October, 18th 2016
Daily Market Commentary
- China’s yuan erased early gains to trade near a six-year low amid concern that a potential Federal Reserve interest-rate increase will pressure the currency lower.
- The pound advanced versus the dollar, halting a two-day decline, as a report showed annual consumer prices rose last month at the fastest pace in almost two years.
- Metals: Gold: 1262.24 (+$6.39, +0.51%), Silver: 17.65 (+$0.18, +1.03%); Copper: 2.1110 (+0.19%); Zinc: 1.0469 (+1.49%)
- Energy: Crude: 50.43 (+0.98%); Brent: 52.00 (+0.93%); Nat Gas: 3.28 (+1.23%)
- Oil shrugged off data forecast to show U.S. stockpiles gained a second week, edging back above the $50 level where prices have hovered since rallying on OPEC’s decision to cut output last month.
- Industrial metals rebounded from the lowest in almost four weeks as a surge in new credit in China pointed to a stabilizing economy in the world’s biggest commodities buyer.
- The Bank of Canada will probably officially pare back its economic outlook at an interest-rate decision Wednesday and say lingering damage from an oil slump is weighing on exports. Governor Stephen Poloz may cut his current forecast of 2.2 percent growth for 2017, now above the consensus of 1.9 percent, and some analysts say he will push back his prediction for the economy to reach full output next year.
- With policy makers in the U.S. pivoting toward an interest-rate increase while the Bank of Canada looks poised on hold, the loonie reached a six-month low as the gap between Treasuries and Canadian bonds has widened. For the first time since 2008, the yield differential has overpowered the currency’s historical link to crude oil.
- Valeant Pharmaceuticals International Inc. is ending its relationship with a mail-order pharmacy helped sell one of several older drugs it has acquired and raised prices on.
- William Hill Plc and PokerStars owner Amaya Inc. of Canada ended merger discussions, squelching one of the biggest possible deals in the betting industry after U.K. activist investor Parvus Asset Management opposed the union.
- U.S. stock-index futures advanced amid investor speculation that the world’s biggest economy is strong enough to cope with the slow pace of stimulus tightening indicated by policy makers.
- Netflix Inc. surged more than 20 percent after reporting its streaming service signed up 3.57 million subscribers in the third quarter.
- BlackRock Inc., the world’s largest money manager, said third-quarter profit rose 3.8 percent as assets under management increased. Net income increased to $875 million, or $5.26 a share, from $843 million, or $5, a year earlier, according to a statement Tuesday.
- Johnson & Johnson’s third-quarter profit topped analysts’ estimates as blockbuster drugs such as arthritis treatment Remicade boosted pharmaceuticals sales. The world’s biggest maker of health-care products also raised its full-year earnings forecasts.
- Disney said to have dropped Twitter pursuit partly over image
- Visa CEO Scharf resigns, replaced by Ex-AmEx President Kelly
- Pacific Investment Management Co., which runs the world’s biggest actively-managed bond fund, is shifting to investment grade from high-yielding dollar assets in Asia, expecting a period of global uncertainty.
- Online travel search company Skyscanner Ltd. has begun exploring strategic options, including a possible sale of the company or an initial public offering ($1.2 billion).
- Volkswagen AG is asking for a final sign-off on its $14.7 billion settlement with drivers as it continues to seek regulators’ approval of a fix for 482,000 pollution-spewing vehicles still on U.S. roads.
- Italian toll-road operator Autostrade per L’Italia SpA is valued at about 15 billion euros ($16.5 billion) as owner Atlantia SpA, the infrastructure company controlled by the Benetton family, prepares to sell a minority stake.
- The U.K. is targeting a 2.9 billion-pound ($3.5 billion) boost to food exports over the next five years, fueled by demand for British booze from Mexico to Australia.
- Tabcorp Holdings Ltd. plans to offer at least a 10 percent premium to Tatts Group Ltd. investors, as it makes another attempt at a combination of the two Australian betting companies.
- China’s two-week money-market rate climbed the most in almost two years as the central bank drained funds from the financial system and a weakening yuan reduced the possibility of monetary easing.
*All information is taken from Bloomberg, unless otherwise noted.