July 27th, 2016
Daily Market Commentary
- Durable Goods orders in the US were down 4% in June, far below the estimated 1.1% drop.
- MBA Mortgage Applications in the US were down 11.2% in June.
- UK GDP in Q2 was up 0.6% in quarter-over-quarter terms, above estimates.
- UK GDP was up 2.2% in year-over-year terms, also above estimates.
- Consumer Confidence in Italy was quoted at 111.3, above estimates.
- Oil fell from the lowest close in three months as industry data showed crude stockpiles at the biggest U.S. storage hub rose, swelling supplies already at a seasonal record.
- Gold traders are waiting for the Federal Reserve. The metal was little changed in London before the Fed ends a policy meeting later Wednesday. A measure of bullion’s price moves are near the smallest since before the U.K.’s Brexit vote and trading volume for U.S. futures were about 20 percent below the 30-day average for the time of day.
- Copper led most metals lower, declining for a third time in four days, along with a slump in Chinese stocks after a report about possible curbs on wealth-management products, potentially limiting flows into equities and derivatives.
- Canadian stocks rebounded from the biggest slump in a month with the biggest gain in two weeks amid corporate earnings and a rally in gold producers.
- A new property tax on foreign buyers may finally cool Canada’s hottest market after home prices more than doubled in the last decade. Buyers from abroad will pay an additional 15 percent transfer tax on purchases of residential homes in Vancouver starting Aug. 2.
- US stock futures are pushing higher and the Nasdaq is doing particularly well. There is no doubt that Apple’s pre-market surge is fuelling the Nasdaq. (CNN)
- The US Federal Reserve is slated to announce its decision on interest rates at 2pm EST. The market is widely expecting that the fed will hold interest rates steady. (CNN)
- Apple shares are rising approximately 7% premarket after company reported its earnings, which revealed another sales slowdown. However, the results weren’t as dire as expected. (CNN)
- European stocks rose with U.S. equity-index futures as Apple Inc.’s earnings fueled optimism over the outlook for the global economy.
- Deutsche Bank AG Chief Executive Officer John Cryan signaled Germany’s largest lender may have to deepen cost cuts after second-quarter profit was almost wiped out by a slump in trading revenue and costs tied to job reductions.
- Volkswagen AG’s settlements to get 482,000 emissions-cheating diesel cars off U.S. roads won a preliminary go-ahead from a federal judge, clearing a path for Germany’s largest automaker around the biggest obstacle to recovery from the scandal.
- Asian stocks climbed for a third day as Japanese shares rallied on a report that the government is preparing a stimulus package worth more than 28 trillion yen ($265 billion). Chinese equities in Shanghai tumbled the most in six weeks.
- China Film Co., the nation’s largest movie distributor, plans to raise 4.2 billion yuan ($625 million) in an initial public offering in Shanghai to fund movie production and cinema investments in what would be the largest such sale in China’s entertainment industry.
*All information is taken from Bloomberg, unless otherwise noted.