September 22nd

Daily Market Commentary



  • Industrial sales in Italy were reportedly down 1.3% in year-over-year terms.


  • Brent crude declined for the third time in four days after China’s finance minister damped speculation that the government will boost economic stimulus.
  • Gold traded little changed after falling to an eight-month low in London as investors weighed an improving U.S. economy against speculation lower prices may attract purchases. Silver reached a four-year low.
  • Nickel led declines in industrial metals in London on speculation that demand from China, the biggest consumer, is slowing after reports of property defaults.
  • Commodities extended declines to a five-year low on speculation the strengthening dollar and signs of slowdown in China will curb demand for raw materials.


  • Canada won’t make any sudden changes to the country’s system of housing finance, even as the government looks at ways to reduce its role in the market, Finance Minister Joe Oliver said.
  • Investors are demanding the biggest premium in six months to own TransCanada Corp. bonds amid concern Canada’s second-largest pipeline operator would take on debt to fend off potential breakup attempts.
  • Prices for Canadian phone service rose at the fastest rate in more than 30 years amid a debate over whether the wireless industry needs more competition. The cost of mobile and landline communications climbed 7.6 percent in August from a year earlier, more than three times general inflation, as the biggest phone companies pulled back on promotions and moved to shorter contract lengths.

United States:

  • U.S. stock-index futures fell, after the Standard & Poor’s 500 Index slipped from a record, as China’s finance minister damped speculation his government will boost stimulus and as investors awaited data on home sales.
  • Apple Inc. sold a record of more than 10 million iPhones in the weekend debut of two new models, as consumers flocked to stores and Web shops to buy handsets featuring bigger screens.


  • European stocks fell, following a weekly gain, as China’s finance minister damped speculation his government will boost economic stimulus.
  • Tesco Plc, Britain’s biggest supermarket chain, started a probe of accounting practices and suspended its U.K. chief after overstating its first-half profit estimate. The shares plunged as much as 12 percent to their lowest in more than a decade after Tesco said that some income was  booked before being earned and costs were recognized later  than incurred.
  • Siemens AG agreed to buy Dresser-Rand Group Inc. for $7.6 billion including debt as Europe’s largest engineering company expands its business with oil-and-gas equipment in the U.S.
  • Asian stocks fell to a three-month low after China’s Finance Minister Lou Jiwei damped speculation the government will boost economic stimulus. New Zealand shares surged as the government was returned to power in an election.
  • Alibaba Group Holding ltd.’s initial public offering became the biggest ever at $25 billion, after bankers exercised an option to boost the deal size by 15% on strong demand.
  • Mitsubishi Corp., Japan’s biggest trading house, proposed to buy Norwegian fishery Cermaq ASA for 8.88 billion kroner ($1.4 billion) to expand its foods business.

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