Market Update

US tsys higher, yields 2-4bps lower on avg volume in TY futures (330k), 10Y 2.68% (-3.5bps) . Risk off tone with S&P futures -21pts, European equities -0.7%, crude -1.3%. Bunds, UK gilts higher on weak Chinese trade data with both exports and imports well below expectations. In Canada, GOCs are higher in line with tsys, 10Y 1.93%.  Quiet day in terms of data, Dec CPI the highlight on Fri. Little change in the outlook for rate hikes since BOC last week, ~50% odds of one hike priced in for the entire year, thou post Dec FOMC mkts were briefly priced in a BOC rate cut.

News headlines

China’s trade data drags stock futures ahead of Citi results (Reuters) U.S. stock futures dropped on Monday, after data showed China’s exports unexpectedly shrank the most in two years, raising fears of a sharper slowdown in global economic growth and its impact on corporate profits.

China’s exports shrink most in two years, raising risks to global economy (Reuters) China’s exports unexpectedly fell the most in two years in December, while imports also contracted, pointing to further weakness in the world’s second-largest economy in 2019 and deteriorating global demand.

China says detained former Canadian diplomat does not have diplomatic immunity (Reuters)  Former Canadian diplomat Michael Kovrig, being held in China on suspicion of endangering national security, is not entitled to diplomatic immunity, China’s foreign ministry said on Monday.

Oil falls to $60 on concerns about China slowdown (Reuters) Oil slipped to around $60 a barrel on Monday after data showed weakening imports and exports in China, the world’s second-largest oil consumer, raising the prospect of a slowdown in fuel demand.

May’s no-Brexit warning sends pound to new 7-week high (Reuters) Sterling strengthened to new seven-week highs against the dollar on Monday as markets seized on Prime Minister Theresa May’s warning that lawmakers’ failure to approve her Brexit deal could lead to the UK staying in the European Union.

Newmont to buy Goldcorp in US$10B mega mining deal (BNN) Newmont Mining Corp. () will buy rival Goldcorp Inc. () in a deal valued at US$10 billion, creating the world’s largest gold miner and cementing a return of M&A to the industry.

Overnight markets

US Economic Data

There is no US economic data for today.

Canadian Economic Data

8:30 AM Teranet/National Bank HPI MoM, Dec -0.3% Prior -0.3%
  Teranet/National Bank HPI YoY, Dec 2.5% Prior 3.1%
  Teranet/National Bank HP Index, Dec 224.07 Prior 224.74

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