June 2nd, 2014
Daily Market Commentary
- The Markit Manufacturing PMI in Great Britain was reported at 57, in line with estimates.
- Mortgage Approvals in Great Britain were reported at 62.9K, below estimates.
- The Consumer Price Index in Germany was reportedly down 0.1% and up 0.9% in month-over-month and year-over-year terms, respectively. Both were below estimates.
- West Texas Intermediate crude rebounded from its lowest close in more than a week after manufacturing expanded at the fastest pace this year in China, the world’s second-biggest oil consumer. Brent’s gains were capped as Libya said one of its ports would reopen.
- Gold fell to the lowest in almost four months in London as stronger equities curbed demand and amid muted physical requirements.
- Copper rose the most in two weeks in London after an official gauge of Chinese manufacturing expanded at the fastest pace in five months, bolstering demand prospects in the world’s biggest consumer of industrial metals.
- Canada’s economic slump in the first quarter gives Bank of Canada Governor Stephen Poloz cause to ignore stronger inflation and keep a neutral bias in this week’s rate announcement. Last week’s GDP report that showed the economy growing at its slowest pace since 2012, with business investment contracting, eliminates any chance Poloz will indicate the central bank is considering any change in its rate outlook.
- For Teck Resources Ltd. CEO, every cent knocked off the value of the CAD is worth $62 million CAD.
- U.S. stock-index futures were little changed, after the benchmark Standard & Poor’s 500 Index rose to a record, as investors awaited data on manufacturing in the world’s biggest economy.
- Boeing Co. is talking to Emirates, the world’s biggest operator of the Airbus A380 superjumbo, about a potential sale of its rival 747-8, in what would be a major boost for a program that’s struggled to gain customers.
- KKR. Co. is closing its equity hedge fund, three years after hiring former Goldman Sachs Group Inc. proprietary trader Bob Howard to run it.
- European stocks climbed to a six-year high as a report showed that Chinese manufacturing expanded at the fastest pace since December.
- Det Norske Oljeselskap ASA, controlled by billionaire Kjell Inge Roekke, will buy Marathon Oil Corp.’s Norwegian business for $2.7 billion in a transformational deal that will boost output 14-fold and settle questions on funding.
- Asian stocks rose after a gauge of China’s manufacturing expanded at the fastest pace in five months and policymakers said they will cut the reserve requirement ratio for some lenders.
- China’s manufacturing expanded at the fastest pace in five months, in a sign the government’s measures to counter an economic slowdown are gaining traction.
- Dai-ichi Life Insurance Co., Japan’s second-largest life insurer, is in talks to buy Protective Life Corp. for about 500 billion yen ($4.9 billion), said people with knowledge of the matter.