August 11th, 2015
Daily Market Commentary
- The Redbook Index, which measures same-store sales growth in U.S. general merchandising companies, was up 0.5% and 1.9% in month-over-month and year-over-year terms, respectively.
- Housing starts in Canada were up 193K, slightly below estimates.
- A ZEW Survey of Economic Sentiment was reported at 47.6, above estimates.
- Copper declined with aluminum and nickel after China devalued its exchange rate in a move that helps exports and makes imports more expensive for the world’s biggest producer and consumer of metals. Aluminum traded near the lowest level in six years.
- Oil pared losses as traders assessed the impact of China’s currency devaluation on fuel demand in the world’s biggest commodity consumer.
- Coffee is bucking a commodity rout as smaller beans in Brazil, the world’s largest producer, threaten to reduce this year’s crop, prompting speculators to buy.
- Home Capital Group Inc., the mortgage provider that disclosed it investigated loan irregularities in its portfolio, said it bought CFF Bank to diversify its funding sources.
- Google Inc. is reorganizing into a holding company that gives its main Web operations greater independence while offering investors more visibility into ambitious plans to expand new businesses, including health and Internet access.
- Carmakers and luxury-goods shares led a drop in European stocks after China devalued its currency by the most in two decades. U.S. stock-index futures also slid.
- Greece reached an accord with creditors on the terms of a third bailout, paving the way for national parliaments to vote on the deal before an Aug. 20 payment falls due to the European Central Bank.
- Prudential Plc, the U.K.’s largest insurer, posted a better-than-expected 17 percent increase in first-half profit, led by gains in Asia, and raised its dividend.
- The yuan dropped the most in two decades, sparking a tumble in emerging currencies and commodities after China devalued its exchange rate to combat an economic slowdown. Hong Kong shares gained with U.S. Treasuries and German bunds.
*All information is taken from Bloomberg, unless otherwise noted.