Oil Catches Fire After Surprise Inventory Drawdown
Matthew Weller | Dec 05, 2019 12:45AM ET
- The Bank of Canada kept interest rates unchanged as expected, though Governor Poloz and company did offer a relatively upbeat assessment of the economy, boosting the loonie.
- US data: The ADP Employment report (Nov) came in light at just 67k new jobs vs. 135k eyed. The disappointment was slightly offset by an improvement in the employment component of the ISM Services PMI report, which came in at 55.5 vs. 53.7 last month (though the headline reading missed expectations as well at 53.9 vs. 54.5 expected).
- FX: The British pound was the strongest major currency on growing optimism that the Conservatives will be able to secure a majority at the election in less than two weeks’ time. The Canadian dollar was also strong, boosted by the big surge in oil prices. The safe-haven Japanese yen and Swiss franc were the day’s weakest major currencies.
- Commodities: Oil prices rocketed 4% higher after a massive drawdown in crude inventories. Gold edged lower in quiet trade.
- US indices closed higher on the day to erase most of yesterday’s losses.
- Energy (NYSE:XLE) was the strongest major sector on the day; Materials (XLB) brought up the rear.
Stocks On The Move
- Alphabet (NASDAQ:GOOGL) (GOOG) rose 2% as investors digested the news that CEO Larry Page would be stepping down.
- Troubled energy firm Chesapeake Energy (NYSE:CHK) surged 17% after securing a loan facility to shore up operations.
- Salesforce.com (NYSE:CRM) dipped -3% after offering a disappointing go-forward outlook in its earnings call.
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