May 12th, 2015
Daily Market Commentary
- The Redbook Index, which measures same-store sales growth in U.S. general merchandising companies, was reportedly flat and up 2.1% in month-over-month and year-over-year terms, respectively.
- The NFIB Business Optimism Index for the U.S. was 96.9, slightly above estimates.
- Industrial production in Great Britain was up 0.5% and 0.7% in month-over-month and year-over-year terms, respectively.
- Oil gained to trade above $60 a barrel amid speculation that U.S. output growth is slowing.
- Gold held below $1,200 an ounce as investors weighed bets on when the Federal Reserve will raise interest rates and on speculation that the Greek government will deliver policies needed to escape a default.
- Nickel dropped a second day as investors await data on industrial production growth in China that slid to a six-year low last month. Copper rose for the first time in three days.
- Encana Corp., Canada’s largest natural gas producer, reported an 98 per cent drop in quarterly operating profit, hurt mainly by a steep drop in oil and natural gas prices.(Globe)
- Air Canada, the country’s largest airline by revenue, reported a smaller net loss in the first quarter, helped by lower fuel costs.(Globe)
- Great-West Lifeco Inc. is looking south of the border and in Europe for new customers. The Winnipeg-based insurer and wealth manager says there are plenty of opportunities to build its business in developed markets such as the U.S. and Britain, where competition is fierce but large players are buying smaller ones to gain scale. (Globe)
- U.S. stock-index futures dropped, signalling a second day of losses for the Standard & Poor’s 500 Index, as stocks followed bonds lower across the world.
- Verizon is buying AOL for about $4.4 billion, or $50 a share, the companies announced Tuesday. The deal is part of Verizon’s new focus on digital and video platforms, as well as its connected device network, which it calls ‘Internet of Things,” the telecommunications company said. (CNN)
- European stocks fell for the first time in four days as euro-area government bonds declined and investors watched developments in Greek bailout talks.
- Carlsberg A/S provided a reminder of the difficulties of being Russia’s biggest brewer right now as it reported a widening first-quarter loss in eastern Europe.
- Statoil ASA, Norway’s biggest oil producer, is establishing a unit for renewable energy solutions as Chief Executive Officer Eldar Saetre shakes up his management team three months after taking over the company.
- Allianz SE, Europe’s biggest insurer, said first-quarter profit from asset management slid 14 percent on outflows from Pacific Investment Management Co.
- Asian stocks fell for the first time in three days as energy shares retreated.
- Toshiba Corp. fell in Tokyo for a second day as the number of analysts suspending coverage reached at least seven in the aftermath of an investigation into improper accounting on projects.
- China Resources Land Ltd. is seeking to raise as much as $1.26 billion in a Hong Kong share sale to fund land acquisitions and developments.
*All information is taken from Bloomberg, unless otherwise noted.