Market Update
US tsys lower, yields 2-4 bps higher , 10Y 1.78 (+2.5bps), S&P futures +9.5 at the highs of the o/n session. UK gilts lower on as UK PM Johnson forced to ask Parliament for extension on Brexit vote. US data calendar light this week focus on Sep Durable Goods Thurs & tsy supply ($113bln in 2Y,5Y & 7Y). GOCs lower in line with tsys, 10Y yield at the upper end of three month range 1.56%, 10s30s flattest since Dec @10bps. Election day today with latest IPSOS showing conservative slight lead over liberals (33 to 31), minority govt likely. BOC Business Outlook Survey and August Retail Sales tomorrow – the former expected to remain close to the 0.2 level seen in Q2
News headlines
U.S. Equity Futures Rise With Stocks as Bonds Sink: Markets Wrap (Bloomberg) U.S. equity-index futures advanced alongside European and Asian shares as investors awaited fresh developments on foreign trade and this week’s slew of results from major companies. Bonds dropped.
TSX futures rise on Sino-U.S. trade optimism (Reuters) Canada’s main stock index futures rose on Monday on hopes of a breakthrough in trade talks between China and the United States following positive comments from the two sides.
Oil Extends Decline as Concerns Over Global Economy Persist (Bloomberg) Oil fell again after a weekly loss amid ongoing concern that a fragile economic outlook will continue to weigh on fuel demand.
China seeks $2.4 billion in sanctions against U.S. in Obama-era case: WTO (Reuters) China is seeking $2.4 billion in retaliatory sanctions against the United States for non-compliance with a WTO ruling in a tariffs case dating to the Obama era, a document published on Monday showed.
Currency risks? U.S. corporates yawn (Reuters) Muted gyrations in foreign exchange markets has turned companies complacent about hedging currency risks, and as the third-quarter earnings season gets underway investors should brace for U.S. companies to report sizeable negative impacts due to the stronger U.S. dollar, analysts warned.
China September home price growth flatlines, fewer cities see price gains (Reuters) New home prices in China grew at a steady pace in September, with fewer cities reporting price gains, a relief for policymakers who remain wary of high debt and bubble risk and are refraining from stimulating the sector as the economy cools.
U.S. Commerce chief: U.S.-China trade deal doesn’t need to be inked next month (Reuters) The so-called phase one trade deal between the United States and China does not need to be finalized next month, U.S. Commerce Secretary said on Monday, adding that pact needed to be “right.”
A quiet exit for Draghi? Five questions for the ECB (Reuters) Mario Draghi’s last meeting as European Central Bank chief this Thursday may prove a lively gathering given a deep rift among policymakers over renewed asset purchases that threatens the effectiveness of policy.
Market Overview: US 10yr note futures are down -0.18% at 129-26, S&P 500 futures are up 0.31% at 2997.5, Crude oil futures are down -0.35% at $53.59, Gold futures are down -0.03% at $1493.6, DXY is down -0.11% at 97.177, CAD/USD is down -0.17% at 0.7631.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.655% | 2 Year | 1.59% |
| 5 Year | 1.578% | 5 Year | 1.583% |
| 10 Year | 1.576% | 10 Year | 1.778% |
| 30 Year | 1.676% | 30 Year | 2.283% |
US Economic Data
| 10/21 – 10/25 | Monthly Budget Statement, Sep Survey: $83.0b Prior: $119.1b |
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, Oct 18 Survey: — Prior: 58.0 |
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