October, 5th 2016
Daily Market Commentary
- European stocks snapped a six-day winning streak amid investor concern that the European Central Bank is moving toward tightening monetary policy.
- Asian stocks outside Japan dropped for the first time in three days on concern central banks will reduce stimulus
- Low-volatility stocks have gone wild in recent months, discovering the danger in the second part of their name and rattling investors who sought safety by sending $6 billion dollars to the biggest exchange-traded funds that track them.
- The pound slid to a five-year low against the euro as traders reacted to speculation that Britain is facing a so-called hard Brexit.
- Metals: Gold: 1273.03 (+$4.59, +0.36%), Silver: 17.84 (+$0.04, +0.21%); Copper: 2.1715 (+0.21%); Aluminum: 0.7578 (+0.12%); Zinc: 1.0746 (-0.44%)
- Energy: Crude: 49.53 (+1.73%); Brent: 51.81 (+1.85%); Nat Gas: 2.95 (-0.44%)
- Oil climbed to a three-month high in New York, approaching $50 a barrel, after weekly industry data indicated that U.S. crude stockpiles plunged last week.
- Gold’s worst plunge in 14 months may yet reverse. Looming risks from the U.S. presidential election in November to Britain starting talks to leave the European Union next year may boost its role as a haven.
- Canadian stocks fell the most in three weeks, as plunging gold prices dragged raw-materials producers lower, while the Bank of Montreal was forced to restate some financial data.
- The head of the Canada Pension Plan Investment Board will face lawmakers for the first time in 14 years as Prime Minister Justin Trudeau’s government finalizes a trillion-dollar cash expansion of one of the world’s largest public pension funds.
- Canada’s sub-sovereign borrowers are on track for record debt issuance this year, supported by investors happy to fund spending in return for increasingly scarce positive yields. The country’s provinces, municipalities and state agencies sold C$95.7 billion ($72 billion) of bonds during the first three quarters of the year, the most since at least 2005.
- U.S. stock-index futures were little changed as investors weighed the prospects of tighter monetary policy.
- BlackRock Inc., the world’s largest provider of exchange-traded funds, is cutting prices across its core ETFs in anticipation of a new U.S. rule that may prompt more investors to pour into passive funds.
- Alaska’s oil reserves may have just gotten 80 percent bigger after Dallas-based Caelus Energy LLC announced on Tuesday the discovery of 6 billion barrels under Arctic waters.
- Hurricane Matthew may delay petroleum cargoes to the U.S. East Coast by four days as ships stay in port while the storm passes.
- McDonald’s Corp. is in advanced talks to sell Southeast Asia franchise rights to a group of investors including Saudi Arabia’s Reza Group, people with knowledge of the matter said. The sale of 20-year McDonald’s franchise rights in Malaysia and Singapore could fetch more than $400 million.
- Sompo Holdings Inc. agreed to buy Bermuda-based insurer Endurance Specialty Holdings Ltd. for about $6.3 billion, the company’s biggest acquisition as it expands further outside of Japan.
- Most Indian stocks declined as Asian markets retreated amid concern that monetary policies in Europe and the U.S. may turn less supportive of growth.
- An agreement among OPEC and non-OPEC states to limit oil production could slash global supply by 1.2 million barrels a day and add as much as $15 to prices, said Venezuelan Oil Minister Eulogio Del Pino.
- MTN Group Ltd. returned to the Eurobond market for the first time since 2014 as Africa’s biggest wireless carrier by sales seeks funds for investment.
*All information is taken from Bloomberg, unless otherwise noted.