May 14, 2014

Daily Market Commentary

 

ECONOMIC NEWS

 

  • MBA Mortgage Applications in the U.S. were reportedly up 3.6%.
  • The Producer Price Index in the U.S. was reportedly up 0.6% and 2.1% in month-over-month and year-over-year terms, respectively.
  • The Producer Price Index except Food and Energy was reportedly up 0.5% and 1.9% in month-over-month and year-over-year terms, respectively.
  • Industrial Production in the Eurozone was reportedly down 0.3% and down 0.1% in month-over-month and year-over-year terms, respectively. 

COMMODITIES

  • West Texas Intermediate advanced for a third day, the longest rising streak in more than three weeks, after an industry report showed crude stockpiles fell at the biggest U.S. oil-storage hub. Brent gained as an ambush of Ukrainian government troops fanned tension with Russia.
  • Palladium climbed to the highest price since August 2011 on concern that supply may be restricted in South Africa, the second-largest producer. Platinum reached a one-month high and gold advanced.
  • The company that runs the London silver fixing, a benchmark dating back more than a century, will stop running the process after Deutsche Bank AG said two weeks ago that it was dropping out of the price-setting ritual.

 

CANADA

  • Petroliam Nasional Bhd., Malaysia’s state oil company, said it’s in discussions with at least three parties to sell a stake in a Canadian gas project. Petronas may sell as much as 12 percent in the proposed liquefied natural gas facility in British Columbia.
  • Magna International Inc. Chief Executive Officer Donald Walker said he hasn’t been asked to end a Russian joint venture amid mounting tension over Ukraine even as an executive from partner Avtotor Holding Ltd. cited pressure from Canada to do so.
  • Encana swung to a first-quarter profit, well ahead of expectations, helped by a surge in liquids volumes and higher gas prices.
  • Sears Holdings Corp., the department-store chain controlled by hedge fund manager Eddie Lampert, said it is exploring options for its interest in Sears Canada, a process that may lead to a sale. A divestment of Sears Holdings’s 51 percent interest or the sale of Sears Canada as a whole are possibilities.

 

UNITED STATES

  • U.S. stock-index futures were little changed after the Standard & Poor’s 500 Index closed at record high for a second consecutive day.
  • Boeing Co. will sell 50 737 aircraft worth at least $3.8 billion to a low-cost carrier being set up by China’s Juneyao Airlines Co., as a loosening of government controls on low-cost travel stokes demand expectations.
  • Deere & Co. posted lower-than-expected sales and reduced its full-year revenue outlook after shipping less machinery while the dollar weakened against other currencies.

 

INTERNATIONAL

  • European stocks fell, after the Stoxx Europe 600 Index climbed yesterday to a six-year high, as investors weighed earnings and equity valuations.
  • Britain’s unemployment rate fell to a five-year low in the first quarter as the economy created work at a record pace, evidence the recovery is sustaining momentum.
  • OAO Gazprom’s 24 percent rally from this year’s low in March will probably end soon as the crisis in Ukraine threatens to disrupt the Russian gas producer’s exports, according to Sberbank Asset Management.
  • Japan’s Topix index rose a second day, with the gauge closing at a five-week high, as investors assessed corporate earnings and developers advanced.
  • China’s stocks fell for a second day as losses for consumer-staple producers and coal companies overshadowed gains for property developers.
  • Tencent Holdings Ltd., Asia’s largest Internet company, posted first-quarter profit that beat analyst estimates on surging revenue from online games and advertising through its messaging services WeChat and QQ.
  • Sony Corp. unexpectedly forecast an annual loss, the sixth in seven years, casting further doubt on Chief Executive Officer Kazuo Hirai’s ability to revive the company.
  • Japan’s three biggest banks led by Mizuho Financial Group Inc. forecast profit will decline this year as lower returns from stock investments overshadow higher loan volumes.