Market Update
US tsys trading slightly lower, 10Y 1.815%, TY futures drifting lower in narrow range on low volume (275k). Equity futures higher (S&P +7.75, Nasdaq +0.40%) despite Home Depot being down 4% pre-mkt after missing on revenues and cutting its full year forecast. Core EGBs mixed, UK gilts slightly higher, bund yields 1bp higher. Oct Housing Starts on tap in the US, yet mkts more sensitive to developments on the trade front. Canadian data picks up with Sep Manufacturing Sales ahead of key CPI data tomorrow. CMB 29 deal expected to price this morning in the area of 39.5 (old CMBs 38.5/38). Ontario announced plans to reopen its 2025 green bond in the near future
News headlines
U.S. Futures Advance With Stocks; Treasuries Drift: Markets Wrap (Bloomberg) U.S. equity futures advanced with stocks in Europe as investors kept an eye out for fresh signs of progress in America-China trade negotiations. Treasuries were steady.
TSX futures rise on hopes of U.S.-China trade deal (Reuters) Canada’s main stock index futures were higher on Tuesday, lifted by hopes that U.S. and China may end their trade war.
Oil Declines a Second Day on U.S. Supplies, Trade Deal Impasse (Bloomberg) Oil dropped for a second day on indications American crude stockpiles and shale output will keep expanding, while investors wait for a breakthrough in U.S.-China trade talks.
Thousands of Canadian National Railway workers go on strike (Reuters) About 3,000 workers of Canadian National Railway (CNR.TO), the country’s largest railroad operator, went on strike on Tuesday, labor union Teamsters Canada said after both parties failed to resolve contract issues.
Global economy dodges recession by narrowest of margins: Kemp (Reuters) The global economy may have narrowly avoided a recession, with most industrial and financial indicators pointing to a slight improvement in September-October after a sharp slowdown in the middle of the year.
Trump’s ‘Section 232’ autos tariff authority runs out of time, experts say (Reuters) The clock has run out on President Donald Trump’s authority to impose “Section 232” tariffs on imports of foreign-made cars and auto parts, and he may have to find other means if he wants to pursue tariffs on European or Japanese cars, legal experts say.
Japan lower house passes U.S. trade deal; auto tariffs still in question (Reuters) Japan’s lower house of parliament approved on Tuesday a limited trade deal Prime Minister Shinzo Abe agreed with the United States, clearing the way for tariff cuts next year on items including U.S. farm goods and Japanese machine tools.
Sustainable investors face squeeze as larger firms move in (Reuters) Specialized fund managers who pioneered green investing for decades are missing out on some of the spoils as the sector goes mainstream and large firms move in.
AFL-CIO’s Trumka says more work remains on U.S.-Mexico-Canada trade deal (Reuters) A major U.S. labor leader on Monday said there was more work to do on a new U.S.-Mexico-Canada trade agreement, pushing back against comments from House Speaker Nancy Pelosi that a breakthrough was imminent.
Shares scale 22-month peak as focus turns to growth (Reuters) World shares touched their highest in nearly two years on Tuesday on predictions of future growth and bets the United States and China can end their damaging trade war.
Market Overview: US 10yr note futures are down -0.06% at 129-08, S&P 500 futures are up 0.23% at 3129, Crude oil futures are down -1.02% at $56.47, Gold futures are down -0.24% at $1468.3, DXY is up 0.03% at 97.821, CAD/USD is up 0.07% at 0.7568.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.549% | 2 Year | 1.604% |
| 5 Year | 1.488% | 5 Year | 1.639% |
| 10 Year | 1.489% | 10 Year | 1.815% |
| 30 Year | 1.621% | 30 Year | 2.296% |
US Economic Data
| 08:30 AM | Housing Starts, Oct Survey: 1320k Actual: 1314k Prior: 1256k |
| Building Permits, Oct Survey: 1385k Actual: 1461k Prior: 1387k | |
| Housing Starts MoM, Oct Survey: 5.10% Actual: 3.80% Prior: -9.40% | |
| Building Permits MoM, Oct Survey: -0.40% Actual: 5.00% Prior: -2.70% |
Canadian Economic Data
| 08:30 AM | Manufacturing Sales MoM, Sep Survey: -0.50% Actual:-0.20% Prior: 0.80% |
| Teranet/National Bank HPI MoM, Oct Survey: — Actual:-0.10% Prior: 0.10% | |
| Teranet/National Bank HPI YoY, Oct Survey: — Actual:1.00% Prior: 0.70% | |
| Teranet/National Bank HP Index, Oct Survey: — Actual:227.60 Prior: 227.72 |
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