January 18th, 2016
Daily Market Commentary
- The Housing Price Index in China was up 1.6% in December.
- Industrial Production in Japan was down 0.9% and up 1.7% in month-over-month and year-over-year terms, respectively.
- Gold climbed for a second day as a global selloff in equities deepened, prompting a return to haven assets.
- Hedge funds increased bearish oil wagers to a record as global equities fell and Iran was poised to add to the crude supply glut.
- Suncor Energy Inc. agreed to buy Canadian Oil Sands Ltd. in an all-share deal that values the acquisition at C$6.6 billion ($4.6 billion), including debt.
- Federal scientists say a proposal to export liquefied natural gas from British Columbia poses a low risk to the environment, a crucial ruling that sides with Pacific NorthWest LNG’s contention that its project won’t ruin an ecologically sensitive site. (Globe)
- GoPro shares were down 25% in after hours trading after it reported weaker than expected Q4 revenue and the cutting of 7% of its workforce. (CNN)
- JP Morgan Chase reported revenue and earnings for the fourth quarter that topped Wall Street Expectations. The bank posted a quarterly profit of $5.4 billion, up 10% from a year ago.
- European stocks traded near their lowest levels in more than a year after entering a bear market on Friday.
- SoftBank Group Corp. fell to its lowest level since buying Sprint Corp. in 2013 amid mounting pessimism that billionaire Masayoshi Son can turn around the money-losing U.S. carrier.
- Adidas rises as much as 2.7%, to top DAX, after Henkel says CEO Kasper Rorsted will step down at end of April.
- French investigators swept into three Renault SA sites on the morning of Jan. 7 looking for evidence the automaker cheated on emissions tests. The raids remained a secret for nearly a week until a trade union mentioned the news almost as an afterthought in a leaflet about jobs.
- Asian stocks fell, with Japanese and Australian shares on the cusp of joining China in a bear market, as a continuing collapse in oil prices heightened concern over the strength of the global economy.
- China’s largest chemical company acquired a 12 percent stake in Mercuria Energy Group Ltd., giving the Swiss commodity trading house better access to the world’s biggest market for raw materials.
- Sumitomo Mitsui Financial Group Inc. plans to double its fixed-income sales and trading team in the U.S. and has hired Royal Bank of Scotland Group Plc’s former head asset-backed securities trader.
*All information is taken from Bloomberg, unless otherwise noted.