Market update

US tsys opening slightly higher after being lower during the o/n session, US 10Y 2.03 (-0.5bps). Euro stocks slightly lower, S&P futs in the red, commodities lower with crude reacting to news Iran is looking to boost production to pre sanctions level (see above). GOCs are lower, slightly underperforming tsys as the latter have rebounded since ~8:00EST.  Focus this week on election today and BOC this Wed, with IOS mkt pricing out any chance of another rate cut before y/e. Provis spds still well bid, Ont 22s 79.5/ from 81 at issue on Friday, Ont 45/25 bx 0.3bps tighter 9.7/9.5 as longs outperform.

News headlines

  • Morgan Stanley posts earnings of 42 cents a share vs 62 cents expected (CNBC) Morgan Stanley delivered quarterly earnings that fell well short of analysts’ expectations on Monday, as investors fled the bond, currency and commodity markets amid uncertainty about the timing of a U.S. interest rate hike and concerns about China’s cooling economy.
  • Canadian Oil Sands rejects Suncor’s $4.5-billion ‘exploitive’ hostile bid (G&M) Canadian Oil Sands Ltd. has formally rejected Suncor Energy Inc.’s $4.5-billion hostile bid, saying it “substantially undervalues” the company. Calgary-based COS said on Monday that its board has unanimously recommended that shareholders reject the “undervalued, opportunistic and exploitive Suncor offer.”
  • Iran vows to reach pre-sanctions oil output (FT) Iran’s energy minister has vowed to reclaim the country’s share of global crude oil exports within months of sanctions being lifted and said Tehran will move quickly to open the doors to international oil companies to help boost production.
  • Debt, Growth Concerns Rain on Deficit Parade (WSJ) The U.S. budget deficit is lower than before the 2008 financial crisis. But the good news is tempered by concerns on two fronts, one about the nation’s debt load and the other about the economy.

 Overnight markets 

  • Overview: IG24 5Y 77.398/77.986 (+0.709), US 10yr note futures are down -0.06% at 128-30+, S&P 500 futures are down -0.36% at 2018.5, Crude oil futures are down -1.64% at 46.53, Gold futures are down -0.69% at $1174.9, DXY is up +0.29% at 94.816.

 US Economic Data

  • NAHB housing market index is forecast at 62.0 in October equal to August.

Canadian Economic Data

  • Bloomberg Nanos Canadian Confidence Index will be released today at 10:00am.


 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, Pierre-Olivier Boulanger
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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