Market Update
US tsys moving higher as 10Y 1.82% (-1.5bps), volume in TY futures picking up after an avg o/n session (now 465k) as equities pullback from record highs on rumours that China would delay talks on trade due to the impeachment hearings according to a tweet from CNBC, S&P futures -3 after being +10 ~8:00ET. GOCs higher, lagging the rise in tsys, 10Y 1.47% (-0.5bps). Quiet on the data front today yet key CPI and Retail Sales later in the week.
News headlines
U.S. Futures Rise as Stocks Are Mixed; Pound Gains: Markets Wrap (Bloomberg) U.S. equity futures began the week with modest gains while share gauges across Europe and Asia were mixed as investors awaited fresh developments on global trade. The pound strengthened as the Conservative Party maintained its poll lead less than a month before elections.
CANADA STOCKS-TSX futures up on trade optimism (Reuters) Futures for Canada’s main stock index were higher on Monday, getting a boost from rising optimism around a U.S.-China trade deal.
Oil Holds Near Eight-Week High on U.S.-China Trade Deal Optimism (Bloomberg) Oil held near the highest close in eight weeks on signs of progress in the prolonged U.S.-China trade war, which has weighed on the outlook for fuel demand.
Banks and funds lower red flags on supercharged stocks (Reuters) A raft of major banks and fund managers have upgraded their view on global equities, with emerging-market stocks their top pick to benefit from signs of easing in the Sino-U.S. trade dispute.
Parts with passports: how free trade drives GM’s engines (Reuters) Long before the pistons for General Motors Co V-6 engines reach the U.S. No. 1 automaker’s Romulus, Michigan plant, they are seasoned international travelers.
UK’s Johnson drops corporate tax cuts to fund spending as election nears (Reuters) British Prime Minister Boris Johnson said on Monday he was putting on hold further cuts in corporation tax and told voters he would pump the money into services such as health instead, addressing a central issue in the Dec. 12 election.
Nearly 20% of Japan households using e-money but cash still king (Reuters) Almost a fifth of Japanese households use electronic money for small purchases, a survey by a central bank-affilated research institute showed, up from a year ago and a sign the country’s cash-hoarding culture is changing.
The Case Is Only Growing for an Economic Forever War (Bloomberg) President Donald Trump’s trade war with China has become a bigger, broader economic forever war. It’s hard to look ahead and see any outcome that undermines that emerging reality. A “phase one” deal may be in what U.S. officials say is its messy end stages. But that deal, if it comes, will be partial and more ceasefire than game changer. It also doesn’t mean a larger peace is nigh.
Market Overview: US 10yr note futures are down -0.097% at 129-01, S&P 500 futures are up 0.18% at 3124, Crude oil futures are down -0.47% at $57.45, Gold futures are down -0.67% at $1458.7, DXY is down -0.05% at 97.946, CAD/USD is down -0.01% at 0.7564.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.555% | 2 Year | 1.625% |
| 5 Year | 1.501% | 5 Year | 1.665% |
| 10 Year | 1.504% | 10 Year | 1.848% |
| 30 Year | 1.642% | 30 Year | 2.323% |
US Economic Data
| 10:00 AM | NAHB Housing Market Index, Nov Survey: 71.00 Prior: 71.00 |
| 04:00 PM | Net Long-term TIC Flows, Sep Survey: — Prior: -$41.1b |
| Total Net TIC Flows, Sep Survey: — Prior: $70.5b |
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, Nov 15 Survey: — Prior: 57.00 |
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