Market Update
Tsys trading sharply lower on heavy volume in TY futures (700k), 10Y 1.877 (+5.7bps), risk assets rallying (S&P +10.5, Nasdaq +35), crude +1.4%) on more trade optimism with China agreeing to cancel existing tariffs if a deal is reached with the US, Chinese currency rising to the highest level since early august. Gilts outperforming after BOE decision – rates unch as expected with two dissenters voting to cut rates to 0.5%, BOE lowering UK growth forecasts. GOCs lower in line with tsys, 10Y 1.59%, rates at the long end have fully retraced post BOC rally. Quiet in terms of data before employment tomorrow.
News headlines
Stocks Rise as China Spurs Trade Hopes; Bonds Fall: Markets Wrap (Bloomberg) U.S equity futures climbed with European stocks after China said it agreed with America to roll back tariffs on each other’s goods in phases as they work toward a trade deal. Treasuries and gold declined.
U.S.-China trade hopes lift TSX futures (Reuters) Stock futures for Canada’s main stock index gained on Thursday, as signals from Beijing that a “phase one” trade deal with the United States was close to being finalized lifted investors’ sentiment and boosted oil prices more than 1%.
Oil Resumes Gains as Trade Tariff Rollback Counters OPEC Curbs (Bloomberg) Oil jumped as China and the U.S. made progress in resolving the trade dispute that has weighed on global markets this year, offsetting signs that OPEC and its partners won’t make deeper cuts to supply.
Facing shorter holiday season, U.S. retailers rev up faster delivery, early deals (Reuters) U.S. retailers are rushing in with faster-than-ever delivery deals and earlier Christmas promotions in hopes of easing the impact of this year’s shorter holiday selling season, a period that can be make-or-break for retailers.
China says it has agreed with U.S. to cancel tariffs in phases (Reuters) China and the United States have agreed to cancel in phases the tariffs imposed during their months-long trade war, the Chinese commerce ministry said on Thursday, without specifying a timetable.
China considers removal of U.S. poultry import restrictions: Xinhua (Reuters) China is considering the removal of restrictions on poultry imports from the United States, state-owned Xinhua News Agency reported on Thursday.
Japan Abe pledges ‘timely’ steps to fight risks, signals more spending (Reuters) Japanese Prime Minister Shinzo Abe said on Thursday the government will consider what policy measures it can take to prevent heightening global uncertainties from derailing the export-reliant economic recovery.
Ontario tries to undo damage from cuts; projects lower 2019-20 deficit (BNN) Ontario’s Progressive Conservative government is reaching into its pockets for hundreds of millions of dollars to undo some of the damage caused by a year of cuts.
Market Overview: US 10yr note futures are down -0.411% at 128-26, S&P 500 futures are up 0.35% at 3086.25, Crude oil futures are up 1.33% at $57.1, Gold futures are down -0.44% at $1486.5, DXY is down -0.01% at 97.946, CAD/USD is down -0.11% at 0.7594.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.618% | 2 Year | 1.641% |
| 5 Year | 1.576% | 5 Year | 1.682% |
| 10 Year | 1.589% | 10 Year | 1.876% |
| 30 Year | 1.733% | 30 Year | 2.362% |
US Economic Data
| 08:30 AM | Initial Jobless Claims, Nov 2 Survey: 215k Prior: 218k |
| Continuing Claims, Oct 26 Survey: 1682k Prior: 1690k | |
| 09:45 AM | Bloomberg Consumer Comfort, Nov 3 Survey: — Prior: 61.0 |
| 03:00 PM | Consumer Credit, Sep Survey: $15.000b Prior: $17.901b |
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