January 15th, 2016
Daily Market Commentary
- Retail Sales in the US, excluding Autos, were reportedly down 0.1%, below estimates of 0.2% growth.
- Industrial Production in the US was down 0.4% in month-over-month terms, also below estimates.
- The Reuters/Michigan Consumer Sentiment Index in January was reported at 93.3, slightly above estimates.
- Oil fell to a new 12-year low below $30 a barrel in New York, while the discount on global benchmark Brent reached a five-year high as Iran moved closer to restoring exports. South Korea joined China in buying record amounts of crude in 2015 as buyers in the biggest oil market take advantage of a slump.
- Gold climbed as rekindled concern over China’s slowing economy spurred a selloff in equities and crude oil declined, bolstering the metal’s appeal as a haven.
- Canadian benchmark bond yields fell to a new record low on Thursday, as the market increasingly bets on a rate cut to insulate the domestic economy from the oil crash. (Globe)
- TransAlta Corp, the Alberta power generator, cut its quarterly dividend by more than a third to save money as it transitions toward gas and renewable power generation and away from coal. (Globe)
- The Canadian dollar is on its longest losing streak since at least the 1970s as speculation mounts that the central bank will cut interest rates back to the record low only seen amid the 2009 financial crisis, with almost nothing left to drive the country’s economy.
- BlackRock Inc., the world’s largest money manager, said fourth-quarter profit rose 5.9 percent as a market recovery lifted assets and its offerings brought in more money.
- European stocks fell to their lowest level in almost five months as investor concerns about global growth intensified and oil retreated. U.S. index futures fell.
- Vivendi SA sold its remaining 5.7 percent stake in Activision Blizzard Inc., resulting in net proceeds of $1.1 billion, after shares of the U.S. maker of video games almost doubled in the past year.
- BHP Billiton Ltd. said it expects to take a writedown of $4.9 billion on the value of its U.S. shale assets due to the tumble in oil prices. Its next safeguard against the commodities collapse may be to abandon its decade-old pledge to maintain or raise its dividend.
- Volkswagen AG’s market share in Europe fell for the first time since 2007 as the German carmaker’s emissions-rigging scandal deterred buyers in the final months of last year.
- Asian stocks fell, reversing earlier gains and heading for a three-year low, as Chinese shares slid back into a bear market and crude oil resumed its losses.
- China’s Haier Group agreed to buy General Electric Co.’s appliance business for $5.4 billion in the country’s biggest acquisition of an overseas electronics company.
*All information is taken from Bloomberg, unless otherwise noted.