Market Update
US tsys lower trading lower, 10Y 1.89% (+1bp), muted volume in TY futures (285k), US equity futures now higher (S&P +2.25). Bunds lower on stronger IFO, 10Y edging closer to high yield set in Nov (-0.25%). GOCs lower, wider vs tsys before CPI and 2Y auction.
News headlines
U.S. Futures, Europe Stocks Fluctuate; Bonds Mixed: Markets Wrap (Bloomberg) U.S. equity futures and European stocks drifted on Wednesday as investors digested a flurry of corporate news amid a lull in trade-war headlines. Bonds were mixed and the pound weakened.
TSX futures down on crude inventory build up (Reuters) Futures for Canada’s main stock index fell on Wednesday, after U.S. industry data showed a surprise build-up in crude inventories.
Wage gains could be fleeting in Canada given productivity woes (BNN) After a decade of middling wage growth, Canadian workers are finally starting to see significantly bigger paychecks. The question is whether those gains are sustainable.
Saturday before Christmas expected to be the biggest U.S. shopping day of 2019 (Reuters) U.S. retailers are expected to ring up record sales on Super Saturday this year, as fewer days than usual between Thanksgiving and Christmas have squeezed shoppers to finish their purchases.
Where’s the risk? U.S. fund managers bet on bull run in 2020 (Reuters) With the UK election results giving some certainty to the Brexit process, a U.S.-China trade deal all but signed and the Federal Reserve signaling that it will stand steady for the foreseeable future, there are three fewer hurdles standing in the way of global equities extending their record run into 2020.
World shares remain near record peaks (Reuters) World stocks remained just off record highs on Wednesday after climbing for five straight sessions, while Britain’s pound nursed heavy losses as Brexit uncertainty returned.
Fed’s Brainard: Facebook’s Libra faces ‘core set’ of regulatory hurdles (Reuters) U.S. Federal Reserve Governor Lael Brainard launched a broadside against Facebook’s Libra digital currency project on Wednesday, saying it faces a “core set of legal and regulatory challenges” including clarity about how it would be tied to some basket of underlying assets.
Ambition of EU-UK deal depends on regulatory alignment: EU’s Barnier (Reuters) The European Union’s willingness to offer a comprehensive free trade agreement to Britain after Brexit will depend on how ready Britain is to maintain EU standards and regulations, the EU’s chief Brexit negotiator said on Wednesday.
Market Overview: US 10yr note futures are down -0.024% at 128-14, S&P 500 futures are up 0.05% at 3197, Crude oil futures are down -0.48% at $60.65, Gold futures are down -0.18% at $1477.9, DXY is up 0.18% at 97.395, CAD/USD is down -0.03% at 0.7601.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.709% | 2 Year | 1.633% |
| 5 Year | 1.662% | 5 Year | 1.713% |
| 10 Year | 1.655% | 10 Year | 1.887% |
| 30 Year | 1.733% | 30 Year | 2.313% |
US Economic Data
| 07:00 AM | MBA Mortgage Applications, Dec 13 Survey: — Actual: -5.00% Prior: 3.80% |
Canadian Economic Data
| 08:30 AM | Teranet/National Bank HPI MoM, Nov Survey: — Prior: -0.10% |
| Teranet/National Bank HPI YoY, Nov Survey: — Prior: 1.00% | |
| CPI NSA MoM, Nov Survey: -0.10% Prior: 0.30% | |
| CPI YoY, Nov Survey: 2.20% Prior: 1.90% | |
| Consumer Price Index, Nov Survey: 136.5 Prior: 136.6 |
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