June 6th, 2016
Daily Market Commentary
- Investor confidence in the EU was reported at 9.9, above estimates.
- Factory orders in Germany were down 2% in month-over-month estimates, worse than estimates.
- Oil advanced as Abu Dhabi forecast prices could climb as high as $60 a barrel amid a glut that’s dwindling more quickly than projected.
- Gold held below an almost two-week high as traders awaited a speech from Federal Reserve Chair Janet Yellen after U.S. jobs data dashed speculation that interest rates would increase soon.
- Iron ore futures in China climbed the most since trading started in 2013 as rebar stockpiles continued to shrink, signaling the surge in steel production to a record may have further to run to satisfy demand.
- Canada’s re-introduction of three-year bonds this year should be welcome news to the country’s tight short-term loan market. The Bank of Canada announced plans on Thursday to issue C$20 billion to C$32 billion of the new three-year debt, split between maturities in March and September.
- Bank of Canada Governor Stephen Poloz also said after a speech in Ottawa more than half the lost output growth from the Alberta fires could be restored in the third quarter. On the U.S., which buys three-quarters of Canada’s exports, Poloz said Friday’s data showing the slowest job growth in almost six years wasn’t a conclusive sign.
- U.S. index futures were little changed, after a rally in the S&P 500 lost momentum last week following a disappointing jobs report.
- A gauge of the dollar rose, recovering some of what was its biggest loss since February on Friday, when weaker-than-forecast payrolls data doused speculation the Federal Reserve will raise interest rates in the coming months.
- New Balance Athletic Shoe Inc. is close to winning an almost decade-long marathon: A buy-American provision in the massive defense policy bill the Senate will debate this week could force the Pentagon to purchase the company’s sneakers for new military recruits.
- European stocks were little changed after their first weekly drop in a month as miners surged, while investors speculated on the trajectory of U.S. interest rates and the implications of the latest Brexit polls.
- The pound dropped to a three-week low after polls showed more Britons favored quitting the European Union, reviving concern the June 23 referendum will throw global markets into turmoil and undermine confidence in the 28-nation trading bloc.
- Burberry Group Plc’s embattled chief Christopher Bailey took a 75 percent pay cut last year as the U.K.’s largest luxury-goods maker struggled for growth.
- Asian stocks rose as emerging markets rallied after a weaker U.S. employment report spurred speculation the Federal Reserve will delay raising interest rates, while Japan shares pared early declines.
- Tencent Holdings Ltd., Asia’s biggest Internet company, is increasing the size of a syndicated loan to $4.4 billion, people familiar with the matter said.
- Japan’s Line Corp. is headed for what could be the biggest initial public offering for a technology company this year, including a major pitch to American investors. The company behind one of Asia’s most popular messaging apps plans to go public in Tokyo and New York in mid-to-late July, with a goal of raising between $1 billion and $2 billion at a valuation of $5 billion to $6 billion
*All information is taken from Bloomberg, unless otherwise noted.