Market Update
US tsys trading weaker on avg volume in TY futures (300k), 10Y 2.64% (+1bp). USD index slightly higher, US equities higher (S&P futures +3, Nasdaq +20), Dow futures weighed by the ~8% slide in Boeing (200 dow pts) after the crash of an Ethiopian Air Boeing 737 on Sunday. Fed chair Powell, on ’60 Minutes’ said the Fed is in no hurry to change rates again. Crude up 0.70% after comments from Saudi oil minister that an end to OPEC-led prod cuts unlikely before June. UK 10Y gilts are higher ahead of BOE buyback , Brexit uncertainty also supportive with talks “deadlocked” ahead of vote on Brexit deal Tuesday, the GBP lower for 8th session. US data focus on Jan Retail Sales while the US auctions $38bln in 3Y notes this aft, followed by $24bln 10Y Tuesday & $16bln 30Y bonds Wednesday. In Canada, GOCs unch , 1bp tighter vs tsys across the curve before Confidence data. Yields across the curve close to three month lows, CGBs saw solid buying into the close Friday after being pressured by the blockbuster Feb employment report (67.4k full-time , 2.2% AHE)
News headlines
Stocks Shake Off Dismal Week, Dollar Edges Higher: Markets Wrap (Bloomberg) Stocks climbed in Europe and Asia and futures for the benchmark U.S. gauge advanced as equity markets sought to shake off the worst week of the year. The dollar nudged higher.
CANADA STOCKS-TSX futures up on higher oil prices (Reuters) Futures pointed to a higher opening for Canada’s main stock index on Monday, buoyed by a rise in oil prices.
S&P, Nasdaq futures edge higher following lackluster week; Boeing pressures Dow (Reuters) The S&P 500 and Nasdaq futures eked out gains on Monday as investors took a cautious stance after a weak U.S. jobs report raised questions of slowing global growth, while a slide in planemaker Boeing’s shares pressured Dow futures.
With budget, Trump throws opening jab in next funding fight with Congress (Reuters) President Donald Trump on Monday will ask lawmakers to hike spending for the military and the wall he wants to build on the U.S.-Mexico border and slash other programs in his 2020 budget, the opening move in his next funding fight with Congress.
China and Indonesia halt Boeing 737 MAX 8 after Ethiopia crash (Reuters) China, Indonesia and Ethiopia grounded their Boeing Co 737 MAX 8 fleets on Monday while investigators found the black box from a crash that killed 157 people in the second disaster involving that airplane model in six months.
Global economy hits its weakest spell since financial crisis (BNN) The global economy’s sharp loss of speed through 2018 has left the pace of expansion the weakest since the global financial crisis a decade ago, according to Bloomberg Economics.
Auto woes drive dip in German industrial output (Reuters) Plunging car production drove an unexpected drop in German industrial output in January, as the engine room of Europe’s largest economy stuttered on trade tensions and unease about Brexit.
UK PM May will give parliament a ‘meaningful’ Brexit vote on Tuesday: spokesman (Reuters) British Prime Minister Theresa May will hold the so-called a meaningful vote on her Brexit deal on Tuesday as planned, her spokesman said after media reports that she could downgrade the status of the vote.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.655% | 2 Year | 2.475% |
| 5 Year | 1.652% | 5 Year | 2.442% |
| 10 Year | 1.766% | 10 Year | 2.647% |
| 30 Year | 2.062% | 30 Year | 3.036% |
US Economic Data
| 8:30 AM | Retail Sales Advance MoM, Jan Surv 0.0% Prior -1.2% |
| Retail Sales Ex Auto MoM, Jan Surv 0.3% Prior -1.8% | |
| Retail Sales Ex Auto and Gas, Jan Surv 0.6% Prior -1.4% | |
| Retail Sales Control Group, Jan Surv 0.6% Prior -1.7% | |
| 10:00 AM | Business Inventories, Dec Surv 0.6% Prior -0.1% |
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