Market Update

Tsys weaker, near bottom of overnight range on weak volume, 10Y 2.62% (+2bps). European equities slightly higher, S&P futures +8, crude higher for a 3rd day 57.40 (+1.0%) after OPEC pledge to stick to cuts and API data showing a surprise drop in crude inventories last week.  Core Euro bonds lower, gilt yields 1bps higher ahead of Brexit vote this aft.  US data includes Feb PPI, Jan durables and $16bln 30Y auction. In Canada, focus on 5Y CMB – June 15 2024 reopening (37/36.5).

News headlines

Equity markets stymied by signs of slowdown, Brexit chaos (Reuters) World shares slipped on Wednesday after two days of gains amid mounting concern over world growth and trade, though the British pound rallied half a percent on optimism that lawmakers were set to rule out a no-deal Brexit.

Brexit crisis deepens as British lawmakers to vote on no-deal exit (Reuters) Britain’s parliament will vote on Wednesday on whether to leave the European Union in 16 days without an agreement as the government said it would eliminate import tariffs on a wide range of goods in a no-deal Brexit scenario.

European shares up on hopes Britain will reject no-deal Brexit (Reuters) European shares gradually edged up in morning trading on Wednesday on expectations that British lawmakers would vote to reject a disorderly no-deal Brexit.

Pompeo calls on oil industry to support U.S. foreign policy agenda (Reuters) U.S. Secretary of State Mike Pompeo urged the oil industry on Tuesday to work with the Trump administration to promote U.S. foreign policy interests, especially in Asia and in Europe, and to punish what he called “bad actors” on the world stage.

Canada, U.S. refuse to join at least 40 countries in grounding Boeing 737 Max 8; Sunwing suspends four planes on its own (GlobeandMail) Canada has not yet grounded the Boeing 737 Max plane despite at least 40 countries across Europe and Asia banning the jet after two deadly crashes in five months.

Oil Extends Gains on OPEC+ Cuts and Signs of U.S. Supply Drop (Bloomberg) Crude rose for a third day after an industry report showed an unexpected drop in U.S. stockpiles just as planned cuts and disruptions to OPEC output are tightening supply.

Gold hits 2-week high as investors seek refuge from Brexit chaos (Reuters) Gold rose to a near two-week peak on Wednesday, holding above the key $1,300 mark as uncertainty over Britain’s exit from the European Union drove investors to safe haven assets.

Overnight markets

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.659% 2 Year 2.465%
5 Year 1.651% 5 Year 2.429%
10 Year 1.752% 10 Year 2.623%
30 Year 2.039% 30 Year 3.014%

US Economic Data

7:00 AM MBA Mortgage Applications, Mar 8 Actual 2.3% Prior -2.5%
8:30 AM PPI Final Demand MoM, Feb Surv 0.2% Prior -0.1%
      PPI Ex Food and Energy MoM, Feb Surv 0.2% Prior 0.3%
         PPI Final Demand YoY, Feb Surv 1.9% Prior 2.0%
        PPI Ex Food and Energy YoY, Feb Surv 2.6% Prior 2.6%
        Durable Goods Orders, Jan P Surv -0.4% Prior 1.2%
       Durables Ex Transportation, Jan P 0.1% Prior 0.1%
        Cap Goods Orders Nondef Ex Air, Jan P Surv 0.2% Prior -1.0%
10:00 AM Construction Spending MoM, Jan Surv 0.5% Prior -0.6%

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