Market Update
Tsys lower on below avg volume (<300k TY), 10Y 1.745% (+3.5bps), with equity futures higher (S&P +14), crude extending Friday’s rally, up another 1.0% to 56.75, European stocks +1%. Continued progress on US-China trade , China FM saying pres Xi has been in constant communication with Trump’s team, adding to comments by Ross on ‘Phase one’ of a trade deal being close. Core euro bonds lower, lagging the pullback in tsys, 10Y tsy/bund spd 3bps wider 211bps, just off the lowest levels since June 2018. GOCs lower in line with tsys, 2s30s 2bps steeper, +5bps since BOC cautious statement on trade last week.
News headlines
Stocks Climb on Trade Optimism; Treasuries Slip: Markets Wrap (Bloomberg) U.S. equity futures advanced along with stocks worldwide while bonds slipped on optimism China and America are moving closer to an interim trade deal.
CANADA STOCKS-Trade deal hopes boost TSX futures (Reuters) Futures for Canada’s main stock index rose on Monday, as hopes that the U.S. and China might sign a trade deal later this month lifted oil prices.
China says Xi, Trump in continuous touch (Reuters) Chinese President Xi Jinping and U.S. President Donald Trump have been in continuous touch through “various means”, China’s Foreign Ministry said on Monday, when asked when and where the two leaders might meet to ink a trade deal.
Asia-wide trade pact on course despite India, Thailand says (Reuters) Asian countries held conclusive talks on what could be the world’s biggest trade pact and there will be an announcement of success at a summit in Bangkok, despite doubts raised by India, the Thai hosts said on Monday.
China says no ‘promise fatigue’ on opening its economy (Reuters) There is no “promise fatigue” about China’s efforts to open its economy to foreign businesses, the government said on Monday on the eve of week-long import fair, after the European Union said China needed to make rapid and substantial improvements.
‘Still time’ for Thailand to solve U.S. duty-free issue: U.S. commerce secretary (Reuters) Thailand still has time to renegotiate with the United States over a suspension of duty-free preferences on imports of Thai goods before the suspension takes effect in April, U.S. Commerce Secretary Wilbur Ross said on Monday.
Oil Gains After U.S., Chinese Data Improve Demand Outlook (Reuters) Oil held its biggest gain in almost seven weeks after improved U.S. and Chinese economic data aided the demand outlook and Saudi Aramco said it would go ahead with its long-awaited initial public offering.
Market Overview: US 10yr note futures are down -0.096% at 129-29, S&P 500 futures are up 0.48% at 3078, Crude oil futures are up 1.01% at $56.77, Gold futures are up 0.3% at $1515.9, DXY is up 0.11% at 97.346, CAD/USD is up 0.09% at 0.7602.
Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
2 Year | 1.579% | 2 Year | 1.572% |
5 Year | 1.5% | 5 Year | 1.567% |
10 Year | 1.487% | 10 Year | 1.745% |
30 Year | 1.651% | 30 Year | 2.23% |
US Economic Data
10:00 AM | Factory Orders, Sep Survey: -0.50% Prior: -0.10% |
Durable Goods Orders, Sep F Survey: -1.10% Prior: -1.10% | |
Durables Ex Transportation, Sep F Survey: -0.30% Prior: -0.30% | |
Cap Goods Orders Nondef Ex Air, Sep F Survey: — Prior: -0.50% | |
Cap Goods Ship Nondef Ex Air, Sep F Survey: — Prior: -0.70% |
Canadian Economic Data
10:00 AM | Bloomberg Nanos Confidence, Nov 1 Survey: — Prior: 57.4 |
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