US tsys are little changed with the US10Y 1.872 (-1bp), reversing earlier losses as equity futures decline, crude oil moves below $32.00 and weaker data (claims higher, productivity -3.0% vs -2.0% exp). Global equities mixed – Euro stocks slightly lower but China Comp +1.2%. Core Euro bonds lower, peripherals wider on supply as Spain sold E2.8bln of bonds with mixed results. GOCs trading higher, spds unch vs tsys . Provis opening firm, spds narrowed ~2bps yest post QC 10Y issue @ 114 – now 112.5.
- Suncor Cuts Spending After Posting Surprise Loss on Writedowns (Bloomberg) Suncor Energy Inc. will cut spending by about 10 percent this year after the oil-sands producer posted a surprise loss for the fourth quarter amid writedowns on the value of Canadian, Libyan and offshore assets.
- Draghi Says Weak Global Inflation No Reason for ECB Inaction (Bloomberg) Mario Draghi said the fact that inflation is weak globally won’t stop the European Central Bank from adding stimulus for the euro area if needed.
- EU Slashes 2016 Inflation Forecast to 0.5% as Growth Seen Slower (Bloomberg) The slowdown in emerging economies is posing a major threat to recovery in the euro area, the European Commission said as it trimmed its 2016 growth forecast for the 19-nation region and warned inflation would be much slower than expected.
- Brexit could slash sterling by 20%, warns Goldman Sachs (TheGuardian) Analysts at Goldman Sachs are warning that sterling could fall by up to 20% if Britain votes to leave the European Union.
- Bank of England cuts growth outlook; call for rate hike dropped (TheGlobeandMail) The Bank of England cut growth forecasts on Thursday and the lone advocate of a rate hike reversed his position, suggesting rates were on hold for an extended period even as its governor said the next move was still likely to be up.
- Fast and furious: Canada’s economy skidding from top of G7 to bottom (TheGlobeandMail) It’s amazing how fast you can go from first to worst, hero to zero, bruiser to loser. Or, in this case, from G1 to G7.
- Overview: US 10yr note futures are up 0.16% at 130-7, S&P 500 futures are down -0.56% at 1897.75, Crude oil futures are down -0.65% at $32.07, Gold futures are up 1.1% at $1153.9, DXY is down-0.82% at 96.486.
US Economic Data
- The Initial Jobless Claims number came in at 285k, worse than expected and up 8k from the prior month.
- The Continuing Claims number came in at a level of 2255k, worse than expected and down 18k from the previous month
- The Factory Orders growth will be release at 10:00 AM
- The Durable Goods Orders will be release at 10:00 AM
Canadian Economic Data
- There is no major economic data 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, David Leclair-Legault
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240