Shell Plc sold Western Canadian energy assets to Tourmaline Oil Corp. for about $1 billion as the oil major sheds high-cost operations worldwide.
  • Bombardier Inc. will cut an additional 7,500 jobs — more than 10 percent of its workforce.
  • Lululemon threatens to leave Canada if government doesn’t help on foreign worker rules (Financial Post)

United States:

  • U.S. companies are on pace to spend a record $1 trillion on buybacks and dividends in 2016. It’ll be a tough record to top. A total $600 billion in share repurchases and $400 billion in dividends will be doled out by S&P 500 Index members by the end of the year, the biggest combined payout in history.
  • U.S. stock-index futures declined, indicating equities will extend losses into a second day, as investors weighed earnings results.
  • AT&T Inc. may be interested in a deal with media giant Time Warner Inc., but the phone carrier’s ambitions are constrained by its hefty $120 billion debt load and its desire to keep an investment-grade credit rating.
  • Microsoft jumps in sales with profit topping estimates on cloud demand
  • General Electric Co. cut its 2016 forecast for organic sales growth as the industrial giant grapples with sluggish economic growth that is crimping demand for its products.



  • British American Tobacco Plc offered to pay $47 billion for the 58 percent of Reynolds American Inc. that it doesn’t already own, seeking to create the world’s largest publicly traded cigarette maker by pooling brands including Lucky Strike and Camel.
  • Asian stocks pared their biggest weekly advance in a month as health-care companies led losses and an earthquake in western Japan weighed on Tokyo equities. Hong Kong markets were shut due to a typhoon.
  • China’s sovereign bonds rallied this week, with the 10-year yield declining to a record low, amid concern that property market curbs and moves to reduce leverage in the financial system will weigh on economic growth.
  • Deutsche Bank AG’s shares have recovered from the selloff sparked by the U.S. Department of Justice’s request for $14 billion to settle a probe tied to its mortgage-backed securities business.
  • Ericsson AB reported its first loss in almost four years, wrapping up a disastrous third quarter that cratered the stock last week.
  • China is set to overtake the U.S. to become the world’s largest aviation market by passengers by 2024.


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