Daily Market Commentary
- MBA Mortgage Applications in the U.S. were reportedly up 7.3%.
- The total trade balance for Great Britain was reported at -2.024B pounds.
- Consumer Confidence in Japan was reported at 37.7.
- OPEC cut the forecast for how much crude oil it will need to provide in 2015 to the lowest in 12 years amid surging U.S. shale supplies and reduced estimates for global consumption.
- Gold fell from a six-week high as investors weighed expectations for rising U.S. interest rates against a weaker dollar.
- Yamana Gold Inc., a Canadian producer of the metal, plans to carve out a new company comprising its less favoured mines in Brazil and will explore options for the unit next year.
- AGF Management tumbled after the asset manager announced plans to cut its quarterly dividend and focus its capital allocation strategy for 2015 to initiatives with greater potential to create shareholder value.
- Baytex Energy announced its 2015 capex budget and lowered its monthly dividend. The company will be spending $575-$650 million in 2015, that’s 20% lower than consensus estimates of $765 million.
- U.S. stocks fell for a third day as oil approached a five-year low after OPEC cut its demand forecast.
- Costco Wholesale Corp., the largest U.S. warehouse-club chain, posted quarterly profit that topped estimates after sales outpaced those of discount rivals such as Wal-Mart Stores Inc.
- Five months after Apple Inc.’s partnership with IBM was announced, the companies are unveiling the initial fruits of the deal: 10 applications made for governments and businesses.
- Verizon Communications became the first major wireless provider to announce that price wars have damages its financial results. VZ has been cautious in cutting prices, but recently launched a series of promotions following price reductions by rivals.
- European stocks advanced, following their biggest slide in more than seven weeks. Greek shares bucked the trend as lenders declined a second day.
- ECB Executive Board member Peter Praet said falling oil prices could push the euro-area inflation rate below zero, just as policy makers prepare to examine options for quantitative easing.
- Bad news for the ECB may be good news for investors eager for it to start QE. The ECB will tomorrow issue a second round of long-term loans to banks as part of a plan to spur credit and boost inflation.
- Chinese stocks rose, with a gauge of volatility jumping to the highest level in five years, as slowing inflation bolstered the case for monetary easing. The yuan gained and corporate debt rallied from yesterday’s sell-off.
- China’s factory-gate deflation deepened and consumer prices climbed at the slowest pace since 2009, signaling room for further monetary easing.
*All information is taken from Bloomberg, unless otherwise noted.