cti2015header-morning comments web

Market Update

  • US Treasuries prices open NY higher, 10-yr note 1.648%, after ongoing post-FOMC relief in global stocks and bonds. TOKYO saw quiet trading as Japanese markets closed for final day holiday of Silver Week. Hong Kong stock index closed up mildly amid post Fomc relief. RBNZ left its rates unchanged. Global equity relief rally, gold and crude higher as well. London flow included domestic money manager, fast- and real$ buying 10s and 30s, rate receivers in 10s and 30s, curve flatteners/steepener unwinds, foreign central bank sales in 10s, bank portfolio 2-way in the intermediates.

News headlines                                                                                                  

  • Stocks Advance in Unison With Bonds as Fed Inspires Global Rally(Bloomberg) From stocks in Sydney to bonds in Britain, financial markets rallied in unison around the world as the dollar weakened after the Federal Reserve left interest rates unchanged and scaled back its projections for future hikes.
  • Oil rises on weaker dollar after U.S. crude stock draw (Reuters) Oil rose for a second day on Thursday as a weaker dollar and a surprisingly large drop in U.S. crude inventories emboldened investors ahead of next week’s meeting between OPEC members and Russia to discuss supply. Brent crude futures LCOc1 rose 44 cents to $47.27 a barrel by 1100 GMT, or a 3.2 percent gain so far this week, while U.S oil futures CLc1 were up 47 cents at $45.81 a barrel.
  • Brexit Bulletin: Banks Throw in the Towel on Clearing (Bloomberg) Global investment banks are throwing in the towel in the battle to keep London the home for clearing of $570 billion of euro derivatives. Executives tell Bloomberg’s Gavin Finch and John Detrixhe they expect France or Germany to prevail in the tussle once Brexit is underway and are making plans to cope.
  • Bank of England says UK faces ‘challenging period’ for financial stability (Reuters) Britain still faces a “challenging period” for financial stability despite resilience seen after the European Union referendum, and rules for banks must remain stay tight, the Bank of England said on Thursday.
  • German economic growth will slow in second half, ministry says (Reuters) The German economy will lose steam in the second half of 2016 as weaker foreign demand causes industrial output to slow, the Finance Ministry said on Thursday, another sign that Europe’s biggest economy is set for a slowdown.
  • French industry confidence unexpectedly picks up in September (Reuters) French industrial sentiment unexpectedly picked up in September along with broader business confidence, an official survey showed, raising hope of a rebound by the euro zone’s second-largest economy this quarter from stagnation in the spring.

Overnight markets

  • Overview: US 10yr note futures are up 0.2034% at 130-28, S&P 500 futures are up 0.39% at 2164.75, Crude oil futures are up 2.05% at $46.27, Gold futures are up 0.63% at $1339.8, DXY is down -0.5% at 95.186.

US Economic Data

  • 8:30 AM: Chicago Fed Nat Activity Index, Aug, -0.55, est. 0.15 (prior 0.27, revised 0.24)
    •      Initial Jobless Claims, Sep 17th, 252k, est. 261k, (prior 260k)
    •      Continuing Claims, Sep 10th, 2113k, est. 2140k (prior 2143k, revised 2149k)
  • 9:00 AM: FHFA House Price Index, m/m, Jul, est. 0.3% (prior 0.2%)
  • 10:00 AM: Existing Home Sales, Aug, est. 5.45m (prior 5.39m)
    •       Existing Home Sales, m/m, Aug, est. 1.1% (prior-3.2%)
    •       Leading Indicator, Aug, est. 0.0% (prior 0.4%)
  • 11:00 AM: Kansas City Fed Manufacturing Index, Sep, est. -3 (prior -4)

 Canadian Economic Data

  • There is major economic data release 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, David Leclair-Legault

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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