November 2nd, 2015

Daily Market Commentary

 

ECONOMIC NEWS

• The RBC Manufacturing PMI for Canada was reported at 48.
• The Markit Manufacturing PMI for the Eurozone was reported at 52.3, slightly above estimates.

Commodities:

• OPEC will probably hold production steady at its meeting next month as the gap between supply and demand for oil closes, according to the analyst who correctly predicted last year’s rout in prices.
• Copper advanced, rising from its lowest level in a month, after a private gauge of China’s manufacturing industry beat estimates in October, countering an official indicator which signalled that manufacturing hadn’t bottomed out.
• Gold declined to a four-week low and investors cut their holdings in bullion-backed funds to the lowest in two weeks as traders gave even odds that the Federal Reserve will raise interest rates in December.

 

Canada:

• Royal Bank of Canada’s $5.4 billion purchase of City National Corp., its largest-ever takeover, is forecast to put the lender on the side-lines for acquisitions and share buybacks until it can rebuild capital to levels that satisfy regulators.

United States:

• U.S. stock-index futures were little changed after improved factory data from Europe and a decline in Chinese output gave mixed signals about the health of the global economy.
• Visa Inc., the world’s largest payments network, agreed to acquire Visa Europe Ltd. in a deal valued at as much as 21.2 billion euros ($23.4 billion) to unify the brand globally after eight years as separate companies.
• Shire Plc, the drug maker that’s made a $30 billion unsolicited offer to buy Baxalta Inc., said it reached an accord with Dyax Corp. to acquire the biotechnology company for at least $5.9 billion in cash to gain a promising treatment for a rare genetic disorder.
• Apple Inc.’s entry into iPhone financing is starting to dislodge some customers from the biggest carriers and sending them shopping for cheaper, smaller providers like T-Mobile US Inc.

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International:

• European stocks advanced as a better-than-expected euro-area manufacturing report outweighed disappointing Chinese output data.
• HSBC Holdings Plc, Europe’s largest lender, offset a drop in third-quarter revenue with lower costs and litigation charges, while saying it needs more time to determine whether to move its headquarters from London.
• Volkswagen AG failed to report at least one death and three injuries involving its vehicles to a U.S. regulator’s database designed to save lives by spotting possible defects.
• Societe Generale SA is seeking to raise as much as 1.75 billion euros ($1.9 billion) from the sale of its 20 percent stake in Amundi Group as part of an initial public offering in Europe’s biggest asset manager.
• China’s factory gauges signaled that manufacturing still hasn’t bottomed out amid faltering global demand and deepening deflationary pressures. The official purchasing managers index was unchanged at 49.8 in October, the National Bureau of Statistics said Sunday. That compared with a median estimate of 50, the line between favorable and unfavorable conditions, in a Bloomberg survey of economists.

*All information is taken from Bloomberg, unless otherwise noted.