July 28th, 2016
Daily Market Commentary
- Initial jobless claims in the US were quoted at 266K, above estimates.
- Continuing Jobless claims in the US were quoted at 2.14M, also slightly above estimates.
- The Consumer Price Index in Germany was up 0.3% and 0.4% in month-over-month and year-over-year terms, respectively. Both were above estimates.
- Oil traded near the lowest level in more than three months, edging closer to a bear market as government data showed U.S. crude stockpiles unexpectedly rose from what was already the highest seasonal level in at least two decades.
- Gold held the biggest gain since the U.K. voted to quit the European Union after the Federal Reserve stood pat on interest rates and indicated gradual tightening of U.S. monetary policy.
- Iron ore is making a comeback. Futures in China have reached their highest since the peaks hit during the speculative frenzy in April that drew global attention, and benchmark spot prices are on course for the fourth weekly gain in five.
- Canadian shares ended little changed as energy producers slumped to the lowest level in three months, while gold miners rallied on the prospect for lower U.S. interest rates for longer.
- Lumber prices are off to their biggest rally in more than a decade, touching a 19-month high last week as demand increased from builders. But almost a third of all wood used in U.S. homes comes from the world’s top exporter, Canada, where surging shipments have compounded a trade dispute and increased the chances of import tariffs that may top 30 percent.
- Potash Corp., the world’s second-largest producer of its namesake fertilizer, cut its dividend and lowered a full-year profit forecast after crop-nutrient prices declined.
- S. stock-index futures were little changed amid a swath of earnings reports. Ford Motor Co., Amazon.com Inc., MasterCard Inc. and Alphabet Inc. are among more than 60 companies in the S&P 500 reporting results on Thursday.
- The U.S. Federal Trade Commission approved Teva Pharmaceutical Industries Ltd.’s $40.5 billion purchase of Allergan Plc’s generic drug-making unit after the companies agreed to the biggest divestiture ever in a pharmaceutical merger to preserve competition
- Dow Chemical Co., which plans to complete a historic merger with DuPont Co. this year, reported second-quarter profit that topped analysts’ estimates amid rising demand for plastics, the company’s leading product.
- Alcoa Inc., the biggest U.S. aluminum producer, will undertake a reverse split of common stock at a ratio of 1 for 3 before it proceeds with a previously announced separation.
- European stocks dropped as investors assessed a slew of earnings reports, while lenders fell before Friday’s stress-test results.
- Royal Dutch Shell Plc reported the lowest quarterly earnings in 11 years and missed estimates by more than $1 billion as a mix of lower energy prices, weaker refining margins and production halts weighed on Europe’s largest oil company.
- BHP Billiton Ltd. and Vale SA will book charges totaling more than $2 billion after last year’s tailings dam spill at their joint venture in Brazil that killed as many as 19 people.
- AB InBev’s $104 billion takeover bid for SABMiller Plc hit a snag after the target company suspended integration of the two brewers following resistance from shareholders who say they haven’t been compensated enough for the pound’s recent plunge. SABMiller shares fell the most in almost 10 months.
- Asian stocks rose toward a nine-month high after the Federal Reserve left interest rates unchanged and signaled a gradual approach to tightening. The stronger yen drove Tokyo shares lower as investors awaited the Bank of Japan’s policy decision on Friday.
*All information is taken from Bloomberg, unless otherwise noted.