March 31st, 2015

Daily Market Commentary

 

ECONOMIC NEWS

• Canadian GDP was reportedly down 0.1% in month-over-month terms, slightly above estimates.
• The Redbook Index, which measures same-store sales growth of general merchandisers in the U.S., was reportedly up 1.2% and 3% in month-over-month and year-over-year terms, respectively.
• The S&P/Case-Shiller Home Price Indices were reportedly up 4.6%, above estimates of 4.5%.

Commodities:

• Gold dropped to a one-week low as the dollar headed for the longest run of monthly gains in a decade and investors weighed U.S. economic data for clues on when the Federal Reserve may raise borrowing costs.
• Iron ore is headed for the biggest quarterly loss since at least 2009 as surging low-cost supplies from Australia and Brazil swamp the global market, spurring a glut as demand from China slows.
• Oil headed for a third quarterly loss as Iranian and Western diplomats worked toward a nuclear deal that may lead to the OPEC member increasing crude exports.

Canada:

• The Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure said they will buy a stake of at least 30 per cent in Associated British Ports (ABP) for about 1.6 billion pounds ($2.36-billion). (Globe)
• Canada’s Eldorado Gold Corp., the biggest foreign investor in Greece, is engaged in a tax-avoidance scheme that uses mailbox companies in the Netherlands to lower its tax load, a new report from a Dutch foundation says. (Globe)
• Teck Resources Ltd. and Antofagasta Plc have explored a merger that would create one of the world’s largest copper producers, people with knowledge of the matter said.

United States

• U.S. stock-index futures fell, signalling the Standard & Poor’s 500 Index will pare its ninth straight quarterly advance.
• U.S. airline shares are off to their worst start since 2011 amid concern that carriers are offering too many seats, chipping away at one of the industry’s most closely watched measures of sales.

International:

• European shares pared their biggest first-quarter increase since 1998.
• Greek Prime Minister Alexis Tsipras sought to rally a consensus in parliament for his effort to secure bailout funds after his proposals to bolster the nation’s finances failed to satisfy his European creditors.
• German unemployment dropped to a record low as the labour market continued to underpin the country’s position as Europe’s economic powerhouse.
• Royal Philips NV agreed to sell a majority stake in its Lumileds lighting components unit to a group of investors as Chief Executive Officer Frans van Houten focuses the Dutch company on the consumer health-care market.
• Asia stocks fell, with the regional benchmark trimming its strongest quarterly gain in 18 months, as industrial companies led declines. China shares retreated after surging yesterday to a seven-year high.
• China said an insurance system for bank deposits will start on May 1, a step toward scrapping remaining controls on interest rates and allowing lenders to fail in a more market-driven economy.
• Samsung Electronics Co., struggling to retain its place as the world’s largest smartphone maker, just had an $11 billion month. That’s how much the South Korean company has added in market value since the March 1 introduction of its Galaxy S6 and S6 Edge, the smartphones that will compete against Apple Inc.’s new iPhones.

*All information is taken from Bloomberg, unless otherwise noted.