August 22nd, 2016
Daily Market Commentary
- Wholesale sales in Canada were up 0.7% in month-over-month terms, above estimates.
- The Chicago Fed National Activity Index was quoted at 0.27.
- Oil fell after the longest run of gains in four years as Iraq sought to increase exports amid a global oversupply and Nigerian militants called an end to hostilities.
- Gold fell for a second day and silver tumbled to the lowest in more than seven weeks as expectations for a U.S. rate increase grew.
- Canada may consider relaxing its foreign investment rules, including steps to open up to state-owned enterprises in China, in a bid to attract more capital and spur economic growth, Finance Minister Bill Morneau said.
- TransCanada Corp. is hoping that giving up a few more cents on its natural gas mainline tolls will go a long way in convincing energy producers to sign up for long-term contracts. The pipeline operator has lowered the rate it would charge companies to transport gas on its system from Alberta to Ontario on a 10-year term to 82 Canadian cents per gigajoule, down from a range of 85 to 90 cents, if it can lock in 2 petajoules (1.9 billion cubic feet) a day of volumes.
- Pfizer Inc. and Medivation, Inc. today announced that they have entered into a definitive merger agreement under which Pfizer will acquire Medivation, a biopharmaceutical company focused on developing and commercializing small molecules for oncology, for $81.50 a share in cash for a total enterprise value of approximately $14 billion.
- Federal Reserve Vice Chairman Stanley Fischer signaled that a 2016 rate hike is still under consideration, saying the U.S. economy is already close to meeting the central bank’s goals and that growth will gain steam.
- European stocks trimmed an advance, with a slide in commodity producers weighing on the market, despite the boost of a weaker euro after comments from Federal Reserve Vice Chairman Stanley Fischer signaled an increase in U.S. borrowing costs is still possible this year. U.S. stock-index futures were little changed.
- The world’s largest banks are racing to meet a deadline next month when billions of dollars in new collateral requirements will begin to hit the over-the-counter derivatives market. Global regulators estimate that the rules could eventually require more than 700 billion euros ($790 billion) in cash, government bonds and other forms of collateral to protect against the threat that the default of one trader spreads risk to others and potentially throughout the financial system.
- Asian stocks fell for a third day as crude futures dropped and investors weighed the prospects for higher interest rates in the U.S. Shares in Japan climbed on speculation there will be more stimulus.
- China National Chemical Corp. received approval from U.S. national security officials for its takeover of Swiss agrochemical and seeds company Syngenta AG, seen as the biggest regulatory hurdle that the $43 billion acquisition faces.
- Japan’s Renesas Electronics Corp. is in talks to acquire U.S. chipmaker Intersil Corp. for about 300 billion yen ($3 billion), a person with knowledge of the matter said.
*All information is taken from Bloomberg, unless otherwise noted.