Market Update

US tsys higher on above avg volume (380k TY), 10Y 1.58% (-2bps), one month low.  US equity futures under pressure since Europe, erasing gains with S&P +2 vs +12 earlier.  Core Euro bonds also higher, gilt yields 2-3bps lower after a weak Sep Services PMI (below 50) and news the EU views Boris Johnson’s newest proposals as ‘problematic’ . In the US a number of Fed speakers due as well as ISM non-manufacturing, Factory Orders & Durable Goods. In Canada, GOCs higher in line with tsys the CAD slightly weaker after falling the most in six months yesterday on surprise build in crude inventories, the most since May.

News headlines

U.S. Futures Erase Advance as Services Data Looms: Markets Wrap (Bloomberg) U.S. equity futures erased a gain on Thursday and European stocks edged lower as investors looked ahead to key data on the health of the world’s biggest economy. Shares fell across most of Asia, while government bonds advanced.

TSX futures slip as global growth concerns weigh on oil (Reuters) Futures for Canada’s main stock index edged lower on Thursday as oil prices slipped, pressured by concerns about global economic growth.

Oil Near Two-Month Low on Swelling U.S. Stockpiles, Demand Woes (Bloomberg) Oil held near the lowest level in almost two months as American crude inventories expanded the most since May and disappointing U.S. economic data added to pessimism over the demand outlook.

U.S. to slap tariffs on European planes, whiskey after WTO ruling (BNN) The price of Scotch, French wine, cheese and other European exports is about to go up in the U.S. after the Trump administration announced new tariffs on billions of dollars of EU products starting Oct. 18.

Yes whey! U.S. touts dairy product to Chinese hog farmers fighting swine fever (Reuters) When Beijing announced it was exempting 16 U.S. goods from retaliatory tariffs, Chinese firms hurried to call Proliant Dairy Ingredients in the heart of American farm country.

Fed still has ‘reasonable amount of independence’: Evans (Reuters) The U.S. Federal Reserve continues to enjoy “a reasonable amount of independence” and is focused on its mandate despite criticism of its policy moves by U.S. President Donald Trump, Chicago Federal Reserve Bank President Charles Evans said on Thursday.

India protectionist, but U.S. negotiating limited trade deal: Ross (Reuters) India is among the world’s most protectionist countries but the United States is trying to negotiate a limited trade deal with the South Asian nation to resolve their differences, U.S. Secretary of Commerce Wilbur Ross said on Thursday.

U.S. skies still bright for Main Street banks even as Wall Street frets (Reuters) The view from Wall Street may be all trade wars, tariffs and uncertainty these days, but ask a Main Street banker and things are pretty darn good.

Market Overview: US 10yr note futures are up 0.083% at 131-08, S&P 500 futures are up 0.06% at 2882.25, Crude oil futures are down -0.3% at $52.48, Gold futures are up 0.03% at $1508.3, DXY is down -0.01% at 99.012, CAD/USD is up 0.05% at 0.7499.

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.472% 2 Year 1.468%
5 Year 1.305% 5 Year 1.417%
10 Year 1.284% 10 Year 1.579%
30 Year 1.468% 30 Year 2.064%

US Economic Data

07:30 AM Challenger Job Cuts YoY, Sep  Survey: —  Actual: -24.80% Prior: 39.00%
08:30 AM Initial Jobless Claims, Sep 28  Survey: 215k  Prior: 213k
        Continuing Claims, Sep 21 Survey: 1654k  Prior: 1650k
09:45 AM Bloomberg Consumer Comfort, Sep 29  Survey: —  Prior: 61.7
        Markit US Services PMI, Sep F Survey: 50.9 Prior: 50.9
        Markit US Composite PMI, Sep F  Survey: —  Prior: 51.0
10:00 AM ISM Non-Manufacturing Index, Sep  Survey: 55.0  Prior: 56.4
        Factory Orders, Aug  Survey: -0.20%  Prior: 1.40%
        Durable Goods Orders, Aug F  Survey: —  Prior: 0.20%
        Durables Ex Transportation, Aug F  Survey: —  Prior: 0.50%
        Cap Goods Orders Nondef Ex Air, Aug F  Survey: —  Prior: -0.20%
        Cap Goods Ship Nondef Ex Air, Aug F  Survey: —  Prior: 0.40%

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