March 16th, 2017
Daily Market Commentary
- Foreign Investment in Canadian Portfolios in January was $6.2B, far below estimates.
- Housing Starts in the US were up 1.29M, above estimates.
- Initial Jobless Claims int he US were quoted at 241K, above estimates
- The Bank of England held their key interest rate steady, as well as their Asset Purchase Facility, with only one individual voting to hike.
- The Consumer Price Index in the EU was up 0.4% and 2% in month-over-month and year-over-year terms, respectively. Both were in line with estimates.
- The Bank of Japan also held their key interest rate steady at -0.1%
- Canada Goose Holdings Inc., the maker of $900 parkas, raised C$340 million ($256 million) in its initial public offering, pricing the shares above the marketed range. The Toronto-based retailer and existing shareholders sold 20 million shares for C$17 each, according to a statement Wednesday, after offering them for C$14 to C$16 apiece. At the IPO price, the company has a market value of about C$1.82 billion.
- The turnaround of Yellow Pages Ltd. in Canada is showing signs of fizzling. Less than five years after its restructuring, and in the middle of a high-yield bond surge, the company’s debt is the worst-performing among peers as it struggles to transition from a phone book distributor to a digital advertising platform.
- U.S. equity-index futures pointed to a higher open amid a global rally after the Federal Reserve raised interest rates without accelerating the timeline for future tightening.
- President Donald Trump wants to slash the State Department’s budget and international programs, with deep cuts to causes including combating climate change and supporting United Nations peacekeeping. The budget outline released Thursday for the year that begins Oct. 1 requests $27.1 billion for international programs, including the State Department and the U.S. Agency for International Development. It would be a 28.5 percent reduction from fiscal 2016.
- Element Capital Management, the firm run by Jeffrey Talpins, raised $2 billion in two weeks as investors show growing interest in hedge funds that focus on macroeconomic events. The new money brings the firm’s assets under management to $12 billion, according to a person with knowledge of the matter. Element reopened its macro fund to investors on March 1 and turned away additional requests after reaching its target by March 15.
- European stocks rose after the Federal Reserve raised interest rates without speeding up its timeline of further hikes, while election results in the Netherlands spurred investor relief over the defeat of its populist party.
- Vodafone Group Plc is nearing an initial agreement to merge its Indian operations with Idea Cellular Ltd. in a deal that would create the largest telecom company in one of the world’s most competitive markets, people with knowledge of the matter said.
- Chinese stocks in Hong Kong rose the most in more than nine months as the Federal Reserve signaled it’s in no hurry to accelerate the pace of interest-rate increases and a rally by oil boosted energy producers. The Hang Seng China Enterprises Index climbed 2.5 percent, the most since May 25, at the close.
*All sources from Bloomberg unless otherwise specified