Market Update

US-China trade talks continue to dominate with slightly more optimistic headlines suggesting talks were ongoing and that Trump was still willing to do a deal helped USTs to give up some of yesterday’s gains. However, moves have been much more muted than yesterday. – This morning the Fed’s Williams said that lower neutral rates would require « new policy approaches » and that tariffs are like a negative supply shock. George and Daly are both due to speak later today. The data calendar is light today with import/export price data the only notable release. Things heat up tomorrow with retail sales and IP due for release.

News headlines

S&P 500 Futures and Europe Stocks Jump; Havens Dip: Markets Wrap (Bloomberg) U.S. equity futures rose alongside European stocks on Tuesday, shrugging off losses in Asia as investors assessed the prospects for global trade in the wake of a brutal start to the week for markets. Haven assets including Treasuries, gold and the yen slipped.

TSX futures up on fresh hopes over U.S.-China trade talks (Reuters) Stock futures pointed to a slightly higher opening for Canada’s main stock index on Tuesday, steered by optimistic comments from the world’s two biggest economies over the trade war.

Oil Rises as Saudi Arabia Reports Drone Attacks on Pump Stations (Bloomberg) Oil rose as Saudi Arabia reported drone attacks on pumping stations, the latest escalation in Middle East tensions after tankers were hit by sabotage over the weekend.

China says U.S. has agreed to keep talking over trade war (Reuters) China and the United States have agreed to keep talking about their trade dispute, the Chinese government said on Tuesday, as U.S. President Donald Trump said he thought recent discussions in Beijing would be successful.

Fed’s Williams says policymakers need to better prepare for lower interest rate world (Reuters) Torturously slow recoveries from recessions and low inflation are here to stay unless policymakers can get a better grip on how to stabilize the global economy in an era of lower interest rates, a top Federal Reserve policymaker said on Tuesday.

Euro zone industry output dragged down by France, Italy (Reuters) Euro zone industrial production fell in March for a second straight month as output declined in France and Italy but recovered in the bloc’s largest economy, Germany, data from the European Union’s statistics agency showed on Tuesday.

Overnight markets

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.593% 2 Year 2.195%
5 Year 1.562% 5 Year 2.195%
10 Year 1.681% 10 Year 2.414%
30 Year 1.915% 30 Year 2.851%

US Economic Data

05:03 AM NFIB Small Business Optimism, Apr Survey 102.0 Actual 103.5 Prior 101.8
08:30 AM Import Price Index MoM, Apr Survey 0.70% Prior 0.60%
     Import Price Index YoY, Apr Survey 0.30% Prior 0.00%
     Export Price Index MoM, Apr Survey 0.60% Prior 0.70%
     Export Price Index YoY, Apr Survey — Prior 0.60%

Canadian Economic Data

08:30 AM Teranet/National Bank HPI MoM, Apr Survey — Prior -0.30%

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