October, 3rd 2016

Daily Market Commentary



  • The pound approached the three-decade low set in the days following the Brexit referendum after U.K. Prime Minister Theresa May said she’ll begin the process of withdrawal from the European Union in the first quarter of 2017.
  • Oil climbed to the highest level in three months in New York as traders continued to assess last week’s change in OPEC policy.
  • U.K. factories had their best month in more than two years in September as the weaker pound sent export orders surging.


  • Metals: Gold: 1317.83 (+$1.96, +0.15%), Silver: 19.24 (+$0.07, +0.34%) Copper: 2.2080 (-0.11%); Aluminum: 0.7585 (-0.03%); Zinc: 1.0834 (+0.50%)
  • Energy: Crude: 48.71 (+0.97%); Brent: 50.70 (+1.02%); Nat Gas: 2.89 (-0.41%)
  • The world’s largest iron ore producers will need to exert tight control over supplies to keep prices at about $45 a metric ton as China’s drive to weed out unwanted steel capacity poses risks to demand, according to Singapore-based DBS Group Holdings Ltd.
  • Gold held a weekly decline as Deutsche Bank AG works to mend its finances, eroding demand for haven assets.


  • A scorching rally in gold and other commodities has driven Canadian stocks to their priciest level since 2002, raising concerns about the endurance of a yearlong equities surge as corporate earnings remain stuck in a rut.
  • SVG Capital Plc said a consortium made up of Goldman Sachs Group Inc. and the Canada Pension Plan Investment Board are considering making an offer for the British investor that would compete with HarbourVest Partners LLC’s bid.
  • Shell sees C$1 billion investment in Canadian Shale in 2017

United States:

  • U.S. stock-index futures were little changed, with investors awaiting economic data as concerns over the health of Deutsche Bank AG subsided.
  • Tesla Motors Inc. delivered 24,500 vehicles in the third quarter, topping analysts’ estimates, after Chief Executive Officer Elon Musk implored employees to boost sales during the period ahead of a plan to raise more capital.
  • Microsoft Corp. has spent more than $3 billion building up its cloud infrastructure in Europe, including $1 billion in the past year, as Chief Executive Officer Satya Nadella focuses on winning customers over rivals such as Amazon.com Inc. and Google.
  • Bass Pro is close to acquiring Cabela’s Inc. in a deal that would unite two of America’s largest outdoor-sport equipment retailers. (Dundee)
  • Illinois to suspend Wells Fargo from Bond & Investing work (Dundee)


  • Asian stocks rose, with the regional benchmark index rebounding from a one week low, as worries over the health of European banks eased and casinos led a rally in Hong Kong shares.
  • The U.K. government will invest 220 million pounds ($285 million) in funding to support the country’s technology industry. The package includes 120 million pounds to encourage universities to collaborate in technology transfer and convert research into viable businesses.
  • Deutsche Bank AG is poised to reach an agreement with labor representatives this week that will pave the way for the German lender to eliminate about 1,000 jobs in its home market as part of Chief Executive Officer John Cryan’s cost cuts announced last year, said people with knowledge of the matter.
  • ING Group NV plans to eliminate about 5,800 jobs, or 11 percent of its workforce, as the largest Dutch lender seeks to cut costs and accelerate its digital transformation.
  • Singapore home prices dropped by the most in more than seven years as developers offered discounts amid signals from the government that it won’t roll back property curbs initiated in 2009.
  • Royal Philips NV is in talks to sell its Lumileds lighting-components division to Apollo Global Management LLC after scrapping a plan to sell the business for $2.8 billion earlier this year amid regulatory concerns, people with knowledge of the matter said.
  • ConvaTec Ltd., a medical technology company whose shareholders include Nordic Capital and Avista Capital Partners, said it plans to raise $1.8 billion in London’s biggest initial public offering this year.
  • Shares of Kawasaki Heavy Industries Ltd. plunged the most in eight years after the company cut its full-year profit forecast by more than half and said it was reviewing whether to continue its shipbuilding business.
  • Henderson Group Plc agreed to buy Janus Capital Group Inc., creating a $320 billion money manager as both companies seek to boost profit and assets in the face of rising competition from passive managers. Henderson’s shares surged the most in more than seven years.

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