October 27th

Daily Market Commentary



  • The M3 Money Supply in the Eurozone was reportedly up 2.1% and 2.5% in 3-month and year-over-year terms, respectively.
  • Private loans in the Eurozone were reportedly down 1.2% in year-over-year terms, slightly above estimates.


  • Brent crude slid as Goldman Sachs Group Inc. cut its oil price forecasts, predicting supply growth from non-OPEC producers will outpace global demand. WTI slid in New York.
  • Gold traded near the lowest in more than a week in London as investors weighed reduced demand for a haven against signs of more physical purchases.
  • Copper retreated for a second day and nickel extended its longest run of weekly declines in 13 years on concern that demand will remain weak in China, the world’s biggest consumer of industrial metals.
  • Goldman Sachs Group Inc. cut its forecasts for Brent and WTI Crude prices next year on rising global supplies, predicting OPEC will lose influence over the oil market amid the U.S. shale boom.


  • Canadian banks are selling mortgage bonds at a record pace in Europe as they benefit from Mario Draghi’s efforts to lower borrowing costs as regulators at home work to slow lending to prevent a housing bubble. Royal Bank of Canada and Bank of Nova Scotia are among the lenders that have issued 11.8 billion euros ($15 billion) of mortgage-backed debt.
  • Valeant Pharmaceuticals International Inc. said it’s prepared to raise its hostile takeover bid for Allergan to at least $200 a share to win support from its target’s board.

United States:

  • U.S. stock-index futures fell, after equities posted their biggest weekly gain since January 2013, as investors weighed earnings to gauge how well the economy is coping with the cut in Federal Reserve stimulus.
  • Merck & Co., the second-biggest U.S. drug-maker, beat analyst earnings estimates and said it won a ‘breakthrough designation from regulators that would bring its most promising oncology drug to lung cancer patients faster.
  • U.S. marine shipping stocks are poised to see their shares climb 59 percent in the next 12 months. The gain for shippers that ferry crude between U.S. ports and carry liquefied natural gas and dry goods such as coal around the world would be the most of any sub sector in the Russell 3000 Index, according to estimates.


  • A slide in Italy’s lenders sent European stocks lower, after the region’s shares posted their best weekly rally of the year.
  • German business confidence dropped for a sixth month as the spectre of a recession haunts Europe’s largest economy.
  • Banca Monte dei Paschi di Siena SpA, the Italian lender with the biggest hole from Europe’s bank health check, may need to find a buyer to help plug a capital shortfall, a move that could prompt a round of consolidation in the industry.
  • Vodafone Group Plc said it has begun an audit into possible tax fraud at Grupo Corporativo Ono SA, the Spanish cable operator it bought in July for 7.2 billion euros ($9.1 billion).
  • Most of the lenders that failed the ECB’s balance-sheet test have been let off for good behaviour. Only eight banks haven’t already plugged capital gaps or satisfied the ECB with plans to shrink, out of 25 found with a shortfall.
  • Asian stocks rose, after the benchmark gauge capped its first weekly gain in seven weeks, amid optimism about the financial strength of European banks. Hong Kong shares slid on a delay to the city’s bourse link with Shanghai.
  • Toyota Motor Corp. said global sales climbed 2.8 percent in the first nine months of this year as the carmaker battles Volkswagen AG for leadership.
  • CSR Corp. and China CNR Corp., the nation’s two biggest train-makers, said they will make a ‘major’ announcement within a week.

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