Market Update
US tsys pressured as stocks rebound , US 10Y 2.52% , curve 1bp steeper, core Euro bonds retracing earlier gains while Italian BTP 10Y spreads are 5bps narrower vs bunds. Q1 GDP the highlight for the US, 2.3% exp vs 2.2% pre – both the Bloomberg and Nowcast estimates have moved steadily higher over the last month due to strong inventory build and a signs of a rebound in consumption. GOCs are heading lower before 8:30 US data, 10Y 1.71% . No data in Canada, Feb GDP next Tuesday.
News headlines
Exports, inventories seen boosting U.S. first-quarter growth (Reuters) The U.S. economy likely maintained a moderate pace of growth in the first quarter, which could further dispel earlier fears of a recession even though activity was driven by temporary factors.
Stocks, Dollar in Holding Pattern Before U.S. Data: Markets Wrap (Bloomberg) U.S. equity futures and European stocks drifted alongside their Asian counterparts on Friday as investors counted down to the release of first-quarter American growth data and earnings season continued apace. The dollar was steady.
TSX futures lower as oil prices fall (Reuters) Futures for Canada’s main stock index were lower on Friday, as oil prices fell on expectations that OPEC will raise output to counter shrinking exports from Iran after sanctions imposed by the United States.
Japan tells U.S. can’t link monetary policy to trade: finance minister Aso (Reuters) Japanese Finance Minister Taro Aso said on Thursday he told U.S. Treasury Secretary Steven Mnuchin that Tokyo cannot accept discussions that link monetary policy to trade issues
No stone unturned: South Korea to sweep world for Iran oil replacement (Reuters) South Korea will likely return to a familiar game plan to replace Iranian oil it will no longer have access to after May now that the United States intends to tighten sanctions on Iranian exports.
Poloz ‘much too optimistic’ on Canadian growth, economist says (BNN) A Canadian economist is warning that the Bank of Canada is far too optimistic on the country’s long-term outlook, but says he sees a bright spot for some sectors that can benefit from strength in the global economy.
Gold eyes weekly gain as dollar dips ahead of U.S. GDP data (Reuters) Gold rose on Friday, pulling further away from the four-month low it hit earlier this week as the U.S. dollar and Treasury yields dipped ahead of U.S. growth data, putting bullion on track for its first weekly gain in five.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.548% | 2 Year | 2.314% |
| 5 Year | 1.532% | 5 Year | 2.315% |
| 10 Year | 1.698% | 10 Year | 2.522% |
| 30 Year | 1.992% | 30 Year | 2.938% |
US Economic Data
| 08:30 AM | GDP Annualized QoQ, 1Q A Survey 2.30% Actual 3.20% Prior 2.20% |
| Personal Consumption, 1Q A Survey 1.00% Actual 1.20% Prior 2.50% | |
| GDP Price Index, 1Q A Survey 1.20% Actual 0.9% Prior 1.70% | |
| Core PCE QoQ, 1Q A Survey 1.40% Actual 1.3% Prior 1.80% | |
| 10:00 AM | U. of Mich. Sentiment, Apr F Survey 97.0 Prior 96.9 |
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