Market Update
US tsys trading higher as US equity futures are slightly lower, 10Y 1.82% (-1.5bps), low volume in TY futures (245k). Event risk this week includes British election and Dec 15th tariff deadline. Core EGBs also higher in quiet session, German export data came in better than expected for October. GOCs higher, in line with tsys, yields 3-5bps lower since Friday’s weak Nov jobs report (-72k) which showed the largest monthly loss since 2009 with the unemployment rate rising 0.4% to 5.9%. Yet overall job gains this year, at 285k, are still the highest in 17 years. Nov Housing Starts rose 201k last month, below the 215k forecast, while Building Permits fell 1.5% in Oct vs a 2.8% increase exp.
News headlines
U.S. Futures Edge Lower With Stocks as Bonds Climb: Markets Wrap (Bloomberg) U.S. equity futures edged down alongside European stocks as investors prepared for a week brimming with potential catalysts, from central bank meetings to the looming America-China tariff deadline. Treasuries and most government bonds advanced.
TSX futures dip on lower crude prices triggered by weak China data (Reuters) Stock futures are pointing to a lower open for Canada’s main stock index on Monday, as crude prices slipped on weak China export data.
Oil Slips as Trade Deal Impact Counters Surprise Saudi Cut (Bloomberg) Oil fell from the highest close in almost 12 weeks as the effects of the U.S. and China trade war countered a surprise Saudi Arabian move to take additional crude barrels out of the market.
Swelling U.S. IPO backlog points to crowded 2020 field (Reuters) More and more companies are putting plans for U.S. initial public offerings (IPO) on ice this year because of investor pushback against their valuations, creating a backlog that could make stock market debuts more challenging in 2020.
China says hopes it can reach trade agreement with U.S. as soon as possible (Reuters) China said on Monday that it hoped to make a trade deal with the United States as soon as possible, amid intense discussions before fresh U.S. tariffs on Chinese imports are due to kick in at the end of the week.
Hong Kong braces for wave of store closures after protests: HKRMA (Reuters) More than one in 10 retailers in Hong Kong could close down in the next six months as social unrest and sometimes violent protests deter tourists, threatening the survival of smaller operators, the city’s main retailing group said on Monday.
EU regulators to review rules defining companies’ market power (Reuters) EU regulators will review two-decade old rules that determine if companies have the market power to throttle rivals or control prices to take into account globalization and digitalization, Europe’s antitrust chief Margrethe Vestager said on Monday.
ETFs Are Nearing Record Inflows in Canada Amid ‘Blind Optimism’ (Bloomberg) With less than a month left, Canada’s ETF industry is heading for a blowout year with inflows poised for a record and assets crossing the C$200 billion ($151 billion) mark.
Market Overview: US 10yr note futures are up 0.085% at 129-00, S&P 500 futures are down -0.06% at 3144, Crude oil futures are down -1% at $58.61, Gold futures are up 0.25% at $1468.7, DXY is down -0.12% at 97.581, CAD/USD is down -0.03% at 0.7546.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.647% | 2 Year | 1.615% |
| 5 Year | 1.579% | 5 Year | 1.656% |
| 10 Year | 1.565% | 10 Year | 1.823% |
| 30 Year | 1.67% | 30 Year | 2.261% |
US Economic Data
There is no US economic data for today
Canadian Economic Data
| 08:15 AM | Housing Starts, Nov Survey: 215.0k Actual: 201.3k Prior: 202.0k |
| 08:30 AM | Building Permits MoM, Oct Survey: 2.80% Actual: -1.50% Prior: -6.50% |
| 10:00 AM | Bloomberg Nanos Confidence, Dec 6 Survey: — Prior: 54.8 |
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