May 30, 2014

Daily Market Commentary

 

ECONOMIC NEWS

• Annualized GDP for Canada was reportedly up 1.2% in quarter-over-quarter terms, below estimates of 1.8%.
• Month-over-month GDP in Canada was reported at 0.1%, in line with estimates.
• The Industrial Product Price index in Canada was down 0.2% in month-over-month terms.
• The Raw Material Price Index in Canada was reported at 0.1%, below estimates of 0.4%.
• Personal income in the U.S. was reportedly up 0.3% month-over-month, in line with estimates.
• Personal Consumption Expenditures in the U.S. were reportedly up 0.2% and 1.6% in month-over-month and year-over-year terms, respectively.
• Personal Spending in the U.S. was reportedly down 0.1% in April.

Commodities:

• West Texas Intermediate headed for its first monthly advance since February as crude inventories shrank at the delivery point for New York contracts. Brent was steady in London, poised for a second monthly gain amid separatist violence in Ukraine.
• Gold traded near a 16-week low and headed for a monthly loss as signs of an improving U.S. economy and easing of tension in Ukraine curbed demand for a haven. Palladium was set for a fourth monthly advance.
• Copper fell for a second day, paring the first monthly gain this year after the U.S. economy contracted more than estimated, dimming demand prospects from the second-biggest user.

Company News:

 

Canada:

• Canadian banks reinforced their appeal to investors seeking higher yields amid persistent low interest rates as three of the country’s largest lenders raised quarterly dividends. Canada’s six biggest banks boast 12-month dividend yields of 3.5 percent to 4.2 percent, higher than any U.S. bank with a market value of at least $10 billion and more than many European lenders of similar size.
• Total SA will cut 150 jobs at its Joslyn oil-sands mine in Canada and delay a final investment decision as costs escalate and the company and partner Suncor Energy Inc. look for ways to make the project more profitable.

United States:

• U.S. stock-index futures were little changed, after the benchmark Standard & Poor’s 500 Index rose to a record, as investors awaited data on consumer confidence and household purchases.
• Lions Gate Entertainment Corp., the studio behind “The Hunger Games” movies, slumped in extended trading after reporting quarterly results that missed analysts’ estimates as sales declined.
• Former Microsoft Corp. Chief Executive Officer Steve Ballmer bought the Los Angeles Clippers for a record $2 billion as the wife of Donald Sterling pushed through the sale without gaining the approval of the embattled owner.

International:

• European stocks were little changed, with the Stoxx Europe 600 Index heading for a seventh weekly advance, as investors awaited data on U.S. business activity.
• U.K. house prices rose for a 16^th month and consumer confidence increased to a nine-year high on an improving outlook for the economy.
• BNP Paribas SA fell the most in 15 months in Paris trading after a person familiar with the matter said U.S. authorities are seeking more than $10 billion to settle federal and state investigations into dealings with sanctioned countries including Sudan and Iran.
• Volkswagen AG, Europe’s largest automaker, is preparing to bring new and updated models from its namesake brand to the U.S. on a shorter timeframe to meet American demands for revamped products more quickly. The VW marque will introduce new products every five years, with major refreshes after three years.
• Most Asian stocks declined, with the regional benchmark index paring its biggest monthly advance since September, as material producers dropped.
• Japan’s industrial production and household spending fell more than forecast and inflation surged to a 23-year high on a tax rise that is pinching consumers who have seen limited wage gains.
• India’s economy grew less than 5% for the eight straight quarter, adding pressure on Prime Minister Narendra Modi to spur investment after winning the strongest electoral mandate in 30 years.