Market Update
Treasuries have underperformed both Bunds and gilts so far this morning. There is very little in the way of key US data this afternoon with JOLTS the only highlight on a sparse calendar. Mildly weaker across the board, off early overnight lows/near top end of range on decent volume (TYZ >370k), yld curves scaling back some of Mon’s broad bear steepening. BoE Governor, Carney says with rates at 0.75% we have conventional space and unconventional space to ease policy. Now talking about counter cyclical buffer and how that can be eased to help bank lending which would give up to Stg300bln of balance sheet to lend.
News headlines
U.S. Stock Futures Drift as Treasuries Hold Steady: Markets Wrap (Bloomberg) U.S. equity futures drifted while European shares fell and Asian stocks were mixed as investors marked time before key central bank meetings in the coming days. The dollar strengthened.
TSX futures lower as gold prices drop (Reuters) Futures for Canada’s main stock index edged lower on Tuesday, weighed down by a drop in gold prices.
Oil Extends Gains Ahead of U.S. Stockpile Data, OPEC+ Meeting (Bloomberg) Oil extended its advance as U.S. stockpiles were estimated to have dropped and OPEC+ members gathered in the United Arab Emirates ahead of meetings this week.
U.S.-China trade war an opportunity for Turkey: Turkish minister (Reuters) Turkey sees opportunity to boost trade with the United States amid Washington’s trade war with Beijing, the Turkish trade minister said on Tuesday, reinforcing an ambitious goal of quadrupling the bilateral trade to $100 billion a year.
Many U.S. farmers fume at Washington, not Trump, over biofuel, trade policies (Reuters) American farmers helped elect President Donald Trump in 2016 on hopes he would shake up Washington and turn around a struggling agricultural economy, but many of his policies have actually stung farmers, notably his trade war with China and biofuel waivers for oil refiners.
Next EU chief says trade battle with U.S. would only benefit rivals (Reuters) Incoming European Commission President Ursula von der Leyen said on Tuesday that an escalating trade conflict between the European Union and the United States would only benefit their rivals.
Exclusive: Waning confidence over global recovery may nudge BOJ closer to easing – sources (Reuters) As the fallout from the U.S.-China trade war broadens, Bank of Japan policymakers are more open to discussing the possibility of expanding stimulus at their board meeting on Sept 18-19, sources familiar with their thinking say.
U.S. states launch antitrust probe of Google, advertising in focus (Reuters) Attorneys general from 48 U.S. states, the District of Columbia and Puerto Rico formally opened an antitrust probe on Monday into Alphabet’s Google, in a sign of growing government scrutiny of U.S. technology giants.
Market Overview: US 10yr note futures are down -0.179% at 130-20, S&P 500 futures are down -0.18% at 2972.75, Crude oil futures are up 0.97% at $58.41, Gold futures are down -0.73% at $1500.1, DXY is up 0.16% at 98.437, CAD/USD is up 0.04% at 0.7591.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.555% | 2 Year | 1.593% |
| 5 Year | 1.391% | 5 Year | 1.502% |
| 10 Year | 1.364% | 10 Year | 1.642% |
| 30 Year | 1.562% | 30 Year | 2.119% |
US Economic Data
| 06:00 AM | NFIB Small Business Optimism, Aug Survey: 103.5 Actual: 103.1 Prior: 104.7 |
| 10:00 AM | JOLTS Job Openings, Jul Survey: 7331 Prior: 7348 |
Canadian Economic Data
| 08:15 AM | Housing Starts, Aug Survey: 212.5k Prior: 222.0k |
| 08:30 AM | Building Permits MoM, Jul Survey: 2.00% Prior: -3.70% |
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