January 29th, 2016
Daily Market Commentary
- Canadian GDP was up 0.3% in month-over-month terms, in line with estimates.
- Annualized GDP growth for Q4 in the US was reported at 0.7%, slightly below estimates of 0.8%.
- The Consumer Price Index in the Eurozone was reportedly up 0.4% in year-over-year terms, in line with estimates.
- Gold was whipsawed on Friday after the Bank of Japan surprised investors by adopting negative interest rates, spurring a brief rally in the dollar and arresting a monthly rally spurred by haven demand.
- Oil gave up gains as Russia said that although it’s prepared to discuss output with the Organization of Petroleum Exporting Countries, no action is currently planned.
- Bonds of Canadian oil and natural gas companies are the worst performers among Group of Seven developed nations, with debt of investment-grade producers.
- The commodities slump has driven down wages in Alberta, with declines spreading from the natural resources sector to other parts of the province’s economy. The average weekly pay in Alberta fell 2.4 per cent to $1,130 in the year ended in November. (Globe)
- Gains in U.S. stock-index futures indicated equities will ease their worst monthly rout since 2010 on speculation that central banks around the world will act to prevent further turmoil in financial markets
- General Electric Co. plans to sign agreements to invest more than 700 million euros ($760 million) in research and development facilities in Italy, according to four people familiar with the company’s intentions.
- European stocks rose, trimming their worst January drop since 2008, after the Bank of Japan’s added stimulus stoked optimism of policy support for global growth. Asian stocks rose.
- Euro-area inflation accelerated in January, providing a reprieve for European Central Bank officials that may prove temporary as commodity prices continue their descent and emerging markets slow.
- The European Union imposed tariffs as high as 13 percent on steel from China used to reinforce concrete, the latest sign of EU unease about overcapacity at Chinese mills.
- Honda Motor Co., the biggest customer for troubled air-bag supplier Takata Corp., reported profit that missed analyst estimates as costly recalls to replace the devices expand.
*All information is taken from Bloomberg, unless otherwise noted.