October 5th, 2015
Daily Market Commentary
- The Markit PMI Composite for the Eurozone was reported at 53.6, slightly below estimates.
- Retail Sales in the Eurozone were flat and up 2.3% in month-over-month and year-over-year terms, respectively. Both were ahead of expectations.
- Oil rose for a second day in New York after the number of drilling rigs used in the U.S. slumped to a five-year low, signalling that output may slow and pare a global glut.
- Gold held the biggest advance in almost nine months after figures showed that U.S. payrolls rose less than expected and wages stagnated, reducing the possibility of an interest rate increase this year. Palladium climbed to a three-month high.
- Suncor Energy Inc. offered to acquire all outstanding shares of Canadian Oil Sands Ltd. for about C$4.3 billion ($3.3 billion).
- K+S AG investors dumped shares, wiping as much as 1.5 billion euros ($1.7 billion) from its market capitalization, after Potash Corp. of Saskatchewan Inc. withdrew a 7.85 billion-euro proposal to acquire the German fertilizer company.
- U.S. stock-index futures advanced, after equities capped a four-day winning streak, as investors speculated that the worst has been priced into shares.
- The bond market shows traders see only an 8 percent chance the Federal Reserve will raise interest rates at its Oct. 27-28 meeting following weaker-than-expected employment growth.
- American Apparel Inc. filed for bankruptcy protection after posting years of losses as the clothing retailer, which fired controversial founder Dov Charney last year, seeks to reorganize debts that have ballooned to levels exceeding its assets.
- Trian Fund Management LP, the activist firm co-founded by Nelson Peltz, took a $2.5 billion stake in General Electric Co. and called on the company to execute a planned overhaul that includes selling its finance businesses.
- Stocks in Europe joined a rally in commodities and emerging markets on speculation the Federal Reserve will defer raising interest rates amid signs of weakness in the U.S. economy.
- Telenor ASA will sell its 20 billion-krone ($2.4 billion) stake in VimpelCom Ltd., exiting the third-biggest Russian wireless carrier after 16 years to focus on markets such as the Nordic region.
- Glencore Plc climbed in London, following a surge in Hong Kong trading as analysts said the concerns around the commodities company’s solvency are unjustified.
- Air France informed workers that it plans to cut 2,900 jobs and cancel Boeing Co. 787 jetliners to deliver savings blocked by pilots, including the first forced dismissals since the 1990s.
- SoftBank Group Corp.’s bond risk has climbed to a three-year high as founder and chairman Masayoshi Son faces a perfect storm of troubles with its Chinese and U.S. investments and a push by the Japanese government to cut phone rates that threatens earnings at home.
- Chinese stocks in Hong Kong rose to a two-week high as casino operators extended gains on targeted government support.
*All information is taken from Bloomberg, unless otherwise noted.