September 5th

Daily Market Commentary



  • The Unemployment Rate in Canada was reported at 7%, in line with estimates.
  • The August Net Change in Employment in Canada was registered at -11K.
  • The August participation rate in Canada was reported at 66%, slightly below estimates of 66.1%.
  • Average hourly earnings in the U.S. were reportedly up 0.2% and 2.1% in month-over-month and year-over-year terms, respectively.
  • The U.S. participation rate was reported at 62.8%.
  • The U.S. unemployment rate was reported at 6.1%, in line with estimates.


  • West Texas Intermediate crude gained on signs that an improving economy in the U.S., the world’s largest oil consumer, will boost fuel demand. Brent rose in London.
  • Gold traded little changed after reaching a 12-week low in London as the dollar strengthened and investors awaited U.S. jobs data that may back the case for the Federal Reserve to increase borrowing costs.
  • Copper rose in London, narrowing this week’s drop, on speculation today’s U.S. jobs report will boost the demand outlook as falling stockpiles cast doubt on analyst forecasts of a 2014 surplus.
  • Nickel was poised to advance for a fifth week on concern ore supply will decline as the Philippines considers banning exports of unprocessed minerals.


  • Seven Generations Energy Ltd., which has been making big oil and gas production gains in a region known as the Alberta Montney, is said to be planning an initial public offering in the next eight weeks that could be worth up to $1-billion, according to sources familiar with the situation. (Globe)
  • Bombardier Inc., struggling with delays on its biggest jetliner ever, widened a six-week-old reorganization by carving out a unit to ensure that new planes are introduced on time.
  • The course of TransCanada Corp.’s proposed $5.4 billion Keystone XL pipeline runs through Nebraska’s highest court, which can either speed the project on to President Barack Obama or delay it indefinitely.

United States:

  • U.S. stock-index futures fell, signaling equities may post their first weekly drop in more than a month, as investors weighed valuations before data that may show the world’s largest economy created more jobs last month.
  • A U.S. judge’s watershed ruling means the final cost to BP Plc for the 2010 Gulf oil spill may eclipse $50 billion, wiping out years of profits and highlighting the risks of drilling as the industry pushes into more dangerous areas such as deeper waters and ice-bound Arctic fields.
  • Michael Kors Holdings Ltd., a maker of designer clothing and handbags, will hold a secondary offering to let the company’s biggest shareholder sell a stake valued at about $930 million.


  • European stocks fell, after the Stoxx Europe 600 Index rallied to a two-month high, as investors awaited U.S. jobs data, while weighing the likelihood of successful peace talks in Ukraine.
  • Mario Draghi signalled at least 700 billion euros ($906 billion) of fresh aid for his moribund economy and left a fight with Germany over sovereign-bond purchases for another day.
  • Euro-area investment fell in the second quarter for the first time in more than a year, reflecting the gloomy outlook presented by Mario Draghi yesterday as he unveiled new ECB stimulus.
  • Asian stocks fell, with the regional benchmark index paring its weekly advance, as material and energy companies slid.
  • Sumitomo Mitsui Banking Corp., the main lending unit of Japan’s second-largest bank by market value, plans to buy about HK$7.4 billion ($955 million) of additional shares in Hong Kong’s Bank of East Asia Ltd.
  • The Abe administration gave its clearest signal yet of concern about damage to the economy from this year’s sales-tax increase, with the finance minister saying that a back-up plan for stimulus will be prepared.

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