February 2nd, 2016
Daily Market Commentary
- The Redbook Index, which measures same-store sales growth in US General Merchandising companies, was down 1.5% and up 0.8% in month-over-month and year-over-year terms, respectively.
- The Unemployment Rate in the Eurozone was reported at 10.4%, slightly better than estimates.
- Oil dropped for a second day before weekly government data forecast to show U.S. crude stockpiles expanded further from a record, exacerbating a global glut.
- Gold traded near a three-month high as investors increased assets in exchange-traded funds backed by bullion to the most since November.
- Tanking fertilizer prices have worsened the economic and budget outlook for Saskatchewan, where the oil shock has already stalled growth, pushed the government into deficit and caused its bonds to underperform. (Globe)
- Futures signalled U.S. stocks will pull further away from a three-week high, with investors shunning risk assets across the world.
- Drillers in the Permian Basin, the biggest U.S. shale field, have raised at least $2 billion from share sales over the past eight weeks. And more issuances are on the way as producers try to avoid piling on additional debt.
- European stocks declined as investors weighed earnings from companies including BP Plc and UBS Group AG.
- UBS Group AG dropped the most in more than a year after profit at the wealth management and investment-banking businesses slumped in the fourth quarter.
- J Sainsbury Plc agreed to buy Home Retail Group Plc for about 1.3 billion pounds ($1.9 billion), handing the British grocer control over hundreds of shops selling everything from jewellery to televisions as it tries to create a more potent challenger to Amazon.com Inc.
- Fiat Chrysler Automobiles NV will offer new calibrations to make its most recent generation of diesel vehicles cleaner on the road after completing an internal review of its cars following the Volkswagen AG scandal.
- Asian stocks dropped, with the regional benchmark index heading for its first decline in five days, as material and energy shares led losses after oil resumed its selloff amid signs China’s economy is deteriorating.
- Margin debt in China’s stock market shrank to the lowest level since December 2014, a sign of waning investor confidence after the Shanghai Composite Index’s biggest monthly tumble since 2008.
*All information is taken from Bloomberg, unless otherwise noted.