Market Update

Tsys trading lower, 10Y 2.60% (+1bp), after Friday’s 5bp rally brought yields to the lowest levels since early Jan. Stock futures slightly higher, S&P extending gains after rising to new highs Friday above 2800. Core EGBs slightly lower, odds of third Brexit vote passing the House of Commons have increased as several conservative members have switched to support PM May. FOMC meeting Wed – Fed expected to leave rate unch but provide more insight as to plans to end its portfolio runoff.  GOCs slightly lower, in line with tsys, 10Y 1.74%. Friday’s CPI and Retail Sales the focus this week as far as Cdn data.

News headlines

Stocks, Bonds Hold Gains at Start of Busy Week: Markets Wrap (Bloomberg) U.S. equity futures and European stocks posted modest gains at the start of a week filled with potentially significant catalysts from central bank meetings, geopolitical developments and economic data. Treasuries were little changed and the dollar drifted lower.

How Trudeau’s Faring Economically Ahead of His Election Budget (Bloomberg) Prime Minister Justin Trudeau delivers his fourth and final budget this week before Canada’s next election. The fiscal plan, to be unveiled Tuesday in the Ottawa legislature by Finance Minister Bill Morneau, comes with the economy in a soft patch, concerns building over the country’s competitiveness and the Liberal government trailing in opinion polls.

CANADA STOCKS-TSX futures flat as focus shifts to Fed meeting (Reuters) Futures for Canada’s main stock index were flat on Monday amid mounting speculation that the U.S. Federal Reserve will adopt a dovish tone at its two-day policy meeting from March 19.

China rejects ‘abnormal’ U.S. spying concerns as EU pushes trade (Reuters) China dismissed U.S. security warnings against its telecoms equipment maker Huawei as groundless and “abnormal” on Monday, as the Chinese government’s top diplomat went to Brussels to cool growing European frustration over trade.

U.S. heavy equipment makers feeling pain from tariffs, disputes: report (Reuters) U.S. makers of bulldozers and other heavy equipment are raising prices, losing sales and in some cases beginning to trim workers in response to the Trump administration’s protracted trade disputes with various countries, according to a new report.

Boeing shares fall again after probe report into FAA approval of 737 MAX (Reuters) Boeing Co shares fell by more than 2.2 percent early on Monday, after a pair of newspaper reports over the weekend raised more questions about the certification process for its 737 MAX jets before two recent deadly crashes.

Saudis urge OPEC+ to stick with cuts, but may delay decision (BNN) Saudi Arabia urged fellow producers in the OPEC+ coalition to persevere with output cuts but conceded the group may delay a meeting to consider the policy.

Overnight markets

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.625% 2 Year 2.44%
5 Year 1.606% 5 Year 2.402%
10 Year 1.723% 10 Year 2.598%
30 Year 2.028% 30 Year 3.022%

US Economic Data

10:00 AM NAHB Housing Market Index, Mar Surv 63 Prior 62

Canadian Economic Data

8:30 AM Int’l Securities Transactions, Jan Actual 28.40b  Prior -18.96b
10:00 AM Bloomberg Nanos Confidence, Mar 15 Prior 55.5

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