December, 6th 2016
Daily Market Commentary
What to watch out for:
- K. Supreme Court begins BREXIT hearings (Dec. 5th)
- Senate hearing on AT&T Time Warner takeover (Dec. 6th)
- India’s rate decision (Dec. 6th)
- Bank of Canada rate decision (Dec. 7th)
- European Central Bank monetary policy meeting (Dec. 8th)
- Optimism that the European Central Bank will extend its stimulus program at Thursday’s meeting has spurred equity gains this week.
- S. stock index futures were little changed, after the Dow Jones Industrial Average closed at a record high for a second day, and as investors seek clues on whether the economy can withstand a Federal Reserve interest-rate increase this month.
- Indian shares erased gains after its policy makers unexpectedly kept interest rates unchanged.
- Metals: Gold: 1173.25 (+$3.40, +0.29%), Silver: 16.81 (+$0.09, +0.56%); Copper: 2.6910 (+0.41%); Zinc: 1.2909 (+1.63%)
- Energy: Crude: 51.04 (+0.22%); Brent: 54.03 (+0.19%); Nat Gas: 3.73 (+2.50%)
- Oil retreated from the highest close in 16 months as OPEC pumped a record amount of crude in November, partly led by members exempt from cutting output as part of last week’s deal to curb supply.
- China keeps gold reserves unchanged at 59.24 mln troy ounces in Nov. from month earlier. This marks only second time country pauses monthly buying after disclosing 57% increase in holdings since 2009 as of June 2015.
- Bank of Montreal, Canada’s fourth-largest lender, said profit rose 11 percent on higher earnings in U.S. banking and capital markets. The company raised its quarterly dividend 2.3 percent to 88 cents a share. Net income for the fiscal fourth quarter ended Oct. 31 climbed to C$1.35 billion ($1.01 billion), or C$2.02 a share, from C$1.21 billion, or C$1.83, a year earlier.
- Stats Canada forecast a greater than expected increase in wheat production for this year. Output to gain by 15%.
- Bombardier Inc. anticipates another major order for the C Series jet next year following project-bolstering deals from Delta Airlines Inc. And Air Canada in 2016.
- Airbus Group SE was selected by the Canadian government to replace its search-and-rescue planes, beating out Leonardo-Finmeccanica SpA in a deal estimated by the previous government at C$3.4 billion ($2.6 billion)
- Toll Brothers Inc., the biggest U.S. luxury-home builder, reported lower fiscal fourth-quarter earnings after a warranty charge related to older stucco homes. Net income for the three months through October was $114.4 million, or 67 cents a share, after the charge and a $2.5 million write-down of inventory.
- JPMorgan Chase & Co., HSBC Holdings Plc and Credit Agricole SA were fined a total of 485.5 million euros ($521 million) for rigging the Euribor benchmark as European Union antitrust regulators wrapped up a five-year investigation into the scandal.
- SoftBank Group Corp. Chief Executive Officer Masayoshi Son told President-elect Donald Trump he would create 50,000 new jobs in the U.S. through a $50 billion investment in startups and new companies. The money will come from SoftBank’s previously announced $100 billion technology fund.
- Blackstone Group LP agreed to buy a Solvay SA subsidiary for about 1 billion euros ($1.1 billion), taking on a cash-generating business supplying materials for cigarette filters that’s under pressure from Chinese rivals.
- The pound reached a two-month high as the U.K.’s top court heard a second day of arguments in a court case over who has the right to trigger Britain’s exit from the European Union.
- GoDaddy Inc. agreed to acquire Germany’s Host Europe Group Ltd. for 1.69 billion euros ($1.82 billion), expanding its European footprint with web services including domain-name hosting.
- Banca Monte dei Paschi di Siena SpA’s bondholders agreed to swap about 1.02 billion euros ($1.1 billion) of subordinated notes for shares, as the attention of investors shifts to whether the bank is able to attract investors to a stock offering.
- London Mayor Sadiq Khan said he’ll more than double spending on cleaning up the capital’s toxic fumes over five years, as he seeks to make good on a campaign pledge to fight air pollution. Expenditure on combating air pollution in London will total 875 million pounds ($1.1 billion) through the 2021-22 fiscal year.
- Credit Suisse Group AG rose in Zurich trading, leading European bank shares higher, as Chief Executive Officer Tidjane Thiam pledged to cut an additional 1 billion Swiss francs ($1 billion) in expenses and lowered profit targets that were seen as too ambitious.
- Jet Airways India Ltd., the carrier part-owned by Etihad Airways PJSC, is seeking to raise about $300 million to fund expansion on international routes, people with knowledge of the matter said.
- Bayer AG is in advanced talks to sell its dermatology business to buyout firm Avista Capital Partners after other bidders dropped out, according to people familiar with the matter. Bayer’s skin-care products, which include eczema treatment Desonate and Finacea for rosacea, may be valued at more than 800 million euros ($858 million).
*All sources from Bloomberg unless otherwise specified