November, 15th 2016
Daily Market Commentary
- U.S. stock-index futures eked out gains as investors awaited further indications of Donald Trump’s potential policy actions, after the initial surge that greeted his victory petered out.
- German economic growth slowed to the weakest pace in a year last quarter, a reminder of the fragility of the euro area’s recovery in a time of rising uncertainty.
- U.K. inflation unexpectedly slowed in October, driven down by the price of clothing and university tuition fees, but cost pressures built as the falling pound spurred the biggest jump in import prices in five years.
- Treasuries rose as investors questioned how much extra spending President-elect Donald Trump will be able to implement, halting a selloff that put global bonds on track for their worst month in 13 years.
- Home Depot Inc.’s third-quarter profit topped analysts’ estimates, and the company raised its forecast for earnings this year, signaling confidence that Americans will continue pouring money into their houses.
- Metals: Gold: 1225.24 (+$3.89, +0.32%), Silver: 16.98 (+$0.05, +0.27%); Copper: 2.4780 (-1.74%); Zinc: 1.1596 (-1.96%)
- Energy: Crude: 44.78 (+3.37%); Brent: 45.99 (+3.51%); Nat Gas: 2.79 (+1.42%)
- Gold rose, snapping its biggest three-day decline in more than a year, after the dollar retreated from a nine-month high.
- Oil rebounded from the lowest close in eight weeks as OPEC nations were said to be making a final diplomatic effort toward securing a deal to curb production and stabilize prices.
- Lundin Mining to sell TF Holdings stake to unit of BHR Partners, a Chinese private equity firm, for $1.14b in cash and contingent consideration of up to $51.4m depending on prices of copper and cobalt, according to statement.
- Canadian government-bond yields touched the highest level this year as a global sovereign-debt rout triggered by Donald Trump’s win in last week’s U.S. presidential election intensified.
- Canada’s most populous province still plans to balance next year’s budget even as it cut economic growth forecasts for the next three years. Ontario forecast its deficit this fiscal year will be C$4.3 billion ($3.2 billion), in line with estimates from the February budget, Finance Minister Charles Sousa told lawmakers Monday in Toronto, adding revenue will match expenses in 2017-18 and 2018-19.
- SEC chair announced she will be stepping down at the end of the Obama administration, this comes as a shock as her term was supposed to end in 2019. (CNBC)
- Warren Buffett has purchased shares of 4 airline companies (AAL, UAL, DAL, & LUV). This is noteworthy as he has previously stated in the past that Airlines are a ‘death trap for investors’. (Forbes)
- Odds of Dec. rate hike now have climbed to 90% (Dundee Capital Markets)
- Apple Inc. is weighing an expansion into digital glasses, a risky but potentially lucrative area of wearable computing, according to people familiar with the matter.
- Regency Centers Corp. agreed to buy Equity One Inc. to form one of the largest U.S. shopping-center landlords, with 429 properties across the country.
- Reynolds American Inc., the second-largest cigarette seller in the U.S., is seeking a higher price from British American Tobacco Plc after rejecting a $47 billion buyout offer as too low, according to people familiar with the matter.
- Vodafone Group Plc reported second-quarter sales growth that beat analysts’ estimates as the carrier’s continental European operations performed better than expected, outweighing a 5 billion-euro ($5.4 billion) write-down of its Indian unit.
- Rio Tinto Group, the second-largest iron ore exporter, will suspend mining at one of its Western Australia operations for the first time since the global financial crisis, saying it wants to cut costs even as prices climb this year, while its two biggest local rivals plan to keep on producing.
- Not often you see a stock shoot over 200% in a single day, DryShips Inc. managed to do just that, yesterday afternoon rumors circulated they were in talks to renew credit facility and debt restructuring plans.
*All information is taken from Bloomberg, unless otherwise noted.