Market Update
US tsys moving lower, TY futures at lows of o/n session on moderate volume (~335k), 10Y 1.735% (+2bps), MNI citing a WSJ article on earlier than earlier Fed balance sheet runoff , no Fedspeak before FOMC decision next Wednesday, whiel todays US Durable Goods & New Home Sales data are postponed. EGBs trading mixed, bunds sideways, gilts underperforming before next week’s parliament vote on – German IFO expecations fell to the lowest since Nov 2012 yet was priced in after yesterdays weak ZEW. Month end extensions in focus with the Bloomberg-Barclays US Tsy index expected to increase by 0.06yrs vs 0.07 last Jan. GOCs lower, in line with tsys, 10Y 1.955%, Can/US 2-3bps tighter vs the US wk/wk led by 10s.
News headlines
Fed Officials Weigh Earlier-Than-Expected End to Bond Portfolio Runoff (WSJ)Federal Reserve officials are close to deciding they will maintain a larger portfolio of Treasury securities than they’d expected when they began shrinking those holdings two years ago, putting an end to the central bank’s portfolio wind-down closer into sight.
Global stocks gain on earnings, euro rebounds after dovish ECB (Reuters) Global stocks rose on Friday, as strong earnings helped to underpin investor sentiment in the face of growing signs that the global economy is slowing and a still unresolved trade dispute between the United States and China.
U.S. fund managers play defense during shutdown (Reuters) U.S. fund managers are retreating from consumer-related stocks and increasing exposure to loan-focused companies as investors worry the U.S. government shutdown – now the longest in U.S. history – may leave some deep scars on the economy.
Global shipping rates slump in latest sign of economic slowdown (Reuters) Freight rates for dry-bulk and container ships, carriers of most of the world’s raw materials and finished goods, have plunged over the last six months in the latest sign the global economy is slowing significantly.
Shutdown Talks Signal Potential for Deal Even as Trump Demands Wall (Bloomberg) New negotiations between the Senate’s top Republican and Democrat and the White House signaled the potential for a deal to end the partial government shutdown even as President Donald Trump continued to insist on money for a border wall that Democrats reject.
Canada’s China Ambassador Says He ‘Misspoke’ on Politics of Huawei Case (Bloomberg) Canada’s ambassador to China sought to retract comments suggesting politics would play a role in the potential extradition to the U.S. of a Huawei Technologies Co. executive, adding another setback to weeks of tension between the two countries.
Tech exuberance lifts European shares near two-month highs (Reuters) European shares on Friday hit their highest level in nearly two months as investors flocked to technology stocks after positive U.S. earnings overnight, while news of slowing revenue growth from Vodafone weighed on telecoms.
US STOCKS-Futures higher as upbeat corporate earnings lift sentiment (Reuters) U.S. stock index futures rose on Friday, as upbeat earnings reports lifted market optimism, which has recently been hit by worries about global economic growth, U.S. government shutdown and uncertainty around U.S.-China trade talks.
European shares hit highest level in nearly two months, helped by tech rally (Reuters) European shares on Friday hit their highest level in nearly two months as investors flocked to technology stocks after positive U.S. earnings overnight, while news of slowing revenue growth from Vodafone weighed on telecoms.
Overnight markets
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