Market Update
US tsys trading higher, heavy volume in TY futures (975k), with a lot of positions taken post UK election, considering size of Conservative majority came as a surprise. US retail sales weaker than exp, ex- Auto & Gas 0.0% vs 0.4% exp. UK gilts erasing most of early losses after gapping 80 ticks lower after the election results, with the pound also giving up some early gains. Equity futures higher, S&P +9, crude higher for 2nd day approaching $60 for first time since Sep. China press conference on phase one trade deal with US scheduled for 9:30ET. GOCs higher in line with tsys post 8:30 data, 10Y 1.65% – yields gapping higher yest on positive risk sentiment, while provincials are at narrows for the year.
News headlines
Johnson election victory propels Britain toward swift Brexit (Reuters)Britain was speeding toward Brexit on Friday after Prime Minister Boris Johnson won a crushing election victory, ending three years of uncertainty since the country decided to leave the bloc.
New NAFTA deal lifts cloud of uncertainty hanging over Canadian business: Poloz (FP) Bank of Canada Governor Stephen Poloz suggested Thursday that the ratification of a new North American free-trade deal is key to finally eliminating uncertainty that has hovered over businesses trying to make investment decisions since the election of U.S. President Donald Trump.
Futures up on trade deal hopes; tariff deadline closes in (Reuters) U.S. stock index futures rose on Friday on hopes that the United States and China could reach an initial deal to end their trade war after Washington set its terms for an agreement, just days before fresh levies on Chinese goods kick in.
U.S. sets China trade deal terms, sources say, but Beijing mum (Reuters) Washington has set its terms for a trade deal with China, offering to suspend some tariffs on Chinese goods and cut others in exchange for Beijing’s buying more American farm goods, U.S. sources said on Thursday.
Rattling Republicans, U.S. House committee delays impeachment vote to Friday (Reuters) Democrats delayed an impeachment vote by a U.S. House Committee just before midnight, incensing Republicans and setting up a Friday showdown over President Donald Trump’s future.
U.S. Congress negotiators, White House set tentative deal on fiscal 2020 funding (Reuters) Senior negotiators in the U.S. Congress on Thursday reached a tentative deal with the White House on a series of bills to fund federal agencies through Sept. 30, 2020, which would avert partial government shutdowns next week.
Desmarais brothers to step down as CEOs in overhaul of Power Corp (FP) Andre Desmarais and Paul Desmarais Jr. are stepping down as co-chief executive officers of Power Corp. of Canada as part of a massive reorganization at one of the country’s largest financial services firms.
Market Overview: US 10yr note futures are up 0.085% at 128-16, S&P 500 futures are up 0.24% at 3178.75, Crude oil futures are up 0.93% at $59.73, Gold futures are up 0.21% at $1475.4, DXY is down -0.55% at 96.862, CAD/USD is down -0.14% at 0.7596.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.688% | 2 Year | 1.628% |
| 5 Year | 1.645% | 5 Year | 1.706% |
| 10 Year | 1.654% | 10 Year | 1.877% |
| 30 Year | 1.742% | 30 Year | 2.299% |
US Economic Data
| 08:30 AM | Import Price Index MoM, Nov Survey: 0.20% Actual: 0.20% Prior: -0.50% |
| Import Price Index ex Petroleum MoM, Nov Survey: -0.10% Actual: 0.20% Prior: -0.10% | |
| Import Price Index YoY, Nov Survey: -1.20% Actual: -1.30% Prior: -3.00% | |
| Export Price Index MoM, Nov Survey: 0.10% Actual: 0.20% Prior: -0.10% | |
| Export Price Index YoY, Nov Survey: — Actual: -1.30% Prior: -2.20% | |
| Retail Sales Advance MoM, Nov Survey: 0.50% Actual: 0.20% Prior: 0.30% | |
| Retail Sales Ex Auto MoM, Nov Survey: 0.40% Actual: 0.10% Prior: 0.20% | |
| Retail Sales Ex Auto and Gas, Nov Survey: 0.40% Actual: 0.00% Prior: 0.10% | |
| Retail Sales Control Group, Nov Survey: 0.30% Actual: 0.10% Prior: 0.30% | |
| 09:45 AM | Bloomberg Dec. United States Economic Survey |
| 10:00 AM | Business Inventories, Oct Survey: 0.20% Prior: 0.00% |
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