11/01/2017

cti2015header-morning comments web

Market Update

US tsys trading higher, upper end of o/n range with the US 10Y 2.377, albeit in a very narrow range on low volume in TY futures (203k).  Asian hrs saw foreign CB selling in the short end, with interest in buying out the curve, flatteners from credit desks (MNI).  Quiet on economic data front with 11:00am Trump press conf key event, as well as  $20bln 10Y auction at 1:00 & Fed Dudley this aft.  Tuesday saw another strong day of primary issuance in the US – $13.75bln highlighted by $ IADB ($3bln), KFW ($5bln), 4 part Nissan deal. GOCs slightly higher, upward bias since early NA trading. The BOC auctions  $3.9bln in 2Y , reopened Feb 19s at noon with the F19/2Y roll 1.9/1.8. Provis opening unch, Ont & MP possible issuers.

News headlines 

Stocks edge down, dollar steady ahead of Trump news conference (Reuters) World stocks edged down from recent highs and the dollar steadied ahead of a news conference by U.S. President-elect Donald Trump in which he is expected to give more details about his plans for the U.S. economy.

Big Oil Hits Sweet Spot as Projects Reap Rewards of Recovery  (Bloomberg) Big Oil is poised to reap rewards this year as investments made before the crude-price slump pay off just as the recovery starts. Seven of the world’s largest energy companies will together boost oil and natural gas output by 398,000 barrels a day, the most since since 2010, according to data from Oslo-based consultant Rystad Energy AS. In 2018, output will rise even faster.

PRECIOUS-Gold holds near six-week peak on safe-haven demand (Reuters) Gold on Wednesday held near a six-week high hit in the previous session, with economic and  political uncertainty boosting its safe-haven appeal. Markets were waiting for indications on policy from U.S. President-elect Donald Trump’s first news conference since the U.S. elections, due later in the day.

China’s central bank launches spot checks on bitcoin exchanges (Reuters) China’s central bank said on Wednesday it launched spot checks on major bitcoin exchanges in Beijing and Shanghai, knocking the price of the cryptocurrency down by more than 6 percent. The probe of bitcoin exchanges, including BTCC, Huobi and OKCoin, was to look into a range of possible rule violations, including market manipulation, money laundering and unauthorized financing, the People’s Bank of China (PBOC) said. It did not say if any violations had been found.

Canada’s banks won’t see big mortgage losses when interest rates rise, says RBC CEO Dave McKay (Financial Post) An eventual increase in Canadian interest rates is not expected to lead to a spike in mortgage book losses for Canada’s banks, Royal Bank of Canada chief executive Dave McKay told investors Tuesday. Canada’s largest bank has built higher rates into the adjudication process for mortgages, McKay said, adding that employment is the real driver of whether  homeowners struggle with mortgage payments.

Alstom/Bombardier consortium seal $1.2 billion French train deal (Reuters) An Alstom (ALSO.PA) and Bombardier (BBDb.TO) consortium has won a French train contract estimated to be worth 1.16 billion euros ($1.22 billion) for the consortium, the companies and French authorities said on Wednesday.

Overnight markets

Overview: US 10yr note futures are up 0.0501% at 124-27, S&P 500 futures are down -0.09% at 2261.75, Crude oil futures are up 0.61% at $51.13, Gold futures are up 0.19% at $1187.7, DXY is up 0.44% at 102.46, CAD/USD is up 0.04% at 0.7554.

US Economic Data 

There is no major economic data release for today

Canadian Economic Data 

There is no major economic data release 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, David Leclair-Legault

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

Tel : (514)-861-0240
Fax: (514)-861-3230