October 19th, 2015
Daily Market Commentary
ECONOMIC NEWS
- Chinese GDP was reportedly up 1.8% and 6.9% in quarter-over-quarter and year-over-year terms, respectively.
- Retail sales in China were up 10.9% in year-over-year terms, above estimates.
Commodities:
- Gold dropped for a third day as signs of a buoyant U.S. economy revived expectations that the Federal Reserve may raise interest rates.
- Expectations for swings in oil prices eased to the lowest in two months after a persisting supply glut checked crude’s advance toward $50 a barrel in New York. OPEC member states should cut crude output to boost prices to a range of $70 to $80 a barrel, Iran’s Oil Minister Bijan Namdar Zanganeh said, even as his country prepares to ramp up production in the aftermath of economic sanctions.
Canada:
- Valeant Pharmaceuticals International Inc., the drug maker that has come under fire for raising the prices of old medications it acquires, reported third-quarter profit that beat analysts’ estimates.
- Ops at Porgera gold mine in Papua New Guinea suspended due to drought conditions, Reuters reports, citing statement from Barrick Gold, which owns part of mine.
- Canadians vote Monday in a tight federal election that polls suggest will bring Justin Trudeau’s Liberal Party to power, ending the decade-long run of Prime Minister Stephen Harper’s Conservatives.
United States:
- U.S. stock-index futures were little changed, paring an earlier drop, as investors awaited earnings from companies including Morgan Stanley and IBM.
- Reliance Industries Ltd.’s shares headed for their biggest gain in more than 19 months after second-quarter profit at the operator of the world’s largest oil refining complex beat analysts’ estimates.
- California is counting on private companies to kick in as much as $35.5 billion toward the most expensive public-works project in U.S. history, a proposed high-speed rail line linking San Francisco with Los Angeles. Banks and other contractors who’ve studied the plan say not so fast.
- Cerberus Capital Management, with partner Morgan Stanley, was selected as the preferred bidder for 11.7 billion pounds ($18 billion) of U.K. mortgages from the failed Northern Rock Plc, according to four people with knowledge of the matter.
International:
- A gain in Deutsche Bank AG and positive earnings reports helped push European stocks higher for a third day.
- Wincor Nixdorf AG jumped the most since its 2004 listing after Diebold Inc. offered 1.57 billion euros ($1.8 billion) to acquire the German company in a bid to create a manufacturer of cash machines and security systems with about $6 billion in sales.
- Danone, the world’s biggest yogurt maker, reported third-quarter sales that beat analysts’ estimates and predicted the ailing European fresh-dairy business will continue to improve next year.
- German retailer Metro AG reported a drop in fourth-quarter sales that was was no worse than analysts’ estimates and pledged to use greater-than-expected proceeds from the sale of department-store chain Galeria Kaufhof for expansion.
- Asian stocks slipped from an almost two-month high as raw-material producers led declines after China reported its slowest quarterly economic growth since 2009.
- China’s largest group-buying platforms, backed by Internet titans Alibaba Group Holding Ltd. and Tencent Holdings Ltd., are seeking to raise between $2 billion and $3 billion in new funds, according to people familiar with the matter.
- Vietnam Dairy Products JSC shares surged to a record in Ho Chi Minh City trading after the country’s biggest company said it’s willing to allow foreign investors to increase their stakes to the maximum level the government will allow.
*All information is taken from Bloomberg, unless otherwise noted.
