October, 19th 2016
Daily Market Commentary
- European stocks retreated after their biggest gain in a month, with earnings reports taking a back seat as investors await tomorrow’s European Central Bank meeting for possible updates on the direction of monetary policy.
- Metals: Gold: 1269.92 (+$7.42, +0.59%), Silver: 17.72 (+$0.10, +0.57%); Copper: 2.1005 (-0.24%); Zinc: 1.0320 (-0.42%)
- Energy: Crude: 50.98 (+1.37%); Brent: 52.33 (+1.26%); Nat Gas: 3.21 (-1.65%)
- Gold held a two-day gain as the dollar weakened amid speculation the Federal Reserve will stick to a gradual tightening of monetary policy and as investors digested economic data from China.
- Oil advanced a second day after weekly industry data showed U.S. crude stockpiles declined and Saudi Arabia reiterated its confidence that major producers will cooperate to trim supply.
- The Democratic Republic of Congo has turned to international courts to force Freeport-McMoRan Inc. and Lundin Mining Corp. to restructure terms of any exit from one of the country’s biggest mines.
- The Bank of Canada is projected to keep its benchmark interest rate unchanged at 0.5 percent after a policy meeting Wednesday. With the Federal Reserve pivoting toward an interest-rate increase, there’s a stronger case for more Canadian dollar weakness as the yield gap between Treasuries and Canadian bonds is set to widen.
- D-Wave Systems Inc. has sold its quantum computers to Google and U.S. defense contractor Lockheed Martin Corp. It has now begun selling a new, more-powerful machine.
- The dollar fell for a third day against its peers after a core U.S. inflation gauge rose less than forecast in September, suggesting the pace of interest-rate increases by the Federal Reserve will be gradual.
- Morgan Stanley reported 3rd Quarter results, beating estimates
- According to latest Bloomberg Politics national poll, Democrat Hilary Clinton leads Trump by 9 percentage points
- Staples Inc., struggling to sell office supplies in an increasingly digital world, is embarking on a new strategy to license its name and get more revenue from business services.
- The Obama administration unveiled sweeping new consumer protections for airline passengers Tuesday that would give travelers refunds when bags arrive late, require carriers to release more information about tardy flights and make purchasing tickets more transparent.
- Google hits all time high ($801) on Tuesday following positive reviews for its first smartphone, The Pixel. Reports Quarterly results Oct. 27 (Business Insider)
- Starbucks is planning a major push into China’s market, as it plans to more than double its presence in the country to 5,000 stores by 2021 (Business Insider)
- Saudi Arabia is planning to raise as much as $17.5 billion in the biggest bond sale ever from an emerging-market nation.
- The pound rose for a second day as a report showed the U.K.’s jobless rate held at an 11-year low, highlighting the resilience of the economy following Britain’s vote to exit the European Union.
- International equity investors are giving up on Japan. After dumping their Tokyo stock holdings for four of the past five months, foreigners are on track for their biggest annual exodus since 1987.
- China Life Insurance Co. invests $2 billion in U.S. Starwood Capital Hotels
- China’s economic growth remained stable in the third quarter, all but ensuring the government’s full-year growth target is met and opening a window for policy makers to deliver on vows to rein in excessive credit and surging property prices. Gross domestic product rose 6.7 percent in the third quarter from a year earlier.
- State Grid Corp. of China, the world’s largest utility, has asked lenders to submit proposals for a loan of about $9 billion to help finance its purchase of a stake in Brazil’s CPFL Energia SA.
- Japan’s three largest lenders are selling a record amount of yen bonds to boost capital buffers, after the Bank of Japan’s negative interest-rate policy slashed more than a third off the cost of issuing the debt since last year.
- Essar Global, the holding company of India’s billionaire Ruia brothers, plans to repay about $2.1 billion owed to Standard Chartered Plc after agreeing to sell control of its refinery business.
- Alibaba Group Holding Ltd.’s affiliate Koubei is seeking to raise $1 billion of funding as it steps up its battle with China’s other web giants for neighborhood services, according to people familiar with the matter. The company is seeking a valuation of $8 billion in the fundraising, which will help it expand into more cities and add users
*All information is taken from Bloomberg, unless otherwise noted.