May 18th, 2016
Daily Market Commentary
- Foreign portfolio investment in Canadian securities in March was $17.2B, above estimates of $10B.
- MBA Mortgage Applications in the US were down 1.6% in April.
- The Consumer Price Index in the Eurozone was flat and down 0.2% in month-over-month and year-over-year terms, respectively. Both were in line with estimates.
- Oil held below $50 a barrel in New York and London as global supplies remained adequate despite production cuts in Canada and Nigeria.
- Gold retreated for the first time in four days as prospects for a U.S. interest-rate increase boosted the dollar, hurting the metal’s appeal as an alternative investment.
- Copper slumped to a three-month low as the dollar rallied and weaker equity markets and concern about Chinese growth dented investor sentiment.
- Canadian stocks rose for a second day as commodity producers rallied amid increases in crude oil and gold prices, while gains in Valeant Pharmaceuticals International Inc. helped boost health-care companies.
- Plans to bring back more than 1 million barrels a day of lost production in Canada’s oil sands are being delayed as wildfires sweeping across northern Alberta threaten operations again, prompting Suncor Energy Inc. to evacuate three sites it was restarting.
- U.S. stock-index futures were little changed as investors awaited minutes from the latest Federal Reserve meeting for cues on the trajectory of interest rates, after recent data fueled speculation of a hike as early as June.
- A gauge of the dollar touched a seven-week high, signaling currency traders are warming to hawkish commentary from Federal Reserve officials that have boosted the odds of monetary tightening by September.
- Lowe’s Cos. posted first-quarter profit that topped analysts’ projections and raised its forecast for the year, reinforcing the notion that Americans are still willing to spend on their homes.
- Bank of America Corp. took advantage of Japan’s hunger for anything but negative yields with its first benchmark-sized yen bond sale since the global financial crisis.
- European stocks fell as investors weighed the possibility of the Federal Reserve increasing interest rates sooner than had been expected.
- The Nokia brand is set to return to smartphones two years after the Finnish company sold its handset business amid competition from the iPhone and Android devices.
- The pound fell against the dollar and erased an advance to a more than two-week high versus the euro as the U.K. jobs market showed signs of cooling in the run-up to the referendum on European Union membership.
- Asian stocks fell for the first time this week as U.S. reports bolstered the case for higher interest rates. Japanese shares closed higher after fluctuating as investors assessed the need for future stimulus after economic growth topped estimates.
- Mitsubishi Motors Corp. President Tetsuro Aikawa will step down as the Japanese automaker looks to regroup from its widening fuel economy testing scandal with the backing of Nissan Motor Co.
- Asahi Group Holdings Ltd., the Japanese brewer that’s buying European brands from Anheuser-Busch InBev NV worth $2.9 billion, is now pursuing deals in the U.S. that would help boost distribution of its Super Dry beer in the world’s largest economy.
*All information is taken from Bloomberg, unless otherwise noted.