Market Update
Tsys trading higher, top of o/n range on avg volume (~290k), 10Y 2.635% (-1.5bps), closing in on last weeks 2.61% low, late Dec 2.55%. USD index steady after rising for six straight days, DXY 96.50. Quiet day in terms of US data with Fed GDP Nowcast. GOCs higher in line with tsys, thou Can/US spreads are 1-5bps tighter over the week, Can/US 10Y -78bps, seemingly driven by stronger data south of the border (payrolls, ISM…). This morning Canada employment for Jan expected to show a modest 5k increase after +9.3k in Dec and a record 94k in Nov. StatsCan revisions reveal the Cdn economy addes 195.8k jobs last yr vs 163.3k initial estimate.
News headlines
Stock futures fall as trade worries linger (Reuters) U.S. stock futures fell on Friday, as a lack of progress on the U.S.-China trade front kept investors on edge with only three weeks before a truce between the world’s biggest economies comes to an end.
CANADA STOCKS-TSX futures dip amid Sino-U.S. trade row (Reuters) Futures for Canada’s main stock index edged lower on Friday, as trade tensions between the United States and China remained unresolved, slowing global economic growth.
No talks between Trump and China’s Xi before trade deadline (Reuters) U.S. President Donald Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal.
U.S. Steel wins tax breaks from one of America’s poorest cities (Reuters) United States Steel Corporation founded Gary, Indiana in 1906 – naming it after co-founder Elbert Henry Gary – and the city’s fortunes have been closely tied to the company ever since.
Exclusive: U.S. considers withdrawal of zero tariffs for India – sources (Reuters) India could lose a vital U.S. trade concession, under which it enjoys zero tariffs on $5.6 billion of exports to the United States, amid a widening dispute over its trade and investment policies, people with close knowledge of the matter said.
Darkening ‘global economic skies’ pull stocks lower (Reuters) Global stocks fell for a third straight day on Friday, and were set for their first weekly loss in seven, as investors worried about a broadening global economic slowdown and the lack of any sign of a resolution to the U.S.-China trade row.
Two key pipeline shutdowns cause Canadian crude price to plummet (BNN) Canadian crude weakened after two critical oil pipelines remained partially shut amid an investigation into a possible leak in Missouri.
African nations sense upper hand in minerals stand-off (Reuters) African nations with rich reserves of copper and cobalt needed for the shift to electric vehicles sense they have the upper hand in negotiations with mining companies that are struggling to secure better terms.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.755% | 2 Year | 2.469% |
| 5 Year | 1.775% | 5 Year | 2.446% |
| 10 Year | 1.864% | 10 Year | 2.638% |
| 30 Year | 2.129% | 30 Year | 2.986% |
US Economic Data
There is no US economic data for today.
Canadian Economic Data
| 8:15 AM | Housing Starts, Jan Surv 205.0k Actual 208.0k Prior 213.4k |
| 8:30 AM | Hourly Wage Rate Permanent Employees YoY, Jan Surv 1.6% Prior 1.5% |
| Net Change in Employment, Jan Surv 5.0k Prior 9.3k | |
| Unemployment Rate, Jan Surv 5.7% Prior 5.6% | |
| Participation Rate, Jan Prior 65.4 | |
| Full Time Employment Change, Jan Prior -18.9 | |
| Part Time Employment Change, Jan Prior 28.3 |
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