October 22nd, 2015
Daily Market Commentary
ECONOMIC NEWS
- Initial Jobless Claims in the US were reported at 259K, below estimates of 265K.
- The Housing Price Index in the US was up 0.3% in month-over-month terms.
- Existing home sales in the US were up 4.7% in month-over-month terms, above estimates of 1.4% growth.
Commodities:
- Oil climbed from a three-week low as traders snapped up contracts dragged down by expanding U.S. inventories.
- Gold held its biggest decline this month on concern that cratering commodity prices are weighing on inflation, curbing the metal’s appeal as a hedge against rising prices.
Canada:
- Teck Resources Ltd. reported earnings that beat analysts’ estimates after Canada’s largest diversified miner cut costs to combat the rout in commodity prices.
United States:
- U.S. stock-index futures rose after quarterly profits at EBay Inc. and Texas Instruments Inc. beat projections and investors watched for more reports to gauge the health of corporate America.
- Ten-year Treasuries are the most expensive relative to other maturities in more than two years, as a lack of clarity over the timing of the Federal Reserve’s first interest rate increase since 2006 drives investors to the benchmark note.
- Texas Instruments Inc., whose earnings provide a barometer of the global economy, predicted higher-than-expected sales and profit on resilient demand for chips used in equipment as varied as garden tools and industrial robots. The shares rallied in European trading.
International:
- European shares were little changed amid mixed earnings reports, while traders awaited for Mario Draghi’s update on the path of central-bank stimulus.
- Vivendi SA increased pressure on the Guillemot family’s French video-game empire, famous for blockbusters like Assassin’s Creed, by raising its stakes in Ubisoft Entertainment SA and Gameloft SE and saying it may eventually want some board seats.
- Daimler AG’s record Mercedes-Benz sales and robust profitability left some investors worrying that it might not get better from here.
- U.K. retail sales rose the most in almost two years as Britons took advantage of promotions on beer and food for the Rugby World Cup that England is hosting.
- Asian stocks fell from a two-month high amid concerns that global growth is waning, as material and health-care companies led losses. Shares in Shanghai rallied after slumping in the afternoon session on Wednesday.
*All information is taken from Bloomberg, unless otherwise noted.
