January 26th, 2016
Daily Market Commentary
- Consumer Confidence in the US was reported at 98.1, slightly above estimates.
- The S&P/Case-Shiller Home Price Indices were up 5.8% in year-over-year terms, slightly above estimates.
- The Redbook Index, which measures same-store sales growth of US General Merchandising companies, was reportedly down 1.4% and up 1% in month-over-month and year-over-year terms, respectively.
- Gold surged to a two-month high as more declines in global stocks boosted demand for a haven and prompted traders to push back bets on when the Federal Reserve will next raise interest rates.
- Bank of Nova Scotia, Canada’s third-largest lender by assets, had its credit rating cut one level by Moody’s Investors Service for its focus on credit cards and auto financing while expanding internationally.
- The federal government plans to require a separate climate test for proposed pipelines and a planned LNG export terminal, which are now under regulatory review, to determine their impact on Canada’s greenhouse-gas emissions, a move that could impose new delays on billion-dollar projects. (Globe)
- Potash Corp. of Saskatchewan Inc. fell the most in more than two years after analysts at JPMorgan Chase & Co. said lower nutrient prices probably will prompt management to cut payments to shareholders.
- U.S. stock futures were little changed after trimming an earlier decline, mirroring the price of oil.
- DuPont Co., which agreed last month to a historic merger with Dow Chemical Co., posted its biggest quarterly loss since 2008 amid weak demand for agriculture products.
- A JPMorgan Chase & Co. unit has reached an agreement to pay $1.42 billion to resolve claims it took advantage of its status as Lehman Brothers Holdings Inc.’s primary lender to unfairly extract cash and position itself ahead of other creditors in Lehman’s bankruptcy.
- Halliburton Co. said it expanded its list of assets to sell as it tries to convince antitrust authorities around the world that its purchase of rival Baker Hughes Inc. won’t impede competition.
- Growing concerns over China and the oil rout triggered a second day of losses for European equities.
- Mario Draghi hit back at critics of his policies, saying the European Central Bank must fulfill its inflation mandate in order to maintain its credibility.
- Siemens AG gained the most in almost seven years after unexpectedly raising its full-year profit outlook, as investors welcomed Chief Executive Officer Joe Kaeser’s confidence that the German engineering firm can ride out a slowdown in China and drop in oil prices.
- Tesco Plc received a rap on the knuckles from the U.K. grocery regulator, which said Britain’s largest supermarket chain prioritized its own finances over treating suppliers fairly in breach of an industry code.
- China’s stocks tumbled amid concern capital outflows may accelerate as the economy slows and after some of the nation’s most-accurate forecasters predicted further declines for equities.
- Hyundai Motor Co. posted its lowest annual profit in five years after a slump in China deliveries overshadowed gains in the U.S., Europe and South Korea.
- Sony Corp. agreed to buy Altair Semiconductor Ltd. for $212 million, acquiring technology to power the next generation of smart appliances as the firm looks for growth beyond chips for smartphone cameras.
*All information is taken from Bloomberg, unless otherwise noted.