August 11th
Daily Market Commentary
ECONOMIC NEWS
- Housing Starts in Canada were reportedly up 200K, above estimates of 193K.
- Consumer Confidence in Japan was reported at 41.5, slightly below estimates of 42.3.
Commodities:
- Brent crude traded near its lowest level in nine months amid speculation that U.S. air strikes in Iraq diminished the threat to oil supplies posed by insurgents. West Texas Intermediate was little changed.
- Gold fell for a second day in London, extending a decline from a three-week high.
- Aluminum rose to a two-week high in London as European equities rebounded and inventories of the metal dropped to the lowest since 2012, adding to  signs of limited supply.
Canada:
- Imperial Metals Corp., the owner of a British Columbia mine where a burst dam unleashed a torrent of mine waste last week, said it doesn’t see any sign that the accident will delay the start-up of another mine it’s developing in the province.
- Magna International posted better-than-expected second-quarter results Friday and raised its sales guidance for the year following stronger vehicle production in North America and Europe.
- TMX Group said its swung to a net loss in the second quarter, after taking a non-cash impairment charge to reflect lower revenue projections from its BOX Options Exchange LLC subsidiary in the U.S.
United States:
- U.S. stock-index futures rose, after the Standard & Poor’s 500 Index posted its biggest gain in five months, amid optimism that tension between Russia and Ukraine will ease, while U.S. jets struck at Islamic State forces.
- Houston billionaire Richard Kinder is consolidating his pipeline empire to strengthen it for growth as the U.S. shale drilling boom opens up $1.5 trillion in potential purchases and expansion projects.
- McDonald’s said its global sales fell 2.5% in July as the world’s largest restaurant company felt the impact of food-quality issues with a supplier in China, as well as continued struggles in the U.S.
International:
- European stocks rose, following U.S. equities higher, after a report that Russian war planes have finished military exercises near Ukraine.
- Swedish Finance Minister Anders Borg said the government will probably cut its latest growth forecasts amid signs the global economy is struggling to recover from a prolonged period of crisis.
- Asian stocks rose, with the benchmark index heading for its biggest rally in six months, as Japanese shares led gains and Chinese developers surged.
- China loosened monetary conditions last quarter at the fastest pace in almost two years, a Bloomberg LP gauge showed, testing the waning effectiveness of credit in supporting economic growth.
*All information is taken from Bloomberg, unless otherwise noted.
