Market Update
Tsys slightly lower, declining as equity futures pare losses, 10Y 1.65%, focus on House Democrat’s impeachment inquiry with transcript of call between trump and Ukrainian Pres expected to be released today. S&P futures have rallied back close to unch after being down 0.50%, DXY erasing yesterday’s losses. No eco data thou multiple Fed speakers and $18bln 2Y FRN & $41bln 5Y note auctions. UK gilts outperforming in core Europe, fallout from yest Supreme Court ruling hitting the BP. GOCs higher, 1bp narrower vs tsys in 10s, 3Y auction at noon (reopening Sep 22s for $2.4bln).
News headlines
U.S. Futures Slip, Europe Stocks Slump; Oil Falls: Markets Wrap (Bloomberg) U.S. equity-index futures dipped while stocks slumped in Europe and Asia as investors weighed the deepening political gridlock in Washington against prospects for reduced trade tension between America and China. The dollar advanced and oil fell.
TSX futures slip on lower oil prices (Reuters) Futures for Canada’s main index fell on Wednesday, as oil prices slipped over demand concerns.
Oil Declines as Saudi Arabia Restores Capacity Ahead of Schedule (Bloomberg) Oil extended declines as Saudi Arabia was said to be ahead of schedule in restoring its output capacity.
Explainer: Trade deal in focus as Trump, Japan’s Abe head for summit (Reuters) U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe meet in New York later on Wednesday to try to clinch a deal on farm tariffs and digital trade.
Trump impeachment? History suggests Wall Street ought not worry (Reuters) The move by Democrats in the U.S. Congress on Tuesday to launch a formal impeachment inquiry into President Donald Trump has caused nervousness on Wall Street – but history suggests investors need not worry.
Sanctions-hit Iran props up economy with bartering, secret deals (Reuters) Washington’s policy of applying “maximum pressure” on Iran with wide-ranging sanctions has shredded the country’s oil revenues, sent its economy into recession and devalued its national currency.
China says has no intent to play ‘Game of Thrones’ but warns on sovereignty (Reuters) China’s top diplomat hit back at U.S. criticism of its trade and development model on Tuesday, saying Beijing had no intention to “play the Game of Thrones on the world stage” but warned Washington to respect its sovereignty, including in Hong Kong.
Market Overview: US 10yr note futures are down -0.096% at 130-19, S&P 500 futures are down -0.07% at 2968.25, Crude oil futures are down -1.87% at $56.22, Gold futures are down -0.4% at $1534, DXY is up 0.43% at 98.763, CAD/USD is up 0.27% at 0.7532.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.516% | 2 Year | 1.614% |
| 5 Year | 1.333% | 5 Year | 1.529% |
| 10 Year | 1.299% | 10 Year | 1.647% |
| 30 Year | 1.472% | 30 Year | 2.096% |
US Economic Data
| 07:00 AM | MBA Mortgage Applications, Sep 20 Survey: — Actual: -10.1% Prior: -0.1% |
| 10:00 AM | New Home Sales, Aug Survey: 659k Prior: 635k |
| New Home Sales MoM, Aug Survey: 3.8% Prior: -12.8% |
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