March 7th, 2016
Daily Market Commentary
- The Sentix Investor Confidence survey of the Eurozone was quoted at 5.5, below estimates.
- The Leading Economic Index in Japan was quoted at 101.4, slightly below estimates.
- Oil advanced from its highest closing level in two months in New York as U.S. drillers cut the number of active rigs to the least in more than six years amid a global glut.
- China raised its central bank gold reserves by the smallest amount since the nation started disclosing monthly increases last year.
- Copper investors turned bullish for the first time in four months on optimism that a stabilizing global economy will help demand recover.
- Iron ore soared the most ever after Chinese policy makers signaled their willingness to buttress economic growth, boosting the outlook for steel consumption in the top user and igniting speculation that some investors who’d bet against the market had been caught out.
- The Bank of Canada may be forced to throw cold water on a rally in the Canadian dollar that’s threatening to derail the country’s economic growth.
- Canada Pension Plan Investment Board said on website it will back Corus Entertainment bid to buy broadcasting unit at Shaw Communications, the Wall Street Journal says. Backing may be blow to efforts by Catalyst Capital, which is blocking deal, saying Corus is overpaying, paper said.
- U.S. stock-index futures signaled a lower opening for equities, after their best three-week gain since 2014, as investors assessed Chinese growth prospects.
- Seadrill Ltd., the offshore driller struggling with the industry’s biggest debt load, surged by a record for a second straight day as investors covered short bets amid speculation of a lifeline from the company’s main owner, billionaire John Fredriksen.
- Traders questioning the longest run of weekly rallies since October amid signs of a weakening global economy are sending European stocks down before the region’s central-bank meeting this week.
- Asian stocks outside Japan climbed, with the regional gauge heading for the highest close this year. Tokyo shares slipped after capping their best three weeks since 2014.
- Alibaba Group Holding Ltd. and its main financial affiliate will spend HK$2.39 billion ($308 million) buying control of Hong Kong-listed AGTech Holdings Ltd. to boost its lottery business in China.
- Suzuki Motor Corp. plans to sell 200 billion yen ($1.8 billion) of convertible bonds and cancel most of the stock it bought back from Volkswagen AG last year, as the Japanese automaker expands in India following a failed alliance.
- Hong Kong residential home sales plunged 70 percent in February from a year earlier to a 25-year low, as falling prices and economic uncertainty deterred buyers.
*All information is taken from Bloomberg, unless otherwise noted.