Market Update
GOC yields unch with the US closed for July 4th, light volume in CGBs (50% daily avg), prices pulling back as German bunds give back some gains after rallying hard, 10Y bund reaching -0.41% below the ECB deposit rate (-0.40%) for the first time. Spain sold E3.5bln in 6, 10 & 30Y debt at all-time low yields, with all three auctions oversubscribed. Nothing on the calendar in Canada today, June employment report tomorrow.
News headlines
Stocks Drift in Thin Holiday Trading; Dollar Dips: Markets Wrap (Bloomberg) European equities were little changed alongside U.S. stock futures following a mixed session in Asia as volumes remained light thanks to Thursday’s American holiday. Gold slipped but stayed above $1,400 and WTI futures fell.
TSX futures track global markets higher (Reuters) Futures for Canada’s main stock index were slightly higher, tracking the broader global rally after weak economic data in the United States boosted hopes of a rate cut by the Federal Reserve this month.
Oil falls as smaller U.S. stockpile drop adds to economic woes (BNN) Oil declined as a smaller-than-expected draw in U.S. inventories added bearish sentiment to a market already reeling from gloomy economic news.
U.S. slaps duties on steel from Asia in trade enforcement action (BNN) The U.S. moved to impose additional duties on steel coming from Asia, expanding a crackdown on what the Trump administration views as unfair trading practices by other countries.
Trump officials say U.S.-China trade talks to resume next week (Reuters) Top representatives of the United States and China are organizing a resumption of talks for next week to try to resolve a year-long trade war between the world’s two largest economies, Trump administration officials said on Wednesday.
China says existing U.S. tariffs must be removed for a trade deal (Reuters) Existing U.S. tariffs will have to be removed if there is to be a trade deal between Beijing and Washington, China’s commerce ministry said on Thursday.
Collapsing bond yields push world stocks to new highs (Reuters) Government bonds held near multi-year lows on Thursday on bets the U.S. Federal Reserve would cut interest rates this month and that other major central banks would embrace looser monetary policy, pushing world stocks to new 18-month highs.
South Korea says may retaliate against Japan high-tech export curbs (Reuters) South Korea said on Thursday it may retaliate against Japan’s latest export limits on high-tech materials, as a row over forced wartime labor threatened to disrupt global supplies of memory chips and smartphones.
Market Overview: US 10yr note futures are up 0.073% at 128-11, S&P 500 futures are up 0.02% at 3000.75, Crude oil futures are down -0.49% at $57.06, Gold futures are down -0.28% at $1416.9, DXY is down -0.04% at 96.731, CAD/USD is up 0.07% at 0.7653.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.495% | 2 Year | 1.76% |
| 5 Year | 1.404% | 5 Year | 1.734% |
| 10 Year | 1.454% | 10 Year | 1.95% |
| 30 Year | 1.652% | 30 Year | 2.467% |
US Economic Data
There is no US economic data for today.
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