Market Update

Rates drifting around steady to mildly mixed after the bell, long end buying last few minutes. Generally quiet inside range day so far. Equities mildly weaker (SPX -1.0 at 2911.5); US$ index lower (DXY -.158, 96.814). Otherwise quiet ahead next week’s shortened pre-Easter holiday weekend; Fed Blackout kicks off April 20 through May 2. The 2-Yr yield is up 0.6bps at 2.3977%, 5-Yr is down 0.2bps at 2.3786%, 10-Yr is down 0.5bps at 2.5597%, and 30-Yr is down 0.6bps at 2.9705%.

News headlines

Stocks Drift Higher as Earnings Roll In; Oil Dips: Markets Wrap (Bloomberg) U.S. equity futures drifted on Monday while stocks in Europe edged higher as investors turned modestly optimistic toward the next batch of corporate earnings. Treasuries held steady with the dollar.

Oil Retreats After Longest Run of Weekly Gains in Three Years (Bloomberg) Oil retreated in New York after its longest run of weekly gains in three years, as traders and investors awaited more clarity on the strength of the global economy and demand.

Exclusive: U.S. waters down demand China ax subsidies in push for trade deal – sources (Reuters) U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing, according to two sources briefed on discussions, marking a retreat on a core U.S. objective for the trade talks.

EU countries back starting trade talks with United States (Reuters) European Union countries gave final clearance on Monday to start formal trade talks with the United States after months of delay due to French resistance.

China starts review of anti-dumping measures on U.S. distillers grains (Reuters) China’s Ministry of Commerce confirmed it is starting a review on Monday of its anti-dumping tariffs on imports of distillers grains (DDGS) from the United States and said the investigation should be completed in a year.

Futures dip as oil prices fall on supply concerns (Reuters) Futures for Canada’s main stock index edged lower on Monday, as oil prices halted their rally on mixed signals over global supply.

METALS-Copper stays firm ahead of China data, clues to demand prospects (Reuters) Copper prices steadied on Monday, reinforced by a lower dollar and healthy economic numbers from China ahead of a barrage of growth data later this week from the top consumer.

Overnight markets

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.645% 2 Year 2.402%
5 Year 1.66% 5 Year 2.384%
10 Year 1.793% 10 Year 2.565%
30 Year 2.072% 30 Year 2.977%

US Economic Data

08:30 AM Empire Manufacturing, Apr Survey 8.0 Actual 10.1 Prior 3.7
04:00 PM Net Long-term TIC Flows, Feb Survey — Prior -$7.2b
         Total Net TIC Flows, Feb Survey — Prior -$143.7b

Canadian Economic Data

09:00 AM Existing Home Sales MoM, Mar Survey 2.00% Prior -9.10%
10:30 AM BoC Senior Loan Officer Survey, 1Q Survey — Prior -16.0
          BoC Business Outlook Future Sales, 1Q Survey — Prior -1.0

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