Market Update
T-Notes initially drew support from the latest BBG story re: U.S.-China trade talk impasse, with risk-off flows apparent in the wake of the story hitting, although the contract stuck to a narrow range, with U.S. cash markets closed for Martin Luther King Day. Tsys futures pulled back from best levels on the back of Chinese GDP data meeting exp., on both a 2018 & Q418 basis. Futures then ticked back to best levels subsequently, with little in the way of fresh news flow apparent. With the U.S. closed for a market holiday, focus Monday is set to fall on Brexit matters in the UK.
News headlines
Global stock markets falter after China data, Brexit Plan B awaited (Reuters) European shares fell on Monday from recent six-week highs as a global equity rally stalled after data confirmed a slowdown in China’s economy and investors awaited for Britain’s next steps to break the deadlock over Brexit.
Trump, Democrats Inch Closer Amid Personal Shutdown Sniping (Bloomberg) Donald Trump and senior Democrats took their first steps toward a possible compromise deal on immigration and border security over the weekend, even as the president ramped up his feud with Speaker Nancy Pelosi with the government shutdown in its fifth week.
TSX futures slip on lower crude prices (Reuters) Futures for Canada’s main stock index edged lower on Monday as oil prices dropped after data showed the Chinese economy slowed last year.
Stocks Mixed as Investors Weigh Latest on Trade: Markets Wrap (Bloomberg) European stocks and U.S. equity futures slipped on Monday while Asian markets posted modest gains as investors assessed the latest headlines on the economy and trade. The dollar was steady, while bonds in Europe were mixed.
China’s 2018 growth slows to 28-year low, more stimulus seen (Reuters) China’s economy cooled in the fourth quarter under pressure from faltering domestic demand and bruising U.S. tariffs, dragging 2018 growth to the lowest in nearly three decades and pressuring Beijing to roll out more stimulus to avert a sharper slowdown.
Canadian Oil Surge Fails to Lift Producers Out of the Doldrums (Bloomberg) Alberta’s crude curtailment plan has caused a dramatic rise in the price of heavy Canadian oil. But for shares of energy companies, it hasn’t been as much of a help.
China’s Huawei in unprecedented media blitz as it battles heightened scrutiny (Reuters) China’s Huawei has launched an unprecedented public relations blitz, thrusting its low-key founder in front of international media as the telecoms firm seeks to ease concern among Western nations bent on shutting it out of their markets.
Sterling volatile before May’s Brexit ‘Plan B’ (Reuters) Sterling edged off early lows but remained volatile on Monday as traders awaited a statement from Prime Minister Theresa May in parliament on her plans to break a deadlock over Brexit.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.937% | 2 Year | 2.614% |
| 5 Year | 1.95% | 5 Year | 2.623% |
| 10 Year | 2.018% | 10 Year | 2.784% |
| 30 Year | 2.241% | 30 Year | 3.097% |
US Economic Data
There is no US economic data for today.
Canadian Economic Data
There is no Canadian economic data for today.
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