June 21st, 2016
Daily Market Commentary
ECONOMIC NEWS
- The Redbook Index, which measures same-store sales growth in US general merchandising companies, was reportedly down 0.9% and up 0.9% in month-over-month and year-over-year terms, respectively.
- A ZEW survey of economic sentiment was reported at 20.2, above estimates of 15.3.
Commodities:
- Oil halted gains near $49 a barrel as markets awaited weekly U.S. stockpile data, futures slid as much as 1 percent in New York. U.S. inventories probably fell by 1.5 million barrels last week, keeping them more than 100 million barrels above the five-year average.
- Gold fell for the third time in four days amid simmering anxiety over the outcome of a U.K. referendum on European Union membership, with separate polls showing leads for both sides.
- Copper retreated from a two-week high after data showed exports from China, the world’s biggest user, rising to the highest since 2012, adding to stockpiles in Asia.
Canada:
- Canadian provinces have reached an agreement with the federal government to expand the Canada Pension Plan, adding new payroll taxes to boost benefits while fulfilling a key pledge made by Prime Minister Justin Trudeau in the country’s 2015 election campaign.
- Brookfield Asset Management Inc. is in talks with State Bank of India, the country’s largest lender, about forming a joint venture to invest in stressed Indian assets, people with knowledge of the matter said.
United States:
- U.S. stock-index futures rose, signaling the S&P 500 Index will post back-to-back gains for the first time in almost two weeks, as investors turned their focus to monetary policy.
- Dell Inc. agreed to sell its software unit to buyout firm Francisco Partners Management LLC and the new private equity arm of hedge fund Elliott Management Corp., streamlining the company ahead of its planned merger with EMC Corp.
- Wal-Mart Stores Inc. will acquire a 5 percent stake in Asian e-commerce giant JD.com Inc. in a deal that will reshape the U.S. retail chain’s operations in China.
- KKR & Co., the private equity firm co-founded by Henry Kravisand George Roberts, has raised $739 million for its first European real estate fund.
- Los Angeles is planning the largest note sale in the U.S. municipal market in almost two years, breaking a drought in issuance of the securities as interest rates edge higher and governments benefit from strides in the economy. It will use most of the $1.46 billion to pay its annual pension-fund bills early, which will reduce the cost.
International:
- European stocks were little changed, after their best rally in almost ten months, as polls were split over whether Britons will vote to leave the European Union in Thursday’s referendum.
- German judges reluctantly rejected challenges against one of the European Central Bank’s most powerful tools just two days before a potential Brexit vote could unleash economic turmoil across the euro area.
- Axa SA, France’s largest insurer, plans to increase profitability through 2020 by seeking 2.1 billion euros ($2.4 billion) of cost cuts and growing digital investments to tap rising demand for policies protecting savings and health. The firm may also seek acquisitions to boost growth.
- Asian stocks rose, poised for the biggest three-day rally in two months, as the yen retreated.
- China Development Bank Financial Leasing Co. could set a record with the cornerstone tranche for its Hong Kong initial public offering, which is seeking to raise as much as $978 million.
- Tencent Holdings Ltd. will lead a group buying control of gamemaker Supercell Oy for $8.6 billion, getting its hands on some of the industry’s most popular mobile titles.
*All information is taken from Bloomberg, unless otherwise noted.
