October 6th, 2015
Daily Market Commentary
- International Merchandise Trade in August in Canada was reported at -$2.53B, below estimates of -$1.20B.
- The Redbook Index, which measures same-store sales growth of U.S. general merchandiser companies, was down 1.6% and up 0.7% in month-over-month and year-over-year terms, respectively.
- Oil’s gain halted near $46 a barrel as German factory orders unexpectedly fell in a sign that Europe’s economy is vulnerable to weaker growth in China and other emerging markets.
- Gold traded near the highest in a week as Goldman Sachs Group Inc. said there’s a chance U.S. policy makers will delay raising interest rates well into next year.
- The Competition Bureau isn’t backing down from its investigation into Loblaw Cos. Ltd.’s pricing practices with its suppliers, even though the grocer plans to discontinue the controversial policies. (Globe)
- Nearly one in six Canadians would not be able to handle a $500 increase in their monthly mortgage payments, a new survey from the Bank of Montreal suggests. (Globe)
- While the 12-nation Trans-Pacific Partnership trade accord may benefit North American grain and meat exporters, Canadian dairy farmers are crying over lost domestic milk revenue that will go to foreigners.
- CAE won defense contracts, included as part of 2Q order intake, valued at >C$100m to provide training services, simulation products for global military customers.
- The longest winning streak for U.S. stocks this year may be coming to an end, if index futures are any indication.
- PepsiCo Inc. posted third-quarter profit that topped analysts’ estimates and boosted its forecast for the year after raising prices on its drinks and snacks.
- Skyworks Solutions Inc., agreed to buy PMC-Sierra Inc. for $2 billion in cash, marking the second multibillion-dollar chip merger announced in the past month.
- European stocks advanced for a third day as investors assessed valuations and speculated that weak economic data will encourage central banks to keep monetary policy accommodative for longer. Asian stocks extended gains, heading for the biggest five-day gain in nearly four years.
- Sibanye Gold Ltd., the largest miner of the bullion in South Africa, agreed to buy Aquarius Platinum Ltd. for $294 million, further increasing its exposure to the precious metal following its agreement to buy some Anglo American Platinum Ltd. assets in the country last month.
- SABMiller Plc rejected an informal takeover offer from Anheuser-Busch InBev NV of about 66.4 billion pounds ($100 billion) that it considered too low, according to people familiar with the matter.
- Sony Corp. will spin out its semiconductor business into a new unit as President Kazuo Hirai revamps the devices business to focus on hit products such as image sensors and considers selling underperforming assets.
*All information is taken from Bloomberg, unless otherwise noted.