November, 22nd 2016
Daily Market Commentary
- The Euro was on a record losing streak last week with 10th straight days of losses, something that has never happened before according to the Financial Times.
- Global funds sold about $11 billion of equities and bonds in Asia’s emerging markets after Donald Trump’s victory in the U.S. presidential election as expectations for his economic policies sent Treasury yields higher and sparked the dollar’s strongest rally in eight years.
- Metals: Gold: 1217.15 (+$2.92, +0.24%), Silver: 16.77 (+$0.18, +1.09%); Copper: 2.5615 (+1.33%); Zinc: 1.1868 (+1.38%)
- Energy: Crude: 48.19 (-0.10%); Brent: 49.13 (+0.47%); Nat Gas: 2.94 (-0.41%)
- Crude oil rising prior to Nov. 30th OPEC meeting in Vienna where they plan to build consensus for a production cut (CNN)
- Oil bets are biggest in 9 years amid OPEC & Trump volatility, crude oil climbs to near $50 range
- Copper is one fire, as the metal has gained more than 20% over this past month (Business Insider)
- Canadian stocks advanced for a third day to their highest level in 17 months as natural resources producers rallied with oil on continued optimism of an OPEC production cut and gold rebounded from the lowest level in five months.
- Davis Henderson Corp. intends to slash its dividend by 62.5% amid ‘strategic transformation’ (BNN)
- McDonalds & West Jet announce partnership that will see McCafe brewed coffee served on the air carrier’s flights. (Financial Post)
- The Liberal government is set to announce its plan to virtually eliminate the use of traditional coal-fired electricity by 2030.(Globe & Mail)
- Canadians reported the weakest job security in more than two years, keeping the total measure of consumer confidence at a seven-month low, weekly telephone polling shows.
- U.S. stock-index futures signaled further gains for the four major benchmarks, after they rose to simultaneous records for the first time since 1999.
- According to bond market, chances of a rate hike in Dec. are now at 100% (Bloomberg)
- Symantec to buy LifeLock for $2.3 billion to add ID security
- Facebook to buy back $6 billion worth of shares for the first time
- Trump announced his plans for his first 100 days in office yesterday. Promising to withdraw from negotiations on the Trans-Pacific Partnership deal, as well as cancel environmental restrictions put in place by the Obama administration.
- Bank of America Corp. and Bain Capital’s credit investment arm are considering bids for about 1 billion euros ($1.06 billion) of non-performing assets from Banco Popular Espanol SA as the Spanish lender accelerates efforts to clean up its balance sheet.
- About 250 pilots employed by a subsidiary of Air Transport Services Group Inc. went on strike to protest alleged staffing shortages at the cargo carrier, threatening to ground flights for Amazon.com Inc. and DHL Worldwide Express during the busy holiday shopping season.
- The European Union is preparing to introduce a new class of senior bank debt designed to absorb losses when a firm fails. The plan is part of efforts to end taxpayer bailouts by ensuring that banks can be salvaged or shuttered without recourse to public funds.
- Venezuela’s state owned oil company just missed a bond payment (Business Insider)
- When Credit Suisse AG pleaded guilty in 2014 to helping Americans cheat on their taxes, it promised to help the U.S. root out suspicious accounts. Now, U.S. investigators want to know why the Swiss bank neglected to tell them about $200 million in undeclared assets owned by an American client.
- Novartis AG is weighing the sale of its Ritalin, Clozaril and Exelon drugs as the Swiss giant cuts back on treatments for the central nervous system in favor of generics and other products
- Switzerland risks becoming dependent on electricity imports as its citizens prepare for a plebiscite on whether to hasten its exit from nuclear power. The nation faces losing a third of domestic supplies and becoming a net buyer of power if it opts to start closing its five nuclear plants as early as next year. The Swiss will vote on Sunday and the anti-nuclear proposal has a slender lead in opinion polls.
- Deutsche Lufthansa AG canceled 64 flights at its Eurowings division due to a strike by cabin crew as the German carrier braces for more severe disruption on Wednesday when its mainline pilots plan to walk out.
*All information is taken from Bloomberg, unless otherwise noted.