Market Update

US tsys higher on FTQ after this weekend’s developments in the middle east, 10Y 1.835% (-6bps), heavy volume in TY futures (565k). Brent crude +11% , 66.70 after surging to $72 in reaction to strike on Saudi refining facility responsible for 5% of global oil supply. Trump will release oil from the US SPR alleviating some of the damage.  Trump, Pompeo warning Iran over the attacks, saying it must be held accountable. Gold higher, S&P futures -0.30% paring earlier losses of ~1.0% .  GOCs lagging the rally, yields 2-4bps lower led by the 10Y (1.47%). Busy data week with Aug CPI Wed, July Retail Sales Friday.

News headlines

Saudi Attack Spurs Shift to Havens as Crude Soars: Markets Wrap (Bloomberg) Oil surged and havens climbed after a strike on the heart of Saudi Arabia’s crude production heightened geopolitical risk. U.S. futures slipped with European stocks, while shares in Asia were mixed.

Futures lower after attack on Saudi facilities (Reuters) Futures for Canada’s main stock index were lower on Monday after a weekend attack on crude facilities in Saudi Arabia disrupted global oil supplies and fueled worries over the impact of an oil shock on economic growth.

Biggest oil price surge since 1991 as ‘locked and loaded’ U.S. points finger at Iran for attack (Reuters) An attack on Saudi Arabia that shut 5% of global crude output caused the biggest surge in oil prices since 1991, after U.S. officials blamed Iran and President Donald Trump said Washington was “locked and loaded” to retaliate.

China’s economy slows again, adding pressure for policy action (BNN) China’s slowdown is deepening just as risks for the global economy mount, piling pressure on the authorities to do more to support growth.

Exclusive: Greece seeks new mining jobs, higher royalties in talks with Eldorado (Reuters) Greece is in talks with Canada’s Eldorado Gold to secure higher royalties from its mining development projects and new jobs, Energy Minister Kostis Hatzidakis said on Monday.

Gold climbs 1% as attacks on Saudi facilities spur demand (Reuters) Gold rose more than 1% on Monday after an attack on key oil facilities in Saudi Arabia inflamed worries over the stability of the Middle East, driving investors to seek refuge in assets seen as a haven from risk.

Copper drifts lower on fragile China data, zinc gains (Reuters) Copper slipped on Monday after weak Chinese data fuelled worries about demand, but zinc hit a 1-1/2 month peak after a mine suspension.

Market Overview: US 10yr note futures are up 0.365% at 129-02, S&P 500 futures are down -0.33% at 2998.5, Crude oil futures are up 10.03% at $60.35, Gold futures are up 0.83% at $1512, DXY is up 0.19% at 98.445, CAD/USD is down -0.25% at 0.7546.

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.617% 2 Year 1.753%
5 Year 1.478% 5 Year 1.699%
10 Year 1.466% 10 Year 1.84%
30 Year 1.675% 30 Year 2.305%

US Economic Data

08:30 AM Empire Manufacturing, Sep  Survey: 4.0  Prior: 4.8

Canadian Economic Data

08:30 AM Int’l Securities Transactions, Jul  Survey: —  Prior: -3.98b
09:00 AM Existing Home Sales MoM, Aug  Survey: 1.30%  Prior: 3.50%
10:00 AM Bloomberg Nanos Confidence, Sep 13  Survey: —  Prior: 56.5

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