Market Update

Tsys trading firmer, 10Y 2.75% (-0.5bps), modest volume in TY futures (275k).   Equity futures higher on trade optimism, S&P +0.70%. data calendar thin with only Dec Const Spending. China and US close to trade pact that could lift all US tariffs in return for China promises to increase US imports, deal with intellectual property rights. Trump went after Fed Powell again for his hawkish stance, also noting the USD was too strong. GOCs off the lows , in line with tsys, 10Y 1.93%. 407 in the mkt with $800mln long tens (2030) & longs.

News headlines

Stocks, U.S. Futures Climb on Trade-Deal Optimism: Markets Wrap (Bloomberg) Stocks advanced globally alongside U.S. equity futures after the U.S. and China were said to close in on a trade deal that may end American tariffs in return for Chinese concessions. The dollar edged higher with Treasuries, while commodities were mixed.

CANADA STOCKS-TSX futures up on trade deal optimism (Reuters) Futures pointed to a higher opening for Canada’s main stock index on Monday on growing hopes that the United States and China will likely agree on a deal to end their eight-month-long trade war and eliminate tariffs levied against each other.

U.S., China said near deal that could end most U.S. tariffs (BNN) The U.S. and China are close to a trade deal that could lift most or all U.S. tariffs as long as Beijing follows through on pledges ranging from better protecting intellectual-property rights to buying a significant amount of American products, two people familiar with the discussions said.

Brexit bribe? UK PM May unveils $2.1 billion fund for Brexit-backing towns (Reuters) British Prime Minister Theresa May will on Monday set out plans for a 1.6 billion pound ($2.11 billion) fund to help to boost economic growth in Brexit-supporting communities with ministers denying it was a bribe to win support for her EU exit deal.

Oil Rises as U.S. China Trade Deal Nears While Supply Tightens (Bloomberg) Oil climbed as the U.S. and China were said to near a deal on trade that would underpin the outlook for crude demand, while supplies around the world showed signs of tightening.

Huawei CFO suing Canada over December arrest (Reuters) The lawyers for Huawei Chief Financial Officer Meng Wanzhou are suing the Canadian government, its border agency and federal police, alleging their client was detained, searched and interrogated for three hours in violation of her constitutional rights.

FOREX-Long dollar bets thrive in low volatility (Reuters) The dollar consolidated gains on Monday after posting its biggest monthly rise in four months, as low volatility prompted investors to buy the currency, particularly against the yen.

Overnight markets

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.76% 2 Year 2.561%
5 Year 1.798% 5 Year 2.558%
10 Year 1.928% 10 Year 2.751%
30 Year 2.196% 30 Year 3.117%

US Economic Data

10:00 AM Construction Spending MoM, Dec Surv 0.1% Prior 0.8%

Canadian Economic Data

8:30 AM MLI Leading Indicator MoM, Jan Prior -0.3%
10:00 AM Bloomberg Nanos Confidence, Mar 1 Prior 54.4

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