July 7th, 2016
Daily Market Commentary
- Building permits in Canada were down 1.9% in month-over-month terms, respectively.
- Initial Jobless claims in the US were 254K, below estimates.
- Oil extended gains as U.S. industry data showed the nation’s crude stockpiles fell last week, easing a surplus in the world’s biggest crude consumer.
- Global gold holdings topped 2,000 metric tons for the first time in three years as the Brexit fallout and speculation that U.S. interest rates won’t rise anytime soon sent investors hunting for a haven.
- Suncor Energy Inc., the 13th-largest integrated oil company by market value has spent $6 billion on acquisitions in the past year, more than any other competitor, including PetroChina Co. and Total SA, according to data compiled by Bloomberg.
- Fairfax Financial Holdings in an agreement with Zurich Insurance Co. to acquire 100% of its South African and Botswana ops, Zurich Insurance Company South Africa.
- U.S. index futures were little changed, after stocks climbed for five of the past six days, as traders turned their focus to the upcoming jobs reports.
- Treasuries have earned $737 billion this year, according to Bank of America Merrill Lynch index data, as signals that policy makers may add to stimulus encourage investors to pad returns by buying longer-dated debt.
- PepsiCo Inc. posted second-quarter profit that beat analysts’ estimates and raised its full-year forecast as sales of snacks and soft drinks in North America helped overcome weaker results abroad.
- McDonald’s Corp. selected bidders including China Cinda Asset Management Co., the nation’s second-biggest bad-loan manager, and dairy producer Beijing Sanyuan Foods Co. to make binding offers for its operations in China and Hong Kong, people with knowledge of the matter said.
- European stocks rose, snapping their longest losing streak in three weeks. Europe’s equity benchmark fell 4.1 percent in the past three sessions, resuming declines after a weekly rally, as renewed concerns about Italian banks and economic growth added to worries about the fallout from Britain’s vote to leave the European Union.
- K. property funds with about 18 billion pounds ($23.4 billion) of assets froze withdrawals as investors sought to dump real estate holdings in the aftermath of Britain’s vote to leave the European Union
- Danone agreed to buy WhiteWave Foods Co. for about $10 billion to add the best-selling U.S. soy milk brand Silk and expand in organic food in its biggest acquisition in almost a decade.
- Asian index futures signal gains tracking strength in U.S. stocks after minutes of the Federal Reserve’s last meeting showed it’s in no hurry to raise interest rates.
- China’s foreign-exchange reserves unexpectedly increased as haven assets such as the Japanese yen appreciated amid the U.K.’s decision to leave the EU. The world’s largest currency hoard rose by $13 billion to $3.21 trillion in June, the People’s Bank of China said in a statement Thursday.
- China, the world’s biggest producer and consumer of gold, added about 500,000 ounces to central bank reserves in June, restarting monthly purchases to diversify holdings after taking a breather in May.
*All information is taken from Bloomberg, unless otherwise noted.