Market Update

US tsys trading little lower, 10Y 2.48%, heavier volume in TY futures (600k),  stock futures lower (S&P -0.7%) on  renewed trade concerns with the US threatening to raise tariffs on Friday, and China’s trade negotiator scheduled to travel to the US. Core EGB and gilt yields have moved lower thru the morning, the EU Commission slashed economic growth forecasts for the EU & Germany, the latter to 0.5% from 1.1%.  The RBA kept rates on hold vs. expectations for a rate cut(50%). GOCs higher, outperforming tsys 1-2bps,  crude -1.0% 61.55. April Ivey PMI on tap.

News headlines

China vice premier going to U.S. for trade talks despite Trump threats (Reuters) Chinese Vice Premier Liu He will visit the United States this week for trade talks, Beijing said on Tuesday, playing down a sudden increase in tension after U.S. President Donald Trump vowed to impose new tariffs.

Stocks Decline as Trade Concerns Linger; Oil Dips: Markets Wrap (Bloomberg) U.S. equity-index futures extended declines on Tuesday alongside stocks in Europe as the gloom surrounding the outlook for global trade refused to dissipate. The dollar edged higher and Treasury yields were steady.

TSX futures down on U.S.-China trade worries (Reuters) Futures for Canada’s main stock index were lower on Tuesday, as investors cautiously tracked developments around U.S.-China trade talks.

Oil Slips as Saudi Arabia Is Said to Give Extra Supply to Asia (Bloomberg) Oil traded near $62 a barrel as Saudi Arabia was said to give extra crude supplies to its customers in Asia but they’ll pay a heavy price for it.

Poloz issues ‘call to arms’ for mortgage market innovations (BNN) Bank of Canada governor Stephen Poloz says it’s time for fresh ideas when it comes to Canadians’ mortgage options.

Trump’s tariff push squeezes businesses and consumers (Reuters) The first time President Donald Trump threatened tariffs on the luggage that Tiffany Williams imports for her Texas store, she stockpiled high-end suitcases and other products ahead of the deadline to protect profits.

Fed’s Kaplan optimistic U.S., China will find ways to tackle trade issues (Reuters) Dallas Federal Reserve Bank President Robert Kaplan said on Tuesday he was optimistic the United States and China would find ways to deal with their trade issues.

U.S. to impose tariffs on Mexican tomatoes as new pact remains elusive (Reuters) The United States will impose a 17.5 percent tariff on Mexican tomato imports starting on Tuesday, as the two countries were unable to renew a 2013 agreement that suspended a U.S. anti-dumping investigation, a Mexican official said on Monday.

Overnight markets

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.612% 2 Year 2.282%
5 Year 1.581% 5 Year 2.262%
10 Year 1.712% 10 Year 2.467%
30 Year 1.97% 30 Year 2.881%

US Economic Data

10:00 AM JOLTS Job Openings, Mar Survey 7350 Prior 7087
03:00 PM Consumer Credit, Mar Survey $16.000b Prior $15.188b

Canadian Economic Data

10:00 AM Ivey Purchasing Managers Index SA, Apr Survey — Prior 54.3

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