December 9th

Daily Market Commentary

 

ECONOMIC NEWS

• The NFIB Business Optimism Index for the U.S. was reported at 98.1.
• The Redbook Index, which measures same-store sales growth in General Merchandising stores in the U.S., was reportedly down 1.3% and up 3.8% in month-over-month and year-over-year terms, respectively.
• Wholesale inventories in the U.S. were reportedly up 0.4%, above estimates of 0.2%.
• The JOLTS Job Openings figure for the U.S. was reported at 4.834M, above estimates of 4.790M.
• A 3-month estimate of GDP growth for Great Britain was reported at 0.7%.

Commodities:

• Brent and West Texas Intermediate rebounded from the lowest closing levels in more than five years amid signs that U.S. oil producers were curbing investment as price competition intensified between OPEC’s largest members.
• Gold rose as the dollar dipped and equities fell around the world, reviving investor appetite for a protection of wealth.
• Nickel in London dropped for a third day and copper swung between gains and losses amid signs that demand is waning from Germany to China, two of the world’s biggest metals consumers.

Canada:

• Oil, bank and raw-materials are the biggest laggards in Canada for the first time since at least 1988, fuelling concern the nation’s economy is fading just as the U.S. is taking off.
• Oil at a five-year low has only increased Vermilion Energy Inc.’s appetite for acquisitions, Chief Executive Officer Lorenzo Donadeo said. Benefiting from a smaller debt load than peers, Vermilion is bolstering efforts to purchase North American and European assets after oil’s decline of more than 40 percent since June.
• Valeant Pharmaceuticals International Inc is abandoning its growth-by-acquisitions strategy for the time being to try to reduce debt, boost its stock price and one day return to its traditional deal-making in a stronger position, people familiar with the matter told Reuters. (Globe)
• Repsol SA has revived talks with Talisman Energy Inc., people with knowledge of the matter said, as the Spanish company seeks acquisitions to bolster its presence in North America even while oil prices tumble to five-year lows.

United States

• U.S. stock-index futures dropped, signalling equities will extend their worst loss in six weeks, amid concern that Federal Reserve officials may shift their stance on interest rates when they meet next week.
• Tesla Motors Inc.’s shares have dropped 14 percent in seven trading days on growing concern that the cheapest gasoline in more than four years will damp consumer enthusiasm for the company’s luxury electric cars.
• McDonald’s Corp., facing its worst U.S. sales slump in more than a decade, is turning to customized menu items in a bid to lure more millennials and shake off its reputation for selling outdated fast food.

International:

• European stocks retreated for a second day as Tesco Plc tumbled and energy companies fell further.
• The U.K. financial regulator scrapped bonuses for some senior executives facing criticism in a report into the agency’s handling of publicity around a life-insurance review.
• As oil prices keep falling, BP Plc is among Norwegian oil producers having to take a hard look at whether to kill off aging offshore fields earlier than planned because squeezing out the last barrels might not be worth it.
• Tesco Plc said full-year earnings will be almost half an August forecast as the U.K. grocer ploughs money into turning around its business after disclosing overstated profit.
• Asian stocks fell, with the regional benchmark falling the most in a week, as China shares tumbled the most since 2009 amid record turnover and the yen climbed.
• Japan’s government is considering an extra budget worth as much as 3 trillion yen ($25 billion) to help the economy recover from recession, according to people involved in the discussions.

*All information is taken from Bloomberg, unless otherwise noted.