Market Update
US tsys trading slightly lower, 10Y 1.80% (+0.5bps), avg volume in TY futures (300k) and narrow o/n range. ECB left marginal lending rate at 0.25% as exp, bond buying to continue, Christine Lagarde first press conference at 9:00ET. Core EGBs higher led by 10Y gilts on election day, pricing in risk of a minority Conservative govt, so called “hung parliament”. GOCs slightly higher in the short end, Can/US close to recent wides, retracing last Friday’s employment rally. Telus priced $900mln 2 part 10s & longs (158 & 230), bonds closing unch. This morning CHT prices 5Y deal in the area of 27 bps (now 26.5/26)
News headlines
U.S. Futures, Stocks Swing; Bonds Rise After ECB: Markets Wrap (Bloomberg) U.S. equity futures fluctuated alongside stocks in Europe on Thursday as investors digested the latest signals from some of the world’s major central banks. The euro held steady and bonds in the region climbed as European policy makers kept rates unchanged.
CANADA STOCKS-TSX futures up as oil prices rise (Reuters) Futures for Canada’s main stock index were marginally higher on Thursday, as oil prices rose after OPEC forecast a supply deficit next year.
Oil Rebounds Though Outlook Remains Clouded by Oversupply (Bloomberg) Oil rebounded from the previous session’s loss, though the outlook remained clouded by rising U.S. stockpiles and concern that OPEC and its allies aren’t taking enough action to balance the market.
Lagarde’s ECB Keeps Policy on Hold as Strategy Review Looms (Bloomberg) The European Central Bank kept monetary stimulus unchanged at President Christine Lagarde’s first policy meeting, shifting the focus to when she’ll announce her review of the institution’s strategy for safeguarding the euro-zone economy.
Wall Street, Fed prep to avoid year end disruption in repo markets (Reuters) With memories of September’s historic spike in short-term funding costs still raw, Wall Street and the Federal Reserve are gearing up for another potential cash crunch at year end.
‘Black Swan’ index flashes yellow: Wall Street is not scared (Reuters) The options-based Black Swan index may be signaling surging demand from investors for protection against a stock market crash, but Wall Street analysts see little reason to panic.
Aramco shares closing price on Thursday put value slightly below $2 trillion (Reuters) Saudi Aramco’s (2222.SE) shares closed at 36.8 Saudi riyals on Thursday, putting the company’s market value slightly below $2 trillion.
China says in close communication with U.S. on trade as fresh tariffs loom (Reuters) China and the United States are in close communication on trade, its commerce ministry said on Thursday, declining to comment on possible retaliatory steps if Washington imposes more tariffs on Chinese goods this weekend.
WTO appeals judges to stay on to complete several decisions: WTO official (Reuters) World Trade Organization (WTO) judges will complete decisions on three pending appeals for which hearings have been held – despite the collapse of the Appellate Body earlier this week – a WTO official said on Thursday.
New Nafta Leaves Winners and Losers Across North America (Bloomberg) Companies, workers and lawmakers in three countries have spent the past year in limbo awaiting final touches on the U.S.-Mexico-Canada free-trade agreement. Now they have a better sense of who won — and who lost.
Market Overview: US 10yr note futures are down -0.036% at 129-08, S&P 500 futures are down -0.09% at 3140.25, Crude oil futures are up 0.53% at $59.07, Gold futures are up 0.44% at $1481.5, DXY is up 0.03% at 97.161, CAD/USD is up 0.05% at 0.7588.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.658% | 2 Year | 1.603% |
| 5 Year | 1.595% | 5 Year | 1.635% |
| 10 Year | 1.582% | 10 Year | 1.795% |
| 30 Year | 1.68% | 30 Year | 2.233% |
US Economic Data
| 08:30 AM | PPI Final Demand MoM, Nov Survey: 0.20% Prior: 0.40% |
| PPI Ex Food and Energy MoM, Nov Survey: 0.20% Prior: 0.30% | |
| PPI Final Demand YoY, Nov Survey: 1.30% Prior: 1.10% | |
| PPI Ex Food and Energy YoY, Nov Survey: 1.70% Prior: 1.60% | |
| Initial Jobless Claims, Dec 7 Survey: 214k Prior: 203k | |
| Continuing Claims, Nov 30 Survey: 1678k Prior: 1693k | |
| 09:45 AM | Bloomberg Consumer Comfort, Dec 8 Survey: — Prior: 61.7 |
| 12:00 PM | Household Change in Net Worth, 3Q Survey: — Prior: $1830b |
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