September 6th, 2016
Daily Market Commentary
ECONOMIC NEWS
- The ISM Non-Manufacturing PMI was quoted at 51.4, below estimates of 55.
Commodities:
- Gold held a three-day advance as prospects for a U.S. interest-rate increase this month receded and holdings in bullion-backed funds rebounded.
- Brent oil dropped after a pledge by Russia and Saudi Arabia to cooperate to stabilize the market failed to include any specific measures to bolster prices.
Canada:
- Enbridge Inc. and Spectra Energy Corp. will combine in a stock-for-stock transaction to create the largest energy infrastructure company in North America, the companies said in a statement Tuesday.
- Bombardier Inc. expects that business-jet sales will recover in Argentina now that a new government has taken power, helping to offset weakness in Brazil and Venezuela.
United States:
- U.S. stock-index futures were little changed as markets prepared to reopen after the Labor Day holiday, with investors speculating that the Federal Reserve will hold off raising interest rates this month.
- GE, the world’s leading digital industrial company, today announced plans to acquire two suppliers of additive manufacturing equipment, Arcam AB and SLM Solutions Group AG for $1.4 billion.
International:
- European stocks were little changed, poised for their highest close since January, as investors awaited this week’s European Central Bank meeting.
- The European Central Bank might need to change the rules of the game if it wants to keep playing in the bond market. President Mario Draghi’s 1.7 trillion-euro ($1.9 trillion) asset-purchase program is scheduled to end in just six months, but euro-area inflation is still weak and the full shock of the U.K.’s Brexit vote could be yet to come.
- Bayer AG sweetened its takeover bid for Monsanto Co. to $56 billion, raising its offer for a second time in its pursuit to become the world’s largest producer of seeds and pesticides.
- Chinese shares rose in afternoon trading, with consumer and industrial stocks leading the advance, amid speculation state-run funds intervened in both the equity and currency markets.
- China’s currency fell toward a six-year low as yuan bears were seen testing the central bank’s tolerance for a weaker currency.
- China is considering a consumer tax overhaul, according to people familiar with the matter, the latest indication reforms are being accelerated to help speed the shift toward a more consumption-led economy. The Finance Ministry has submitted the tax overhaul proposal to the State Council.
*All information is taken from Bloomberg, unless otherwise noted.
