February 3rd, 2015
Daily Market Commentary
- The Industrial Product Price Index in Canada was reportedly down 1.6% in month-over-month terms, below estimates of a 0.5% drop.
- The Raw Materials Price Index in Canada was reportedly down 7.6%, above estimates of an 8% drop.
- The Redbook Index, which measures same-store sales growth, was reportedly down 3.5% and up 3.8% in month-over-month and year-over-year terms, respectively.
- The Producer Price Index in the Eurozone was reportedly down 1% and 2.7% in month-over-month and year-over-year terms, respectively. Both figures were below estimates.
- Oil advanced for a fourth day, the longest rising streak since August, while gasoline extended gains as a strike continued at U.S. refineries that account for 10 percent of the nation’s capacity.
- Gold rose with silver as a rally in crude oil and unexpected drop in Australian interest rates spurred speculation of faster inflation.
- Copper rose the most in more than 18 months on speculation more stimulus in China will boost demand for the metal and as oil extended a rally. Aluminium climbed to the highest in six weeks.
- The Ontario Teachers’ Pension Plan bought PODS Inc, a portable moving and storage company, from Bahrain-based Arcapita Bank BSC for more than $1 billion.
- Telus Corp. is weeks away from shutting down its paging services and the number of customers who still use the simple messaging technology has been dwindling for years.(Globe)
- West Jet Airlines Ltd. raised its dividend as Canada’s second-largest carrier reported an increase in fourth-quarter profit, boosted by falling fuel prices.
- U.S. stock-index futures rose after the Standard & Poor’s 500 Index rebounded from its biggest monthly decline in a year.
- Standard & Poor’s reached a $125 million lawsuit settlement with the largest U.S. state pension fund over inflated ratings on residential-mortgage bond deals, two people familiar with the matter said.
- Amazon.com Inc., aiming to bolster its brick-and-mortar operations, has discussed acquiring some RadioShack Corp. locations after the electronics chain files for bankruptcy, two people with knowledge of the matter said.
- Staples Inc. and Office Depot Inc. are in advanced talks to combine, the Wall Street Journal reported, following pressure on the companies from an activist investor.
- European stocks climbed as concern that Greece would defy its creditors eased after the nation retreated from a plan to ask the euro area to write down debt.
- Banco Santander SA, Spain’s largest lender, said profit rose 68 percent in the fourth quarter as the bank set aside fewer provisions for bad loans and revenue increased.
- BP Plc reported better-than-forecast fourth-quarter profit even as oil prices slumped, forcing Europe’s third-largest oil company to cut spending.
- Royal Dutch Shell Plc met with the United Steelworkers on Monday about a new, three-year labor contract for U.S. oil workers, less than two days after the union started the biggest refinery strike since 1980.
- Asian stocks declined, with Japanese exporters sliding as the yen strengthened after the Reserve Bank of Australia cut interest rates to a record low. China shares rose the first time in six days on stimulus speculation.
- Mitsubishi UFJ Financial Group Inc. capped off a season of unexpected profit growth at Japan’s biggest banks as overseas lending and trading made up for their shrinking loan profitability at home.
- Sharp Corp. cut its forecast to an annual loss citing currency volatility and falling prices for liquid-crystal displays used in smartphones and tablets.
*All information is taken from Bloomberg, unless otherwise noted.