Market Update
Tsys trading mixed, 1bp lower in short end with yields out the curve unch, 10Y 2.665%, above avg vol in TY futures (380k). Equities off recent lows, S&P futures (-7.75) , Walmart posting Q4 eps above est, stock up 5% pre-mkt. Core EGBs close to unch, bund curve bull flattening, after disappointing Eurozone eco data – German ZEW current conditions falling to lowest since 2014. GOCs slightly lower in line with tsys, 10Y 1.90%, the CAD slightly lower despite crude rising to the highest level in two months.
News headlines
New round of U.S.-China trade talks to begin in Washington on Tuesday (Reuters) A new round of talks between the United States and China to resolve their trade war will take place in Washington on Tuesday, with follow-up sessions at a higher level later in the week, the White House said.
Global shares slip from four-month high, Swedish crown slumps (Reuters) European and Asian shares hovered near four-month highs on Tuesday as investors took heart from some progress in Sino-U.S. trade talks, while the yen dribbled lower as Japan’s central bank said it could ease policy again.
WTO warns of global trade slowdown as indicator hits nine-year low (Reuters) A quarterly leading indicator of world merchandise trade slumped to its lowest reading in nine years on Tuesday, which should put policymakers on guard for a sharper slowdown if trade tensions continue, the World Trade Organization said on Tuesday.
Despite sanctions, Iran’s oil exports rise in early 2019: sources (Reuters) Iran’s exports of crude oil were higher than expected in January and are at least holding steady this month, according to tanker data and industry sources, as some customers have increased purchases due to waivers from U.S. sanctions.
British supermarkets battle to secure stocks as chaotic Brexit looms (Reuters) Britons could face shortages of fresh food, price rises and less variety if the country leaves the European Union next month without agreeing on trade terms, food industry officials say.
US STOCKS-Futures dip ahead of fresh U.S.-China trade talks (Reuters) U.S. stock index futures dipped on Tuesday, as investors started a holiday-shortened week on a cautious note ahead of a fresh round of trade talks between the United States and China.
Trudeau’s Top Aide Resigns Amid Reports of Meddling in SNC-Lavalin Probe (Bloomberg) Canadian Prime Minister Justin Trudeau has lost his top aide as the controversy over the government’s role in the SNC-Lavalin Group Inc. legal case deepens.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.781% | 2 Year | 2.504% |
| 5 Year | 1.805% | 5 Year | 2.486% |
| 10 Year | 1.9% | 10 Year | 2.661% |
| 30 Year | 2.154% | 30 Year | 2.995% |
US Economic Data
| 10:00 AM | NAHB Housing Market Index, Feb Surv 59 Prior 58 |
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, Feb 15 Prior 54.3 |
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