Market Update
US tsys trading lower before April Nonfarm payrolls & unemp rate, 10Y 2.56% (+2bps). Core EGBs weaker after Eurozone core inflation rose 0.4% or 1.2% y/y last month, the strongest increase since Oct (0.2% exp, 0.8% y/y in March). Payrolls expected to have risen 190k in April from 196k in March, Initial claims hit record lows during the survey weak which supports a stronger number. Hourly earnings are also forecast to remain near a cycle high 3.3%. US equity futures higher (S&P + 10), tesla up 1.3% pre-mkt on larger than exp capital raise. GOCs weaker in line with tsys, , GOC 5s30s curve 6bps flatter wk/wk, most of the move occurring Wed post FOMC. Provis unch, 10Y Ontario from yest @ 84 was slow, still rumours of Qc 10s or longs.
News headlines
TSX futures edge higher ahead of U.S. jobs data (Reuters) Futures for Canada’s main stock index were higher on Friday, ahead of the closely watched U.S. jobs data.
Stocks Advance, Treasuries Dip Before U.S. Jobs: Markets Wrap (Bloomberg) U.S. equity futures and European stocks gained as bright spots appeared in corporate earnings ahead of the latest American jobs data. Treasuries slipped, while the dollar edged higher.
Strong U.S. job growth expected in April; wages seen moderate (Reuters) U.S. employers likely maintained a strong pace of hiring in April while steadily increasing wages for workers, pointing to solid economic growth and moderate inflation pressures.
Wall Street Weekahead: Record-breaking rally leaving energy stocks behind (Reuters) The stock market surge since the start of the year that has sent the benchmark S&P 500 index up to new record highs is leaving behind one sector that typically outperforms in an expanding economy: energy.
Moore, under fire, withdraws from bid for Fed post (Reuters) Economic commentator Stephen Moore has withdrawn from consideration for a seat on the U.S. Federal Reserve Board after weeks of criticism about his political partisanship, shifting views on interest rate policy, and sexist comments about women.
Gold eyes worst week since end-March ahead of U.S. jobs data (Reuters) Gold was steady on Friday as the market awaited U.S. non-farm payrolls data but was headed for its biggest weekly decline since the end of March, as the dollar gained after the U.S. central bank doused expectations of a near-term rate cut.
U.S. Jobs Report May See Boost From Temporary Hiring for Census (Bloomberg) Temporary federal government hiring for the U.S. Census Bureau’s 2020 count may give nonfarm payrolls a boost starting with the April jobs report due Friday, economists say.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.634% | 2 Year | 2.357% |
| 5 Year | 1.627% | 5 Year | 2.364% |
| 10 Year | 1.782% | 10 Year | 2.559% |
| 30 Year | 2.02% | 30 Year | 2.942% |
US Economic Data
| 08:30 AM | Change in Nonfarm Payrolls, Apr Survey 190k Prior 196k |
| Change in Private Payrolls, Apr Survey 188k Prior 182k | |
| Change in Manufact. Payrolls, Apr Survey 10k Prior -6k | |
| Unemployment Rate, Apr Survey 3.80% Prior 3.80% | |
| Average Hourly Earnings MoM, Apr Survey 0.30% Prior 0.10% | |
| Average Hourly Earnings YoY, Apr Survey 3.30% Prior 3.20% | |
| Average Weekly Hours All Employees, Apr Survey 34.5 Prior 34.5 | |
| Underemployment Rate, Apr Survey — Prior 7.30% | |
| Wholesale Inventories MoM, Mar P Survey 0.20% Prior 0.20% | |
| 09:45 AM | Markit US Services PMI, Apr F Survey 52.9 Prior 52.9 |
| Markit US Composite PMI, Apr F Survey — Prior 52.8 | |
| 10:00 AM | ISM Non-Manufacturing Index, Apr Survey 57.0 Prior 56.1 |
Canadian Economic Data
There is no Canadian economic data for today.
Disclosure and Disclaimer
The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.
Ivan Greenstein, Stephan Buu, Émile Bordeleau
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilieres Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230