Market Update
Carry over risk-on, relief rally in equities (SPX +19.00 at 2727.25) as risk sentiment has received a boost from signs that Republicans and Democrats have reached a tentative truce to avoid another government shutdown, as well as indications that the Trump administration is still seeking a meeting with Chinese President Xi Jinping in a bid to reach a new trade settlement.Another slow day for data (NFIB Small Business Index, Redbook retail sales and JOLTS job openings), but Fed Chairman Powell kicks off round of several Fed speakers on week, KC Fed President George and Cleveland Fed President Mester later in the evening. US Trade Representative Robert Lighthizer touched down in Beijing today ahead of the planned meeting, with both sides seemingly keen to reach a deal before the March 1 deadline expires (at which point US tariffs on $200bln of Chinese imports will increase to 25% from 10%). US TSYs have been been trading sideways following the early morning sell-off with yields near the top of the day’s ranges. Current yield levels: 2-year 2.506%, 10-year 2.681%, 30-year 3.014%.
News headlines
Stock futures gain on deal to avert government shutdown, trade hopes (Reuters) U.S. stock index futures rose on Tuesday, as sentiment was lifted after lawmakers reached a tentative deal to avert another partial government shutdown and the United States and China expressed optimism about their ongoing trade talks.
Trade talk hopes and shutdown deal buoy global stocks (Reuters) World shares and bond yields rode a renewed surge in risk appetite on Tuesday, as investors were optimistic about U.S.-China trade talks and cheered Washington’s deal to avoid another government shutdown.
Top U.S. officials arrive in China for trade talks as deadline looms (Reuters) Top U.S. officials arrived in the Chinese capital on Tuesday ahead of high-level trade talks as the world’s two largest economies attempt to hammer out a deal ahead of a March 1 deadline and avoid another escalation of tariffs.
U.S. solar jobs down for second year as Trump tariffs weigh (Reuters) The number of jobs in the U.S. solar industry dropped by 3.2 percent in 2018, a second year of losses, as the Trump administration’s tariffs on foreign panels and state-level policy changes hit demand for installations, according to an industry report released on Tuesday.
Dollar set for biggest winning streak in two years (Reuters) The dollar was on track for its longest winning streak in two years on Tuesday, as hopes of a breakthrough in U.S-China trade talks and a tentative deal to avoid a U.S. government shutdown encouraged investors to cover short bets on the currency.
Oil tumbles as resumption of trade talks offers little optimism (BNN) Oil skidded to its lowest close in two weeks as worries of a stalemate in U.S.-China trade talks fueled concerns about global growth.
Canada PM welcomes probe into allegations officials tried to help SNC (Reuters) Canadian Prime Minister Justin Trudeau on Monday welcomed a probe into whether officials improperly tried to help construction company SNC-Lavalin Group Inc, making clear he sought to ride out a potential scandal just months ahead of elections.
TSX futures rise on higher oil prices (Reuters) Canada’s main index futures rose on Tuesday, as crude prices climbed more than two percent.
Theresa May seeks more time to negotiate Brexit deal with EU (BNN) U.K. Prime Minister Theresa May will address lawmakers in the House of Commons on Tuesday as she seeks more time to renegotiate her Brexit deal with the European Union.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.808% | 2 Year | 2.508% |
| 5 Year | 1.838% | 5 Year | 2.498% |
| 10 Year | 1.932% | 10 Year | 2.684% |
| 30 Year | 2.177% | 30 Year | 3.018% |
US Economic Data
| 06:00 AM | NFIB Small Business Optimism, Jan Surv 103.0 Actual 101.2 Prior 104.4 |
| 10:00 AM | JOLTS Job Openings, Dec Surv 6846 Prior 6888 |
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