Market Update
Tsys slightly higher on below avg volume in TY futures, 10Y 2.62% Feb Import Price/ claims data. . Core EGBs weaker in wake of yesterday’s Brexit vote, UK 10Y gilt 2.5bps higher @ 1.22%. German bunds lagging the decline in gilts , the IFO Institute downgraded German growth forecast to 0.6% for this year from 1.1%. US equities reversing earlier losses after Trump – Xi meeting pushed back to April. GOCs higher, in line with tsys, CMB 5Y pricing expected this morn , June 24 36.5/36
News headlines
U.S. Stock Futures Stall on Trade Meeting Delay: Markets Wrap (Bloomberg) U.S. equity futures fluctuated on Thursday as America and China were said to push back a key meeting on trade. European stocks remained higher while the pound fell as the Brexit saga rumbled on.
Brexit heads for delay as May battles to revive her dying deal (BNN) The U.K. is on course to delay Brexit and open the door to a radical re-write of the terms of its divorce from the European Union after recoiling from an economically disastrous no-deal split.
Federal budget expected to have more wiggle room, even with weaker outlook (BNN) The improved economy is expected to give the Trudeau government more fiscal room than anticipated in next week’s pre-election budget — but a wobbly economic finish to 2018 means conditions could look much different as the October vote approaches.
TSX futures flat as investors focus on U.S.-China trade talks (Reuters) Futures on Canada’s main stock index traded flat on Thursday, as uncertainties clouded U.S.-China trade talks, weighing on oil prices.
China industrial output growth falls to 17-year low, more support steps expected (Reuters) Growth in China’s industrial output fell to a 17-year low in the first two months of the year and the jobless rate rose, pointing to further weakness in the world’s second-biggest economy that is likely to trigger more support measures from Beijing.
Trump says he is in no rush to complete China trade deal (Reuters) U.S. President Donald Trump said on Wednesday he was in no rush to complete a trade pact with China and insisted that any deal include protection for intellectual property, a major sticking point between the two sides during months of negotiations.
Trump says he looks forward to big trade deal with UK (Reuters) U.S. President Donald Trump on Thursday said he anticipated a “large scale” trade agreement with the United Kingdom, as the British government grapples with its Brexit deal with Europe and a possible delay.
Oil Erases Gains After U.S., China Said to Delay Trade Agreement (Bloomberg) Oil erased gains after a U.S.-China meeting to end the nations’ trade war was said to have been pushed back.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.673% | 2 Year | 2.465% |
| 5 Year | 1.663% | 5 Year | 2.432% |
| 10 Year | 1.766% | 10 Year | 2.627% |
| 30 Year | 2.046% | 30 Year | 3.018% |
US Economic Data
| 8:30 AM | Import Price Index MoM, Feb 0.3% Actual 0.6% Prior -0.5% |
| Import Price Index YoY, Feb -1.5% Actual -1.3% Prior -1.7% | |
| Initial Jobless Claims, Mar 9 Surv 225k Acutal 229k Prior 223k | |
| Continuing Claims, Mar 2 Surv 1763k Actual 1776k Prior 1755k | |
| 9:45 AM | Bloomberg Consumer Comfort, Mar 10 Prior 62.1 |
| 10:00 AM | New Home Sales MoM, Jan 0.2% Prior 3.7% |
| New Home Sales, Jan 622k Prior 621k |
Canadian Economic Data
| 8:30 AM | New Housing Price Index MoM, Jan Surv 0.0% Actual -0.1% Prior 0.0% |
| New Housing Price Index YoY, Jan Surv 0.0% -0.1% Prior 0.0% |
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