January 22nd, 2015
Daily Market Commentary
- Initial Jobless Claims in the U.S. were reported at 307K, above estimates of 300K.
- Continuing Jobless Claims in the U.S. were reported at 2.443M, above estimates of 2.410M.
- The Housing Price Index in the U.S. was reportedly up 0.8%.
- An ECB interest rate decision resulted in the key interest rate being held at 0.05%.
- Retail sales in Italy were reportedly down 2.3% in year-over-year terms.
- Oil traded below $50 a barrel in London for a third day as investors awaited a European Central Bank decision on starting a quantitative-easing program.
- Gold declined for a second day on speculation economic stimulus by the European Central Bank will lessen demand for haven assets.
- Copper fell for the first time in three days as investors waited for the European Central Bank’s decision on economic stimulus. Nickel extended gains.
- Canadian exporters from West Fraser Timber Co. to HudBay Minerals Inc. surged as the central bank’s surprise interest rate reduction weakened the currency, giving the companies an immediate boost while underscoring the deepening risk from the oil-price crash.
- Southern Pacific Resource Corp. became the first company in the Canadian oil sands to seek creditor protection as early-stage developers struggle to survive with crude prices close to 5 1/2 year lows.
- Kinder Morgan Inc. has agreed to pay about $3 billion, including debt, to buy a pipeline network from oil billionaire Harold Hamm that will give the company a foothold in the Bakken shale formation.
- U.S. stock-index futures were little changed, after equities rose for three days, as investors await a European Central Bank meeting where President Mario Draghi is expected to introduce quantitative-easing measures.
- Yahoo! Inc. will be a fraction of its size should the company spin off its remaining stake in Alibaba Group Holding Ltd., making it a takeover candidate for SoftBank Corp. or private-equity firms.
- European stocks were little changed, erasing earlier gains, before a European Central Bank meeting at which investors expect President Mario Draghi to announce quantitative-easing measures.
- China’s stocks rose for a third day after Premier Li Keqiang said the government will ensure an “appropriate” pace of growth and the central bank took steps to avoid a cash crunch before the Chinese new year holiday.
- Air India Ltd., the state-run carrier bailed out by the tax payer, plans to sell real-estate assets to trim debt that’s risen to 400 billion rupees ($6.5 billion), an official with direct knowledge of the situation said.
- Hyundai Motor Co. reported profit that missed analyst estimates after the yen and Russia’s ruble weakened, eroding overseas earnings at South Korea’s largest carmaker. The company’s shares fell.
*All information is taken from Bloomberg, unless otherwise noted.