Market Update

Tsys moving lower in NY trade after Fed Dudley comments on wages and inflation, US 10Y 2.167%. Dudley noted inflation is lower than the Fed would like while wage growth should pick up. Overnite was mostly range bound, quiet action, European equities are higher, crude unch 44.75. Core Euro bonds lower, UK gilts 2.5bps higher, 10Y bund 0.29% (+1.5bps) – long end supported by opening of EU Brexit talks. GOCs unch,  curve 1bp flatter longs outperforming. Provis opening unch, Ont 27s 75.5, Ont 48s 84.5.

News headlines 

Macron Boosts Europe Stocks; Gold Slips Fourth Day: Markets Wrap (Bloomberg) European stocks jumped a second day, boosted by French equities after the country’s new president won a free hand to drive through economic reforms. The pound edged higher and the euro was steady as Brexit talks began.

Oil prices pause after sharp falls (Reuters) Oil prices edged higher on Monday, pausing for breath after coming under pressure over the past month from rising production in the United States, Libya and Nigeria, which has taken the edge off an OPEC-led initiative to support the market by cutting production.

U.S. bank investors hope Fed stress test results lead to big payouts (Reuters) Investors are hoping the Federal Reserve will allow big U.S. banks to put an estimated $150 billion in idle capital toward stock buybacks, dividends and profit-boosting investments in the coming weeks after conducting a regular examination of financial strength.

Chinese state oil giants take petrol price battle to the pumps (Reuters) Chinese state oil giants Sinopec and PetroChina are waging war at the nation’s gas pumps, slashing prices at unprecedented rates in an effort to reclaim sales lost to private local and foreign rivals in the $440 billion retail fuel market.

IMF says Japan needs to stick with fiscal, monetary stimulus (Reuters) The International Monetary Fund urged Japan to avoid withdrawing fiscal policy stimulus and said monetary policy should be loosened further if risks to the economy materialize, warning of weak consumption that remains vulnerable to external shocks.

U.S. Wants Quick Lumber Deal Yet Canada Says Much Work Remains (Bloomberg) Canada’s envoy to Washington says President Donald Trump’s administration is interested in a quick deal to end a softwood lumber dispute although Prime Minister Justin Trudeau’s government sees no imminent agreement

Overnight markets 

Overview: US 10yr note futures are down -0.099% at 126-20, S&P 500 futures are up 0.34% at 2439.25, Crude oil futures are up 0.02% at $44.75, Gold futures are down -0.45% at $1250.9, DXY is up 0.13% at 97.293, CAD/USD is up 0.11% at 0.756.

US Economic Data

There is no major economic news release for today.

Canadian Economic Data 

10:00 AM Bloomberg Nanos Confidence, June 16 (prior 57.8)


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, David Leclair-Legault

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

Tel : (514)-861-0240
Fax: (514)-861-3230