Market Update
US tsys trading higher, yields 1-2bps lower with the 10Y 1.805% (-1.5bps), avg volume in TY futures (325k), prices moving higher as equities sell off, S&P futures -11.25. Core EGBs lower led by 10Y gilts – UK election in focus with Boris Johnson taking a hit after NHS interview, despite weaker Oct GDP. GOCs underperforming tsys for a 2nd day, Can/US 10Y completely erasing Friday’s post jobs narrowing, back to the late Sep wides. Poloz scheduled to speak Thursday before the Empire Club of Canada.
News headlines
U.S. Futures Drop With Stocks; Treasuries Climb: Markets Wrap (Bloomberg) U.S. equity-index futures retreated alongside stocks in Europe on Tuesday as investors turned cautious in the countdown to major central bank meetings and a deadline for fresh American tariffs on Chinese goods. Treasuries gained with gold.
CANADA STOCKS-TSX futures slide on lower oil prices (Reuters) Futures pointed to a lower opening for Canada’s main stock index on Tuesday as crude prices fell on slowing global demand outlook, while a looming U.S. tariff deadline on Chinese goods weighed on sentiment.
Oil Steady Near 12-Week High Amid Stockpile Drop, Trade Anxiety (Bloomberg) Oil was steady near a 12-week high in New York, supported by signs of falling American crude inventories yet capped by continuing salvos in the U.S.-China trade dispute.
Drowning in uncertainty: Trade questions slow investment, squeeze profits across U.S. (Reuters) From a denim plant in rural Georgia to a St. Paul, Minneapolis loudspeaker maker, nagging uncertainty over when President Donald Trump’s trade wars might end, if ever, is confounding many U.S. manufacturers.
‘Symmetric,’ now a Fedspeak staple, may point to endgame for U.S. framework debate (Reuters) After 14 conferences, a couple dozen research papers and presentations and some very dense math, the Federal Reserve’s hunt for a better way to reach its inflation target may boil down to a single word: symmetric.
U.S. trade offensive takes out WTO as global arbiter (Reuters) U.S. disruption of the global economic order reaches a major milestone on Tuesday as the World Trade Organization (WTO) loses its ability to intervene in trade wars, threatening the future of the Geneva-based body.
White House plans to sign trade deal changes with Mexico, Canada (BNN) President Donald Trump’s administration plans to sign off on adjustments to a free-trade deal with Mexico and Canada on Tuesday, according to two officials, easing the path for a vote in the House of Representatives as soon as next week.
Trump fails to top Trudeau on jobs gains, despite rhetoric (BNN) Canada’s labour market may look weak against a blockbuster U.S. employment report on Friday but in fact both nations have added jobs at the same pace since President Donald Trump took office.
Market Overview: US 10yr note futures are up 0.157% at 129-06, S&P 500 futures are down -0.35% at 3123.5, Crude oil futures are down -0.54% at $58.7, Gold futures are up 0.48% at $1471.9, DXY is down -0.08% at 97.564, CAD/USD is up 0.07% at 0.7548.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.661% | 2 Year | 1.603% |
| 5 Year | 1.596% | 5 Year | 1.641% |
| 10 Year | 1.581% | 10 Year | 1.803% |
| 30 Year | 1.694% | 30 Year | 2.236% |
US Economic Data
| 06:00 AM | NFIB Small Business Optimism, Nov Survey: 103.0 Actual: 104.7 Prior: 102.4 |
| 08:30 AM | Nonfarm Productivity, 3Q F Survey: -0.10% Prior: -0.30% |
| Unit Labor Costs, 3Q F Survey: 3.40% Prior: 3.60% |
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