September 7th, 2016
Daily Market Commentary
- The Bank of Canada maintained their key interest rate at 0.5%.
- Brent crude rebounded as Iran’s president said he supports efforts to stabilize oil prices after Saudi Arabia and Russia agreed this week to try to revive the market.
- Gold held its biggest daily increase since June and traded near its highest in almost three weeks as the dollar weakened amid diminishing chances of a U.S. interest-rate rise in September.
- Copper rose by the most in almost three weeks, leading a rally in industrial metals after weak U.S. economic data bolstered the case against higher interest rates and hurt the dollar.
- Bank of Canada Governor Stephen Poloz, who releases his latest interest rate decision Wednesday, will highlight recent good news on the economy as evidence his recovery narrative is unfolding as it should.
- Air Canada plans to ease its debt load and push back maturities to cut costs as the airline industry wrestles with overcapacity and weak fares. The airline intends to redeem $700 million of U.S. dollar first- and second-lien bonds maturing in 2019 and 2020, as well as C$300 million ($233 million) of Canadian dollar bonds maturing in 2019.
- U.S. index futures were little changed, with equities near a record, as investors speculated on the direction of Federal Reserve monetary policy after mixed economic reports.
- AT&T Inc. and cable companies led by Comcast Corp. are fighting a U.S. proposal to set terms for licensing new devices that would compete with traditional set-top boxes and let consumers view pay-TV shows.
- European equities held steady before Thursday’s European Central Bank policy meeting. After rebounding almost 14 percent from the June low amid U.S. jobs data and speculation over the next Federal Reserve interest-rate increase, the Stoxx 600 halted gains on Tuesday as a report showed the American services industry expanded at the weakest pace in six years.
- A UBS Group AG unit was found by a federal judge to have violated some contracts with mortgage-backed securities trusts that hold loans, putting it at risk of having to buy back more loans or pay damages in a $2 billion lawsuit.
- Volkswagen AG said it’s assessing the feasibility of an electric car joint venture with China’s Anhui Jianghuai Automobile Co., potentially adding a third partner in its largest market and advancing efforts to meet stricter fuel economy and emissions standards
- Asian stocks rose, with the regional benchmark index trading at a 13-month high, after weak data on the U.S. services industries bolstered speculation that the Federal Reserve will keep interest rates lower for longer. Shares in Tokyo fell as the yen strengthened.
*All information is taken from Bloomberg, unless otherwise noted.